a) Calculate and show the current ratio, and acid test ratio to one decimal point for each year.

b) For each year, generate a common-size income statement. Display your results to one decimal point.

c) Prepare a trend analysis of the balance sheets, using 2013 as the base year.

Again, one decimal point, please.

  

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742 CHAPTER 17 . ANALYZING FINANCIAL STATEMENTS 17C-4 From the financial information about MBD Incorporated shown in Figures 17-24 and 17-25 a. Calculate and show the current ratio, and acid-test ratio to one decimal point for each year. h. For cach year, generate a common-size income statement. Display your results to one decimal point. c. Prepare a trend analysis of the balance sheets, using 2013 as the base year. Again - one decimal point, please. For students who are using a computer. consider using the file in the Chapter 17 area on the MAL FIGURE 17.24 MBD INCORPORATED Comparative Statement for MBD Incorporated COMPARATIVE INCOME STATEMENT FOR THE YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013 DECEMBER 31 2015 2014 2013 $752,140 389.623 S706.938 352,064 S682.519 342,608 Sales Less, Cost of Goods Sold Gross Profit 362.517 354,874 339,911 Expenses: Administrative expenses, including salaries Advertising Amortization 78,480 12,674 32,614 4,242 25,613 5.289 12,076 15,000 118,200 24.824 87.625 84,704 14,934 28.512 4,850 19.618 6.384 12.644 18,000 128.462 16,847 15,882 30,406 4,736 22.084 7,413 12.418 18.000 122.475 Insurance Interest Miscellaneous Office Rent Sales Salaries Travel 14,092 Utilities 6,482 5,836 4.908 Total Expenses 344,358 338,046 333,920 5,991 Income before Income Taxes Income Tax 18,159 3.269 16,828 3,029 1,078 Net Income $ 14.890 S 13.799 S 4913 742 CHAPTER 17 . ANALYZING FINANCIAL STATEMENTS 17C-4 From the financial information about MBD Incorporated shown in Figures 17-24 and 17-25 a. Calculate and show the current ratio, and acid-test ratio to one decimal point for each year. h. For cach year, generate a common-size income statement. Display your results to one decimal point. c. Prepare a trend analysis of the balance sheets, using 2013 as the base year. Again - one decimal point, please. For students who are using a computer. consider using the file in the Chapter 17 area on the MAL FIGURE 17.24 MBD INCORPORATED Comparative Statement for MBD Incorporated COMPARATIVE INCOME STATEMENT FOR THE YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013 DECEMBER 31 2015 2014 2013 $752,140 389.623 S706.938 352,064 S682.519 342,608 Sales Less, Cost of Goods Sold Gross Profit 362.517 354,874 339,911 Expenses: Administrative expenses, including salaries Advertising Amortization 78,480 12,674 32,614 4,242 25,613 5.289 12,076 15,000 118,200 24.824 87.625 84,704 14,934 28.512 4,850 19.618 6.384 12.644 18,000 128.462 16,847 15,882 30,406 4,736 22.084 7,413 12.418 18.000 122.475 Insurance Interest Miscellaneous Office Rent Sales Salaries Travel 14,092 Utilities 6,482 5,836 4.908 Total Expenses 344,358 338,046 333,920 5,991 Income before Income Taxes Income Tax 18,159 3.269 16,828 3,029 1,078 Net Income $ 14.890 S 13.799 S 4913

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