1. Cornerstone Exercise 12-48 (Algorithmic) Horizontal and Vertical Analysis

   Selected data from the financial statements of Jones Hardware Company follows.

   	2019		2018
   Accounts receivable	$52,700		$38,000
   Merchandise inventory	13,400		16,000
   Total assets	450,000		380,000
   Net sales	380,000		270,000
   Cost of goods sold	182,000		210,000

   Required:

   1. Calculate by how much accounts receivable, merchandise inventory, total assets, net sales, and cost of goods sold increased or decreased in dollar terms from 2018 to 2019.

   Accounts receivable	$	increase decrease
   Merchandise inventory	$	increase decrease
   Total assets	$	increase decrease
   Net sales	$	increase decrease
   Cost of goods sold	$	increase decrease

   2. Indicate what happened from 2018 to 2019 to accounts receivable and merchandise inventory as a percentage of total assets. Round to the nearest whole percent.

   Accounts receivable	decreased increased from % in 2018 to % in 2019.
   Merchandise inventory	decreased increased from % in 2018 to % in 2019.

   Indicate what happened from 2018 to 2019 to cost of goods sold as a percentage of net sales (rounded to the nearest whole percent).

   Cost of goods sold

   • decreased
   • increased
   from % in 2018 to % in 2019.

2. Cornerstone Exercise 12-52 (Algorithmic) Asset Efficiency Ratios

   Selected financial statement numbers for Rutherford Company follow.

   Net sales	$272,800
   Cost of goods sold	179,000
   Average accounts receivable	20,730
   Average inventory	4,145
   Average property, plant, and equipment	75,705
   Average total assets	126,127

   Required:

   Round your answers to two decimal places.

   1. Using this information, calculate Rutherford's receivable turnover ratio.

   2. Using this information, calculate Rutherford's asset turnover ratio and also convert the ratio into days (rounded to the nearest whole day).

   Asset turnover ratio
   Conversion into days		days