Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
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Textbook Question
Chapter 9, Problem 1E
Exercise 9-1 Horizontal analysis
Winthrop Corporation reported the following operating results for two consecutive years:
Required
- a. Compute the percentage changes in Winthrop Corporation’s income statement components between the two years. Round percentages to one decimal point.
- b. Comment on apparent trends revealed by the percentage changes computed in Requirement a.
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Required: Prepare a schedule of profit distribution under the following independentagreements on the division of profits:1. In the ratio of investments at the beginning or the fiscal period.2. In the ratio of average capitals, investments and withdrawals are to be considered as madeat the beginning of the month if made before the middle of the month, and are to be consideredas made at the beginning of the following month if made after the middle of the month.3. Interest of 24% on average capitals, salaries to Castro and Diaz of P36,000 and P24,000,respectively, and any balance equally. Investments and withdrawals are to be considered asin (2).4. Allowance to Castro of a bonus of 25% of the net profit after bonus, interest of10% to beallowed on the excess of the average investment (simple average) of one partner over that ofthe other, and any balance in the ratio of 3.2 to Castro and Diaz, respectively.5. Salaries of P3,000 and P2,000 a month to Castro and Diaz, respectively provided…
a. Prepare a vertical analysls
percents as whole numbers.
Versatile Company
Income Statements
For the Years Ended December 31
20Y5
20Y5 Percent
20Y4
20Y4 Percent
Amount
Amount
Fees earned
$793,000
100 %
$672,000
100 %
Operating expenses
650,260
81 %
591,360
86 %
Income from
$142,740
19 %
$80,640
14 %
operations
b. Does the vertical analysis indicate a favorable or an unfavorable trend?
Income statement data for Winthrop Company for two recent years ended December 31 are as follows:
Please see the attachment for details:
a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. Round percentages to one decimal place.b. What conclusions can be drawn from the horizontal analysis?
Chapter 9 Solutions
Survey Of Accounting
Ch. 9 - 1. Why are ratios and trends used in financial...Ch. 9 - Prob. 2QCh. 9 - Prob. 3QCh. 9 - 4. What is the significance of inventory turnover,...Ch. 9 - 5. What is the difference between the current...Ch. 9 - Prob. 6QCh. 9 - Prob. 7QCh. 9 - Prob. 8QCh. 9 - 9. What are some limitations of the earnings per...Ch. 9 - Prob. 10Q
Ch. 9 - Prob. 11QCh. 9 - Prob. 12QCh. 9 - Prob. 13QCh. 9 - Prob. 14QCh. 9 - Exercise 9-1 Horizontal analysis Winthrop...Ch. 9 - Prob. 2ECh. 9 - Prob. 3ECh. 9 - Prob. 4ECh. 9 - Prob. 5ECh. 9 - Prob. 6ECh. 9 - Prob. 7ECh. 9 - Prob. 8ECh. 9 - Comprehensive analysis The December 31, 2019,...Ch. 9 - Prob. 10ECh. 9 - Prob. 11ECh. 9 - Prob. 12ECh. 9 - Ratio analysis Compute the specified ratios using...Ch. 9 - Prob. 14ECh. 9 - LO 13-2, 13-3, 13-4, 13-5 Exercise 13-15A...Ch. 9 - Prob. 16PCh. 9 - Prob. 17PCh. 9 - Prob. 18PCh. 9 - Prob. 19PCh. 9 - Prob. 20PCh. 9 - Problem 9-21 Ratio analysis Selected data for...Ch. 9 - Prob. 22PCh. 9 - Problem 9-23 Ratio analysis The following...Ch. 9 - Prob. 24PCh. 9 - Prob. 1ATCCh. 9 - Prob. 3ATCCh. 9 - ATC 9-5 Ethical Dilemma Making the ratios look...
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