P-16-07 Name:

Section:

Enter the appropriate amount or item in the shaded cells.

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Leave no cell blank. Ensure to enter "0" wherever applicable.
Enter answers in percentage columns as a percent, rounded to one decimal place.
Enter any decrese in amount or percentage with minus sign.

1. Horizontal and Vertical Analysis

Rylander Corporation
Comparative Income Statements
For the Years Ended December 31, 2014 and 2013

Increase or (Decrease)
2014 2013 Amount Percentage
Net sales
Cost of goods sold
Gross margin
Operating expenses:
Selling expenses
Administrative expenses
Total operating expenses
Income from operations
Interest expense
Income before income taxes
Income taxes expense
Net income

Earnings per share

 Rylander Corporation
Comparative Balance Sheets
For the Years Ended December 31, 2014 and 2013

Increase or (Decrease)
2014 2013 Amount Percentage
Assets
Cash
Accounts receivable (net)
Inventory
Property, plant, and equip. (net)
Total assets

Liabilities and Stockholders' Equity

Accounts payable
Notes payable (short-term)
Bonds payable
Common stock, $10 par value
Retained earnings
Total liab. and stockholders’ equity

2.
Rylander Corporation
Common-Size Income Statements
For the Years Ended December 31, 2014 and 2013

2014 2013
Net sales
Cost of goods sold
Gross margin
Operating expenses:
Selling expenses
Administrative expenses
Total operating expenses
Income from operations
Interest expense
Income before income taxes
Income taxes expense
Net income
 Rylander Corporation
Common-Size Balance Sheets
For the Years Ended December 31, 2014 and 2013

2014 2013
Assets
Cash
Accounts receivable (net)
Inventory
Property, plant, and equip. (net)
Total assets

Liabilities and Stockholders' Equity

Accounts payable
Notes payable (short-term)
Bonds payable
Common stock, $10 par value
Retained earnings
Total liab. and stockholders’ equity
P-16-07_Sol Name: Solution
Section:

Enter the appropriate amount or item in the shaded cells.

An asterisk (*) will appear next to an incorrect entry in the outlined cells.
Leave no cell blank. Ensure to enter "0" wherever applicable.
Enter answers in percentage columns as a percent, rounded to one decimal place.
Enter any decrese in amount or percentage with minus sign.

1. Horizontal and Vertical Analysis

Rylander Corporation
Comparative Income Statements
For the Years Ended December 31, 2014 and 2013

Increase or (Decrease)
2014 2013 Amount Percentage
Net sales $ 6,553,600 $ 6,292,800 $ 260,800 4.1%
Cost of goods sold 4,177,600 4,016,800 160,800 4.0%
Gross margin $ 2,376,000 $ 2,276,000 $ 100,000 4.4%
Operating expenses:
Selling expenses $ 953,600 $ 1,036,000 $ (82,400) -8.0%
Administrative expenses 894,400 846,400 48,000 5.7%
Total operating expenses $ 1,848,000 $ 1,882,400 $ (34,400) -1.8%
Income from operations 528,000 393,600 134,400 34.1%
Interest expense 131,200 78,400 52,800 67.3%
Income before income taxes 396,800 315,200 81,600 25.9%
Income taxes expense 124,800 113,600 11,200 9.9%
Net income $ 272,000 $ 201,600 $ 70,400 34.9%

Earnings per share $ 3.40 $ 2.52 $ 0.88 34.9%

 Rylander Corporation
Comparative Balance Sheets
For the Years Ended December 31, 2014 and 2013

Increase or (Decrease)
2014 2013 Amount Percentage
Assets
Cash $ 162,400 $ 81,600 $ 80,800 99.0%
Accounts receivable (net) 471,200 458,400 12,800 2.8%
Inventory 1,149,600 1,189,600 (40,000) -3.4%
Property, plant, and equip. (net) 1,500,000 1,440,000 60,000 4.2%
Total assets $ 3,283,200 $ 3,169,600 $ 113,600 3.6%

Liabilities and Stockholders' Equity

Accounts payable $ 535,200 $ 954,400 $ (419,200) -43.9%
Notes payable (short-term) 400,000 800,000 (400,000) -50.0%
Bonds payable 800,000 0 800,000 0.0%
Common stock, $10 par value 800,000 800,000 0 0.0%
Retained earnings 748,000 615,200 132,800 21.6%
Total liab. and stockholders’ equity $ 3,283,200 $ 3,169,600 $ 113,600 3.6%

2.
Rylander Corporation
Common-Size Income Statements
For the Years Ended December 31, 2014 and 2013

2014 2013
Net sales 100.0% 100.0%
Cost of goods sold 63.7% 63.8%
Gross margin 36.3% 36.2%
Operating expenses:
Selling expenses 14.6% 16.5%
Administrative expenses 13.6% 13.5%
Total operating expenses 28.2% 29.9%
Income from operations 8.1% 6.3%
Interest expense 2.0% 1.2%
Income before income taxes 6.1% 5.0%
Income taxes expense 1.9% 1.8%
Net income 4.2% 3.2%
 Rylander Corporation
Common-Size Balance Sheets
For the Years Ended December 31, 2014 and 2013

2014 2013
Assets
Cash 4.9% 2.6%
Accounts receivable (net) 14.4% 14.5%
Inventory 35.0% 37.5%
Property, plant, and equip. (net) 45.7% 45.4%
Total assets 100.0% 100.0%

Liabilities and Stockholders' Equity

Accounts payable 16.3% 30.1%
Notes payable (short-term) 12.2% 25.2%
Bonds payable 24.4% 0.0%
Common stock, $10 par value 24.4% 25.2%
Retained earnings 22.8% 19.4%
Total liab. and stockholders’ equity 100.0% 100.0%