From the information about Valdemar Corporation in Figures 22.10 and 22.11 (page 784), do the following: a.
Question:
a. For each year calculate its current ratio and acid test ratio.
b. For each year prepare the income statement in common-size percentages. (Round to the nearest tenth of a percent.)
c. Prepare a trend analysis of the balance sheet using 2014 as the base year. (Round to the nearest percent.)
Figure 22.10
Figure 22.11
Transcribed Image Text:
VALDEMAR CORPORATION COMPARATVE INCOME STATEMENT FOR YEARS ENDED DECEMBER 31, 2016, 2015, 2014 2016 2015 2014 Net Sales Cost of Goods Sold Gross Profit from Sales $6500000 $45 23 0000014 42 00000 $31 0$50000 00 00000 150000 0$35 000 00 Operating Expenses: $300000 S 3 50000 $350000 S 7 $38 50000 $24 80000 $37기010100 $ 23 Selli General and Administrative Total Ope rating Expenses Operating Income Before Taxes Income Taxes Net Income 0550000 0$2950000 10000 00 $29 40000 VALDEMAR CORPORATION COMPARATIVE BALANCE SHEET FOR YEARS ENDED DECEMBER 31, 2016, 2015, 2014 Assets 2016 2015 2014 180000 Current Assets Plant and Equipme nt Total Assets 50000 110000840000 1030000 $13 00000 $11 30000 uabilities and Stockholders' Equity Current Liabilities Common Stock Retained Eamings Total Lia bilities and Stockholders' Equity $110o00 640000 2 80000 12 00001 30000 590000 590000 610000 3900 1030000 $13 00000 $11 30000 2016 Inventory, $510; 2015, $280; 2014, $620.
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a Current assets Current liabilities Current ratio 2014 2900 1300 223 2015 2000 1200 167 2016 1800 1...View the full answer
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College Accounting A Practical Approach Chapters 1-25
ISBN: 9780133791006
13th Edition
Authors: Jeffrey Slater
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