Question
In: Accounting
1.The comparative temporary investments and inventory balances of a company follow: Current Year Previous Year Temporary...
1.The comparative temporary investments and inventory balances of a company follow:
| Current Year | Previous Year | |
| Temporary investments | $36,000 | $30,000 |
| Inventory | 72,000 | 75,000 |
Based on this information, what is the amount and percentage of increase or decrease that would be shown on a balance sheet with horizontal analysis?
| Change in Amount | Increase/Decrease | Percentage | |
| Temporary investments | $ | % | |
| Merchandise inventory | $ | % |
2. Income statement information for Turay Corporation follows:
| Sales | $200,000 | |
| Cost of merchandise sold | 140,000 | |
| Gross profit | 60,000 |
Prepare a vertical analysis of the income statement for Turay Corporation.
| Turay Corporation | ||
| Vertical Analysis of the Income Statement | ||
| Amount | Percentage | |
| Sales | $200,000 | % |
| Cost of merchandise sold | 140,000 | % |
| Gross profit | $60,000 | % |
3. The following items are reported on a company’s balance sheet:
| Cash | $120,000 |
| Marketable securities | 40,000 |
| Accounts receivable (net) | 50,000 |
| Inventory | 90,000 |
| Accounts payable | 150,000 |
Determine (a) the current ratio and (b) the quick ratio. Round your answers to one decimal place.
| a. Current ratio | |
| b. Quick ratio |
4. A company reports the following:
| Sales | $1,460,000 |
| Average accounts receivable (net) | 100,000 |
Determine (a) the accounts receivable turnover and (b) the number of days' sales in receivables. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume a 365-day year.
| a. Accounts receivable turnover | |
| b. Number of days' sales in receivables | days |
5. A company reports the following:
| Cost of merchandise sold | $558,000 |
| Average inventory | 45,000 |
Determine (a) the inventory turnover and (b) the number of days' sales in inventory. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume 365 days a year.
| a. Inventory turnover | |
| b. Number of days' sales in inventory | days |
6.
The following information was taken from Tyson Company’s balance sheet:
| Fixed assets (net) | $774,000 |
| Long-term liabilities | 430,000 |
| Total liabilities | 1,218,000 |
| Total stockholders’ equity | 580,000 |
Determine the company's (a) ratio of fixed assets to long-term liabilities and (b) ratio of liabilities to stockholders' equity. If required, round your answers to one decimal place.
| a. Ratio of fixed assets to long-term liabilities | |
| b. Ratio of liabilities to stockholders' equity |
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Our company had the following balances and transactions during the current year related to merchandise inventory....
Our company had the following balances and transactions during
the current year related to merchandise inventory.
Beginning merchandise inventory on January 1
120 units at $70 per unit
Purchase on February 14
100 units at $85 per unit
Sale on August 21
120 units
What would be the company’s ending merchandise inventory in
dollars on December 31 if the company used perpetual, weighted
average (WA) costing method?
$9,900
$7,000
$9,218
$7,682
.Our company had the following balances and transactions during the current year related to merchandise inventory....
.Our company had the following balances and transactions during
the current year related to merchandise inventory.
Beginning merchandise inventory on January 11 20 units at $70
per unitPurchase on February 14 100 units at $85 per unitSale on
August 21 120 units
What would be the company's ending merchandise inventory in
dollars on December 31 if the company used perpetual, last in,
first out (LIFO) method?
$9,900
$8,500
$8,400
$7,000
2.Our company had the following balances and transactions during
the...
PINNACLE PLUS Horizontal Analysis Increase (Decrease) in the Current year (versus Previous year) Current Year Previous...
PINNACLE PLUS Horizontal Analysis Increase (Decrease) in the
Current year (versus Previous year) Current Year Previous Year
Amount Percentage Income Statement Sales Revenue $120,000 $106,000
% Cost of Goods Sold 54,000 49,000 Gross Profit 66,000 57,000
Operating Expenses 41,000 35,500 Interest Expense 5,000 5,000
Income before Income Tax Expense 20,000 16,500 Income Tax Expense
(30%) 6,000 4,950 Net Income $14,000 $11,550 % Balance Sheet Cash
$77,900 $43,000 % Accounts Receivable, Net 19,000 10,000 Inventory
26,000 40,000 Property and Equipment, Net...
Forten Company's current year income statement, comparative balance sheets, and additional information follow. For the year,...
Forten Company's current year income statement, comparative
balance sheets, and additional information follow. For the year,
(1) all sales are credit sales, (2) all credits to Accounts
Receivable reflect cash receipts from customers, (3) all purchases
of inventory are on credit, (4) all debits to Accounts Payable
reflect cash payments for inventory, and (5) Other Expenses are
paid in advance and are initially debited to Prepaid
Expenses.
FORTEN COMPANY
Comparative Balance Sheets
December 31
Current Year
Prior Year
Assets
Cash...
Forten Company's current year income statement, comparative balance sheets, and additional information follow. For the year,...
Forten Company's current year income statement, comparative
balance sheets, and additional information follow. For the year,
(1) all sales are credit sales, (2) all credits to Accounts
Receivable reflect cash receipts from customers, (3) all purchases
of inventory are on credit, (4) all debits to Accounts Payable
reflect cash payments for inventory, and (5) Other Expenses are
paid in advance and are initially debited to Prepaid Expenses.
FORTEN COMPANY
Comparative Balance Sheets
December 31
Current Year
Prior Year
Assets
Cash...
Forten Company's current year income statement, comparative balance sheets, and additional information follow. For the year,...
Forten Company's current year income statement, comparative
balance sheets, and additional information follow. For the year,
(1) all sales are credit sales, (2) all credits to Accounts
Receivable reflect cash receipts from customers, (3) all purchases
of inventory are on credit, (4) all debits to Accounts Payable
reflect cash payments for inventory, and (5) Other Expenses are
paid in advance and are initially debited to Prepaid
Expenses.
FORTEN COMPANY
Comparative Balance Sheets
December 31
Current Year
Prior Year
Assets
Cash...
Forten Company's current year income statement, comparative balance sheets, and additional information follow. For the year,...
Forten Company's current year income statement, comparative
balance sheets, and additional information follow. For the year,
(1) all sales are credit sales, (2) all credits to Accounts
Receivable reflect cash receipts from customers, (3) all purchases
of inventory are on credit, (4) all debits to Accounts Payable
reflect cash payments for inventory, and (5) Other Expenses are
paid in advance and are initially debited to Prepaid Expenses.
FORTEN COMPANY
Comparative Balance Sheets
December 31
Current Year
Prior Year
Assets
Cash...
Forten Company's current year income statement, comparative balance sheets, and additional information follow. For the year,...
Forten Company's current year income statement, comparative
balance sheets, and additional information follow. For the year,
(1) all sales are credit sales, (2) all credits to Accounts
Receivable reflect cash receipts from customers, (3) all purchases
of inventory are on credit, (4) all debits to Accounts Payable
reflect cash payments for inventory, and (5) Other Expenses are
paid in advance and are initially debited to Prepaid
Expenses.
FORTEN COMPANY
Comparative Balance Sheets
December 31
Current Year
Prior Year
Assets
Cash...
Forten Company's current year income statement, comparative balance sheets, and additional information follow. For the year,...
Forten Company's current year income statement, comparative
balance sheets, and additional information follow. For the year,
(1) all sales are credit sales, (2) all credits to Accounts
Receivable reflect cash receipts from customers, (3) all purchases
of inventory are on credit, (4) all debits to Accounts Payable
reflect cash payments for inventory, and (5) Other Expenses are
paid in advance and are initially debited to Prepaid Expenses.
FORTEN COMPANY Comparative Balance Sheets December 31 Current Year
Prior Year Assets Cash...
Forten Company's current year income statement, comparative balance sheets, and additional information follow. For the year,...
Forten Company's current year income statement, comparative
balance sheets, and additional information follow. For the year,
(1) all sales are credit sales, (2) all credits to Accounts
Receivable reflect cash receipts from customers, (3) all purchases
of inventory are on credit, (4) all debits to Accounts Payable
reflect cash payments for inventory, and (5) Other Expenses are
paid in advance and are initially debited to Prepaid
Expenses.
FORTEN COMPANY
Comparative Balance Sheets
December 31
Current Year
Prior Year
Assets
Cash...
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