Acc 561 Week 2 Wiley Plus Assignment E13-5, E13-6, E13-9

E13-5 The comparative balance canvasss of Nike, Inc. are presented here. NIKE INC. Comparative Balance Sheets May 31 - ($ in millions) Assets 2007 2006 Current assets $8,076 $7,346 Property, plant, and equipment (net) 1,678 1,658 Other assets - 934 - 866 measure assets - $10,688 - $9,870 Liabilities and Stockholders Equity Current liabilities $2,584 $2,612 semipermanent liabilities 1,079 973 Stockholders justice - 7,025 - 6,285 Total liabilities and stockholders equity - $10,688 - $9,870 Correct. Complete the horizontal analysis of the balance sheet information for Nike using 2006 as a base. (If amount decreases, use any a negative sign preceding the number, e. g. 45 or parenthesis, e. g. (45). Round all percentages to 1 decimal place, e. g. 12. 5. ) NIKE, INC. Condensed Balance Sheet December 31 - ($ in millions) Increase or (Decrease) 2007 2006 Amount Percentage Assets Current assets $8,076 $7,346 $ 730 9. 9 % Property, plant and equipment (net) 1 ,678 1,658 20 1. 2 % Other assets - 934 - 866 - 8 - 7. 9 % Total assets - $10,688 - $9,870 - $ 818 - 8. 3 % Liabilities and stockholders equity Current liabilities $2,584 $2,612 $ -28 -1. 1 % Long-term liabilities 1,079 973 106 10. 9 % Total stockholders equity - 7,025 - ,285 - 740 - 11. 8 % Total liabilities & stockholders equity - $10,688 - $9,870 - $ 818 - 8. 3 % Correct. Complete the vertical analysis of the balance sheet data for Nike for 2007. (Round all of the percentages to 1 decimal place, e. g. 12. 5. NIKE, INC. Condensed Balance Sheet - May 31, 2007 $ (in millions) Percent Assets Current assets $8,076 75. 6 % Property, plant and equipment (net) 1,678 15. 7 % Other assets - 934 - 8. 7 % Total assets - $10,688 - 100. 0 % Liabilities and stockholders equity Current liabilities $2,584 24. 2 %Long-term liabilities 1,079 10. 1 % Stockholders equity - 7,025 - 65. 7 % Total liabilities and stockholders equity - $10,688 - 100. 0 % - Top of FormBottom of Form E13-6 Here are the comparative income statements of Winfrey Corporation. WINFREY hatful Comparative Income Statements For the Years stop December 31 2010 2009 authorise sales $598,000 $520,000 Cost of goods sold - 477,000 - 450,000 bring in profit $121,000 $70,000 Operating expenses - 80,000 - 45,000 Net income - $41,000 - $25,000 Correct. Complete the horizontal analysis of the income statement data for Winfrey Corporation using 2009 as a base. (Round all percentages to 1 decimal place, e. g. 12. 5. ) WINFREY CORPORATION Condensed Income Statements - For the Years Ended December 31 Increase or (Decrease) - During 2010 - 2010 - 2009 -Amount - Percentage Net sales $598,000 $520,000 $ 78,000 15. 0 % Cost of goods sold - 477,000 - 450,000 - 27,000 6. 0 % Gross profit 121,000 70,000 51,000 72. 9 % Operating expenses - 80,000 - 45,000 - 35,000 77. 8 %Net income - $41,000 - $25,000 - $ 16,000 64. 0 % Corre ct. Complete the vertical analysis of the income statement data for Winfrey Corporation for both years. (Round all percentages to 1 decimal place, e. g. 12. 5. ) WINFREY CORPORATION Condensed Income Statements - For the Years Ended December 31 - 010 - 2009 - $ - Percent - $ - Percent Net sales $598,000 100. 0 % $520,000 100. 0 % Cost of goods sold - 477,000 - 79. 8 % - 450,000 - 86. 5 % Gross profit 121,000 20. % 70,000 13. 5 % Operating expenses - 80,000 - 13. 4 % - 45,000 - 8. 7 % Net income - $41,000 - 6. 8 % - $25,000 - 4. 8 % - Top of FormBottom of Form E13-9 Armada Company has these comparative balance sheet data ARMADA COMPANY Balance Sheets - December 31 2010 2009 Cash $25,000 $30,000 Receivables (net) 65,000 60,000 Inventories 60,000 50,000 Plant assets (net) - 200,000 - 180,000 - $350,000 - $320,000 Accounts payable $50,000 $60,000 Mortgage payable (15%) 100,000 100,000Common stock, $10 par 140,000 120,000 Retained earnings - 60,000 - 40,000 - $350,000 - $320,000 superfluous information for 2010 1. Net income was $25,000. 2. Sales on account were $375,000. Sales returns and allowances amounted to $25,000. 3. Cost of goods sold was $198,000. 4. Net coin provided by operating activities was $48,000. 5. Capital expenditures were $25,000, and cash dividends were $18,000. inscribe the following ratios at December 31, 2010. (Round to 3 decimal places, e. g. 2. 515. ) Current 3. 00 1 Receivables turnover 5. 6 times Average collection period 65. 2 age Inventory turnover 3. 6 times Days in inventory 101. 4 geezerhood Cash debt coverage . 31 times Current cash debt coverage . 87 times Free cash flow Current ratio = - $150,000 = 3. 000 1 $50,000 Receivables turnover = - $350,000 = 5. 600 times $62,500(1) (1) ($65,000 + $60,000) ? Average collection period = 365 days ? 5. 600 = 65. 179 days Inventory turnover = - $198,000 = 3. 600 times $55,000(2) (2) ($60,000 + $50,000) ? 2 Days in inventory = 365 days ? 3. 600 = 101. 389 days Cash debt coverage ratio = - $48,000 = 0. 310 times ($160,000 + $150,000) ? 2 Current cash debt coverage ratio = - $48,000 = 0. 873 times ($60,000 + $50,000) ? 2 Free cash flow = $48,000 $25,000 $18,000 = $5,000