Corporate Financial Accounting
15th Edition
ISBN: 9781337398169
Author: Carl Warren, Jeff Jones
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 2, Problem 2.6MAD
To determine
Horizontal analysis of financial statement:
In horizontal analysis of financial statement, the amount of each item of the current year financial statement is compared with the previous year financial statement. The amount of each item increased or decreased in the current financial statement, and its respective percentage can be computed by taking the earlier statement as the base.
To compare: The conclusions on the operating results of Corporation T and Corporation W.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Question Content Area
Based on the following data for the current year, what is the number of days' sales in receivables (rounded to one decimal place)? Assume 365 days a year.
Sales on account during year
$591,010
Cost of merchandise sold during year
158,044
Accounts receivable, beginning of year
44,597
Accounts receivable, end of year
46,544
Merchandise inventory, beginning of year
92,783
Merchandise inventory, end of year
119,254
Required information
Skip to question
[The following information applies to the questions displayed below.] Simon Company’s year-end balance sheets follow.
At December 31
Current Yr
1 Yr Ago
2 Yrs Ago
Assets
Cash
$
33,973
$
39,712
$
40,150
Accounts receivable, net
89,900
62,100
50,700
Merchandise inventory
110,500
84,500
52,000
Prepaid expenses
10,941
10,424
4,461
Plant assets, net
319,214
289,926
250,289
Total assets
$
564,528
$
486,662
$
397,600
Liabilities and Equity
Accounts payable
$
143,379
$
83,891
$
53,533
Long-term notes payable secured bymortgages on plant assets
108,254
114,171
89,627
Common stock, $10 par value
162,500
162,500
162,500
Retained earnings
150,395
126,100
91,940
Total liabilities and equity
$
564,528
$
486,662
$
397,600
The…
Question Content Area
Based on the following data for the current year, what is the number of days' sales in receivables (rounded to one decimal place)? Assume 365 days a year.
Sales on account during year
$461,647
Cost of merchandise sold during year
196,997
Accounts receivable, beginning of year
41,839
Accounts receivable, end of year
52,205
Merchandise inventory, beginning of year
85,575
Merchandise inventory, end of year
109,714
a.155.7 days
b.37.2 days
c.77.2 days
d.86.7 days
Chapter 2 Solutions
Corporate Financial Accounting
Ch. 2 - What is the difference between an account and a...Ch. 2 - Prob. 2DQCh. 2 - Prob. 3DQCh. 2 - eCatalog Services Company performed services in...Ch. 2 - If the two totals of a trial balance are equal,...Ch. 2 - Assume that a trial balance is prepared with an...Ch. 2 - Assume that when a purchase of supplies of 2,650...Ch. 2 - Assume that Muscular Consulting erroneously...Ch. 2 - Assume that Sunshine Realty Co. borrowed 300,000...Ch. 2 - Checking accounts are one of the most common forms...
Ch. 2 - Rules of debit and credit and normal balances...Ch. 2 - Journal entry for asset purchase Prepare a journal...Ch. 2 - Journal entry for fees earned Prepare a journal...Ch. 2 - Journal entry for dividends Prepare a journal...Ch. 2 - Missing amount from an account On August 1, the...Ch. 2 - Trial balance errors For each of the following...Ch. 2 - Correcting entries The following errors took place...Ch. 2 - Horizontal analysis Two income statements for...Ch. 2 - Prob. 2.1EXCh. 2 - Chart of accounts Innerscape Interiors is owned...Ch. 2 - Chart of accounts LeadCo School is a newly...Ch. 2 - Rules of debit and credit The following table...Ch. 2 - Normal entries for accounts During the month,...Ch. 2 - Normal balances of accounts Identify each of the...Ch. 2 - Transactions Innovative Consulting Co. has the...Ch. 2 - Journalizing and posting On February 11, 20Y9,...Ch. 2 - Transactions and T accounts The following selected...Ch. 2 - Cash account balance During the month, Bavarian...Ch. 2 - Account balances A. During February, 186,500 was...Ch. 2 - Retained earnings account balance As of January 1,...Ch. 2 - Identifying transactions Rocky Mountain Tours Co....Ch. 2 - Journal entries Based upon the T accounts in...Ch. 2 - Trial balance Based upon the data presented in...Ch. 2 - Trial balance The accounts in the ledger of...Ch. 2 - Effect of errors on trial balance Indicate which...Ch. 2 - Total of Credit column: 525,000 Error in triad...Ch. 2 - Effect of errors on trial balance The following...Ch. 2 - Errors in trial balance Identify the errors in the...Ch. 2 - Entries to correct errors The following errors...Ch. 2 - Entries to correct errors The following errors...Ch. 2 - Entries into T accounts and trial balance Marjorie...Ch. 2 - Journal entries and trial balance On October 1,...Ch. 2 - Journal entries and trial balance On November...Ch. 2 - Journal entries and trial balance Elite Realty...Ch. 2 - Corrected trial balance The Lexington Group has...Ch. 2 - Entries into T accounts and trial balance Ken...Ch. 2 - Journal entries and trial balance On August 1,...Ch. 2 - Journal entries and trial balance On October 1,...Ch. 2 - Journal entries and trial balance Valley Realty...Ch. 2 - Corrected trial balance Tech Support Services has...Ch. 2 - Continuing Problem 4.Total of Debit column: 40,750...Ch. 2 - Analyze Amazon.com Amazon.com, Inc. (AMZN) is the...Ch. 2 - Prob. 2.2MADCh. 2 - Analyze Vera Bradley. Inc. Vera Bradley, Inc....Ch. 2 - Analyze Target The following data (in millions)...Ch. 2 - Prob. 2.5MADCh. 2 - Prob. 2.6MADCh. 2 - Prob. 2.1TIFCh. 2 - Prob. 2.4TIFCh. 2 - Record transactions The following discussion took...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Analyze Dollar General Dollar General Corporation (DG) is a discount retailer with more than 12,000 stores. It offers a wide range of merchandise normally for 10 or less. The following data (in millions) were taken from recent financial statements of Dollar General: a. Compute the asset turnover ratio for Year 2 and Year 1. Round to two decimal places. b. Interpret the change in the asset turnover ratio from Year 1 to Year 2.arrow_forwardCost of Goods Sold and Income Statement Schuch Company presents you with the following account balances taken from its December 31 adjusted trial balance: Additional data: 1. A physical count reveals an ending-inventory of 22,500 on December 31. 2. Twenty-five thousand shares of common stock have been outstanding the entire year. 3. The income tax rate is 30% on all items of income. Required: 1. As a supporting document for Requirements 2 and 3, prepare a separate schedule for Schuchs cost of goods sold. 2. Prepare a multiple-step income statement. 3. Prepare a single-step income statement.arrow_forwardRequired information Skip to question [The following information applies to the questions displayed below.] Simon Company’s year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 33,973 $ 39,712 $ 40,150 Accounts receivable, net 89,900 62,100 50,700 Merchandise inventory 110,500 84,500 52,000 Prepaid expenses 10,941 10,424 4,461 Plant assets, net 319,214 289,926 250,289 Total assets $ 564,528 $ 486,662 $ 397,600 Liabilities and Equity Accounts payable $ 143,379 $ 83,891 $ 53,533 Long-term notes payable secured bymortgages on plant assets 108,254 114,171 89,627 Common stock, $10 par value 162,500 162,500 162,500 Retained earnings 150,395 126,100 91,940 Total liabilities and equity $ 564,528 $ 486,662 $ 397,600 The…arrow_forward
- Total operating expenses Operating income Required: $(6,742) $(5,695) $805 $290 a. Prepare a vertical analysis of the operating income for the two years. Round percentages to one decimal place. Chipotle Mexican Grill, Inc. Operating Income. For the Years Ended December 31 (in thousands) Year 2 Amount Year 2 Year 1 Year 1 Percent Amount Percent Revenues: Food and beverage $7,457 % $5,921 % Delivery service 90 % 64 % Total revenues $7,547 % $5,985 % Restaurant operating costs: Food, beverage, packing $(2,309) % $(1,933) Labor (1,918) % (1,593) % Occupancy (rent) (416) % (388) 0/a Marketing, utilities, other (1,197) % (1,030) % General and administrative (607) % (466) % Depreciation (255) % (238) 9 Miscellaneous expenses (40) % (47) % Total operating expenses $(6,742) % $(5,695) % Operating income $805 % $290 % b. Based on the calculations above, which of the following statements are correct? 1. Operating income as a percent of revenues increased from Year 1 to Year 2. 2. All operating…arrow_forwardCengage Leaming genow.com/ilm/takeAssignment/takeAssignmentMain.do?invoker3&takeAssignmentSessionLocator%=D&inprogress=... . eBook Calculator Effect of Doubtful Accounts on Net Income During its first year of operations, Mack's Plumbing Supply Co. had sales of $3,250,000, wrote off $27,800 of accounts as uncollectible using the direct write-off method, and reported net income of $487,500. Determine what the net income would have been if the allowance method had been used, and the company estimated that 1% of sales would be uncollectible. Feedback Check My Work Under the direct write-off method, Bad Debt Expense is recorded when the customer's account is determined to be worthless and written-off. There is no adjusting entry at year-end to record estimated bad debt. To compute net income using the allowance method, first compute net income before write-off of accounts associated with the bad debt expense. Then determine how an amount estimated for Bad Debt Expense based on a percent of…arrow_forwardRevenue and expense data for Young Technologies Inc. are as follows: Year 2 Year 1 Sales $500,000 $440,000 Cost of merchandise sold 325,000 242,000 Selling expenses 70,000 79,200 Administrative expenses 75,000 70,400 Income tax expense 10,500 16,400 Required: Question Content Area a. Prepare an income statement in comparative form, stating each item for both years as an amount and as a percent of sales. Round percentage amounts to nearest whole percent. Young Technologies Inc.Comparative Income StatementFor the Years Ended December 31, Year 2 and Year 1 Year 2 Amount Year 2 Percent Year 1 Amount Year 1 Percent $- Select - - Select -% $- Select - - Select -% - Select - - Select - - Select - - Select - $- Select - - Select -% $- Select - - Select -% $- Select - - Select -% $- Select - - Select -% - Select - - Select - - Select - - Select - Total expenses $fill in the blank 86d00500602205c_26 fill in the…arrow_forward
- View Policies Current Attempt in Progress Assume Sunland Company has the following reported amounts: Sales revenue $1,000,000, Sales returns and allowances $29,000, Cost of goods sold $649.599, and Operating expenses $215,600. (a) Compute net sales. Net sales $ (b) Compute gross profit. Gross profit S (c) Compute income from operations.arrow_forwardSegment Analysis Verity Company does business in two customer segments: Retail and Wholesale. The following annual revenue information was determined from the accounting system's invoice information: 20Y5 20Y4 Retail $145,400 $138,500 Wholesale 173,100 189,300 Total revenue $318,500 $327,800 Prepare a horizontal analysis of the segments. Round percentages to one decimal place. Enter negative values as negative numbers. Verity Company Horizontal Analysis For the Years 20Y4 and 20Y5 20Y5 20Y4 Difference - Amount Difference - Percent Retail $145,400 $138,500 $fill in the blank fill in the blank % Wholesale 173,100 189,300 fill in the blank fill in the blank % Total revenue $318,500 $327,800 $fill in the blank fill in the blank % Prepare a vertical analysis of the segments. If required, round percentages to one decimal place. Verity Company Vertical Analysis For the Years 20Y4 and 20Y5 20Y5 Amount 20Y5 Percent 20Y4…arrow_forwardExcerpts from BBB Leasing's December 31, 20x2 and 20x1, financial statements are presented below: Accounts receivable Merchandise inventory Net sales Cost of goods sold Total assets Total shareholders' equity Net income Multiple Choice What is BBB's receivables turnover for 20x2? (Round your answer to 2 decimal places.) 3.37. 2.23. 4.00. 20x2 $ 60,000 38,000 212,000 200,000 134,000 118,000 445,000 415,000 260,000 235,000 47,500 38,000 20x1 $ 46,000 55,000 7.42.arrow_forward
- TB MC Qu. 2-61 (Algo) The following income statements are provided... The following income statements are provided for Li Company's last two years of operation: Year 1 Year 2 Number of units produced and sold 4,200 Sales revenue 009 $71,760 $65,520 Cost of goods sold Gross margin General, selling, and administrative expenses 39,760 36,460 000 17,540 18,820 090 Net income $13,180 $11,520 Assuming that cost behavior did not change over the two-year period, what is the annual amount of the company's fixed manufacturing overhead? Multiple Choice ) $1,810 $3,620 $5,620 None of these < Prev 3 of search ANENarrow_forwardRequired information For Year Ended December 31 Sales Cost of goods sold Other operating expenses Current Year $ 411, 225 209,550 12, 100 9,525 $ 673,500 642, 400 $31,100 $ 1.90 :. -. - == ....... 9 US Sa Marrow_forwardSnelling Company does business in two regional segments: North and South. The following annual revenue information was determined from the accounting system's invoice data: Segment Current Year Prior Year North $ 75,000 $100,000 South 260,000 220,000 Total revenues $335,000 $320,000 Using horizontal analysis, determine the percentage change in revenues for the South region. Round to one decimal place. Oa. (18.2)% Ob. 84.6% Oc. 15.4% Od. 18.2%arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Financial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,Survey of Accounting (Accounting I)AccountingISBN:9781305961883Author:Carl WarrenPublisher:Cengage LearningManagerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
- Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:Cengage Learning,
Survey of Accounting (Accounting I)
Accounting
ISBN:9781305961883
Author:Carl Warren
Publisher:Cengage Learning
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
How To Analyze an Income Statement; Author: Daniel Pronk;https://www.youtube.com/watch?v=uVHGgSXtQmE;License: Standard Youtube License