ACC 557 Week 10 Homework Problems – Strayer

Click On The Link Below to Purchase A+ Graded MaterialInstant Download

http://budapp.net/ACC-557-Week-10-Homework-Problems-Strayer-NEW-ACC557W10HP.htm

Chapter 14

Exercise 14-3

Your answer is correct.The comparative condensed balance sheets of Garcia Corporation are presented below.

GARCIA CORPORATIONComparative Condensed Balance Sheets

December 312014 2013

Assets    Current assets $ 76,000 $ 80,000    Property, plant, and equipment (net) 100,000 90,000    Intangibles 24,000 40,000      Total assets $200,000 $210,000

Liabilities and stockholders’ equity    Current liabilities $ 40,000 $ 48,000    Long-term liabilities 140,000 150,000    Stockholders’ equity 20,000 12,000      Total liabilities and stockholders’ equity $200,000 $210,000

(a) Prepare a horizontal analysis of the balance sheet data for Garcia Corporation using 2013 as a base. (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. 12.3%.)(b) Prepare a vertical analysis of the balance sheet data for Garcia Corporation in columnar form for 2014. (Round percentages to 0 decimal places, e.g. 12%.)

Exercise 14-4

Your answer is correct.

The comparative condensed income statements of Hendi Corporation are shown below.

HENDI CORPORATIONComparative Condensed Income Statements

For the Years Ended December 312014 2013

Net sales $600,000 $500,000Cost of goods sold 468,000 400,000Gross profit 132,000 100,000Operating expenses 60,000 54,000Net income $ 72,000 $ 46,000

(a) Prepare a horizontal analysis of the income statement data for Hendi Corporation using 2013 as a base. (Show the amounts of increase or decrease.) (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. 12.3%.)(b) Prepare a vertical analysis of the income statement data for Hendi Corporation in columnar form for both years. (Round percentages to 1 decimal place, e.g. 12.3%.)

Exercise 14-13

Maulder Corporation has income from continuing operations of $290,000 for the year ended December 31, 2014. It also has the following items (before considering income taxes).

1. An extraordinary loss of $70,000.

2. A gain of $35,000 on the discontinuance of a division.

3.

A correction of an error in last year’s financial statements that resulted in a $25,000 understatement of 2013 net income.

Assume all items are subject to income taxes at a 30% tax rate.

Prepare an income statement, beginning with income from continuing operations.

Problem 14-6A

The comparative statements of Beulah Company are presented below.

BEULAH COMPANYIncome Statement

For the Years Ended December 312014 2013

Net sales (all on account) $500,000 $420,000Expenses    Cost of goods sold 315,000 254,000    Selling and administrative 120,800 114,800    Interest expense 7,500 6,500    Income tax expense 20,000 15,000      Total expenses 463,300 390,300Net income $ 36,700 $ 29,700

BEULAH COMPANYBalance SheetsDecember 31

Assets 2014 2013Current assets    Cash $ 21,000 $ 18,000    Short-term investments 18,000 15,000    Accounts receivable (net) 85,000 75,000    Inventory 80,000 60,000      Total current assets 204,000 168,000Plant assets (net) 423,000 383,000Total assets $627,000 $551,000

Liabilities and Stockholders’ EquityCurrent liabilities    Accounts payable $122,000 $110,000    Income taxes payable 12,000 11,000      Total current liabilities 134,000 121,000Long-term liabilities    Bonds payable 120,000 80,000      Total liabilities 254,000 201,000Stockholders’ equity    Common stock ($5 par) 150,000 150,000    Retained earnings 223,000 200,000      Total stockholders’ equity 373,000 350,000Total liabilities and stockholders’ equity $627,000 $551,000

Additional data:

The common stock recently sold at $19.50 per share.

Compute the following ratios for 2014. (Round Earnings per share and Acid-test ratio to 2 decimal places, e.g. 1.65, and all others to 1 decimal place, e.g. 6.8 or 6.8% .)