Managerial Accounting: Tools for Business Decision Making
7th Edition
ISBN: 9781118334331
Author: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Publisher: WILEY
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Textbook Question
Chapter 14, Problem 14.2BYP
PepsiCo’s financial statements are presented at www.pepsico.com. Financial statements of The Coca-Cola Company are presented at www.coca-cola.com
Instructions
(a) Based on the information contained in these financial statements, determine each of the following for each company.
(1) The percentage increase (decrease) in (i) net sales and (ii) net income from 2012 to 2013.
(2) The percentage increase in (i) total assets and (ii) total common stockholders’ (shareholders’) equity from 2012 to 2013.
(3) The basic earnings per share and price-earnings ratio for 2013. (For both PepsiCo and Coca-Cola, use the basic earnings per share.) Coca-Cola’s common stock had a market price of $41.31 at the end of fiscal-year 2013, and PepsiCo’s common stock had a market price of $82.71.
(b) What conclusions concerning the two companies can be drawn from these data?
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Presented below are the 2024 income statement and comparative balance sheets for Santana Industries.
SANTANA INDUSTRIES
Income Statement
For the Year Ended December 31, 2024
($ in thousands)
Sales revenue
$ 16,450
Service revenue
5,600
Total revenue
$ 22,050
Operating expenses:
Cost of goods sold
8,300
Selling expense
3,500
General and administrative expense
2,600
Total operating expenses
14,400
Operating income
7,650
Interest expense
260
Income before income taxes
7,390
Income tax expense
2,700
Net income
$ 4,690
Balance Sheet Information ($ in thousands)
December 31, 2024
December 31, 2023
Assets:
Cash
$ 9,400
$ 3,190
Accounts receivable
4,700
3,300
Inventory
6,200
4,100
Prepaid rent
260
520
Equipment
16,700
14,200
Less: Accumulated depreciation
(6,200)
(5,600)
Total assets
$ 31,060
$ 19,710
Liabilities and Shareholders’ Equity:
Accounts payable
$ 3,600
$ 2,200
Interest payable
210
0…
Presented below is the 2024 income statement and comparative balance sheet information for Tiger Enterprises.
TIGER ENTERPRISES
Income Statement
For the Year Ended December 31, 2024
($ in thousands)
Sales revenue
$ 8,020
Operating expenses:
Cost of goods sold
$ 3,530
Depreciation expense
410
Insurance expense
270
General and administrative expense
1,970
Total operating expenses
6,180
Income before income taxes
1,840
Income tax expense
(770)
Net income
$ 1,070
Balance Sheet Information ($ in thousands)
December 31, 2024
December 31, 2023
Assets:
Cash
$ 470
$ 370
Accounts receivable
920
1,000
Inventory
810
770
Prepaid insurance
135
105
Equipment
2,950
2,650
Less: Accumulated depreciation
(1,180)
(770)
Total assets
$ 4,105
$ 4,125
Liabilities and Shareholders' Equity:
Accounts payable
$ 470
$ 530
Accrued liabilities (for general & administrative expense)
470
570
Income taxes payable
370
320
Notes…
Liverton Co.’s income statement for the year ended 31 March 2019 and statements of financial position at 31 March 2019 and 2018 were as follows in the images.
Calculate for the financial year ended 31 March 2019 and, where possible, for 31 March 2018, the following ratios:
i) Gross profit marginii) Assets usageiii) Current ratioiv) Acid testv) Inventories holding periodvi) Debt to Equity ratio
Chapter 14 Solutions
Managerial Accounting: Tools for Business Decision Making
Ch. 14 - (a) Jose Ramirez believes that the analysis of...Ch. 14 - (a) Distinguish among the following bases of...Ch. 14 - Prob. 3QCh. 14 - Prob. 4QCh. 14 - Prob. 5QCh. 14 - Prob. 6QCh. 14 - Prob. 7QCh. 14 - What do the following classes of ratios measure?...Ch. 14 - What is the difference between the current ratio...Ch. 14 - Hizar Company, a retail store, has an accounts...
Ch. 14 - Which ratios should be used to help answer the...Ch. 14 - The price-earnings ratio of General Motors...Ch. 14 - What is the formula for computing the payout...Ch. 14 - Holding all other factors constant, indicate...Ch. 14 - Prob. 15QCh. 14 - Prob. 16QCh. 14 - Prob. 17QCh. 14 - Prob. 18QCh. 14 - Prob. 19QCh. 14 - Why is it important to report discontinued...Ch. 14 - You are considering investing in Wingert...Ch. 14 - Prob. 22QCh. 14 - Prob. 23QCh. 14 - You recently received a letter from your Uncle...Ch. 14 - Prob. 14.2BECh. 14 - Using the following data from the comparative...Ch. 14 - Using the same data presented above in BE14-3 for...Ch. 14 - Net income was 500,000 in 2016, 450,000 in 2017,...Ch. 14 - Prob. 14.6BECh. 14 - Prob. 14.7BECh. 14 - Prob. 14.8BECh. 14 - Prob. 14.9BECh. 14 - Prob. 14.10BECh. 14 - The following data are taken from the financial...Ch. 14 - Prob. 14.12BECh. 14 - Prob. 14.13BECh. 14 - Prob. 14.14BECh. 14 - On June 30. Holloway Corporation discontinued its...Ch. 14 - Prob. 14.1DICh. 14 - Prob. 14.2DICh. 14 - In its proposed 2017 income statement. Hrabik...Ch. 14 - Financial information for Kurzen Inc. is presented...Ch. 14 - Operating data for Navarro Corporation are...Ch. 14 - The comparative condensed balance sheets of Gurley...Ch. 14 - The comparative condensed income statements of...Ch. 14 - Suppose Nordstrom, Inc., which operates department...Ch. 14 - Keener Incorporated had the following transactions...Ch. 14 - Frizell Company has the following comparative...Ch. 14 - Prob. 14.8ECh. 14 - Prob. 14.9ECh. 14 - Prob. 14.10ECh. 14 - Wiemers Corporations comparative balance sheets...Ch. 14 - Prob. 14.12ECh. 14 - Prob. 14.13ECh. 14 - Comparative statement data for Farris Company and...Ch. 14 - The comparative statements of Painter Tool Company...Ch. 14 - Prob. 14.3APCh. 14 - Financial information for Messersmith Company is...Ch. 14 - Prob. 14.5APCh. 14 - Prob. 14.6APCh. 14 - Prob. 14.7APCh. 14 - Prob. 14.8APCh. 14 - Prob. 14.9APCh. 14 - Financial Reporting Problem: Apple Inc. Your...Ch. 14 - PepsiCos financial statements are presented at...Ch. 14 - Prob. 14.3BYPCh. 14 - As the CPA for Gandara Manufacturing Inc., you...Ch. 14 - The Management Discussion and Analysis section of...Ch. 14 - Prob. 14.6BYPCh. 14 - Dave Schonhardt, president of Schonhardt...
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