USA: +1(669)289-8683 
Sign in
I need help with an accounting assignment! Serious inquiries only, expecting an A, and must know there stuff!
24 Hours to complete!
>Sheet and for thebalance sheet and income statement in the appropriate shaded areas.
points
points .
2012 2011 Percent Percent .0
.0
8.5
8.5
2.0)
.
0
)
– 0 100.0 62.5 0
629.7 542.0 ABC COMPANY (in thousands) 6.0 8.7
Show work for partial credit: Show work for partial credit: Show work for partial credit: Show work for partial credit: Show work for partial credit: Show work for partial credit: Show work for partial credit: Show work for partial credit: Show work for partial credit: Show work for partial credit: Show work for partial credit: Show work for partial credit: Show work for partial credit: Show work for partial credit: (in thousands)1
NAME:
Instructions: This exam must be either completed in excel and uploaded; or can be printed and hand-written, then scanned
into PDF form and uploaded. The exam consists of 1 large, cumulative problem testing your knowledge from both chapters.
All parts of this exam will use the comparative balance sheets, income statements, and other information below.
All sections necessary to complete are highlighted, please show your work for the ratio analyses for partial credit.
EXAM
3
Complete the following using the comparative balance sheet, income statement, and other information:
1.
Prepare a vertical analysis for
20
11
20
12
1
5
2.
Prepare a horizontal analysis for 2012 for the balance sheet and income statement in the appropriate shaded areas.
15
3.
Complete the ratio analyses for 2012 below the financial statements. (round to the nearest tenth)
30 Points
4
Below the ratio analyses, complete a statement of cash flow (indirect method) for the year ending December 31, 2012.
40 points
ABC COMPANY
COMPARATIVE BALANCE SHEETS
DECEMBER 31
(in thousands)
ASSETS
Percent
Amount
Current Assets
Cash and cash equvalents
53.0
50.0
Accounts Receivable (net)
3
7
4
8
Inventory
10
100.0
Total Current Assets
1
9
198.0
Investments (short-term)
– 0
70.0
Property, plant, and equipment
Equipment
573.2
450.0
Accumulated Depreciation – Equipment
(
14
(17
6
Total Assets
629.7
542.0
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts Payable
62.5
43.8
Bonds payable, due 2010
Total Liabilities
143.8
Stockholders’ equity
Common Stock, $10 par
32
5.
285.0
Paid-in-Capital in Excess – Common Stock
80.0
55.0
Retained Earnings
162.2
58.2
Total Liabilities and Stockholders’ Equity
COMPARATIVE INCOME STATEMENTS
FOR PERIOD ENDING DECEMBER 31
2012 Percent 2011 Percent Amount Percent
Sales Revenue
625.7
587.4
Cost of Goods Sold
340.0
342.3
Gross Profit
285.7
245.1
Operating Expenses
Selling and Administrative Expenses
26.0
28.2
Depreciation Expense
68.0
72.4
Total Profit from Operations
191.7
144.5
Other Income
Gain on Sale of Investment
4.0
Other Expenses
Interest Expense
5.8
Income Before Income Taxes
189.7
13
Income Tax Expense
60.7
44.4
Net Income
129.0
94.3
OTHER INFORMATION (All occuring in 2012)
1.
Fully depreciated equipment costing $60,000 was scrapped, no salvage, and equipment was purchased for $183,200.
2.
Bonds payable for $100,000 were retired by payment at their face amount on December 31, 2012.
3.
5,000 shares of common stock were issued at $13 for cash on December 31, 2012.
4.
Cash dividends were declared and paid on December 31, 2012, $25,000.
5.
Net credit sales for 2012 were $575,000
6.
The market price of the company’s common stock on December 31, 2012 was $13/share.
RATIOS
Answer
What does this ratio mean?
1
Current Ratio
Show work for partial credit:
2
Quick Ratio
3
Receivables Turnover
4
Average Collection Period
5
Inventory Turnover
6
Days in Inventory
7
Profit Margin
8
Asset Turnover
9
Return on Assets
10
Return on Common Stockholders’ Equity
11
Earnings per Share
12
Price-Earnings Ratio
13
Payout Ratio
14
Debt to Total Assets Ratio
15
Times Interest Earned
ABC COMPANY
CASH FLOW STATEMENT
FOR YEAR ENDING DECEMBER 31, 2012
Sheet2
Sheet3
