From the information about Valdemar Corporation in Figures 22.16 and 22.17 (page 788), do the following:
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 22.16

Figure 22.17

Transcribed Image Text:

VALDEMAR CORPORATION COMPARATVE INCOME STATEMENT FOR YEARS ENDED DECEMBER 31, 2016, 2015, 2014 2016 2015 2014 3500000 $600000 $50 0o000 Net Sales Cost of Goods Sold Gross Profit from Sales 00000 1800000 12 00000 $13 00000 $4700000 $3800000 Operating Expenses: Selling General and Administrative 250000 200000 45000 35000 300000 350000 50000 900000 $4050000$3350000 Total Operating Expens es 400000 Operating Income Before Taxes Income Taxes Net Income 20000 0 60000 $840000 $40 30000 $32 90000 VALDEMAR CORPORATION COMPARATIVE BALANCE SHEET FOR YEARS ENDED DECEMBER 31, 2016, 2015, 2014 Assets 2016 2015 2014 $ 161010100|| $1710101001 $ 21기010100 Current Assets Plant and Equipme nt Total Assets 1100000 7 510 000 890000 $12 60000$92 0000 $1160000 Liabilities and Stockholders' Equity 60000 S 130000 Current Liabilities Common Stock Retained Eamings Total La bilities and Stockholders' Equity 69000 560000 63000 90000 30 400000 3000 $12 60000$92 20000 $1160000 2016 Inventory: $490; 2015, $2B0; 2014, $600.