Financial Accounting
4th Edition
ISBN: 9781259307959
Author: J. David Spiceland, Wayne M Thomas, Don Herrmann
Publisher: McGraw-Hill Education
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Question
Chapter 12, Problem 12.4E
1.
To determine
To Prepare: The vertical analysis of the
2.
To determine
To Prepare: The horizontal analysis of the balance sheet data for 2019 and 2018, using 2018 as the base year.
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The current sections of Famous’s statements of financial position at December 31, 2019 and 2020, are presented here. Famous’s net income for 2020 was €147,000. Depreciation expense was €21,000.
2020
2019
Current assets
Prepaid expenses
€25,000
€27,000
Inventory
158,000
172,000
Accounts receivable
79,000
110,000
Cash
105,000
99,000
Total current assets
€367,000
€408,000
Current liabilities
Accrued expenses payable
€ 15,000
€ 9,000
Accounts payable
85,000
95,000
Total current liabilities
€100,000
€104,000
Instructions
Prepare the net cash provided by operating activities section of the company’s statement of cash flows for the year ended December 31, 2020, using the indirect method.
Condensed balance sheet and income statement data for Jergan Corporation are presented
here.
Jergan Corporation
Balance Sheets
December 31
2020
2019
2018
Cash
$ 30,400
$ 17,100
$ 18,300
Accounts receivable (net)
50,600
45,100
48,600
Other current assets
89,600
95,000
64,700
Investments
55,100
70,500
45,200
Plant and equipment (net)
499,800
369,700
358,700
$725,500
$597,400
$535,500
Current liabilities
$84,300
$80,500
$69,800
Long-term debt
144,400
84,500
50,200
Common stock, $10 par
384,000
321,000
304,000
Retained earnings
112,800
111,400
111,500
$725,500
$597,400
$535,500
Jergan Corporation
Income Statement
For the Years Ended December 31
2019
Sales revenue
$738,000
$606,600
Less: Sales returns and allowances
40,800
31,000
Net sales
697,200
575,600
Cost of goods sold
425,600
369,000
Gross profit
271,600
206,600
Operating expenses (including income taxes)
180,964
149,040
Net income
$ 90,636
$ 57,560
Additional information:
The market price of Jergan's common stock was $7.00, $7.50,…
Refer to the balance sheet information below for Home Depot.
$ millions
Feb. 3, 2019
Jan. 28,
2018
Operating assets
Nonoperating assets
Total assets
Operating liabilities
Nonoperating liabilities
Total liabilities
Net sales
$13,837 $13,414
583 1,178
$14,420 $14,592
$5,466 $5,259
9,569 8,857
$15,035 $14,116
$35,458
Operating expense before tax
30,369
Net operating profit before tax (NOPBT)
5,089
Other expense
319
Income before tax
Tax expense
Net income
4,770
1,126
$3,644
a. Compute return on net operating assets (RNOA). Assume a statutory tax rate of 22%.
Note: 1. Select the appropriate numerator and denominator used to compute RNOA from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute 2018 RNOA.
Denominator
Average NOA
NOPAT
$
Numerator
$
RNOA
8,263
0%
b. Disaggregate RNOA into components of profitability (NOPM) and productivity (NOAT). Assume a statutory tax rate of 22%.
Note: 1. Select the appropriate numerator and denominator used to compute…
Chapter 12 Solutions
Financial Accounting
Ch. 12 - Prob. 1RQCh. 12 - Prob. 2RQCh. 12 - Prob. 3RQCh. 12 - Prob. 4RQCh. 12 - 5.In performing horizontal analysis, why is it...Ch. 12 - Prob. 6RQCh. 12 - Prob. 7RQCh. 12 - Prob. 8RQCh. 12 - Prob. 9RQCh. 12 - Prob. 10RQ
Ch. 12 - Prob. 11RQCh. 12 - Prob. 12RQCh. 12 - Prob. 13RQCh. 12 - Prob. 14RQCh. 12 - Prob. 15RQCh. 12 - Prob. 16RQCh. 12 - Prob. 17RQCh. 12 - Prob. 18RQCh. 12 - Prob. 19RQCh. 12 - Prob. 20RQCh. 12 - Prob. 12.1BECh. 12 - Prob. 12.2BECh. 12 - Prob. 12.3BECh. 12 - Prob. 12.4BECh. 12 - Prob. 12.5BECh. 12 - Universal Sports Supply began the year with an...Ch. 12 - Prob. 12.7BECh. 12 - Prob. 12.8BECh. 12 - Prob. 12.9BECh. 12 - Prob. 12.10BECh. 12 - Prob. 12.11BECh. 12 - Prob. 12.12BECh. 12 - Prob. 12.13BECh. 12 - Classify each of the following accounting...Ch. 12 - Classify each of the following accepted accounting...Ch. 12 - Prob. 12.1ECh. 12 - Prob. 12.2ECh. 12 - Prob. 12.3ECh. 12 - Prob. 12.4ECh. 12 - Prob. 12.5ECh. 12 - Refer to the information for Adrian Express in...Ch. 12 - Prob. 12.7ECh. 12 - Calculate profitability ratios (LO124) Refer to...Ch. 12 - Prob. 12.9ECh. 12 - The income statement for Stretch-Tape Corporation...Ch. 12 - Prob. 12.11ECh. 12 - LeBrons Bookstores has two divisions, books and...Ch. 12 - Prob. 12.13ECh. 12 - Prob. 12.14ECh. 12 - Distinguish between conservative and aggressive...Ch. 12 - Prob. 12.1APCh. 12 - Prob. 12.2APCh. 12 - Prob. 12.3APCh. 12 - Prob. 12.4APCh. 12 - Prob. 12.5APCh. 12 - Prob. 12.6APCh. 12 - Game-On Sports operates in two distinct segments:...Ch. 12 - Prob. 12.2BPCh. 12 - Prob. 12.3BPCh. 12 - Prob. 12.4BPCh. 12 - Prob. 12.5BPCh. 12 - Prob. 12.6BPCh. 12 - Prob. 12.1APCPCh. 12 - Prob. 12.2APFACh. 12 - Prob. 12.3APFACh. 12 - Prob. 12.4APCACh. 12 - Prob. 12.5APECh. 12 - Prob. 12.7APWCCh. 12 - Prob. 12.8APEM
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