ACC 423 7-4 Horizontal Analysis

Statement of Cash Flows                                    Year Ending 12/31/06                                     Exhibit A                                                (000)                                                    2004                    2005                     2006   net income                              $8,246                    $11,205                $15,255 depreciation expense                6,129                       7,438                    9,383   change in accounts receivable   (2,402)                    (6,619)                 (9,888) change in inventories                 (1,861)                     (4,202)                (8,225) change in accounts payable         898                         1,270                  1,500 change in other                            880                           900                     700     cash flow from operations      11,889                  9,992                       8,725   investing activities capital spending…

Statement of Cash Flows               Year Ending 12/31/06                                         Exhibit A                                                       (000)                                                 2004                      2005                      2006   net income                             $8,246                    $11,205                $15,255 depreciation expense               6,129                       7,438                     9,383   change in accounts receivable  (2,402)                  (6,619)                   (9,888) change in inventories                 (1,861)                  (4,202)                   (8,225) change in accounts payable         898                    1,270                       1,500 change in other                           880                        900                        700     cash flow from operations       11,889                  9,992                     8,725   investing activities capital spending…

Cash Accounts receivable Equipment, net Land Total assets Current Year $7,440 $4,000 44,000 91,680 $197.120 Percent change Prior Year Required: Compute the annual dollar changes and percent changes for each of the following items $8,000 18,000 40,000 66,000 $132.000 (Use cells A2 to C7 from the given information to complete this question. Decreases should be entered with a minus sign. Round your percentage answers to one decimal place.) Cash Accounts receivable Equipment, net Horizontal Analysis Calculation of Percent Change Numerator: Current Year $7,440 54,000 44,000 Prior Year $8,000 18,000 40,000 Denominator: Dollar Change Change

Cash Accounts receivable Equipment, net Land Total assets Current Year Prior Year $ 10,200 $ 13,000 60,000 25,200 56,000 49,600 97,500 72,000 $ 223,700 $ 159,800 Compute the annual dollar changes and percent changes for each of the following items. Note: Decreases should be entered with a minus sign. Round your percentage answers to one decimal place. Percent change= Horizontal Analysis - Calculation of Percent Change Numerator: Denominator: Current Year Prior Year Dollar Change Cash $ 10,200 $ 13,000 Accounts receivable 60,000 25,200 Equipment, net 56,000 49,600 Land Total assets 97,500 72,000 $ 223,700 $ 159,800 Percent Change % % % % %

Need help calculating: A. Economic value added and B. Return on Capital

Year Net Cash Flow Discount Factor Present Value (using the factor) Present Value (using Excel formula)       0  $      (3,500,000.00) 1  $          (3,500,000.00) ($3,500,000.00)       1  $           900,000.00 0.90909  $               818,181.00 $818,181.82       2  $           900,000.00 0.82645  $               743,805.00 $743,801.65       3  $           900,000.00 0.75131  $               676,179.00 $676,183.32       4  $           900,000.00 0.68301  $               614,709.00 $614,712.11       5  $           900,000.00 0.62092  $               558,828.00 $558,829.19       Net Present Value  $                (88,298.00)  $      (88,291.91)                                       3.  Now assume that inflation is estimated as a 5% increase each year (starting with Year 1) for the entire 5 years.  Calculate the new net cash flow values for each year.  start with 5% increase for Year 1 net cash flow.                  Year Net Cash Flow             0  $…

Global Corp. expects sales to grow by 8% next year. Using the percent of sales method and the data provided in the given tables 9. forecast: a. Costs except depreciation b. Depreciation c. Net income d. Cash e. Accounts receivable f. Inventory g. Property, plant, and equipment h. Accounts payable (Note: Interest expense will not change with a change in sales. Tax rate is 25%.) The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career. a. Costs except depreciation The forecasted costs except depreciation will be S million. (Round to one decimal place and enter all numbers as a positive.) b. Depreciation The forecasted depreciation will be S million. (Round to one decimal place and enter all numbers as a positive.) c. Net income The forecasted net…

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Cash and accounts receivable for Adams Company are as follows: Cash $84,420 Accounts receivable (net) 38,428 What are the amounts and percentages of increase or decrease that would be shown with horizontal analysis? Dollar Change Percent Change Account Cash Current Year Accounts Receivable Prior Year $67,000 73,900 % % increase decrease

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($ in 000s) Cash and cash equivalents $247,286 Short-term investments 362,700 Accounts receivable 513,944 Inventory 468,738 Prepaid expenses (current) 92,259 Total current assets 1,684,927 Long-term receivables 119,800 Equipment (net)   Total assets   Notes payable (current) 40,116 Accounts payable 41,072 Accrued liabilities 430,772 Other current liabilities 190,604 Total current liabilities 702,564 Long-term debt 343,576 Total liabilities 1,046,140 Common stock 460,627 Retained earnings 1,000,000   1. Find Equipment (net) 2. Find Total Assests

What is the Net Present Value of the following cash flow stream? Year Cash Flow 0 -$1,977 1 $421 2 $889 3 $517 4 $939 Assume an interest rate of 3%

The Cash and Accounts Receivable end-of-year balances for a company are provided below.   Current Year   Prior Year Cash $46,280   $35,600 Accounts receivable (net) 17,050   31,000 Based on this information, what is the amount and percentage of increase or decrease that would be shown with horizontal analysis? Enter a decrease using a minus sign before the amount and the percentage. Account Dollar Change   Percent Change     Cash $fill in the blank 1 fill in the blank 2 %   Accounts Receivable $fill in the blank 4 fill in the blank 5 %   increase,decrease

Balance Sheet                                                                                                         Income Statement                                        ($ in millions)                                                                                                                 ($ in millions)  Assets                                                         LIABILITIES                                                                                                               Cash & Marketable Securities   449.90       Accounts Payable         1,611.20                                  Revenue       28,681.10 Accounts Receivable               954.80       Salaries Payable                225.20                      Cost Of Goods Sold   20,768.80       Inventories                              3,645.20    Other Current Liabilities  1,118.80                       Gross Profit              7,912.30            Other Current Assets              116.60       Total…

Data extracts from Gamma's accounts are shown below Turnover Gross Profit Expenses Operating Profit Interest and Tax Profit for Year Non-current assets Inventory Receivables Cash at Bank Payables Other Current Liabilities Net current assets Shareholder funds 10% Debenture (2030) Required: Ye-Dec-20 Ye-Dec-19 18,500 16,000 4,500 4,000 1,500 2,400 3,000 1,600 1,100 700 1,900 900 19,600 16,400 840 640 2,790 1,890 450 350 830 570 340 460 2,910 1,850 15,510 13,250 7,000 5,000 22,510 18,250 A) Calculate the following accounting ratios for each year-end 1) Return on Capital Employed 2) Profit Margin on Sales 3) Gearing Ratio 4) Interest Cover Ratio 5) Return to Shareholders 6) Quick Asset or Acid test Ratio 7) Cash Conversion Period (Operating Cash Cycle) B) Outline the limitations of accounting ratios

Can you redo the answer in the following format?

Question Content Area Cash and accounts receivable for Adams Company are as follows: Line Item Description Current Year Prior Year Cash $41,180 $35,500 Accounts receivable (net)   29,394   41,400 What is the amount and percentage of increase or decrease that would be shown with horizontal analysis? Enter a decrease using a minus sign before the amount and the percentage. Account Dollar Change Percent Change Effect Cash       Accounts Receivable

CALCULATE CASH FLOW TO CREDITOR'S FOR fy24

Cash and accounts receivable for Adams Company are provided below: Prior Year Cash $70,000 $50,000 Accounts receivable (net) 70,400 80,000 Based on this information, what is the amount and percentage of increase or decrease that would be shown with horizontal analysis? Enter a decrease using a minus sign before the amount and the percentage. Dollar Change Percent Change Account Current Year Cash Accounts Receivable % %

Balance sheet ($ in millions) ASSETS   Cash & Marketable Securities          449.90 Accounts Receivable          954.80 Inventories       3,645.20 Other Current Assets          116.60   Total Current Assets       5,166.50     Machinery & Equipment       1,688.90 Land       1,129.70 Buildings       2,348.40 Depreciation        (575.60) Property, Plant & Equip. - Net       4,591.40 Other Long Term Assets          120.90   Total Long-Term Assets       4,712.30     Total Assets     9,878.80     part of Balance Sheet    LIABILITIES   Accounts Payable       1,611.20 Salaries Payable          225.20 Other Current Liabilities       1,118.80 Total Current Liabilities       2,955.20     Other Liabilities          693.40       Total Liabilities       3,648.60     SHAREHOLDER'S EQUITY   Common Stock          828.50 Retained Earnings       5,401.70   Total Shareholder's Equity       6,230.20     Total Liabilities…

Comparative financial statement data for Carmono Company follow:     This Year Last Year Assets     Cash $ 5.50 $ 10.00 Accounts receivable 42.00 35.00 Inventory 82.50 68.80 Total current assets 130.00 113.80 Property, plant, and equipment 219.00 186.00 Less accumulated depreciation 42.40 31.80 Net property, plant, and equipment 176.60 154.20 Total assets $ 306.60 $ 268.00 Liabilities and Stockholders’ Equity     Accounts payable $ 49.50 $ 42.00 Common stock 102.00 79.00 Retained earnings 155.10 147.00 Total liabilities and stockholders’ equity $ 306.60 $ 268.00   For this year, the company reported net income as follows:   Sales $ 650.00 Cost of goods sold 390.00 Gross margin 260.00 Selling and administrative expenses 240.00 Net income $ 20.00   This year Carmono declared and paid a cash dividend. There were no sales of property, plant, and equipment during this year. The company did not repurchase any of its own stock this year.…