HORNGREN'S FINANCIAL & MANGERIAL ACCOUNT
7th Edition
ISBN: 9780136505273
Author: MILLER-NOBLES
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 8, Problem 8.27E
1.
To determine
Concept Introduction:
Financial analysis: It is an interpretation of financial statements using various financial tools for decision-making. External users use it to ascertain the overall health of the organization in terms of profitability, liquidity,
The acid test ratio for 2023 and 2024, and show the comparison of the industrial ratio.
2.
To determine
Concept Introduction:
Financial analysis: It is an interpretation of financial statements using various financial tools for decision-making. External users use it to ascertain the overall health of the organization in terms of profitability, liquidity, efficiency, and marketability.
The
3.
To determine
Concept Introduction:
Financial analysis: It is an interpretation of financial statements using various financial tools for decision-making. External users use it to ascertain the overall health of the organization in terms of profitability, liquidity, efficiency, and marketability.
The sales day in receivable for 2024 and show the comparison with the industrial ratio.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Instructions:
I. Resolve the ratios listed on table a for each year (2020 & 2021):
a. For each ratio includes the formula with math computes (2020 & 2021)
b. . Fill M&G Industries Ratio Analysis Table A. (2020 & 2021)
II. Perform the following Analysis:
a. Explain each ratio results for 2021 only.
b. Compare each ratio performance with the previous year results (compare 2021 results with 2020 results)
c. Compare each Ratio results for 2021 with their respective Industry average.
Using the financial statements
provided below for ABC
Manufacturing Company, calculate all the
ratios listed below for both 2020 and2021. Assume that all sales are credit sales.
(a) Calculate the ratios forABC Manufacturing Company for2020 and 2021.
(b)Put an“I/D” beside the Year 2021 ratio calculation if the ratio has Improved/Deteriorated.
Putan“S”/“W” beside the Year 2021 ratio if ABC
Manufacturing Company’s ratio is Stronger/Weake rthan its competitors
Cafua Corporation makes cell phone covers and has the following comparative income statement for the years ended December 31, 2025 and 2024:
(Cick the icon to view the comparative income statement.)
Read the requirement.
Begin by completing a horizontal analysis of Cafua Corporation's income statement. (Use a minus sign or parentheses to show an amount and/or percentage decrease. Round all percentages to the
nearest tenth percent, X.X. For example, enter 10.2% as 10.2. Complete all input boxes. If the base amount is $0, enter a "0" in the percentage column.)
Revenues:
Net Sales Revenue
Other Revenues
Total Revenues
Expenses:
Cost of Goods Sold
Engineering, Selling, and Administrative Expenses
Interest Expense
Income Tax Expense
Other Expenses
Total Expenses
Cafua Corporation
Income Statement
Years Ended December 31, 2025 and 2024
Net Income
2025
$
$ 1,100,000 $ 1,000,000
9,000
1,100,000 1,009,000
781,000
205,700
26,400
27,500
8,800
2024
1,049,400
50,600 $
673,000
193,000
15,000
14,000…
Chapter 8 Solutions
HORNGREN'S FINANCIAL & MANGERIAL ACCOUNT
Ch. 8 - Prob. 1QCCh. 8 - Which of the following is a limitation of the...Ch. 8 - The entry to record a write-off of an...Ch. 8 - Brickman Corporation uses the allowance method to...Ch. 8 - Brickmans ending balance of Accounts Receivable is...Ch. 8 - Prob. 6QCCh. 8 - Prob. 7QCCh. 8 - Prob. 8QCCh. 8 - Prob. 9QCCh. 8 - Prob. 10QC
Ch. 8 - What is the difference between accounts receivable...Ch. 8 - Prob. 2RQCh. 8 - Prob. 3RQCh. 8 - When dealing with receivables, give an example of...Ch. 8 - What type of account must the sum of all...Ch. 8 - Prob. 6RQCh. 8 - What occurs when a business factors its...Ch. 8 - What occurs when a business pledges its...Ch. 8 - Prob. 9RQCh. 8 - Prob. 10RQCh. 8 - Prob. 11RQCh. 8 - Prob. 12RQCh. 8 - When using the allowance method, how are accounts...Ch. 8 - Prob. 14RQCh. 8 - Prob. 15RQCh. 8 - How does the percent- of-sales method compute bad...Ch. 8 - How do the percent-of-receivables and aging-of-...Ch. 8 - What is the difference between the...Ch. 8 - Prob. 19RQCh. 8 - Prob. 20RQCh. 8 - Prob. 21RQCh. 8 - Prob. 22RQCh. 8 - Prob. 23RQCh. 8 - Prob. 24RQCh. 8 - Prob. 8.1SECh. 8 - Prob. 8.2SECh. 8 - Prob. 8.3SECh. 8 - Prob. 8.4SECh. 8 - Prob. 8.5SECh. 8 - Prob. 8.6SECh. 8 - Prob. 8.7SECh. 8 - Prob. 8.8SECh. 8 - Prob. 8.9SECh. 8 - Prob. 8.10SECh. 8 - Prob. 8.11SECh. 8 - Prob. 8.12SECh. 8 - Prob. 8.13SECh. 8 - Defining common receivables terms Match the terms...Ch. 8 - Prob. 8.15ECh. 8 - Prob. 8.16ECh. 8 - Prob. 8.17ECh. 8 - Prob. 8.18ECh. 8 - Prob. 8.19ECh. 8 - Prob. 8.20ECh. 8 - Prob. 8.21ECh. 8 - Prob. 8.22ECh. 8 - Prob. 8.23ECh. 8 - Prob. 8.24ECh. 8 - Prob. 8.25ECh. 8 - Prob. 8.26ECh. 8 - Prob. 8.27ECh. 8 - Prob. 8.28ECh. 8 - Prob. 8.29APCh. 8 - Prob. 8.30APCh. 8 - Prob. 8.31APCh. 8 - Prob. 8.32APCh. 8 - Prob. 8.33APCh. 8 - Prob. 8.34APCh. 8 - Prob. 8.35APCh. 8 - Prob. 8.36BPCh. 8 - Prob. 8.37BPCh. 8 - Prob. 8.38BPCh. 8 - Prob. 8.39BPCh. 8 - Prob. 8.40BPCh. 8 - Prob. 8.41BPCh. 8 - Prob. 8.42BPCh. 8 - Prob. 8.43CPCh. 8 - Prob. 8.44PSCh. 8 - Prob. 8.1CTDCCh. 8 - Prob. 8.2CTDCCh. 8 - Prob. 8.1CTFC
Knowledge Booster
Similar questions
- Data for Lozano Chip Company and its industry averages follow. Calculate the indicated ratios for Lozano. Construct the extended DuPont equation for both Lozano and the industry. Outline Lozano’s strengths and weaknesses as revealed by your analysis. Lozano Chip Company: Balance Sheet as of December 31, 2019 (Thousands of Dollars) Lozano Chip Company: Income Statement for Year Ended December 31, 2019 (Thousands of Dollars)arrow_forwardHere is the operating data for Yalis Cleaning, Inc.: After analyzing the transactions, prepare a vertical analysis schedule for the company for 2021 and 2020 using service revenue as the base amount. Round percentages to two decimal places.arrow_forwardCompare Delta to two of its competitors, JetBlue and Southwest, by answering the following questions. You do not need to calculate all of the ratios for JetBlue and Southwest, only the ones required to answer the questions below: How much bigger is Delta from each of its competitors, by Revenue, in each year from 2018-2022? Plot the Revenue number for each company for these years on a single line graph. Which company has the highest Net Income in each year from 2018-2022? Which company has the highest Net Profit Margin in 2018? In 2022? Which company is the most profitable based on Gross Profit percentage each year from 2018-2022? (This is a trick question.) Which company is best at using its short-term assets to pay off its short-term liabilities in 2019? Which company has the best cash ratio in 2019? Is it the same company that is best at using its short-term assets to pay short-term liabilities? If not, why do you think it's different? Which company is the most leveraged in 2022?arrow_forward
- After analyzing the transactions, prepare a vertical analysis schedule for the company for 2021 and 2020 using service revenue as the base amount. Round percentages to two decimal places. Here is the operating data for Yalis Cleaning, Inc.: 2021 2020Service revenue $523,000 $476,000Operating expenses 385,500 319,800Income tax expense 34,375 39,050Net income $103,125 $117,150arrow_forwardObtain Target Corporation's annual report for its 2018 fiscal year (year ended February 2, 2019) at http://investors.target.com a. What was Target's gross margin percentage for the fiscal year ended February 2, 2019 (2018) and 2017? Use "Sales" for these computations b. What was Target's Return on Sales percentage for 2018 and 2017? Use "Total Revenue" for these computations. c. Target's return on ales percentage for 2017 was higher than it was in 2018. Ignoring taxes, how much higher would Target's 2018 net income have been if it's return on sales percentage in 2018 had been the same as for 2017?arrow_forwardCompare the resulting ratios of P and P Manufacturing Company for 2018 (per your computation) with its competitors in the table given below.arrow_forward
- Access the February 21, 2017, filing of the December 31, 2016, 10-K report of The Hershey Company (ticker: HSY) at SEC.gov and complete the following requirements. Required Compute or identify the following profitability ratios of Hershey for its years ending December 31, 2016, and December 31, 2015. Interpret its profitability using the results obtained for these two years. 1. Profit margin ratio (round the percent to one decimal). 2. Gross profit ratio (round the percent to one decimal). 3. Return on total assets (round the percent to one decimal). (Total assets at year-end 2014 were $5,622,870 in thousands.) 4. Return on common stockholders’ equity (round the percent to one decimal). (Total shareholders’ equity at year-end 2014 was $1,519,530 in thousands.) 5. Basic net income per common share (round to the nearest cent).arrow_forwardPrepare the common-size financial statement for the entities below and provide a reasoned explanation of the benefits relative to ratios when used to compare performance and establish trends. Income statements for year ending 31 December 2020 Energy Plus Co. ltd V8 Splash Ltd. $’000 $’000 Net revenue 35,119 30,990 Cost of goods sold 12,693 11,088 Gross profit 22,426 19,902 Selling & administrative expenses 13,158 11,358 Other operating expenses 819…arrow_forward4. Calculate the current ratio for Pearson & Litt for 2019. 5. Explain the results of the current‐test ratio. HINT: Include the minimum ratio recommended for the ratio in your answer. 6. The gross profit margin indicates how profitable sales have been. Calculate the gross profit margin for Pearson & Litt for 2020.arrow_forward
- All-Hands Property & Casualty Insurance Company has the following financial ratios. 2019 2018 Loss Ratio 67.8 68.1 Expense Ratio 24.2 25.1 Net Investment Yield 3.5 4.0 a. Calculate the Combined Ratio {Loss Ratio + Expense Ratio} for each year. Combined Ratio 2019 Combined Ratio 2018 b. Calculate the Overall Profitability Ratios Overall Profitability Ratio 2019 Overall Profitability Ratio 2018 why the Overall Profitability Ratio Changed in 2019 Based on the Loss Ratio, Expense Ratio, and Net Investment Yield Trends?arrow_forward1.Calculate the break‐even point for Pearson & Litt for 2019 and 2020. 2. Compare the results of the 2019 and 2020 break‐even point and explain why there might be a difference. 3. The current ratio reflects the relationship between the value of the current assets and the extent of the current liabilities of a business. 4. Calculate the current ratio for Pearson & Litt for 2019. 5. Explain the results of the current‐test ratio. HINT: Include the minimum ratio recommended for the ratio in your answer. 6. The gross profit margin indicates how profitable sales have been. 7. Calculate the gross profit margin for Pearson & Litt for 2020. 8. Explain the results of the gross profit margin calculation. 9. Financial planning forms an integral part of the strategic planning of a firm. 10. Differentiate between traditional budgeting and zero‐base budgeting. 11. Recommend one of these budgeting methods to Pearson & Litt and provide reasons for your recommendation.arrow_forwardIf you are told that LSJ Company’s net income (12/31/2023) increased 55% when compared to net income (12/31/2022) …this would represent an example of what type of analysis: a. Vertical Analysis b. Horizontal Analysis c. Ratio Analysisarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College