University:
Grand Rapids Community College
Course:
Financial and Managerial Accounting: Information for Decisions - John J. Wild
Academic year:

2024
Views:

295

Pages:

2
Author:

stud_ice13

Problem 13-1B: Calculating and Analyzing Trend Percents (P1) 1. Compute trend percentages for all components in Tripoly Company’s financial statements, using 2015 as the base year. Round percentages to one decimal. o Checkpoint: Total assets trend for 2021 should be 88.5%. 2. Analysis: o Provide observations and comments on the trend percentages and financial statement components, focusing on areas like growth trends, asset stability, and income patterns. Problem 13-2B: Ratios, Common-Size Statements, and Trend Percents (P1, P2, P3) 1. Calculate the current ratio for each year, rounding to one decimal. 2. Convert income statement data into common-size percentages, rounding to two decimals. 3. Compute trend percentages for balance sheet data with 2019 as the base year, rounding to two decimals. o Checkpoint: Total assets trend for 2021 should be 133.18%. 4. Analysis: o Comment on any significant relationships or trends indicated by the computed ratios and percentages. Problem 13-3B: Transactions, Working Capital, and Liquidity Ratios (P3) 1. For Koto Corporation’s transactions, prepare a table showing: o (1) Current ratio o (2) Acid-test ratio o (3) Working capital after each transaction o Round ratios to two decimals. o Checkpoints:  June 3: Current ratio should be 2.88, and the acid-test ratio should be 2.40.  June 30: Working capital should be $(10,000) and the current ratio 0.97. Problem 13-4B: Calculating Financial Statement Ratios (P3) 1. Using Overton Corporation’s financial data, compute the following ratios: o o o Current ratio, acid-test ratio, days’ sales uncollected, inventory turnover, days’ sales in inventory, debt-to-equity ratio, times interest earned, profit margin ratio, total asset turnover, return on total assets, and return on equity. Round each to one decimal, except the debt-to-equity ratio (two decimals). Checkpoints:  Acid-test ratio should be 1.6 to 1.  Inventory turnover should be 15.3. Problem 13-5B: Comparative Ratio Analysis (P3) 1. For two companies in the same industry: o Compute short-term credit risk ratios: Current ratio, acid-test ratio, accounts receivable turnover, inventory turnover, days’ sales in inventory, and days’ sales uncollected. o Decide which company is a better short-term credit risk based on results. 2. Investment analysis: o Calculate profit margin, total asset turnover, return on assets, return on equity, price-earnings ratios, and dividend yields. o Determine which company's stock is a more attractive investment, considering price per share and dividend information. Problem 13-6BA: Income Statement Computations and Format (A2) 1. Given Harbor Corp.’s data and a 25% income tax rate: o (1) Calculate tax effects and after-tax amounts for items marked pretax. o (2) Determine income from continuing operations before taxes, income tax expense, and net income from continuing operations. o (3) Calculate after-tax income (or loss) for the discontinued segment. o (4) Compute the total net income for the year. o Checkpoints:  After-tax loss for part (3) should be $(225,000).  Net income for part (4) should be $522,000.