The following information was taken from the accounting records of Prentice Company for the years ended April
Question:
Required:
Use a computer spreadsheet to do the following:
A. Complete a vertical analysis for 2010, 2009, and 2008.
B. Complete a horizontal analysis for 2010 and 2009.
C. Complete a ratio analysis for 2010 and 2009.
Transcribed Image Text:
2010 2009 Current assets: Cash Trading securities Accounts receivable Inventories Prepaid expenses $ 35,000 12,000 175,000 225,000 5,000 452,000 $ 38,000 11,000 166,000 209,000 10,000 $ 434,000 $ 10,000 62,000 112,000 269,000 4,000 S 457,000 Total current assets Property, plant, and equipment $ 50,000 141,000 68,000 Total property, plant and ent 259,000 $ 711,000 S 50,000 149,000 74,000 273,000 707,000 $ 50,000 157,000 72,000 279,000 736,000 Land Building, netof depreciation Equipment, net of depreciation Total assets Current liabilities $ 69,000 40,000 52000 $ 161,000 88,000 $ 249,000 462,000 711,000 $ 60,000 60,000 19,000 $ 139,000 161,000 300,000 436000 S 736,000 Accounts payable $ 67,000 60,000 41,000 $ 168,000 92,000 $ 260,000 447,000 $ 707000 $2,085,000 1,209,000 S 876,000 731,000 145,000 Notes payable Other current liabilities Total current liabilities Long-term liabilities Total liabilities Owners' equity Total liabilities and owners' equity Sales Cost of goods sold Gross margin Operating expenses Net income $1,920,000 1.152,000 $ 768,000 698,000 70,000 $1,880,000 1,110,000 770,000 688,000 $ 82,000
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (14 reviews)
Data 2010 2009 2008 Cash 35000 38000 10000 Trading securities 12000 11000 62000 Accounts receivable 175000 166000 112000 Total liquid assets 222000 21...View the full answer
Answered By
Joseph Mwaura
I have been teaching college students in various subjects for 9 years now. Besides, I have been tutoring online with several tutoring companies from 2010 to date. The 9 years of experience as a tutor has enabled me to develop multiple tutoring skills and see thousands of students excel in their education and in life after school which gives me much pleasure. I have assisted students in essay writing and in doing academic research and this has helped me be well versed with the various writing styles such as APA, MLA, Chicago/ Turabian, Harvard. I am always ready to handle work at any hour and in any way as students specify. In my tutoring journey, excellence has always been my guiding standard.
4.00+
1+ Reviews
10+ Question Solved
Related Book For
Introduction to Accounting An Integrated Approach
ISBN: 978-0078136603
6th edition
Authors: Penne Ainsworth, Dan Deines
Question Posted:
Students also viewed these Accounting questions
-
The following information was taken from the accounting records of three competitors for the 2016 fiscal year. Required: a. Explain how to calculate inventory turnover and the number of days sales in...
-
The following information was taken from the accounting records of the Lamberson Company: Additional information for the year: (a) Sales ............$ 39,930 Cost of goods sold .........(19,890)...
-
The following information was taken from the accounting records of Chicoutimi Ltée and Jonquière Ltée at December 31, 2016. The two companies are competitors....
-
Smile is a social media site that is growing in popularity. The firm has been around for a few years and has created a nice market niche for itself. Now the company has a possible buyer who has made...
-
What is the main objective of the Principles of Responsible Investment (PRI)?
-
Let C be a fixed n x n matrix. Determine whether the following are linear operators on R n n (a) L(A)= CA + AC (b) L(A) = C2A (c) L(A) = A2C
-
Throughout the US presidential election of 2016, polls gave regular updates on the sample proportion supporting each candidate and the margin of error for the estimates. This attempt to predict the...
-
The weighted average cost of capital for a firm (assuming all three Modigliani and Miller assumptions apply) is 15 percent. What is the current cost of equity capital for the firm if its cost of debt...
-
If a US MNC were to expand to the UAE and set up a subsidiary to retail furniture, what kinds of foreign currency exposure would it?
-
Jenny Smith, 28, just received a promotion at work. Her salary has increased to $40 000 and she is now eligible to participate in her employers pension plan. The employer matches employee...
-
The following list of accounts was adapted from the annual report of Wiley Industries: Cash and cash equivalents ........ $ 21,989,062 Marketable securities ........... 9,199,490 Notes receivable,...
-
Why must a financial manager have an integrated understanding of the five basic finance functions? Why has the risk-management function become more important in recent years? Why is the corporate...
-
Norton Corporation is considering the elimination of one of its segments. The following fixed costs pertain to the segment. If the segment is eliminated, the building it uses will be sold. Required...
-
Identify the statements that apply to CHAMPVA's cost to patients. Multiple select question. In most cases, CHAMPVA pays equivalent to Medicare/TRICARE rates. Beneficiaries are not responsible for...
-
Which solution did the Farmers' Alliance movement of the late nineteenth century initially propose to solve farmers' economic problems?
-
What are your goals for your time at NLU? Your career? How have these changed after taking this course? Look back at what you learned in each module. What challenges or expectations might you...
-
The Green New Deal is a charged term in politics. Google and read a little about the topic. Assess whether it is a politically viable proposal. What aspects are viable and which are not
-
How Policy is Made, Energy Politics, and Nevada. Pause after the "Energy Politics" section. I need to find a news article on an energy topic of interest to you. (Put a link to the article below)....
-
What are the requirements for a metric to exist?
-
Stephen Schor, an accountant in New York City, advised his client, Andre Romanelli, Inc., to open an account at J. P. Morgan Chase Bank, N.A., to obtain a favorable interest rate on a line of credit....
-
You want to control the flow rate of a liquid in a transfer line at $350 \mathrm{gpm}$. The pump in the line has the characteristics shown in Figure 8.2, with a 5 1/4 in. impeller. The line contains...
-
Today is April 1 and Dale has just received the annual report of Clam Chowder Company, in which he owns stock. Displayed below are the comparative balance sheet and income statement that have drawn...
-
Far East Specialties is an import company, financed primarily by stockholders and bank loans. It imports handmade goods from Central and East Asia to the United States, where they are sold to retail...
-
Markus O'Realius is considering the purchase of Caesar Company. The potential seller has provided Markus with a copy of the business's financial statements for the last three years. The financial...
-
How do the resource descriptions (typing) used in the Incident Command System lead to a more effective response?
-
A company incurs $4172000 of overhead each year across three departments: Ordering and Receiving, Mixing, and Testing. The company prepares 2000 purchase orders, works 50000 mixing hours, and...
-
Hemming Company reported the following current-year purchases and sales for its only product. Date January 1 January 10 Activities Beginning inventory March 14 March 15 July 30 Sales Purchase Sales...
Study smarter with the SolutionInn App