Managerial accounting 1b ch13 | Accounting homework help

Managerial Accounting 1B

Financial and Managerial Accounting

Chapter 13

1.

 

Exercise 13-3 Computation and analysis of trend percents L.O. P1

 

2013

2012

2011

2010

2009

  Sales

$ 283,880  

$ 271,800  

$ 253,680  

$ 235,560  

$ 151,000  

  Cost of goods sold

129,200  

123,080  

116,280  

107,440  

68,000  

  Accounts receivable

19,100  

18,300  

17,400  

16,200  

10,000  

  

Compute trend percents for the above accounts, using 2009 as the base year. (Omit the “%” sign in your response.)

  

2.

 

Exercise 13-7 Common-size percents L.O. P2

Sanderson Company’s year-end balance sheets follow.

  

 

At December 31

 

 

2012

 

 

2011

 

 

2010

 

Assets

 

 

 

 

 

 

 

 

 

 

Cash

 

$

30,800

 

$

35,625

 

$

36,800  

 

Accounts receivable, net

 

 

88,500

 

 

62,500

 

 

49,200  

 

Merchandise inventory

 

 

111,500

 

 

82,500

 

 

53,000  

 

Prepaid expenses

 

 

9,700

 

 

9,375

 

 

4,000  

 

Plant assets, net

 

 

277,500

 

 

255,000

 

 

229,500  

 

  

 

 

 

 

Total assets

 

$

518,000

 

$

445,000

 

$

372,500  

 

  

 

 

 

 

Liabilities and Equity

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

128,900

 

$

75,250

 

$

49,250  

 

Long-term notes payable secured by
  mortgages on plant assets

 

 

97,500

 

 

102,500

 

 

82,500  

 

Common stock, $10 par value

 

 

162,500

 

 

162,500

 

 

162,500  

 

Retained earnings

 

 

129,100

 

 

104,750

 

 

78,250  

 

  

 

 

 

 

Total liabilities and equity

 

$

518,000

 

$

445,000

 

$

372,500  

 

  

 

 

 

  

Express the balance sheets in common-size percents. (Do not round intermediate calculations and round your final answers to 1 decimal place. Omit the “%” sign in your response.)

  

 

Exercise 13-9 Liquidity analysis and interpretation L.O. P3

[The following information applies to the questions displayed below.]

Sanderson Company’s year-end balance sheets follow.

  

 

At December 31

 

 

2012

 

 

2011

 

 

2010

 

Assets

 

 

 

 

 

 

 

 

 

 

Cash

 

$

30,800

 

$

35,625

 

$

36,800  

 

Accounts receivable, net

 

 

88,500

 

 

62,500

 

 

49,200  

 

Merchandise inventory

 

 

111,500

 

 

82,500

 

 

53,000  

 

Prepaid expenses

 

 

9,700

 

 

9,375

 

 

4,000  

 

Plant assets, net

 

 

277,500

 

 

255,000

 

 

229,500  

 

 

 

 

 

 

Total assets

 

$

518,000

 

$

445,000

 

$

372,500  

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

128,900

 

$

75,250

 

$

49,250  

 

Long-term notes payable secured by
  mortgages on plant assets

 

 

97,500

 

 

102,500

 

 

82,500  

 

Common stock, $10 par value

 

 

162,500

 

 

162,500

 

 

162,500  

 

Retained earnings

 

 

129,100

 

 

104,750

 

 

78,250  

 

 

 

 

 

 

Total liabilities and equity

 

$

518,000

 

$

445,000

 

$

372,500  

 

 

 

 

 

  

The company’s income statements for the years ended December 31, 2012 and 2011, follow. Assume that all sales are on credit:

  

 For Year Ended December 31

2012

2011

  Sales

 

 

 

$

672,500

 

 

 

 

$

530,000  

  Cost of goods sold

$

410,225

 

   

 

$

344,500

 

 

 

  Other operating expenses

 

208,550

 

   

 

 

133,980

 

 

 

  Interest expense

 

11,100

 

 

 

 

 

12,300

 

 

 

  Income taxes

 

8,525

 

 

 

 

 

7,845

 

 

 

 

 

 

 

 

 

 

 

  Total costs and expenses

 

 

 

 

638,400

 

 

 

 

 

498,625  

 

 

 

 

 

 

 

 

  Net income

 

 

 

$

34,100

 

 

 

 

$

31,375  

 

 

 

 

 

 

 

 

  Earnings per share

 

 

 

$

2.10

 

 

 

 

$

1.93  

 

 

 

 

 

 

 

 

 

Section Break

Exercise 13-9 Liquidity analysis and interpretation L.O. P3

 

 

 3.

 

 

Exercise 13-9 Part 1

(1)

 Compute days’ sales uncollected. (Use 365 days a year. Do not round intermediate calculations and roundyour final answers to the nearest whole number.)

  

 4.

 

 

Exercise 13-9 Part 2

(2)

 Compute accounts receivable turnover. (Round your answers to 1 decimal place.)

  

 

 

  2012

 

  2011

 


 

 5.

 

 

Exercise 13-9 Part 3

(3)

 Compute inventory turnover. (Round your answers to 1 decimal place.)

  

 

 6.

 

 

Exercise 13-9 Part 4

(4)

 Compute days’ sales in inventory. (Use 365 days a year. Do not round intermediate calculations and round your final answers to the nearest whole number.)

  

 

 

  2012

 

  2011

 

 

Problem 13-1A Ratios, common-size statements, and trend percents L.O. P1, P2, P3

[The following information applies to the questions displayed below.]

Selected comparative financial statements of Bennington Company follow:

 

  

BENNINGTON COMPANY

Comparative Income Statements

For Years Ended December 31, 2012, 2011, and 2010

 

 

 

2012

 

 

 

2011

 

 

 

2010

 

  Sales

 

$

444,000

 

 

$

340,000

 

 

$

236,000

 

  Cost of goods sold

 

 

267,288

 

 

 

212,500

 

 

 

151,040

 

 

 

 

 

 

 

 

  Gross profit

 

 

176,712

 

 

 

127,500

 

 

 

84,960

 

  Selling expenses

 

 

62,694

 

 

 

46,920

 

 

 

31,152

 

  Administrative expenses

 

 

40,137

 

 

 

29,920

 

 

 

19,470

 

 

 

 

 

 

 

 

  Total expenses

 

 

102,831

 

 

 

76,840

 

 

 

50,622

 

 

 

 

 

 

 

 

  Income before taxes

 

 

73,881

 

 

 

50,660

 

 

 

34,338

 

  Income taxes

 

 

13,764

 

 

 

10,370

 

 

 

6,962

 

 

 

 

 

 

 

 

  Net income

 

$

60,117

 

 

$

40,290

 

 

$

27,376

 

 

 

 

 

 

 

 

  

BENNINGTON COMPANY

Comparative Balance Sheets

December 31, 2012, 2011, and 2010

 

 

 

2012

 

 

 

2011

 

 

 

2010

 

  Assets

 

 

 

 

 

 

 

 

 

 

 

 

  Current assets

 

$

48,480

 

 

$

37,924

 

 

$

50,648

 

  Long-term investments

 

 

0

 

 

 

500

 

 

 

3,720

 

  Plant assets, net

 

 

90,000

 

 

 

96,000

 

 

 

57,000

 

 

 

 

 

 

 

 

  Total assets

 

$

138,480

 

 

$

134,424

 

 

$

111,368

 

 

 

 

 

 

 

 

  Liabilities and Equity

 

 

 

 

 

 

 

 

 

 

 

 

  Current liabilities

 

$

20,200

 

 

$

19,960

 

 

$

19,480

 

  Common stock

 

 

72,000

 

 

 

72,000

 

 

 

54,000

 

  Other paid-in capital

 

 

9,000

 

 

 

9,000

 

 

 

6,000

 

  Retained earnings

 

 

37,280

 

 

 

33,464

 

 

 

31,888

 

 

 

 

 

 

 

 

  Total liabilities and equity

 

$

138,480

 

 

$

134,424

 

 

$

111,368

 

 

 

 

 

 

 

 

 

 

 7.

 

Problem 13-1A Part 1

Required:

1.

Compute each year’s current ratio. (Round your answers to 1 decimal place.)

  

 

 

 

 

 

Current ratio

December 31, 2012:

 

 

 

Current ratio

December 31, 2011:

 

 

 

Current ratio

December 31, 2010:

 

 

 

 

 8.

 

Problem 13-1A Part 2

2.

Express the income statement data in common-size percents. (Round your answers to 2 decimal places. Omit the “%” sign in your response.)

    

9.

 

 

Problem 13-1A Part 3

3.

Express the balance sheet data in trend percents with 2010 as the base year. (Round your answers to 2 decimal places. Leave no cells blank – be certain to enter “0” wherever required. Omit the “%” sign in your response.)

  

 

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