1. Operating data for Martinez Corp. are presented as follows. 2022 2021 Sales revenue $842,600 $639,100...

1. Operating data for Martinez Corp. are presented as follows.

	2022	2021
Sales revenue	$842,600	$639,100
Cost of goods sold	530,838	409,024
Selling expenses	122,177	76,692
Administrative expenses	71,621	51,128
Income tax expense	37,917	25,564
Net income	80,047	76,692

Prepare a schedule showing a vertical analysis for 2022 and 2021. (Round percentages to 1 decimal place, e.g. 12.1%.)

2. Here is financial information for Splish Brothers Inc.

	December 31, 2022	December 31, 2021
Current assets	$109,852	$ 94,700
Plant assets (net)	404,643	353,800
Current liabilities	103,544	68,800
Long-term liabilities	125,951	94,700
Common stock, $1 par	134,216	118,800
Retained earnings	150,784	166,200

Prepare a schedule showing a horizontal analysis for 2022, using 2021 as the base year. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 1 decimal place, e.g. 12.1%.)

Expert Solution

Vertical analysis

	2022	Percent	2021	Percent
Sales revenue	$842,600	100%	$639,100	100%
Cost of goods sold	530,838	63%	409,024	64%
Selling expenses	122,177	14.5%	76,692	12%
Administrative expenses	71,621	8.5%	51,128	8%
Income tax expense	37,917	4.5%	25,564	4%
Net income	80,047	9.5%	76,692	12%

Prepare a schedule showing a horizontal analysis for 2022, using 2021 as the base year. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 1 decimal place, e.g. 12.1%.)

	December 31, 2022	December 31, 2021	Amount	%
Current assets	$109,852	$ 94,700	15152	16%
Plant assets (net)	404,643	353,800	50843	14.4%
Current liabilities	103,544	68,800	34744	50.5%
Long-term liabilities	125,951	94,700	31251	33%
Common stock, $1 par	134,216	118,800	15416	13.0%
Retained earnings	150,784	166,200	-15416	-9.3%

ekkarill92 answered 1 year ago

Exercise 13-04 Operating data for Sheffield Corp. are presented below. 2022 2021 Sales revenue $839,100 $649,000...

Exercise 13-04 Operating data for Sheffield Corp. are presented below. 2022 2021 Sales revenue $839,100 $649,000 Cost of goods sold 522,400 410,700 Selling expenses 121,700 76,300 Administrative expenses 76,200 54,000 Income tax expense 34,200 24,400 Net income 84,600 83,600 Prepare a schedule showing a vertical analysis for 2022 and 2021. (Round percentages to 1 decimal place, e.g. 12.1%.) SHEFFIELD CORP. Condensed Income Statement choose the accouning period For the Month Ended December 31December 31For the Years Ended December 31 2022...

The stockholders’ equity accounts of Martinez Corp. on January 1, 2022, were as follows. Preferred Stock...

The stockholders’ equity accounts of Martinez Corp. on January 1, 2022, were as follows. Preferred Stock (7%, $100 par noncumulative, 10,500 shares authorized) $630,000 Common Stock ($4 stated value, 630,000 shares authorized) 2,100,000 Paid-in Capital in Excess of Par Value—Preferred Stock 31,500 Paid-in Capital in Excess of Stated Value—Common Stock 1,008,000 Retained Earnings 1,444,800 Treasury Stock (10,500 common shares) 84,000 During 2022, the corporation had the following transactions and events pertaining to its stockholders’ equity. Feb. 1 Issued 10,500 shares...

The current sections of Grouper Corp.’s balance sheets at December 31, 2021 and 2022, are presented...

The current sections of Grouper Corp.’s balance sheets at December 31, 2021 and 2022, are presented here. Grouper Corp.’s net income for 2022 was $260,100. Depreciation expense was $45,900. 2022 2021 Current assets Cash $178,500 $ 168,300 Accounts receivable 136,000 151,300 Inventory 285,600 292,400 Prepaid expenses 45,900 37,400 Total current assets $646,000 $649,400 Current liabilities Accrued expenses payable $ 25,500 $ 8,500 Accounts payable 144,500 156,400 Total current liabilities $170,000 $ 164,900 Prepare the net cash provided (used) by operating...

Novak Corp. reported cost of goods sold as follows. 2022 2021 Beginning inventory $ 30,970 $...

Novak Corp. reported cost of goods sold as follows. 2022 2021 Beginning inventory $ 30,970 $ 20,420 Cost of goods purchased 174,250 156,320 Cost of goods available for sale 205,220 176,740 Less: Ending inventory 35,240 30,970 Cost of goods sold $169,980 $145,770 Novak Corp. made two errors: 1. 2021 ending inventory was overstated by $2,110. 2. 2022 ending inventory was understated by $5,500. Compute the correct cost of goods sold for each year. 2021 2022 The correct cost of goods...

Condensed financial data of Martinez Company for 2020 and 2019 are presented below. MARTINEZ COMPANY COMPARATIVE...

Condensed financial data of Martinez Company for 2020 and 2019 are presented below. MARTINEZ COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 2020 2019 Cash $1,830 $1,180 Receivables 1,710 1,320 Inventory 1,590 1,920 Plant assets 1,890 1,710 Accumulated depreciation (1,220 ) (1,190 ) Long-term investments (held-to-maturity) 1,320 1,440 $7,120 $6,380 Accounts payable $1,190 $890 Accrued liabilities 210 260 Bonds payable 1,400 1,580 Common stock 1,940 1,660 Retained earnings 2,380 1,990 $7,120 $6,380 MARTINEZ COMPANY INCOME STATEMENT FOR...

Information pertaining to Yekstop Corp.'s sales revenue is presented below: November December January Cash sales $...

Information pertaining to Yekstop Corp.'s sales revenue is presented below: November December January Cash sales $ 98,000 $ 127,000 $ 80,000 Credit sales 290,000 452,000 236,000 Total sales $ 388,000 $ 579,000 $ 316,000 Management estimates that 5% of credit sales are eventually uncollectible. Of the collectible credit sales, 65% are likely to be collected in the month of sale and the remainder in the month following the month of sale. The company desires to begin each month with an...

The stockholders’ equity accounts of Bramble Corp. on January 1, 2022, were as follows. Preferred Stock...

The stockholders’ equity accounts of Bramble Corp. on January 1, 2022, were as follows. Preferred Stock (7%, $100 par noncumulative, 4,500 shares authorized) $270,000 Common Stock ($4 stated value, 270,000 shares authorized) 900,000 Paid-in Capital in Excess of Par Value—Preferred Stock 13,500 Paid-in Capital in Excess of Stated Value—Common Stock 432,000 Retained Earnings 619,200 Treasury Stock (4,500 common shares) 36,000 During 2022, the corporation had the following transactions and events pertaining to its stockholders’ equity. Feb. 1 Issued 4,500 shares...

The stockholders’ equity accounts of Sheffield Corp. on January 1, 2022, were as follows. Preferred Stock...

The stockholders’ equity accounts of Sheffield Corp. on January 1, 2022, were as follows. Preferred Stock (8%, $100 par noncumulative, 5,000 shares authorized) $450,000 Common Stock ($10 stated value, 800,000 shares authorized) 1,550,000 Paid-in Capital in Excess of Par Value—Preferred Stock 67,000 Paid-in Capital in Excess of Stated Value —Common Stock 800,000 Retained Earnings 810,000 Treasury Stock (8,400 common shares) 67,200 During 2022, the corporation had the following transactions and events pertaining to its stockholders’ equity. Mar 1 Issued 6,000...

The stockholders’ equity accounts of Riverbed Corp on January 1, 2022, were as follows. Preferred Stock...

The stockholders’ equity accounts of Riverbed Corp on January 1, 2022, were as follows. Preferred Stock (7%, $100 par noncumulative, 15,000 shares authorized) $900,000 Common Stock ($4 stated value, 900,000 shares authorized) 3,000,000 Paid-in Capital in Excess of Par Value—Preferred Stock 45,000 Paid-in Capital in Excess of Stated Value—Common Stock 1,440,000 Retained Earnings 2,064,000 Treasury Stock (15,000 common shares) 120,000 During 2022, the corporation had the following transactions and events pertaining to its stockholders’ equity. Feb. 1 Issued 15,000 shares...

The stockholders’ equity accounts of Flounder Corp. on January 1, 2022, were as follows. Preferred Stock...

The stockholders’ equity accounts of Flounder Corp. on January 1, 2022, were as follows. Preferred Stock (7%, $100 par noncumulative, 7,500 shares authorized) $450,000 Common Stock ($4 stated value, 450,000 shares authorized) 1,500,000 Paid-in Capital in Excess of Par Value—Preferred Stock 22,500 Paid-in Capital in Excess of Stated Value—Common Stock 720,000 Retained Earnings 1,032,000 Treasury Stock (7,500 common shares) 60,000 During 2022, the corporation had the following transactions and events pertaining to its stockholders’ equity. Feb. 1 Issued 7,500 shares...

Question