managerial accounting 1b ch13 498811

Exercise 13-3 Computation and analysis of trend percents L.O. P1

2013

2012

2011

2010

2009

Sales

$ 283,880

$ 271,800

$ 253,680

$ 235,560

$ 151,000

Cost of goods sold

129,200

123,080

116,280

107,440

68,000

Accounts receivable

19,100

18,300

17,400

16,200

10,000

Compute trend percents for the above accounts, using 2009 as the base year. (Omit the “%” sign in your response.)

Exercise 13-7 Common-size percents L.O. P2

Sanderson Company s year-end balance sheets follow.

At December 31		2012		2011		2010
Assets
Cash	$	30,800	$	35,625	$	36,800
Accounts receivable, net		88,500		62,500		49,200
Merchandise inventory		111,500		82,500		53,000
Prepaid expenses		9,700		9,375		4,000
Plant assets, net		277,500		255,000		229,500

Total assets	$	518,000	$	445,000	$	372,500

Liabilities and Equity
Accounts payable	$	128,900	$	75,250	$	49,250
Long-term notes payable secured by mortgages on plant assets		97,500		102,500		82,500
Common stock, $10 par value		162,500		162,500		162,500
Retained earnings		129,100		104,750		78,250

Total liabilities and equity	$	518,000	$	445,000	$	372,500

Express the balance sheets in common-size percents. (Do not round intermediate calculations and round your final answers to 1 decimal place. Omit the “%” sign in your response.)

Exercise 13-9 Liquidity analysis and interpretation L.O. P3

[The following information applies to the questions displayed below.]

Sanderson Company s year-end balance sheets follow.

At December 31		2012		2011		2010
Assets
Cash	$	30,800	$	35,625	$	36,800
Accounts receivable, net		88,500		62,500		49,200
Merchandise inventory		111,500		82,500		53,000
Prepaid expenses		9,700		9,375		4,000
Plant assets, net		277,500		255,000		229,500

Total assets	$	518,000	$	445,000	$	372,500

Liabilities and Equity
Accounts payable	$	128,900	$	75,250	$	49,250
Long-term notes payable secured by mortgages on plant assets		97,500		102,500		82,500
Common stock, $10 par value		162,500		162,500		162,500
Retained earnings		129,100		104,750		78,250

Total liabilities and equity	$	518,000	$	445,000	$	372,500

The company s income statements for the years ended December 31, 2012 and 2011, follow. Assume that all sales are on credit:

For Year Ended December 31	2012					2011
Sales			$	672,500				$	530,000
Cost of goods sold	$	410,225		$	344,500
Other operating expenses	208,550		133,980
Interest expense		11,100					12,300
Income taxes		8,525					7,845

Total costs and expenses				638,400					498,625

Net income			$	34,100				$	31,375

Earnings per share			$	2.10				$	1.93

Section Break

Exercise 13-9 Liquidity analysis and interpretation L.O. P3

Exercise 13-9 Part 1

(1)	Compute days’sales uncollected. (Use 365 days a year. Do not round intermediate calculations and roundyour final answers to the nearest whole number.)

Exercise 13-9 Part 2

(2)	Compute accounts receivable turnover. (Round your answers to 1 decimal place.)


2012
2011

Exercise 13-9 Part 3

(3)	Compute inventory turnover. (Round your answers to 1 decimal place.)

Exercise 13-9 Part 4

(4)	Compute days’ sales in inventory. (Use 365 days a year. Do not round intermediate calculations and round your final answers to the nearest whole number.)


2012
2011

Problem 13-1A Ratios, common-size statements, and trend percents L.O. P1, P2, P3

[The following information applies to the questions displayed below.]

Selected comparative financial statements of Bennington Company follow:

BENNINGTON COMPANY
Comparative Income Statements
For Years Ended December 31, 2012, 2011, and 2010
		2012		2011		2010
Sales	$	444,000	$	340,000	$	236,000
Cost of goods sold		267,288		212,500		151,040

Gross profit		176,712		127,500		84,960
Selling expenses		62,694		46,920		31,152
Administrative expenses		40,137		29,920		19,470

Total expenses		102,831		76,840		50,622

Income before taxes		73,881		50,660		34,338
Income taxes		13,764		10,370		6,962

Net income	$	60,117	$	40,290	$	27,376

BENNINGTON COMPANY
Comparative Balance Sheets
December 31, 2012, 2011, and 2010
		2012		2011		2010
Assets
Current assets	$	48,480	$	37,924	$	50,648
Long-term investments		0		500		3,720
Plant assets, net		90,000		96,000		57,000

Total assets	$	138,480	$	134,424	$	111,368

Liabilities and Equity
Current liabilities	$	20,200	$	19,960	$	19,480
Common stock		72,000		72,000		54,000
Other paid-in capital		9,000		9,000		6,000
Retained earnings		37,280		33,464		31,888

Total liabilities and equity	$	138,480	$	134,424	$	111,368

Problem 13-1A Part 1

Required:

Compute each year’s current ratio. (Round your answers to 1 decimal place.)


Current ratio	December 31, 2012:
Current ratio	December 31, 2011:
Current ratio	December 31, 2010:

Problem 13-1A Part 2

Express the income statement data in common-size percents. (Round your answers to 2 decimal places. Omit the “%” sign in your response.)

Problem 13-1A Part 3

Express the balance sheet data in trend percents with 2010 as the base year. (Round your answers to 2 decimal places. Leave no cells blank – be certain to enter “0” wherever required. Omit the “%” sign in your response.)

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