Managerial Accounting 1B
Financial and Managerial Accounting
Chapter 13
1.
Exercise 13-3 Computation and analysis of trend percents L.O. P1
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|
2013
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2012
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2011
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2010
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2009
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Sales
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$ 283,880
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$ 271,800
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$ 253,680
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$ 235,560
|
$ 151,000
|
|
Cost of goods sold
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129,200
|
123,080
|
116,280
|
107,440
|
68,000
|
|
Accounts receivable
|
19,100
|
18,300
|
17,400
|
16,200
|
10,000
|
|
Compute trend percents for the above accounts, using 2009 as the base year. (Omit the “%” sign in your response.)
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2.
Exercise 13-7 Common-size percents L.O. P2
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Sanderson Company’s year-end balance sheets follow.
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At December 31
|
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2012
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|
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2011
|
|
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2010
|
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Assets
|
|
|
|
|
|
|
|
|
|
|
|
Cash
|
|
$
|
30,800
|
|
$
|
35,625
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|
$
|
36,800
|
|
|
Accounts receivable, net
|
|
|
88,500
|
|
|
62,500
|
|
|
49,200
|
|
|
Merchandise inventory
|
|
|
111,500
|
|
|
82,500
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|
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53,000
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|
Prepaid expenses
|
|
|
9,700
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|
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9,375
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|
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4,000
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|
Plant assets, net
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|
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277,500
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|
|
255,000
|
|
|
229,500
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|
|
|
|
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||||||
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Total assets
|
|
$
|
518,000
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|
$
|
445,000
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|
$
|
372,500
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|
|
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||||||
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|
Liabilities and Equity
|
|
|
|
|
|
|
|
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|
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Accounts payable
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|
$
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128,900
|
|
$
|
75,250
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|
$
|
49,250
|
|
|
Long-term notes payable secured by
|
|
|
97,500
|
|
|
102,500
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|
|
82,500
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|
|
Common stock, $10 par value
|
|
|
162,500
|
|
|
162,500
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|
|
162,500
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Retained earnings
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129,100
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|
104,750
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|
78,250
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|
|
|
|
|
|
||||||
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Total liabilities and equity
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|
$
|
518,000
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$
|
445,000
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|
$
|
372,500
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||||||
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Express the balance sheets in common-size percents. (Do not round intermediate calculations and round your final answers to 1 decimal place. Omit the “%” sign in your response.)
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Exercise 13-9 Liquidity analysis and interpretation L.O. P3
[The following information applies to the questions displayed below.]
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Sanderson Company’s year-end balance sheets follow.
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|
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At December 31
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|
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2012
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|
|
2011
|
|
|
2010
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Cash
|
|
$
|
30,800
|
|
$
|
35,625
|
|
$
|
36,800
|
|
|
Accounts receivable, net
|
|
|
88,500
|
|
|
62,500
|
|
|
49,200
|
|
|
Merchandise inventory
|
|
|
111,500
|
|
|
82,500
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|
|
53,000
|
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|
Prepaid expenses
|
|
|
9,700
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|
|
9,375
|
|
|
4,000
|
|
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Plant assets, net
|
|
|
277,500
|
|
|
255,000
|
|
|
229,500
|
|
|
|
|
|
|
||||||
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|
Total assets
|
|
$
|
518,000
|
|
$
|
445,000
|
|
$
|
372,500
|
|
|
|
|
|
|
||||||
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|
Liabilities and Equity
|
|
|
|
|
|
|
|
|
|
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Accounts payable
|
|
$
|
128,900
|
|
$
|
75,250
|
|
$
|
49,250
|
|
|
Long-term notes payable secured by
|
|
|
97,500
|
|
|
102,500
|
|
|
82,500
|
|
|
Common stock, $10 par value
|
|
|
162,500
|
|
|
162,500
|
|
|
162,500
|
|
|
Retained earnings
|
|
|
129,100
|
|
|
104,750
|
|
|
78,250
|
|
|
|
|
|
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||||||
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Total liabilities and equity
|
|
$
|
518,000
|
|
$
|
445,000
|
|
$
|
372,500
|
|
|
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||||||
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The company’s income statements for the years ended December 31, 2012 and 2011, follow. Assume that all sales are on credit:
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|
For Year Ended December 31
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2012
|
2011
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|||||||||
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Sales
|
|
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$
|
672,500
|
|
|
|
|
$
|
530,000
|
|
Cost of goods sold
|
$
|
410,225
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|
|
$
|
344,500
|
|
|
|||
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Other operating expenses
|
208,550
|
|
|
133,980
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|
|||||
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Interest expense
|
|
11,100
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12,300
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|
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|
Income taxes
|
|
8,525
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7,845
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||||
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Total costs and expenses
|
|
|
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638,400
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|
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498,625
|
|
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||||
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Net income
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|
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$
|
34,100
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|
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$
|
31,375
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|
|
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||||
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Earnings per share
|
|
|
|
$
|
2.10
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$
|
1.93
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||||
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Section Break
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Exercise 13-9 Liquidity analysis and interpretation L.O. P3
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|
3.
Exercise 13-9 Part 1
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(1)
|
Compute days’ sales uncollected. (Use 365 days a year. Do not round intermediate calculations and roundyour final answers to the nearest whole number.)
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4.
Exercise 13-9 Part 2
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(2)
|
Compute accounts receivable turnover. (Round your answers to 1 decimal place.)
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|
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|
2012
|
|
|
2011
|
|
5.
Exercise 13-9 Part 3
|
(3)
|
Compute inventory turnover. (Round your answers to 1 decimal place.)
|
6.
Exercise 13-9 Part 4
|
(4)
|
Compute days’ sales in inventory. (Use 365 days a year. Do not round intermediate calculations and round your final answers to the nearest whole number.)
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|
2012
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|
|
2011
|
|
Problem 13-1A Ratios, common-size statements, and trend percents L.O. P1, P2, P3
[The following information applies to the questions displayed below.]
|
Selected comparative financial statements of Bennington Company follow:
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BENNINGTON COMPANY
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||||||||||||
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Comparative Income Statements
|
||||||||||||
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For Years Ended December 31, 2012, 2011, and 2010
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||||||||||||
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|
2012
|
|
|
|
2011
|
|
|
|
2010
|
|
|
Sales
|
|
$
|
444,000
|
|
|
$
|
340,000
|
|
|
$
|
236,000
|
|
|
Cost of goods sold
|
|
|
267,288
|
|
|
|
212,500
|
|
|
|
151,040
|
|
|
|
|
|
|
|
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|
||||||
|
Gross profit
|
|
|
176,712
|
|
|
|
127,500
|
|
|
|
84,960
|
|
|
Selling expenses
|
|
|
62,694
|
|
|
|
46,920
|
|
|
|
31,152
|
|
|
Administrative expenses
|
|
|
40,137
|
|
|
|
29,920
|
|
|
|
19,470
|
|
|
|
|
|
|
|
|
|
||||||
|
Total expenses
|
|
|
102,831
|
|
|
|
76,840
|
|
|
|
50,622
|
|
|
|
|
|
|
|
|
|
||||||
|
Income before taxes
|
|
|
73,881
|
|
|
|
50,660
|
|
|
|
34,338
|
|
|
Income taxes
|
|
|
13,764
|
|
|
|
10,370
|
|
|
|
6,962
|
|
|
|
|
|
|
|
|
|
||||||
|
Net income
|
|
$
|
60,117
|
|
|
$
|
40,290
|
|
|
$
|
27,376
|
|
|
|
|
|
|
|
|
|
||||||
|
BENNINGTON COMPANY
|
||||||||||||
|
Comparative Balance Sheets
|
||||||||||||
|
December 31, 2012, 2011, and 2010
|
||||||||||||
|
|
|
|
2012
|
|
|
|
2011
|
|
|
|
2010
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets
|
|
$
|
48,480
|
|
|
$
|
37,924
|
|
|
$
|
50,648
|
|
|
Long-term investments
|
|
|
0
|
|
|
|
500
|
|
|
|
3,720
|
|
|
Plant assets, net
|
|
|
90,000
|
|
|
|
96,000
|
|
|
|
57,000
|
|
|
|
|
|
|
|
|
|
||||||
|
Total assets
|
|
$
|
138,480
|
|
|
$
|
134,424
|
|
|
$
|
111,368
|
|
|
|
|
|
|
|
|
|
||||||
|
Liabilities and Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
$
|
20,200
|
|
|
$
|
19,960
|
|
|
$
|
19,480
|
|
|
Common stock
|
|
|
72,000
|
|
|
|
72,000
|
|
|
|
54,000
|
|
|
Other paid-in capital
|
|
|
9,000
|
|
|
|
9,000
|
|
|
|
6,000
|
|
|
Retained earnings
|
|
|
37,280
|
|
|
|
33,464
|
|
|
|
31,888
|
|
|
|
|
|
|
|
|
|
||||||
|
Total liabilities and equity
|
|
$
|
138,480
|
|
|
$
|
134,424
|
|
|
$
|
111,368
|
|
|
|
|
|
|
|
|
|
||||||
7.
Problem 13-1A Part 1
|
Required:
|
|
|
1.
|
Compute each year’s current ratio. (Round your answers to 1 decimal place.)
|
|
|
|
|
|
|
|
Current ratio
|
December 31, 2012:
|
|
|
|
|
Current ratio
|
December 31, 2011:
|
|
|
|
|
Current ratio
|
December 31, 2010:
|
|
|
|
8.
Problem 13-1A Part 2
|
2.
|
Express the income statement data in common-size percents. (Round your answers to 2 decimal places. Omit the “%” sign in your response.)
|
9.
Problem 13-1A Part 3
|
3.
|
Express the balance sheet data in trend percents with 2010 as the base year. (Round your answers to 2 decimal places. Leave no cells blank – be certain to enter “0” wherever required. Omit the “%” sign in your response.)
|
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