This Website Has Been Moved to a New Link


Loading

ACC561 Week 2 Wiley E13-5 E13-6 E13-9

Price: $9.99


E13-5 The comparative balance sheets of Nike, Inc. are presented here.


NIKE, INC.
Comparative Balance Sheets
May 31
($ in millions)
Assets 2007 2006
Current assets $ 8,076 $7,346
Property, plant, and equipment (net) 1,678 1,658
Other assets 934 866
Total assets $10,688 $9,870
Liabilities and Stockholders’ Equity
Current liabilities $ 2,584 $2,612
Long-term liabilities 1,079 973
Stockholders’ equity 7,025 6,285
Total liabilities and stockholders’ equity $10,688 $9,870
Instructions
(a) Prepare a horizontal analysis of the balance sheet data for Nike using 2006 as a base.
(Show the amount of increase or decrease as well.)
(b) Prepare a vertical analysis of the balance sheet data for Nike for 2007.

E13-6 Here are the comparative income statements of Winfrey Corporation.


WINFREY CORPORATION
Comparative Income Statements
For the Years Ended December 31
2010 2009
Net sales $598,000 $520,000
Cost of goods sold 477,000 450,000
Gross profit $121,000 $ 70,000
Operating expenses 80,000 45,000
Net income $ 41,000 $ 25,000
Instructions
(a) Prepare a horizontal analysis of the income statement data for Winfrey Corporation
using 2009 as a base. (Show the amounts of increase or decrease.)
(b) Prepare a vertical analysis of the income statement data for Winfrey Corporation for
both years

E13-9 Armada Company has these comparative balance sheet data:


ARMADA COMPANY
Balance Sheets
December 31
2010 2009
Cash $ 25,000 $ 30,000
Receivables (net) 65,000 60,000
Inventories 60,000 50,000
Plant assets (net) 200,000 180,000
$350,000 $320,000
Accounts payable $ 50,000 $ 60,000
Mortgage payable (15%) 100,000 100,000
Common stock, $10 par 140,000 120,000
Retained earnings 60,000 40,000
$350,000 $320,000
Additional information for 2010:
1. Net income was $25,000.
2. Sales on account were $375,000. Sales returns and allowances amounted to $25,000.
3. Cost of goods sold was $198,000.
4. Net cash provided by operating activities was $48,000.
5. Capital expenditures were $25,000, and cash dividends were $18,000.
Instructions
Compute the following ratios at December 31, 2010.
(a) Current. (e) Days in inventory.
(b) Receivables turnover. (f ) Cash debt coverage.
(c) Average collection period. (g) Current cash debt coverage.
(d) Inventory turnover. (h) Free cash flow.

No comments:

Post a Comment