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Ch 13 Wiley Kimmel Quiz Homework

# Ch 13 Wiley Kimmel Quiz Homework

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04/08/2013

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Using these data from the comparative balance sheet of Patillo Company, perform horizontal analysis.
Increase or (Decrease)

December 31, 2010

December 31, 2009

Amount

Percentage
Accounts receivable \$560,000 \$400,000\$ 1600

0040 %Inventory 780,000 650,000\$ 13000020 %Total assets 3,220,000 2,800,000\$ 42000015 %Royal Ware Company has stockholders' equity of \$441,448 and net income of \$69,069. It has a payout ratio of 26%and a return on assets ratio of 20%. How much did Royal Ware pay in cash dividends, and what were its averagetotal assets?
(Round all answers to 0 decimal places, e.g. 12,255.)
Cash dividends\$ 17958

Average total assets \$ 345345Talley Incorporated had the following transactions involving current assets and current liabilities during February2010.Feb. 3 Collected accounts receivable of \$14,770.7 Purchased equipment for \$30,268 cash.11 Paid \$2,202 for a 3-year insurance policy.14 Paid accounts payable of \$11,279.18 Declared cash dividends, \$5,378.Additional information: As of February 1, 2010, current assets were \$120,735 and current liabilities were \$32,630.Compute the current ratio as of the beginning of the month and after each transaction.
(Round each ratio to 2decimal places, e.g. 12.51.)
Feb. 13.70 :1Feb. 33.70 :1Feb 73.70 :1Feb. 113.70 :1

Feb. 145.13 :1Feb. 184.87 :1Current ratio:Feb. 1
3.70
(\$120,735 ÷ \$32,630).3
3.70
No change in total current assets or liabilities.7
2.77
(\$90,467 ÷ \$32,630).11
2.77
No change in total current assets or liabilities.14
3.71
(\$79,188 ÷ \$21,351).18
2.96
(\$79,188 ÷ \$26,729).Selected comparative statement data for the giant bookseller
Barnes & Noble
are presented here. All balance sheetdata are as of December 31 (in millions).
2006

2005
Net sales \$5,261.3 \$5,103.0Cost of goods sold 3,623.0 3,535.8 Net income 150.5 146.7Accounts receivable 100.5 99.1Inventory 1,354.6 1,314.0Total assets 3,196.8 3,156.3Total common stockholders' equity 1,164.9 1,115.8Compute the following ratios for 2006:
(Round all answers to 1 decimal place, e.g. 12.5.)
Profit margin2.9 %Asset turnover 1.66 timesReturn on assets4.7 %

Return on common stockholders' equity13.2 %Gross profit rate31.1 %

Condensed balance sheet and income statement data for Breckenridge Corporation are presented here.
BRECKENRIDGE CORPORATION

Balance Sheets

December 31

2010

2009

2008
Cash \$30,000 \$20,000 \$18,000Receivables (net) 50,000 45,000 48,000Other current assets 90,000 85,000 64,000Investments 55,000 70,000 45,000Plant and equipment (net)500,000 370,000 258,000\$725,000 \$590,000 \$433,000Current liabilities \$85,000 \$80,000 \$30,000Long-term debt 185,000 85,000 20,000Common stock, \$10 par 320,000 300,000 300,000Retained earnings135,000 125,000 83,000\$725,000 \$590,000 \$433,000
BRECKENRIDGE CORPORATION

Income Statements

For the Years Ended December 31
2010 2009Sales \$640,000 \$500,000Less: Sales returns and allowances40,000 30,000 Net sales 600,000 470,000Cost of goods sold425,000 300,000Gross profit 175,000 170,000Operating expenses (including income taxes)110,000 99,000 Net income\$65,000 \$71,000Additional information:1. The market price of Breckenridge's common stock was \$6.00, \$9.00, and \$7.00 for 2008, 2009, and 2010,respectively.2. You must compute dividends paid. All dividends were paid in cash.Compute the following ratios for 2010 and 2009.
(Round all answers to 2 decimal places, e.g. 12.52.)

(1) Profit margin
201010.83 %200915.11 %
(2) Gross profit
201029.17 %