Comparative financial statements of Na Pali Coast Company for the years ended 31 December 20-1 and 20-2
Question:
Comparative financial statements of Na Pali Coast Company for the years ended 31 December 20-1 and 20-2 are presented.
Na Pali Beach Company |
Comparative Income Statement |
For Years Ended 31 December 20-2 and 20-1 |
1 | 20-2 | 20-1 | |
2 | net sales | 466.451,00 $ | 291.613,00 $ |
3 | cost of goods sold | 285.889,00 | 188.626,00 |
4 | Gross profit | 180.562,00 $ | 102.987,00 $ |
5 | operating expenses | 125.650.00 | 78.200.00 |
6 | Operating income | 54.912,00 $ | 24.787,00 $ |
7 | Other expenses | 1.200.00 | 500.00 |
8 | Income before income tax | 53.712,00 $ | 24.287,00 $ |
9 | income tax expense | 18.250.00 | 7.285,00 |
10 | Net income | 35.462,00 $ | 17.002,00 $ |
Na Pali Beach Company |
Comparative Balance Sheet |
31 December 20-2 and 20-1 |
1 | 20-2 | 20-1 | |
2 | assets | ||
3 | Current assets: | ||
4 | in advance | 8.600,00 $ | 7.500,00 $ |
5 | government notes | 3.000,00 | 2.000,00 |
6 | Accounts receivable (net) | 10.500.00 | 8.600.00 |
7 | goods inventory | 53.600.00 | 33.200.00 |
8 | Consumables and prepayments | 4.500.00 | 3.200.00 |
9 | Total current assets | 80.200,00 $ | 54.500,00 $ |
10 | Property, facilities and equipment: | ||
11 | Kara | 40.000,00 $ | 40.000,00 $ |
12 | building (network) | 200.000.00 | 150.000,00 |
13 | Delivery equipment (net) | 13.000,00 | 15.000.00 |
14 | Office equipment (net) | 5.400.00 | 6.000,00 |
15 | Patents | 5.000,00 | 6.000,00 |
16 | Total property, factory and equipment | 263.400,00 $ | 217.000,00 $ |
17 | Total assets | 343.600,00 $ | 271.500,00 $ |
18 | obligations | ||
19 | Short-term liabilities: | ||
20 | Notes payable | 5.000,00 $ | 3.000,00 $ |
21 | Accounts payable | 28.700.00 | 22.300.00 |
22 | Payroll taxes accrued and deducted | 4.200.00 | 5.600.00 |
23 | Accrued interest payable | 500.00 | 1.700.00 |
24 | Total current responsibilities | 38.400,00 $ | 32.600,00 $ |
25 | Long-term liabilities: | ||
26 | Bonds payable | 50.000,00 | 20.000,00 |
27 | Total liabilities | 88.400,00 $ | 52.600,00 $ |
28 | equity capital | ||
29 | Common stock ($5 par) | 115.000,00 $ | 100.000,00 $ |
30 | Paid-in capital in excess of its value | 65.000,00 | 60.000,00 |
31 | Retained earnings | 75.200.00 | 58.900.00 |
32 | Total equity | 255.200,00 $ | 218.900,00 $ |
33 | Total liabilities and equity | 343.600,00 $ | 271.500,00 $ |
Necessary: | |
| 1. | Perform a horizontal analysis of the comparative income statement and balance sheet. |
| 2. | Perform vertical analysis of comparative income statement and balance sheet. |
| 3. | Calculate the following liquidity measures for 20-2: |
| (A) | working capital |
| (B) | current rate |
| (C) | Rapid or acid test rate |
| 4. | Calculate the following measures of effectiveness for 20-2: |
| (A) | Turnover of accounts receivable and average number of days to collect receivables (Assume sales on account 20-2 are $120,000.) |
| (B) | Product inventory turnover and average days to sell inventory |
| (C) | asset transfer |
| 5. | Calculate the following profitability measures for the 20-2: |
| (A) | profit margin rate |
| (B) | return on assets |
| (C) | common stock return |
| (D) | Earnings per common stock |
| 6. | Calculate the following leverage measures for 20-2: |
| (A) | debt equity ratio |
| (B) | The interest rate earned once (assume the interest expense for the 20-2 is $1,200.) |
| 7. | Calculate the following market measures for 20-2: |
| (A) | Price-to-earnings ratio (The market price of Na Pali Coast Company common stock was $23.00 on Dec. 31, 20-2.) |
| (B) | Book value per common share |
Expert Answer:
Horizontal Analysis of Comparative Income Statement To perform horizontal analysis we compare the figures of the two years to determine the percentage change Net Sales Percentage Change Net Sales 202 ... View the full answer
