Accounting
27th Edition
ISBN: 9781337272094
Author: WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher: Cengage Learning,
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Textbook Question
Chapter 15, Problem 15.18EX
The income statement for Delta-tec Inc. for the year ended December 31, Year 2, was as follows:
| Delta-tec Inc. Income Statement (selected items) For the Year Ended December 31, Year 2 |
|
| Income from operations | $299,700 |
| Gain on sale of investments | 17.800 |
| Unrealized loss on trading investments | (72.500) |
| Net income | $245.000 |
The balance sheet dated December 31, Year 1, showed a
a. Determine the December 31, Year 2, Retained Earnings balance.
b. Provide the December 31. Year 2, balance sheet presentation for Trading Investments.
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Selected current year company information follows:
Net income.
Net sales
Total liabilities, beginning-year
Total liabilities, end-of-year
Total stockholders' equity, beginning-year
Total stockholders' equity, end-of-year
The total asset turnover is: (Do not round Intermediate calculations.)
$ 16,753
720,855
91,932
111, 201
206,935
133,851
Vertical Analysis of Balance Sheet
Balance sheet data for Hanes Company on December 31, the end of the fiscal year, are shown below.
Current assets
Property, plant, and equipment
Intangible assets
Current liabilities
Long-term liabilities
Common stock
Retained earnings
Current assets
20Y2
Assets
266,240
457,600
108,160
183,040
324,480
91,520
232,960
20Y1
$266,240
162,240
%
418,080
43,680
106,080
Prepare a comparative balance sheet for 20Y2 and 20Y1, stating each asset as a percent of total assets and each liability and stockholders' equity
of the total liabilities and stockholders' equity. If required, round percentages to one decimal place.
249,600
87,360
180,960
Hanes Company
Comparative Balance Sheet
December 31, 20Y2 and 20Y1
20Y2 Amount 20Y2 Percent
20Y1 Amount 20Y1 Percent
$162,240
%
Chapter 15 Solutions
Accounting
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