Accounting
27th Edition
ISBN: 9781337272094
Author: WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher: Cengage Learning,
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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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Current Position Analysis
The following data were taken from the balance sheet of Albertini Company at the end of two recent fiscal years:
Current Year
Previous Year
Current assets:
Cash
Marketable securities
Accounts and notes receivable (net)
Inventories
Prepaid expenses
Total current assets
Current liabilities:
Accounts and notes payable
(short-term)
Accrued liabilities
Total current liabilities
1. Working capital
2. Current ratio
$410,400
475,200
194,400
712,800
367,200
$2,160,000
3. Quick ratio
b. The liquidity of Albertini has
these changes are the result of an
$313,200
226,800
$540,000
a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place.
Current Year
Previous Year
$
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380,700
126,900
516,100
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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
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249,600
87,360
180,960
Hanes Company
Comparative Balance Sheet
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20Y1 Amount 20Y1 Percent
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%
Vertical Analysis of Balance Sheet
Balance sheet data for Kwan Company on December 31, the end of two recent fiscal years, follow:
Current Year
Previous Year
Current assets
$289,080
$177,390
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473,040
413,910
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113,880
65,700
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210,240
111,690
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297,840
262,800
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105,120
98,550
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262,800
183,960
Prepare a comparative balance sheet for both years, stating each asset as a percent of total assets and each liability and stockholders' equity item as a percent of the total liabilities and stockholders' equity. If required, round percentages to one decimal place.
Kwan CompanyComparative Balance SheetFor the Years Ended December 31
CurrentyearAmount
CurrentyearPercent
PreviousyearAmount
PreviousyearPercent
Current assets
$289,080
fill in the blank 1%
$177,390
fill in the blank 2%
Property, plant, and equipment
473,040
fill…
Chapter 15 Solutions
Accounting
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