Condensed Balance Sheet Condensed by m9Mwz9I

VIEWS: 43 PAGES: 45

									Name                 Chapter 14 Brief Exercises
Section
Date                               Uncle Frank

      BE14-1




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               621
Name                                          Chapter 14 Brief Exercises Continued
Section
Date                                                      Drew Carey Corporation

     BE14-2




  1 (a)                                                                       1
  2                                                                           2
  3                                                                           3
  4                                                                           4
  5                                                                           5
 6                                                                            6
 7                                                                            7
 8                                                                            8
 9                                                                            9
10 (b)        Horizontal Analysis:     2007        2008            2009       10
11             Current assets                                                 11
12                                                                            12
13                                                                            13
14            Vertical Analysis:       2007        2008            2009       14
15             Current assets                                                 15
16                                                                            16
17                                                                            17
18                                                                            18
19                                                                            19
20            Ratio Analysis:          2007        2008            2009       20
21             Current ratio                                                  21
22                                                                            22
23                                                                            23
24                                                                            24
25                                                                            25
26                                                                            26
27                                                                            27
28                                                                            28
29                                                                            29
30                                                                            30
31                                                                            31
32                                                                            32
33                                                                            33
34                                                                            34
35                                                                            35
36                                                                            36
37                                                                            37
38                                                                            38
39                                                                            39
40                                                                            40



                                     622
Name                                                        Chapter 14 Brief Exercises Continued
Section
Date

                                                                         Horizontal Analysis
                                                                       Increase
                                                                    or (Decrease)
     BE14-3                 Dec. 31, 2009   Dec. 31, 2008        Amount       Percentage
  1 Accounts receivable                                                                        1
  2 Inventory                                                                                  2
  3 Total assets                                                                               3
  4                                                                                            4
  5                                                                                            5
 6                                                                                            6
 7                                                                                            7
 8                                                                                            8
 9                                                                                            9
10 BE14-4                                                                   Vertical Analysis 10
11                                Dec. 31, 2009                     Dec. 31, 2008              11
12                            Amount        Percentage           Amount       Percentage       12
13 Accounts receivable                                                                         13
14 Inventory                                                                                   14
15 Total assets                                                                                15
16                                                                                             16
17                                                                                             17
18                                                                                             18
19                                                                                             19
20                                                                                             20
21                                                                                             21
22                                                                                             22
23 BE14-5                                                                                      23
24                                              2009              2008            2007         24
25        Net income                                                                           25
26                                                                                             26
27                                                                                             27
28                                                                                             28
29                                                                Increase (Decrease)          29
30                                                               Amount       Percentage       30
31 (a)        2007 - 2008                                                                      31
32 (b)        2008 - 2009                                                                      32
33                                                                                             33
34                                                                                             34
35                                                                                             35
36                                                                                             36
37                                                                                             37
38                                                                                             38
39                                                                                             39
40                                                                                             40



                                   623
Name                                          Chapter 14 Brief Exercises Continued
Section
Date




     BE14-6                       2009             2008           Increase
  1                                                                          1
  2 Net income                    $585,000                               30% 2
  3                                                                          3
  4                                                                          4
  5                                                                          5
 6                                                                            6
 7                                                                            7
 8                                                                            8
 9                                                                            9
10                                                                            10
11 BE14-7                                                                     11
12                                                                            12
13                                                                            13
14                                                                            14
15                                                                            15
16                                                                           16
17   BE14-8                       2009             2008            2007      17
18   Sales                            100.0            100.0           100.0 18
19   Cost of goods sold                59.2             62.4            64.5 19
20   Expenses                          25.0             25.6            27.5 20
21                                                                            21
22                                                                            22
23                                                                            23
24                                                                            24
25                                                                            25
26                                                                            26
27 BE48-9                                                                     27
28 (a)    Working capital                                                     28
29                                                                            29
30                                                                            30
31                                                                            31
32                                                                            32
33 (b)        Current ratio                                                   33
34                                                                            34
35                                                                            35
36 (c)        Acid-test ratio                                                 36
37                                                                            37
38                                                                            38
39                                                                            39
40                                                                            40



                                624
Name                                               Chapter 14 Brief Exercises Continued
Section
Date




     BE14-10
  1 (a)         Asset turnover                                                     1
  2                                                                                2
  3                                                                                3
  4                                                                                4
  5                                                                                5
 6 (b)          Profit margin                                                      6
 7                                                                                 7
 8                                                                                 8
 9                                                                                 9
10                                                                                 10
11 BE8-11                     2009                        2008                     11
12 (a) (1) Receivables turnover:                                                   12
13                                                                                 13
14                                                                                 14
15                                                                                 15
16                                                                                 16
17                                                                                 17
18        (2)   Average collection period:                                         18
19                                                                                 19
20                                                                                 20
21 (b)                                                                             21
22                                                                                 22
23                                                                                 23
24                                                                                 24
25                                                                                 25
26 BE14-12                     2009                       2008                     26
27 (a) (1) Inventory turnover:                                                     27
28                                                                                 28
29                                                                                 29
30                                                                                 30
31                                                                                 31
32                                                                                 32
33                                                                                 33
34                                                                                 34
35                                                                                 35
36                                                                                 36
37                                                                                 37
38        (2)   Days in inventory:                                                 38
39                                                                                 39
40                                                                                 40



                                             625
Name                                                  Chapter 14 Brief Exercises Continued
Section
Date

     BE14-12 (Continued)




  1 (b)                                                                               1
  2                                                                                   2
  3                                                                                   3
  4                                                                                   4
  5                                                                                   5
 6 BE14-13                                                                            6
 7 Cash dividends:                                                                    7
 8                                                                                    8
 9                                                                                    9
10                                                                                    10
11                                                                                    11
12                                                                                    12
13                                                                                    13
14                                                                                    14
15                                                                                    15
16 Average assets:                                                                    16
17                                                                                    17
18                                                                                    18
19                                                                                    19
20                                                                                    20
21                                                                                    21
22                                                                                    22
23                                                                                    23
24                                                                                    24
25                                                                                    25
26                                                                                    26
27                                                                                    27
28                                                                                    28
29                                                                                    29
30 BE14-14                                                                            30
31                            Ming Corporation                                        31
32                         Partial Income Statement                                   32
33                                                                                    33
34                                                                                    34
35                                                                                    35
36                                                                                    36
37                                                                                    37
38                                                                                    38
39                                                                                    39
40                                                                                    40



                                         626
Name                                       Chapter 14 Brief Exercises Concluded
Section
Date

      BE48-15
                 Reeves Corporation
                Partial Income Statement

  1                                                                        1
  2                                                                        2
  3                                                                        3
  4                                                                        4
  5                                                                        5
 6                                                                         6
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31                                                                         31
32                                                                         32
33                                                                         33
34                                                                         34
35                                                                         35
36                                                                         36
37                                                                         37
38                                                                         38
39                                                                         39
40                                                                         40



                     627
Name                                                                            Exercises 14-1 to 14-2
Section
Date

     E14-1                                                                     Horizontal Analysis
                                            Blevins Inc.
                                      Condensed Balance Sheet
                                           December 31,
  1                                                                    Increase or (Decrease)          1
  2              Assets                 2009            2008          Amount           Percent         2
  3 Current assets                      $125,000        $100,000                                       3
  4 Plant assets (net)                   396,000         330,000                                       4
  5 Total assets                                                                                       5
 6                                                                                                     6
 7             Liabilities                                                                             7
 8 Current liabilities                   $91,000            $70,000                                    8
 9 Long-term liabilities                 133,000             95,000                                    9
10 Total liabilities                                                                                   10
11                                                                                                     11
12       Stockholders' Equity                                                                          12
13 Common stock, $1 par                  161,000            115,000                                    13
14 Retained earnings                     136,000            150,000                                    14
15 Total stockholders' equity                                                                          15
16     Total liabilities and                                                                           16
17       stockholders' equity                                                                          17
18                                                                                                     18

     E14-2                                                                         Vertical Analysis
                                          Gallup Corporation
                                    Condensed Income Statement
                                  For the Years Ended December 31,
  1                                            2009                            2008                    1
  2                                   Amount           Percent        Amount           Percent         2
  3 Sales                              $750,000                        $600,000                        3
  4 Cost of goods sold                  465,000                         390,000                        4
  5 Gross profit                                                                                       5
 6   Selling expenses                    120,000                          72,000                       6
 7   Administrative expenses              60,000                          54,000                       7
 8   Total operating expenses                                                                          8
 9   Income before income taxes                                                                        9
10   Income tax expense                   33,000                          24,000                       10
11 Net income                                                                                          11
12                                                                                                     12
13                                                                                                     13
14                                                                                                     14
15                                                                                                     15
16                                                                                                     16
17                                                                                                     17



                                                      628
Name                                                                                            Exercise 14-3
Section
Date                                                                                      Conard Corporation

     (a)                                                                               Horizontal Analysis
                                             Conard Corporation
                                           Comparative Balance Sheet
                                               December 31,
  1                                                                        Increase         % Change         1
  2              Assets                       2009            2008        (Decrease)        from 2008        2
  3 Current assets                              $74,000         $80,000                                      3
  4 Property, plant, & equip. (net)              99,000          90,000                                      4
  5 Intangibles                                  27,000          40,000                                      5
 6 Total assets                                $200,000       $210,000                                       6
 7                                                                                                           7
 8 Liabilities & Stockholders'                                                                               8
 9       Equity                                                                                              9
10 Current liabilities                              $42,000     $48,000                                      10
11 Long-term liabilities                            143,000     150,000                                      11
12 Stockholders' equity                              15,000      12,000                                      12
13 Total liabilities and                                                                                     13
14     stockholders' equity                    $200,000       $210,000                                       14
15                                                                                                           15
16                                                                                                           16
17                                                                                                           17
18                                                                                                           18
19                                                                                                           19
20                                                                                                           20

     (b)                                                                                 Vertical Analysis
                                              Conard Corporation
                                            Condensed Balance Sheet
                                               December 31, 2009
  1                              Assets                                    Amount             Percent        1
  2 Current assets                                                            $74,000                        2
  3 Property, plant, and equipment (net)                                       99,000                        3
  4 Intangibles                                                                27,000                        4
  5 Total assets                                                             $200,000                        5
 6                                                                                                           6
 7                    Liabilities and Stockholders' Equity                                                   7
 8 Current liabilities                                                        $42,000                        8
 9 Long-term liabilities                                                      143,000                        9
10 Stockholders' equity                                                        15,000                        10
11     Total liabilities and stockholders' equity                            $200,000                        11
12                                                                                                           12
13                                                                                                           13
14                                                                                                           14
15                                                                                                           15



                                                      629
Name                                                                                    Exercises 14-4 to 14-5
Section
Date

      E14-4
                                               Hendi Corporation
                                         Condensed Income Statements
                                       For the Years Ended December 31,
  1 (a) Horizontal Analysis                                                 Increase or (Decrease)        1
  2                                                                              During 2008              2
  3                                          2009           2008           Amount           Percent       3
  4 Net sales                                 $600,000       $500,000                                     4
  5 Cost of goods sold                         483,000        420,000                                     5
 6    Gross profit                             117,000          80,000                                    6
 7    Operating expenses                        57,200          44,000                                    7
 8    Net income                               $59,800         $36,000                                    8
 9                                                                                                        9
10     (b) Vertical Analysis                                                                              10
11                                                 2009                            2008                   11
12                                         Amount       Percent            Amount       Percent           12
13 Net sales                                 $600,000                        $500,000                     13
14 Cost of goods sold                         483,000                         420,000                     14
15 Gross profit                               117,000                          80,000                     15
16 Operating expenses                           57,200                          44,000                    16
17 Net income                                  $59,800                         $36,000                    17
18                                                                                                        18

      E14-5




  1    (a)    Current ratio =                                                                             1
  2           Acid-test ratio =                                                                           2
  3           Receivables turnover =                                                                      3
  4           Inventory turnover =                                                                        4
  5                                                                                                       5
 6     (b)                     Ratio                     Nordstrom        J.C. Penney         Industry    6
 7            Current                                                                                     7
 8            Acid-test                                                                                   8
 9            Receivables turnover                                                                        9
10            Inventory turnover                                                                          10
11                                                                                                        11
12                                                                                                        12
13                                                                                                        13
14                                                                                                        14
15                                                                                                        15
16                                                                                                        16
17                                                                                                        17



                                                         630
Name                                                                                            Exercise 14-6
Section
Date                                                                                       Leach Incorporated



                                                        Total        Total         (a)          (b)
                  Quick                    Prepaid     Current      Current      Current     Acid-test
                Assets +   Inventory +   Expenses =    Assets      Liabilities    Ratio       Ratio
  1 Feb 1 Bal                  $15,000        $2,000    $130,000       $50,000
  2
  3 Feb 3
  4
  5 Bal
 6
 7 Feb 7
 8
 9 Bal
10
11 Feb 11
12
13 Bal
14
15 Feb 14
16
17 Bal
18
19 Feb 18
20
21 Bal
22
23
Name                                       Exercises 14-7 to 14-8
Section
Date

     E14-7




  1 (a)      Current ratio:                                  1
  2                                                          2
  3                                                          3
  4                                                          4
  5 (b)      Acid-test ratio:                                5
 6                                                           6
 7                                                           7
 8                                                           8
 9 (c)       Receivables turnover:                           9
10                                                           10
11                                                           11
12                                                           12
13                                                           13
14 (d)       Inventory turnover:                             14
15                                                           15
16                                                           16
17                                                           17
18                                                           18
19                                                           19
20                                                           20
21                                                           21
22                                                           22
23                                                           23
24                                                           24
25 E14-8                                                     25
26 (a)       Profit margin:                                  26
27                                                           27
28                                                           28
29 (b)       Asset turnover:                                 29
30                                                           30
31                                                           31
32                                                           32
33 (c)       Return on assets:                               33
34                                                           34
35                                                           35
36                                                           36
37 (d)       Return on common                                37
38           stockholders' equity:                           38
39                                                           39
40                                                           40



                                     632
Name                                               Exercises 14-9 to 14-10
Section
Date

     E14-9




  1 (a)      Earnings per share:                                      1
  2                                                                   2
  3                                                                   3
  4 (b)      Price-earnings:                                          4
  5                                                                   5
 6                                                                    6
 7                                                                    7
 8 (c)       Payout:                                                  8
 9                                                                    9
10                                                                    10
11 (d)       Times interest earned:                                   11
12                                                                    12
13                                                                    13
14                                                                    14
15                                                                    15
16 E14-10                                                             16
17 (a)       Cost of goods sold for 2009:                             17
18                                                                    18
19                                                                    19
20                                                                    20
21                                                                    21
22                                                                    22
23 (b)       Net sales (credit) for 2009:                             23
24                                                                    24
25                                                                    25
26                                                                    26
27                                                                    27
28                                                                    28
29 (c)       Net income for 2009:                                     29
30                                                                    30
31                                                                    31
32                                                                    32
33                                                                    33
34                                                                    34
35 (d)       Total assets at December 31, 2009:                       35
36                                                                    36
37                                                                    37
38                                                                    38
39                                                                    39
40                                                                    40



                                             633
Name                                       Exercise 14-11
Section
Date                                    Scully Corporation




  1 (a)   Current ratio:                              1
  2                                                   2
  3                                                   3
  4 (b)   Acid-test ratio:                            4
  5                                                   5
 6                                                    6
 7 (c)    Receivables turnover:                       7
 8                                                    8
 9                                                    9
10                                                    10
11 (d)    Inventory turnover:                         11
12                                                    12
13                                                    13
14                                                    14
15 (e)    Profit margin:                              15
16                                                    16
17                                                    17
18 (f)    Asset turnover:                             18
19                                                    19
20                                                    20
21                                                    21
22 (g)    Return on assets:                           22
23                                                    23
24                                                    24
25                                                    25
26 (h)    Return on common                            26
27        sockholders' equity:                        27
28                                                    28
29                                                    29
30                                                    30
31 (i)    Debt to total assets                        31
32        ratio:                                      32
33                                                    33
34                                                    34
35                                                    35
36                                                    36
37                                                    37
38                                                    38
39                                                    39
40                                                    40



                                  634
Name                                                 Exercise 14-12
Section
Date                                              Molini Corporation

      (a)
                    Molini Corporation
                  Partial Income Statement
            For The Year Ended October 31, 2008
  1                                                             1
  2                                                             2
  3                                                             3
  4                                                             4
  5                                                             5
 6                                                              6
 7                                                              7
 8                                                              8
 9                                                              9
10                                                              10

      (b)




  1                                                             1
  2                                                             2
  3                                                             3
  4                                                             4
  5                                                             5
 6                                                              6
 7                                                              7
 8                                                              8
 9                                                              9
10                                                              10
11                                                              11
12                                                              12
13                                                              13
14                                                              14
15                                                              15
16                                                              16
17                                                              17
18                                                              18
19                                                              19
20                                                              20
21                                                              21
22                                                              22
23                                                              23
24                                                              24
25                                                              25



                       635
Name                                                  Exercise 14-13
Section
Date                                               Yadier Corporation

      (a)
                     Yadier Corporation
                   Partial Income Statement
            For the Year Ended December 31, 2008
  1                                                              1
  2                                                              2
  3                                                              3
  4                                                              4
  5                                                              5
 6                                                               6
 7                                                               7
 8                                                               8
 9                                                               9
10                                                               10
11                                                               11
12                                                               12
13                                                               13
14                                                               14
15                                                               15

      (b)




  1                                                              1
  2                                                              2
  3                                                              3
  4                                                              4
  5                                                              5
 6                                                               6
 7                                                               7
 8                                                               8
 9                                                               9
10                                                               10
11                                                               11
12                                                               12
13                                                               13
14                                                               14
15                                                               15
16                                                               16
17                                                               17
18                                                               18
19                                                               19
20                                                               20



                                636
Name                                                                                     Problem 14-1
Section
Date                                                            Douglas Company and Maulder Company

      (a)


                                        Condensed Income Statement
                                   For the Year Ended December 31, 2009


                                           Douglas Company                  Maulder Company
                                         Dollars      Percent             Dollars      Percent
  1   Net sales                          $1,549,035                        $339,038              1
  2   Cost of goods sold                  1,080,490                         241,000              2
  3   Gross profit                                                                               3
  4   Operating expenses                    302,275                          79,000              4
  5   Income from operations                                                                     5
 6    Other expenses and losses                                                                  6
 7       Interest expense                     8,980                           2,252              7
 8    Income before income taxes                                                                 8
 9    Income tax expense                     54,500                           6,650              9
10    Net income                                                                                 10
11                                                                                               11
12                                                                                               12
13                                                                                               13
14                                                                                               14
15                                                                                               15

      (b)




  1                                                                                              1
  2                                                                                              2
  3                                                                                              3
  4                                                                                              4
  5                                                                                              5
 6                                                                                               6
 7                                                                                               7
 8                                                                                               8
 9                                                                                               9
10                                                                                               10
11                                                                                               11
12                                                                                               12
13                                                                                               13
14                                                                                               14
15                                                                                               15
16                                                                                               16
17                                                                                               17



                                               637
Name                                        Problem 14-1 Concluded
Section
Date                          Douglas Company and Maulder Company

      (b) (Continued)




  1                                                           1
  2                                                           2
  3                                                           3
  4                                                           4
  5                                                           5
 6                                                            6
 7                                                            7
 8                                                            8
 9                                                            9
10                                                            10
11                                                            11
12                                                            12
13                                                            13
14                                                            14
15                                                            15
16                                                            16
17                                                            17
18                                                            18
19                                                            19
20                                                            20
21                                                            21
22                                                            22
23                                                            23
24                                                            24
25                                                            25
26                                                            26
27                                                            27
28                                                            28
29                                                            29
30                                                            30
31                                                            31
32                                                            32
33                                                            33
34                                                            34
35                                                            35
36                                                            36
37                                                            37
38                                                            38
39                                                            39
40                                                            40



                        638
Name                                                      Problem 14-2
Section
Date                                                 Villa Tool Company




  1 (a) Earnings per share                                         1
  2                                                                2
  3                                                                3
  4                                                                4
  5                                                                5
 6 (b) Return on common stockholders' equity                       6
 7                                                                 7
 8                                                                 8
 9                                                                 9
10                                                                 10
11                                                                 11
12                                                                 12
13                                                                 13
14 (c) Return on assets                                            14
15                                                                 15
16                                                                 16
17                                                                 17
18                                                                 18
19                                                                 19
20 (d) Current ratio                                               20
21                                                                 21
22                                                                 22
23                                                                 23
24                                                                 24
25                                                                 25
26 (e) Acid-test ratio                                             26
27                                                                 27
28                                                                 28
29                                                                 29
30                                                                 30
31 (f) Receivables turnover                                        31
32                                                                 32
33                                                                 33
34                                                                 34
35                                                                 35
36                                                                 36
37                                                                 37
38                                                                 38
39                                                                 39
40                                                                 40



                                               639
Name                                 Problem 14-2 Concluded
Section
Date                                     Villa Tool Company




  1 (g) Inventory turnover                             1
  2                                                    2
  3                                                    3
  4                                                    4
  5                                                    5
 6                                                     6
 7                                                     7
 8                                                     8
 9 (h) Times interest earned                           9
10                                                     10
11                                                     11
12                                                     12
13                                                     13
14 (i) Asset turnover                                  14
15                                                     15
16                                                     16
17                                                     17
18                                                     18
19 (j) Debt to total assets                            19
20                                                     20
21                                                     21
22                                                     22
23                                                     23
24                                                     24
25                                                     25
26                                                     26
27                                                     27
28                                                     28
29                                                     29
30                                                     30
31                                                     31
32                                                     32
33                                                     33
34                                                     34
35                                                     35
36                                                     36
37                                                     37
38                                                     38
39                                                     39
40                                                     40



                               640
Name                                                        Problem 14-3
Section
Date                                              Kersenbrock Corporation

     (a)

                              2008         2009
     (1) Profit margin
  1                                                                  1
  2                                                                  2
  3                                                                  3
  4                                                                  4
  5 (2) Asset turnover                                               5
 6                                                                   6
 7                                                                   7
 8                                                                   8
 9                                                                   9
10                                                                   10
11 (3) Earnings per share                                            11
12                                                                   12
13                                                                   13
14                                                                   14
15 (4) Price-earnings ratio                                          15
16                                                                   16
17                                                                   17
18                                                                   18
19 (5) Payout ratio                                                  19
20                                                                   20
21                                                                   21
22                                                                   22
23                                                                   23
24                                                                   24
25 (6) Debt to total assets                                          25
26                                                                   26
27                                                                   27
28                                                                   28
29                                                                   29
30                                                                   30
31 (b)                                                               31
32                                                                   32
33                                                                   33
34                                                                   34
35                                                                   35
36                                                                   36
37                                                                   37
38                                                                   38
39                                                                   39
40                                                                   40



                                     641
Name                                            Problem 14-4
Section
Date                                        Hanshew Company

    (a)



                        2008         2009      Change
  1       LIQUIDITY                                     1
  2 Current ratio                                       2
  3                                                     3
  4                                                     4
  5                                                     5
 6 Acid-test ratio                                      6
 7                                                      7
 8                                                      8
 9                                                      9
10 Receivables turnover                                 10
11                                                      11
12                                                      12
13                                                      13
14 Inventory turnover                                   14
15                                                      15
16                                                      16
17                                                      17
18 Liquidity analysis                                   18
19                                                      19
20                                                      20
21                                                      21
22 PROFITABILITY                                        22
23 Profit margin:                                       23
24                                                      24
25                                                      25
26 Asset turnover:                                      26
27                                                      27
28                                                      28
29                                                      29
30 Return on assets:                                    30
31                                                      31
32                                                      32
33                                                      33
34 Earnings per share:                                  34
35                                                      35
36                                                      36
37                                                      37
38 Profitability analysis:                              38
39                                                      39
40                                                      40



                               642
Name                                        Problem 14-4 Concluded
Section
Date                                            Hanshew Company

     (b)



                      2009           2010           Change
  1 1. Return on common                                       1
  2     stockholders' equity                                  2
  3                                                           3
  4                                                           4
  5                                                           5
 6                                                            6
 7                                                            7
 8                                                            8
 9 2. Debt to total assets                                    9
10                                                            10
11                                                            11
12                                                            12
13                                                            13
14                                                            14
15 3. Price-earnings ratio                                    15
16                                                            16
17                                                            17
18                                                            18
19                                                            19
20                                                            20
21                                                            21
22                                                            22
23                                                            23
24                                                            24
25                                                            25
26                                                            26
27                                                            27
28                                                            28
29                                                            29
30                                                            30
31                                                            31
32                                                            32
33                                                            33
34                                                            34
35                                                            35
36                                                            36
37                                                            37
38                                                            38
39                                                            39
40                                                            40



                               643
Name                                                                         Problem 14-5
Section
Date                                           Target Corporation and Wal-Mart Stores, Inc.

      (a)


      (All dollars are in millions)
                                Target                    Wal-Mart
  1     (1) Current ratio                                                              1
  2                                                                                    2
  3                                                                                    3
  4                                                                                    4
  5                                                                                    5
 6      (2) Receivables turnover                                                       6
 7                                                                                     7
 8                                                                                     8
 9                                                                                     9
10                                                                                     10
11      (3) Average collection period                                                  11
12                                                                                     12
13                                                                                     13
14                                                                                     14
15                                                                                     15
16      (4) Inventory turnover                                                         16
17                                                                                     17
18                                                                                     18
19                                                                                     19
20                                                                                     20
21      (5) Days in inventory                                                          21
22                                                                                     22
23                                                                                     23
24                                                                                     24
25                                                                                     25
26      (6) Profit margin                                                              26
27                                                                                     27
28                                                                                     28
29                                                                                     29
30                                                                                     30
31      (7) Asset turnover                                                             31
32                                                                                     32
33                                                                                     33
34                                                                                     34
35                                                                                     35
36                                                                                     36
37      (8) Return on assets                                                           37
38                                                                                     38
39                                                                                     39
40                                                                                     40



                                         644
Name                                                                     Problem 14-5 Concluded
Section
Date                                                  Target Corporation and Wal-Mart Stores, Inc.

      (a) (Continued)



                           Target                                Wal-Mart
  1     (9) Return on common stockholders' equity                                             1
  2                                                                                           2
  3                                                                                           3
  4                                                                                           4
  5                                                                                           5
 6 (10) Debt to total assets                                                                  6
 7                                                                                            7
 8                                                                                            8
 9                                                                                            9
10                                                                                            10
11      (11) Times interest earned                                                            11
12                                                                                            12
13                                                                                            13
14                                                                                            14
15                                                                                            15

      (b)




  1                                                                                           1
  2                                                                                           2
  3                                                                                           3
  4                                                                                           4
  5                                                                                           5
 6                                                                                            6
 7                                                                                            7
 8                                                                                            8
 9                                                                                            9
10                                                                                            10
11                                                                                            11
12                                                                                            12
13                                                                                            13
14                                                                                            14
15                                                                                            15
16                                                                                            16
17                                                                                            17
18                                                                                            18
19                                                                                            19
20                                                                                            20



                                                645
Name                                  Problem 14-6
Section
Date                                Dillon Company




  1 (a) Current ratio                         1
  2                                           2
  3                                           3
  4                                           4
  5                                           5
 6 (b) Acid-test ratio                        6
 7                                            7
 8                                            8
 9                                            9
10                                            10
11                                            11
12 (c) Receivables turnover                   12
13                                            13
14                                            14
15                                            15
16                                            16
17                                            17
18                                            18
19 (d) Inventory turnover                     19
20                                            20
21                                            21
22                                            22
23                                            23
24                                            24
25                                            25
26 (e) Profit margin ratio                    26
27                                            27
28                                            28
29                                            29
30                                            30
31                                            31
32 (f) Asset turnover                         32
33                                            33
34                                            34
35                                            35
36                                            36
37                                            37
38                                            38
39                                            39
40                                            40



                              646
Name                                                 Problem 14-6 Concluded
Section
Date                                                         Dillon Company




  1 (g) Return on assets                                               1
  2                                                                    2
  3                                                                    3
  4                                                                    4
  5                                                                    5
 6                                                                     6
 7                                                                     7
 8 (h) Return on common stockholders' equity                           8
 9                                                                     9
10                                                                     10
11                                                                     11
12                                                                     12
13                                                                     13
14 (i) Earnings per share                                              14
15                                                                     15
16                                                                     16
17                                                                     17
18                                                                     18
19                                                                     19
20 (j) Price-earnings ratio                                            20
21                                                                     21
22                                                                     22
23                                                                     23
24                                                                     24
25 (k) Payout ratio                                                    25
26                                                                     26
27                                                                     27
28                                                                     28
29                                                                     29
30                                                                     30
31 (l) Debt to total assets                                            31
32                                                                     32
33                                                                     33
34                                                                     34
35                                                                     35
36 (m) Times interest earned                                           36
37                                                                     37
38                                                                     38
39                                                                     39
40                                                                     40



                                               647
Name                                                                                        Problem 14-7
Section
Date                                                                                     Cotte Corporation

                                            (Fill in the missing amounts)
                                                Cotte Corporation
                                                Income Statement
                                      For the Year Ended December 31, 2009
  1                                                                                                  1
  2   Sales                                                                              $11,000,000 2
  3   Cost of goods sold                                                                             3
  4   Gross profit                                                                                   4
  5   Operating expenses                                                                   1,665,000 5
 6    Income from operations                                                                         6
 7    Other expenses and losses                                                                      7
 8    Interest expense                                                                               8
 9    Income before income taxes                                                                     9
10    Income tax expense                                                                     560,000 10
11    Net income                                                                                     11


                                                    Cotte Corporation
                                                     Balance Sheets
                                                      December 31
  1                                Assets                                    2009          2008      1
  2    Current Assets                                                                                2
  3     Cash                                                                 $450,000       $375,000 3
  4     Accounts receivable (net)                                                            950,000 4
  5     Inventory                                                                          1,720,000 5
 6        Total current assets                                                             3,045,000 6
 7     Plant assets (net)                                                    4,620,000     3,955,000 7
 8     Total assets                                                                       $7,000,000 8
 9                                                                                                   9
10                 Liabilities and Stockholders' Equity                                              10
11     Current liabilities                                                                  $825,000   11
12     Long-term notes payable                                                             2,800,000   12
13      Total liabilities                                                                  3,625,000   13
14     Common stock, $1 par                                                  3,000,000     3,000,000   14
15     Retained earnings                                                       400,000       375,000   15
16      Total stockholders' equity                                           3,400,000     3,375,000 16
17     Total liabilities and stockholders' equity                                         $7,000,000 17




                                                              648
Name            Problem 14-7 Continued
Section
Date                 Cotte Corporation




  1                               1
  2                               2
  3                               3
  4                               4
  5                               5
 6                                6
 7                                7
 8                                8
 9                                9
10                                10
11                                11
12                                12
13                                13
14                                14
15                                15
16                                16
17                                17
18                                18
19                                19
20                                20
21                                21
22                                22
23                                23
24                                24
25                                25
26                                26
27                                27
28                                28
29                                29
30                                30
31                                31
32                                32
33                                33
34                                34
35                                35
36                                36
37                                37
38                                38
39                                39
40                                40



          649
Name            Problem 14-7 Concluded
Section
Date                  Cotte Corporation




  1                                1
  2                                2
  3                                3
  4                                4
  5                                5
 6                                 6
 7                                 7
 8                                 8
 9                                 9
10                                 10
11                                 11
12                                 12
13                                 13
14                                 14
15                                 15
16                                 16
17                                 17
18                                 18
19                                 19
20                                 20
21                                 21
22                                 22
23                                 23
24                                 24
25                                 25
26                                 26
27                                 27
28                                 28
29                                 29
30                                 30
31                                 31
32                                 32
33                                 33
34                                 34
35                                 35
36                                 36
37                                 37
38                                 38
39                                 39
40                                 40



          650
Name                                                   Problem 14-8
Section
Date                                             Cheaney Corporation



                   Cheaney Corporation
               Condensed Income Statement
          For the Year Ended December 31, 2008
  1                                                             1
  2                                                             2
  3                                                             3
  4                                                             4
  5                                                             5
 6                                                              6
 7                                                              7
 8                                                              8
 9                                                              9
10                                                              10
11                                                              11
12                                                              12
13                                                              13
14                                                              14
15                                                              15
16                                                              16
17                                                              17
18                                                              18
19                                                              19
20                                                              20
21                                                              21
22                                                              22
23                                                              23
24                                                              24
25                                                              25
26                                                              26
27                                                              27
28                                                              28
29                                                              29
30                                                              30
31                                                              31
32                                                              32
33                                                              33
34                                                              34
35                                                              35
36                                                              36
37                                                              37
38                                                              38
39                                                              39
40                                                              40



                      651
Name                                                   Problem 14-9
Section
Date                                             LaRussa Corporation



                   LaRussa Corporation
                     Income Statement
          For the Year Ended December 31, 2008
  1                                                             1
  2                                                             2
  3                                                             3
  4                                                             4
  5                                                             5
 6                                                              6
 7                                                              7
 8                                                              8
 9                                                              9
10                                                              10
11                                                              11
12                                                              12
13                                                              13
14                                                              14
15                                                              15
16                                                              16
17                                                              17
18                                                              18
19                                                              19
20                                                              20
21                                                              21
22                                                              22
23                                                              23
24                                                              24
25                                                              25
26                                                              26
27                                                              27
28                                                              28
29                                                              29
30                                                              30
31                                                              31
32                                                              32
33                                                              33
34                                                              34
35                                                              35
36                                                              36
37                                                              37
38                                                              38
39                                                              39
40                                                              40



                              652
Name                                                                                                 Chapter 14 Financial Reporting Problem
Section
Date                                                                                                                          PepsiCo, Inc.

      (a)
                                                                  PepsiCo, Inc.
                                                   Trend Analysis of Net Sales and Net Income
                                                         For the Five Years Ended 2005
                Base Period 2001 - (in millions)              2005             2004           2003           2002            2001
  1     (1) Net sales                                                                                                                  1
  2                                                                                                                                    2
  3     Trend                                                                                                                          3
  4                                                                                                                                    4
  5     (2) Net income                                                                                                                 5
 6                                                                                                                                     6
 7 Trend                                                                                                                               7
 8                                                                                                                                     8
 9 Analysis:                                                                                                                           9
10                                                                                                                                     10
11                                                                                                                                     11
12                                                                                                                                     12
Name                                                                                         Chapter 14 Financial Reporting Problem Continued
Section
Date                                                                                                                            PepsiCo, Inc.

    (b)     (dollar amounts in millions)
                                                           PepsiCo, Inc.
                                               2005 and 2004 Ratio Analysis: Profitability
                                    2005                                                               2004
  1 (1) Profit margin                                                                                                                    1
  2                                                                                                                                      2
  3                                                                                                                                      3
  4                                                                                                                                      4
  5                                                                                                                                      5
 6 (2) Asset turnover                                                                                                                    6
 7                                                                                                                                       7
 8                                                                                                                                       8
 9                                                                                                                                       9
10                                                                                                                                       10
11                                                                                                                                       11
12 (3) Return on assets                                                                                                                  12
13                                                                                                                                       13
14                                                                                                                                       14
15                                                                                                                                       15
16                                                                                                                                       16
17                                                                                                                                       17
18 (4) Return on common stockholders' equity                                                                                             18
19                                                                                                                                       19
20                                                                                                                                       20
21                                                                                                                                       21
22                                                                                                                                       22
23 Analysis:                                                                                                                             23
24                                                                                                                                       24
Name                                                                                 Chapter 14 Financial Reporting Problem Concluded
Section
Date                                                                                                                    PepsiCo, Inc.

      (c)    (dollar amounts in millions)
                                                       PepsiCo, Inc.
                                            2005 and 2004 Ratio Analysis: Solvency
                                     2005                                                      2004
  1 (1) Debt to total assets                                                                                                     1
  2                                                                                                                              2
  5                                                                                                                              5
 6                                                                                                                               6
 7 (2) Times interest earned                                                                                                     7
 8                                                                                                                               8
 9                                                                                                                               9
12                                                                                                                               12
13 Analysis:                                                                                                                     13
14                                                                                                                               14
15                                                                                                                               15

      (d)




  1                                                                                                                              1
  2                                                                                                                              2
  3                                                                                                                              3
  4                                                                                                                              4
  5                                                                                                                              5
  6                                                                                                                              6
  7                                                                                                                              7
  8                                                                                                                              8
Name                                              Chapter 14 Comparative Analysis Problem
Section
Date                                                 PepsiCo, Inc. vs. Coca-Cola Company




                                        PepsiCo   Coca-Cola Company
  1 (a)                                                                              1
  2                                                                                  2
  3 (1) (i) Percentage increase                                                      3
  4           (decrease) in net sales                                                4
  5                                                                                  5
  6                                                                                  6
 7                                                                                   7
 8     (ii) Percentage increase                                                      8
 9           (decrease) in net                                                       9
10           income                                                                  10
11                                                                                   11
12                                                                                   12
13 (2) (i) Percentage increase                                                       13
14          (decrease) in total                                                      14
15          assets                                                                   15
16                                                                                   16
17                                                                                   17
18     (ii)Percentage increase                                                       18
19          (decrease) in total                                                      19
20          stockholders' equity                                                     20
21                                                                                   21
22                                                                                   22
Name                                        Chapter 14 Comparative Analysis Problem Concluded
Section
Date                                                      PepsiCo, Inc. vs. Coca-Cola Company

     (a) (Continued)



                                  PepsiCo              Coca-Cola Company
23 (3) Basic earnings per share                                                          23
24                                                                                       24
25                                                                                       25
26                                                                                       26
27 Price-earnings ratio                                                                  27
28                                                                                       28
29                                                                                       29
30                                                                                       30
31    (b)                                                                                31
32                                                                                       32
33                                                                                       33
34                                                                                       34
35                                                                                       35
36                                                                                       36
37                                                                                       37
38                                                                                       38
39                                                                                       39
40                                                                                       40
Name            Chapter 14 Exploring The Web
Section
Date                  Annual Report Contents




  1 (a)                                 1
  2                                     2
  3                                     3
  4                                     4
  5                                     5
 6                                      6
 7                                      7
 8                                      8
 9                                      9
10 (b)                                  10
11                                      11
12                                      12
13                                      13
14                                      14
15                                      15
16 (c)                                  16
17                                      17
18                                      18
19                                      19
20                                      20
21 (d)                                  21
22                                      22
23                                      23
24                                      24
25                                      25
26                                      26
27 (e)                                  27
28                                      28
29                                      29
30                                      30
31                                      31
32                                      32
33                                      33
34                                      34
35                                      35
36                                      36
37                                      37
38                                      38
39                                      39
40                                      40



          658
Name            Chapter 14 Decision Making Across the Organization
Section
Date                                   Carismo Manufacturing Inc.




  1                                                           1
  2                                                           2
  3                                                           3
  4                                                           4
  5                                                           5
 6                                                            6
 7                                                            7
 8                                                            8
 9                                                            9
10                                                            10
11                                                            11
12                                                            12
13                                                            13
14                                                            14
15                                                            15
16                                                            16
17                                                            17
18                                                            18
19                                                            19
20                                                            20
21                                                            21
22                                                            22
23                                                            23
24                                                            24
25                                                            25
26                                                            26
27                                                            27
28                                                            28
29                                                            29
30                                                            30
31                                                            31
32                                                            32
33                                                            33
34                                                            34
35                                                            35
36                                                            36
37                                                            37
38                                                            38
39                                                            39
40                                                            40



          659
Name      Chapter 14 Decision Making Across the Organization Concluded
Section
Date                                        Carismo Manufacturing Inc.




  1                                                               1
  2                                                               2
  3                                                               3
  4                                                               4
  5                                                               5
 6                                                                6
 7                                                                7
 8                                                                8
 9                                                                9
10                                                                10
11                                                                11
12                                                                12
13                                                                13
14                                                                14
15                                                                15
16                                                                16
17                                                                17
18                                                                18
19                                                                19
20                                                                20
21                                                                21
22                                                                22
23                                                                23
24                                                                24
25                                                                25
26                                                                26
27                                                                27
28                                                                28
29                                                                29
30                                                                30
31                                                                31
32                                                                32
33                                                                33
34                                                                34
35                                                                35
36                                                                36
37                                                                37
38                                                                38
39                                                                39
40                                                                40



                     660
Name                            Chapter 18 Decision Making Across the Organization 2
Section
Date                                                  General Dynamics Corporation

      (a)
                 General Dynamics Corporation
                        Income Statement
              For the Year Ended December 31, 2008
  1                                                  (In Millions of Dollars)   1
  2                                                                             2
  3                                                                             3
  4                                                                             4
  5                                                                             5
 6                                                                              6
 7                                                                              7
 8                                                                              8
 9                                                                              9
10                                                                              10
11                                                                              11
12                                                                              12
13                                                                              13
14                                                                              14
15                                                                              15
16                                                                              16
17                                                                              17
18                                                                              18
19                                                                              19
20                                                                              20
21                                                                              21
22                                                                              22
23                                                                              23
24                                                                              24
25                                                                              25
26                                                                              26
27                                                                              27
28                                                                              28
29                                                                              29
30                                                                              30
31 (b) (1)                                                                      31
32                                                                              32
33                                                                              33
34                                                                              34
35                                                                              35
36                                                                              36
37                                                                              37
38      (2)                                                                     38
39                                                                              39
40                                                                              40



                          661
Name            Chapter 14 Communication Activity
Section
Date                         Lafferty's Electronics




  1                                            1
  2                                            2
  3                                            3
  4                                            4
  5                                            5
 6                                             6
 7                                             7
 8                                             8
 9                                             9
10                                             10
11                                             11
12                                             12
13                                             13
14                                             14
15                                             15
16                                             16
17                                             17
18                                             18
19                                             19
20                                             20
21                                             21
22                                             22
23                                             23
24                                             24
25                                             25
26                                             26
27                                             27
28                                             28
29                                             29
30                                             30
31                                             31
32                                             32
33                                             33
34                                             34
35                                             35
36                                             36
37                                             37
38                                             38
39                                             39
40                                             40



          662
Name            Chapter 14 Ethics Case
Section
Date              McClintock Industries




  1 (a)                            1
  2                                2
  3                                3
  4                                4
  5                                5
 6                                 6
 7                                 7
 8                                 8
 9                                 9
10                                 10
11 (b)                             11
12                                 12
13                                 13
14                                 14
15 (c)                             15
16                                 16
17                                 17
18                                 18
19                                 19
20                                 20
21                                 21
22                                 22
23                                 23
24                                 24
25                                 25
26                                 26
27                                 27
28                                 28
29                                 29
30                                 30
31                                 31
32                                 32
33                                 33
34                                 34
35                                 35
36                                 36
37                                 37
38                                 38
39                                 39
40                                 40



          663
Name              Chapter 14 All About You Activity
Section
Date            Investment Allocation Questionnaire




  1                                            1
  2                                            2
  3                                            3
  4                                            4
  5                                            5
 6                                             6
 7                                             7
 8                                             8
 9                                             9
10                                             10
11                                             11
12                                             12
13                                             13
14                                             14
15                                             15
16                                             16
17                                             17
18                                             18
19                                             19
20                                             20
21                                             21
22                                             22
23                                             23
24                                             24
25                                             25
26                                             26
27                                             27
28                                             28
29                                             29
30                                             30
31                                             31
32                                             32
33                                             33
34                                             34
35                                             35
36                                             36
37                                             37
38                                             38
39                                             39
40                                             40



          664

								
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