Exam 14: Financial Statements

Below is a partially completed horizontal analysis of a balance sheet. Rachel is completing a comparative analysis of her business' balance sheet. What is the amount and percent of change in building/land from Year 1 to Year 2 for Rachels Candle Company?

Mr. Bobson owns a hardware store. The gross sales for the first quarter of the year were $92,000. There was $1,930 in returned merchandise and $2,300 in sales discounts. His beginning merchandise inventory was $54,000 and his ending inventory was $40,000. He purchased $17,000 of additional merchandise for sale during the quarter, returned $1,750 worth of merchandise damaged during shipment, and received $3,800 in purchase discounts. Mr. Bobson's operating expenses include the following: delivery expense, $263; depreciation expense for equipment, $750; payroll taxes expense, $585; salary expense, $11,700; supplies, $395; and utilities expense, $420. What is the gross profit for Bobson's Hardware?

Mrs. Hersh owns a bakery. The gross sales for the year were $162,000. There was $670 in returned merchandise and $4,860 in sales discounts. What are the net sales for the bakery?

The vertical analysis of the income statement for a company that has cost of goods sold of $39,000 and net sales of $106,000 will be 27.2%.

What is the net profit for Bobson's Hardware?

Below is a partially completed horizontal analysis of a balance sheet. Rachel is completing a comparative analysis of her business'; balance sheet. What is the amount and percent of change in mortgage payable from Year 1 to Year 2 for Rachels Candle Company?

Henderson's Appliance Store had net income of $202,000 this year with owner's equity of $325,000. What is the return on investment for the year?

The vertical analysis of a balance sheet for a coffee shop is created in Excel. Cash assets are in Cell C9 and total assets are in Cell C16. Write two ways for keying cash as a percent of total assets into Cell D9.

Below is a partially completed horizontal analysis of a balance sheet. Rachel is completing a comparative analysis of her business'; balance sheet. What is the amount and percent of change in total liabilities and owners equity from Year 1 to Year 2 for Rachels Candle Company?

Below is a partially completed horizontal analysis of a balance sheet. Rachel is completing a comparative analysis of her business'; balance sheet. What is the amount and percent of change in total liabilities from Year 1 to Year 2 for Rachels Candle Company?

The Smoothie Shoppe's income statement is done in Excel. Cell E8 contains net sales, Cell E17 contains cost of goods sold, and Cell E27 contains total operating expenses. What is the formula to calculate net income before federal income tax?

Below is a partially completed vertical analysis of a balance sheet. Rachel completes a vertical analysis of her company’s balance sheet. What percent of total liabilities and owner’s equity is total liabilities? Round to the nearest tenth.

Below is a partially completed horizontal analysis of a balance sheet. Rachel is completing a comparative analysis of her business balance sheet. What is the amount and percent of change in accounts payable from Year 1 to Year 2 for Rachels Candle Company?

In a vertical analysis of a balance sheet, what will be total assets as a percent and total liabilities and owner's equity as a percent?

Champion Camera Company has cash assets of $235,000 and accounts receivable of $115,000. Their accounts payable total is $100,000. What is the acid test ratio?

A company has net sales of $97,500, cost of goods sold of $37,000, gross profit of $60,500, total operating expenses of $12,675, and net income of $47,825. Rounded to the nearest tenth of a percent, what would the vertical analysis of the income statement have for total operating expenses?

Mantilli Manufacturing has current assets worth $12.5 million and current liabilities worth $5 million. What is the current ratio?

Below is a partially completed vertical analysis of a balance sheet. Rachel completes a vertical analysis of her company’s balance sheet. What percent of total assets is cash? Round to the nearest tenth.

Explain how to complete a vertical analysis of an income statement.

Below is a partially completed vertical analysis of a balance sheet. Rachel completes a vertical analysis of her company’s balance sheet. What percent of total assets is building/land? Round to the nearest tenth.