1)The 
comparative condensed balance sheets of Conard Corporation are presented below. 

CONARD CORPORATION
Comparative Condensed Balance Sheets
December 
31
2012 2011
Assets 
Current assets $ 74,400 $ 80,170 
Property, 
plant, and equipment (net) 98,520 90,290 
Intangibles 26,570 39,980 
Total 
assets $199,490 $210,440 

Liabilities and stockholders' equity 

Current liabilities $ 42,160 $ 47,600 
Long-term liabilities 142,560 
150,840 
Stockholders' equity 14,770 12,000 
Total liabilities and 
stockholders' equity $199,490 $210,440 


Prepare a horizontal analysis 
of the balance sheet data for Conard Corporation using 2011 as a base. (If 
amount is a decrease, use either a negative sign preceding the number and/or 
percentage eg -45 or parentheses eg (45). Round percentages to 1 decimal place, 
e.g. 10.5%.) 
CONARD CORPORATION
Condensed Balance Sheet
December 
31
2012 2011 Increase(Decrease) Percentage Change from 2011 Assets 

Current assets 
Property, plant & equipment (net) %
Intangibles 
%
Total assets $ $ $ %
Liabilities & Stockholders' Equity 
Current 
liabilities $ $ $ %
Long-term liabilities %
Stockholders' equity 
%
Total liabilities & stockholders' equity $ $$ %

Prepare a 
vertical analysis of the balance sheet data for Conard Corporation in columnar 
form for 2012. (Round percentages to 1 decimal place, e.g. 10.5%.) 
CONARD 
CORPORATION
Condensed Balance Sheet
December 31, 2012
Amount 
Percentage
Assets 
Current assets $ %
Property, plant and equipment 
(net) %
Intangibles %
Total assets $ %
Liabilities and stockholders' 
equity 
Current liabilities $ %
Long-term liabilities %
Stockholders' 
equity %
Total liabilities and stockholders' equity $ %

2) Nordstrom 
Inc. operates department stores in numerous states. Selected financial statement 
data for the year ending January 29, 2012, are as follows. 
NORDSTROM, 
INC.
Balance Sheet (partial)
(in millions) End-of-Year 
Beginning-of-Year
Cash and cash equivalents $ 496 $ 354 
Receivables (net) 
663 703 
Merchandise inventory 1,040 932 
Prepaid expenses 71 51 
Other 
current assets 605 585 
Total current assets $2,875 $2,625 
Total current 
liabilities $1,869 $1,444 
For the year, net sales were $8,147, and cost of 
goods sold was $4,601 (in millions). 

Compute the four liquidity ratios 
at the end of the year. (Round ratios to 2 decimal place, e.g. 10.57:1 and 
turnovers to 1 decimal place, e.g. 10.5.) 
Current ratio :1
Acid-test 
ratio :1
Receivables turnover times
Inventory turnover times

Using 
the data in the chapter, compare Nordstrom's liquidity with (1) that of J.C. 
Penney Company, and (2) the industry averages for department stores. (Round 
ratios to 2 decimal place, e.g. 10.57:1 and turnovers to 1 decimal place, e.g. 
10.5.) 
Ratio Nordstrom J. C. Penney Industry
Current :1
2.02:1 
1.06:1
Acid-test :1
0.87:1 0.29:1
Receivables turnover :1
57.0:1 
28.2:1
Inventory turnover :1
3.5:1 7.0:1
Nordstrom is J.C. Penney for 
the current and acid-test ratios and the receivables turnover. Nordstrom is than 
J.C. Penney for inventory turnover. 
Nordstrom is than the industry average 
for the current and acid test ratio, but the industry average for receivables 
turnover and the inventory turnover ratios. 

3) Bennis Company has the 
following comparative balance sheet data. 
BENNIS COMPANY
Balance 
Sheets
December 31
2012 2011
Cash $ 15,260 $ 30,120
Receivables 
(net) 70,400 60,410
Inventories 59,770 49,560
Plant assets (net) 200,200 
180,300
$345,630 $320,390

Accounts payable $50,130 $50,600
Mortgage 
payable (15%) 99,930 99,930
Common stock, $10 par 139,900 119,500
Retained 
earnings 55,670 50,360
$345,630 $320,390
Additional information for 2012: 

1. Net income was $24,920. 
2. Sales on account were $409,600. Sales 
returns and allowances were $20,800. 
3. Cost of goods sold was $197,800. 

4. The allowance for doubtful accounts was $2,910 on December 31, 2012, and 
$2,120 on December 31, 2011.
Compute the following ratios at December 31, 
2012. (a) Current. (b) Acid-test. (c) Receivables turnover. (d) Inventory 
turnover. (Round answers to 1 decimal place, e.g. 10.5.) 
(a) Current ratio : 
1
(b) Acid-test ratio : 1
(c) Receivables turnover times
(d) Inventory 
turnover times

4) The income statement for Christensen, Inc., appears 
below. 
CHRISTENSEN, INC.
Income Statement
For the Year Ended December 
31, 2011
Sales $400,300
Cost of goods sold 227,700
Gross profit 
172,600
Expenses (including $12,000 interest and $24,130 income taxes) 
110,000
Net income $62,600
Additional information: 
1. The weighted 
average common shares outstanding in 2011 were 35,000 shares. 
2. The market 
price of Christensen, Inc. stock was $17 in 2011.
What are the Preferred Stock Dividends, the common stock
dividends..etc?

AFTER PAYMENT ENTER PASSWORD : "SHIV" TO UNLOCK THE SOLUTION

Comments

Popular posts from this blog

You are given a choice of taking the simple interest on 100,000 invested for 2 years

Complete the spreadsheet template following Steps 1–10, building a comprehensive workbook of data and analyses that will inform your conclusions