Income statements for Thornton Company for Year 3 and Year 4 follow: THORNTON COMPANY Income Statements Year 4 Sales $201,300 $181,300 Cost of goods sold Selling expenses Administrative expenses 000'EFT 000'tZI 20,500 18,500 009'ZI 009 5T 3,300 5,300 Interest expense Total expenses 00'6LTS $159, 400 006 Income before taxes 006'1Z 3,400 Income taxes expens3e 6,200 $ 15,700 $ 18,500 Net income Required a. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year b. Perform a vertical analysis, showing each income statement component as a percentage of sales for each year.

Income statements for Thornton Company for Year 3 and Year 4 follow: THORNTON COMPANY Income Statements Year 4 Sales $201,300 $181,300 Cost of goods sold Selling expenses Administrative expenses 000'EFT 000'tZI 20,500 18,500 009'ZI 009 5T 3,300 5,300 Interest expense Total expenses 00'6LTS $159, 400 006 Income before taxes 006'1Z 3,400 Income taxes expens3e 6,200 $ 15,700 $ 18,500 Net income Required a. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year b. Perform a vertical analysis, showing each income statement component as a percentage of sales for each year.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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7-2 Project: Company Accour x 121. Project Guidelines and Rubric x 121. 7-1 Problem Set: Module Sev X CengageNOWv2 | Online tea now.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker3&takeAssignmentSessionLocator3D&inprogress3false eBook Show Me How Return on Total Assets A company reports the following income statement and balance sheet information for the current year: Net income $224,540 Interest expense 39,620 Average total assets Determine the return on total assets. If required, round the answer to one decimal place. 1.8 Check My Work Divide the sum of net income and interest expense by average total assets. Previa Check My Work ADE dy
* CengageNOWv2 | Online teachin x E Login engagenow.com/ilm/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogre.. * еВook Show Me How Earnings per share Financial statement data for the years 20Y5 and 20Y6 for Black Bull Inc. follow: 20Υ5 20Y6 Net income $1,688,000 $2,459,000 Preferred dividends $50,000 $50,000 Average number of common shares outstanding 90,000 shares 110,000 shares a. Determine the earnings per share for 20Y5 and 20Y6. Round to two decimal places. 20Y5 20Υ6 Earnings per Share b. Is the change in the earnings per share from 20Y5 to 20Y6 favorable or unfavorable? Check My Work
gageNOWv2 | Online teachir X * CengageNOWv2 | Online teachin x om/iln/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogre.. eBook Show Me How Long-Term Solvency Analysis The following information was taken from Acme Company's balance sheet: Fixed assets (net) $1,092,000 Long-term liabilities 280,000 Total liabilities 196,000 Total stockholders' equity 980,000 Determine the company's (a) ratio of fixed assets to long-term liabilities and (b) ratio of liabilities to stockholders' equity. If required, round your answers to one decimal place. a. Ratio of fixed assets to long-term liabilities b. Ratio of liabilities to stockholders' equity Previous Next Check My Work 11:17 A 67°F Sunny A O E O G 40) 12/3/20 delete ome prt se 84l 144 4+ 6 backscace %D
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onnect Deep Inte X ex.html?_con=con&external_browser=0&launch Url=https%253A%252F%252Flms.mheducation.com%252Fmghmiddleware%2 Exercise 3-8 (Algo) Balance sheet; current versus long-term classification [LO3-2, 3-3] Cone Corporation is in the process of preparing its December 31, 2021, balance sheet. There are some questions as to the proper classification of the following items: a. $54,000 in cash restricted in a savings account to pay bonds payable. The bonds mature in 2025. b. Prepaid rent of $28,000, covering the period January 1, 2022, through December 31, 2023. c. Notes payable of $208,000. The notes are payable in annual installments of $24,000 each, with the first installment payable on March 1, 2022. Question 5 Chapter 3 Exercises X d. Accrued interest payable of $16,000 related to the notes payable. e. Investment in equity securities of other corporations, $88,000. Cone intends to sell one-half of the securities in 2022. Required: Prepare the asset and liability sections of a…
* CengageNOWv2 | Online teachin X * CengageNOWv2 | Online teachin X now.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogre... еBook Show Me How Changes in Current Operating Assets and Liabilities-Indirect Method Victor Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, 20Y2 Dec. 31, 20Y1 Accounts receivable $23,400 $22,600 Inventory 78,800 79,500 Accounts payable 20,700 20,400 Dividends payable 18,000 17,000 Adjust net income of $77,900 for changes in operating assets and liabilities to arrive at net cash flow from operating activities. Check My Work 70°F Sunny
n&external_browser%3D0&launchUrl=https%253A9 CT Problems Saved Help Save South Sea Baubles has the following (incomplete) balance sheet and income statement. BALANCE SHEET AT END OF YEAR (Figures in $ millions) 2019 Assets 2018 Liabilities and Shareholders' Equity 2018 2019 Current assets $ 102 $ 200 Current liabilities $ 74 $ 96 Net fixed assets 920 1,020 Long-term debt 660 870 INCOME STATEMENT, 2019 (Figures in S millions) $ 2,010 1,090 410 Revenue Cost of goods sold Depreciation Interest expense 252 a&b. What is shareholders' equity in 2018 and 2019? c&d. What is net working capital in 2018 and 2019? e. What are taxes paid in 2019? Assume the firm pays taxes equal to 21% of taxable income. f. What is cash provided by operations during 2019? g. Net fixed assets increased from $920 million to $1,020 million during 2019. What must have been South Sea's gross investment in fixed assets during 2019? Complete this question by entering your answers in the tabs below. Piey 1of 8 Next > P o…
O Log In | Federa x MUMassD Logor X E QuickLaunch- R Chapter folder x * Cengage D Univ of Mass - X mheducation.com Homework i Saved The following data are from annual reports of Jen's Jewelry Company: 2021 2020 2019 Total assets $ 60,700 $ 52,000 11,100 $ 41,000 Total liabilities Total stockholders' equity Sales revenue 14,600 46,100 163,900 51,900 6,500 34,500 132,400 24,300 40,900 150,300 40,600 Net income Compute Jen's net profit margin ratio for each year. (Round your answers to 2 decimal places.) Year Net Profit Margin Ratio 2021 2020 2019 o search
* CengageNOW2 | Onlin x 2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false 人 еВook Show Me How Vertical Analysis of Balance Sheet Balance sheet data for Kwan Company on December 31, the end of two recent fiscal years, follow: Current Year Previous Year Current assets $288,750 $177,120 Property, plant, and equipment 498,750 452,640 Intangible assets 87,500 26,240 Current liabilities 175,000 85,280 Long-term liabilities 376,250 301,760 Common stock 78,750 72,160 Retained earnings 245,000 196,800 Prepare a comparative balance sheet for both years, stating each asset as a percent of total assets and each liability and stockholders' equity item as a percent of the total liabilities and stockholders' equity. If required, round percentages to one decimal place. Kwan Company Comparative Balance Sheet For the Years Ended December 31 Current Current Previous Previous year year year year Amount Percent Amount Percent Current assets…