Intermediate Accounting: Reporting and Analysis (Looseleaf)
3rd Edition
ISBN: 9781337788311
Author: WAHLEN
Publisher: Cengage
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Chapter 4, Problem 17P
To determine
Calculate the common-size
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Hershey Company is one of the world’s leading producers of chocolates, candies, and confections. The company sells chocolates and candies, mints and gums, baking ingredients, toppings, and beverages. Hershey’s consolidated balance sheets for 2009 and 2010 follow:Hershey: Consolidated Balance Sheets(millions) 2009 2010AssetsCurrent AssetsCash and Equivalents $ 253.6 $ 884.6 Accounts Receivable, Trade 410.4 390.1 Inventories 519.7 533.6 Deferred Income Taxes 39.9 55.8 Prepaid Expenses and Other Assets 161.8 141.1 Total Current Assets 1,385.4 2,005.2 Property, Plant, and Equipment, net 1,404.8 1,437.7 Goodwill and Intangible Assets 571.6 524.1 Other Intangible Assets 125.5 123.1 Deferred Income Taxes and Other Assets 187.7 182.6 Total Assets $3,675.0 $ 4,272.7 Liabilities and Shareholders’ EquityCurrent LiabilitiesAccounts Payable $ 287.9 $ 410.7 Accrued Liabilities and Taxes 583.4 602.7 Short-Term Debt 24.1 24.1 Current Portion of Long-Term Debt 15.2 261.4 Total Current Liabilities 910.6…
Suppose you want to compare Palfinger AG to another heavy equipment manufacture, Caterpillar, Inc. To compare the companies, complete the table below and calculate common-sized numbers. To common-size balance sheet numbers, divide by total assets abd to common-size income statement numbers, divide by net sales. Comment on the trends over time and levels across companies.
Hershey Company is one of the world’s leading producers of chocolates, candies, and confections. The company sells chocolates and candies, mints and gums, baking ingredients, toppings, and beverages. Hershey’s consolidated balance sheets for 2009 and 2010 follow:
Hershey: Consolidated Balance Sheets
(millions)
2009
2010
Assets
Current Assets
Cash and Equivalents
$ 253.6
$ 884.6
Accounts Receivable, Trade
410.4
390.1
Inventories
519.7
533.6
Deferred Income Taxes
39.9
55.8
Prepaid Expenses and Other Assets
161.8
141.1
Total Current Assets
1,385.4
2,005.2
Property, Plant, and Equipment, net
1,404.8
1,437.7
Goodwill and Intangible Assets
571.6
524.1
Other Intangible Assets
125.5
123.1
Deferred Income Taxes and Other Assets
187.7
182.6
Total Assets
$ 3,675.0
$ 4,272.7…
Chapter 4 Solutions
Intermediate Accounting: Reporting and Analysis (Looseleaf)
Ch. 4 - What is the accounting equation? The balance sheet...Ch. 4 - Prob. 2GICh. 4 - How does the balance sheet at the end of an...Ch. 4 - What does recognition mean in accounting?Ch. 4 - Prob. 5GICh. 4 - Prob. 6GICh. 4 - What is equity? How is equity determined?Ch. 4 - What is a mixed attribute measurement model? Why...Ch. 4 - Identify at least five alternatives for measuring...Ch. 4 - Identify at least three alternatives for measuring...
Ch. 4 - Prob. 11GICh. 4 - Prob. 12GICh. 4 - Prob. 13GICh. 4 - Prob. 14GICh. 4 - Prob. 15GICh. 4 - Prob. 16GICh. 4 - Define (a) common stock, (b) additional paid-in...Ch. 4 - Prob. 18GICh. 4 - Prob. 19GICh. 4 - What are investments by owners? Distributions to...Ch. 4 - What accounting policies are disclosed in the...Ch. 4 - Give several examples of financial instruments and...Ch. 4 - Prob. 23GICh. 4 - Prob. 24GICh. 4 - Prob. 25GICh. 4 - Prob. 26GICh. 4 - Prob. 27GICh. 4 - Prob. 28GICh. 4 - Prob. 29GICh. 4 - Prob. 30GICh. 4 - Prob. 31GICh. 4 - Prob. 32GICh. 4 - Prob. 33GICh. 4 - Prob. 34GICh. 4 - A donated fixed asset (from a governmental unit)...Ch. 4 - Prob. 2MCCh. 4 - Prob. 3MCCh. 4 - On October 2, 2020, a company borrowed cash and...Ch. 4 - Prob. 5MCCh. 4 - Rent revenue collected 1 month in advance should...Ch. 4 - Prob. 7MCCh. 4 - Prob. 8MCCh. 4 - Which of the following should be disclosed in the...Ch. 4 - Prob. 10MCCh. 4 - Prob. 1RECh. 4 - Dorothy Corporation had the following accounts in...Ch. 4 - Dorothy Corporation had the following accounts in...Ch. 4 - Based on the information in RE4-2 and RE4-3,...Ch. 4 - Prob. 5RECh. 4 - Oz Corporation has the following assets at...Ch. 4 - Prob. 7RECh. 4 - Prob. 8RECh. 4 - Scarecrow Inc. issues 50,000 shares of 2 par value...Ch. 4 - Tinman Corporation reports the following balances...Ch. 4 - Prob. 1ECh. 4 - Plant and Equipment Your analysis of Moen...Ch. 4 - GRAF CORPORATION Shareholders Equity Section of...Ch. 4 - Prob. 4ECh. 4 - Classifications on Balance Sheet The balance sheet...Ch. 4 - Balance Sheet Baggett Companys balance sheet...Ch. 4 - Prob. 7ECh. 4 - Balance Sheet Calculations Dawson Companys balance...Ch. 4 - Prob. 9ECh. 4 - Correction of Balance Sheet On December 31, 2019,...Ch. 4 - Prob. 11ECh. 4 - Prob. 12ECh. 4 - Classifications on Balance Sheet The current...Ch. 4 - Balance Sheet without Amounts The following is an...Ch. 4 - Prob. 3PCh. 4 - Prob. 4PCh. 4 - Balance Sheet Calculations Cornerstone Development...Ch. 4 - Prob. 6PCh. 4 - Complex Balance Sheet Presented below is the...Ch. 4 - Analyzing Starbuckss Balance Sheet Disclosures...Ch. 4 - Prob. 9PCh. 4 - Balance Sheet The following is a list (in random...Ch. 4 - Balance Sheet The following is an alphabetical...Ch. 4 - Balance Sheet from Adjusted Trial Balance The...Ch. 4 - Balance Sheet and Notes Listed here in random...Ch. 4 - Comprehensive: Balance Sheet, Schedules, and Notes...Ch. 4 - Use following formation for P4-15 and P4-16:...Ch. 4 - Ratios Analyses: McCormick Refer to the...Ch. 4 - Prob. 17PCh. 4 - Use the following information for P417 and P418:...Ch. 4 - Prob. 1CCh. 4 - It is the end of 2019 and you are an accountant...Ch. 4 - Prob. 3CCh. 4 - Valuation of Assets and Stock A friend has come to...Ch. 4 - It is February 16, 2020, and you are auditing...Ch. 4 - You are the accountant for Speedy Company and are...Ch. 4 - Prob. 7CCh. 4 - Prob. 8CCh. 4 - Situation You are the assistant accountant for...
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- 10. Review the select information for Bean Superstore and Legumes Plus (industry competitors), and then complete the following. A. Compute the accounts receivable turnover ratios for each company for 2018 and 2019. B. Compute the number of days' sales in receivables ratios for each company for 2018 and 2019. C. Determine which company is the better investment and why. Round answers to two decimal places. BEAN SUPERSTORE LEGUMES PLUS Comparative Balance Sheet December 31, 2017, 2018, and 2019 Comparative Balance Sheet December 31, 2017, 2018, and 2019 2019 2018 2017 2019 2018 2017 Assets Cash $345,600 67,000 145,830 100,465 $330,460 62,000 178,011 101,202 $300,000 59,000 155,205 103,085 $407,000 85,430 128,080 182,006 $386,450 82,670 40,036 23,400 $356,367 79,230 52,142 111,701 Accounts Receivable Inventory Equipment Total Assets $658,895 $671,673 $617,290 $802,516 $532,556 $599,440 Liabilities Salaries Payable Accounts Payable Notes Payable $ 91,455 $ 90,200 70,000 41,000 $ 88,563…arrow_forwardUse following formation for P4-15 and P4-16: McCormick Company, Inc. is one of the worlds leading producers of spices, herbs, seasonings, condiments, and other flavorings for foods. Its products are sold to consumers, with some of the leading brands of spices and seasonings, as well as to industrial producers of foods. McCormicks consolidated balance sheets for 20X2 and 20X3 follow. Common-Size and Rate of Change Analyses: McCormick Refer to the information for McCormick above. Required: Compute the common size balance sheet for 20X3 and the rate of change balance sheet for 20X3. Which two asset accounts and which two liabilities and shareholders equity accounts are the largest relative to total assets in 20X3? Which two asset accounts and which two liability and shareholders equity accounts grew at the fastest rates in 20X3? (Note: You may find it helpful to enter the data into an Excel spreadsheet for these computations.)arrow_forwardRatios Analysis: Hershey The Hershey Company is one of the world's leading producers of chocolates, candies, and confections. It sells chocolates and candies, mints and gums, baking ingredients, toppings, and beverages. Hershey's consolidated balance sheets for 20X2 and 20X3 follow. Hershey: Consolidated Balance Sheets Dollar Amounts in Millions 20X2 20X3 Assets Current Assets Cash and Equivalents $728.3 $1,118.5 Receivables 461.4 477.9 Inventories 633.3 659.5 Deferred Income Taxes 122.2 52.5 Prepaid Expenses and Other Assets 168.3 178.9 Total Current Assets $2,113.5 $2,487.3 Property, Plant and Equipment, Net 1,674.1 1,805.3 Goodwill 588.0 576.6 Other Intangible Assets, net 214.7 195.2 Other Assets 164.5 293.0 Total Assets $4,754.8 $5,357.5 Liabilities and Shareholders' Equity Current Liabilities Accounts Payable $442.0 $461.5 Accrued Liabilities 650.9 699.7 Accrued Income Taxes 2.3 79.9…arrow_forward
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- 10. Review the select information for Bean Superstore and Legumes Plus (industry competitors), and then complete the following. A. Compute the accounts receivable turnover ratios for each company for 2018 and 2019. B Compute the number of days sales in receivables ratios for each company for 2018 and 2019 C. Determine which company is the better investment and why. Round answers to two decimal places.arrow_forwardCoca-Cola and PepsiCo are two of the largest and most successful beverage companies in the world in terms of the products that they sell and their receivables management practices. To evaluate their ability to collect on credit sales, consider the following information assumed to have been reported in their 2020, 2019, and 2018 annual reports (amounts in millions). Coca-Cola PepsiCo 2019 Fiscal Year Ended: 2020 2019 2018 2020 Net Sales $31,844 $36,857 3,383 68 $25,288 2,770 75 $ 49,251 3,904 82 $44,274 3,790 81 2018 $36,337 3,267 76 Accounts Receivable 3,161 67 Allowance for Doubtful Accounts Accounts Receivable, Net of Allowance 3,094 3,315 2,695 3,822 3,709 3,191 Required: 1. Calculate the receivables turnover ratios and days to collect for Coca-Cola and PepsiCo for 2020 and 2019. (Consider a 365 days a year. Round your intermediate answers and final answers to 1 decimal place.) 2020 Coca-Cola PepsiCo Receivables turnover ratio Days to collect 2019 Receivables turnover ratio times…arrow_forwardRatios Analysis: McCormick McCormick & Company, Inc. is one of the world's leading producers of spices, herbs, seasonings, condiments, and other flavorings for foods. Its products are sold to consumers, with some of the leading brands of spices and seasonings, as well as to industrial producers of foods. McCormick's consolidated balance sheets for 2012 and 2013 follow. McCormick: Consolidated Balance Sheets Dollar Amounts in Millions 2012 2013 Assets Current Assets Cash and Equivalents $ 79.0 $ 63.0 Receivables 465.9 495.5 Inventories 615.0 676.9 Prepaid Expenses and Other Assets 125.5 134.8 Total Current Assets $ 1,285.4 $ 1,370.2 Property and Equipment, Net 547.3 576.6 Goodwill 1,695.3 1,798.5 Intangible Assets, net 323.5 333.4 Investments and Other Assets 313.9 371.0 Total Assets $ 4,165.4 $ 4,449.7 Liabilities and Shareholders' Equity Current Liabilities Short-Term Borrowings $ 140.3 $ 211.6 Current Portion of…arrow_forward
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