ACC PROBLEM 13-1A - Gold Company
PROBLEM 13-1A |
(a)
<Calculate the percent for each line for the Gold Company in the Percent column by replacing the xxx>
Condensed Income Statement
For the Year Ended December 31, 2012
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Silver Company |
Gold Company |
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Dollars |
Percent |
Dollars |
Percent |
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Net sales Cost of goods sold Gross profit Operating expenses Income from operations Other expenses and losses Interest expense Income before income taxes Income tax expense Net income |
$1,849,000 1,063,200 785,800 240,000 545,800 6,800 539,000 62,000 $ 477,000 |
100.0% 57.5% 42.5% 13.0% 29.5% .4% 29.1% 3.3% 25.8% |
$546,000 289,000 257,000 82,000 175,000 3,600 171,400 28,000 $143,400 |
xxx xxx xxx xxx xxx xxx xxx xxx xxx |
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PROBLEM 13-5A |
Calculate the ratios and replace the xx with the value.
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(a) |
Ratio |
Target |
Wal-Mart |
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(All Dollars Are in Millions) |
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?(1) Current ?(2) Receivables turnover ?(3) Average collection ? period (in days) ?(4) Inventory turnover ?(5) Days in inventory ?(6) Profit margin ?(7) Asset turnover ?(8) Return on assets ?(9) Return on common ? stockholders’ equity (10) Debt to total assets (11) Times interest earned (12) Current cash debt ? coverage (13) Cash debt coverage (14) Free cash flow |
($18,424 ÷ $11,327) =xx ($65,357 ÷ $7,525) =xx (365 ÷ 8.7) =xx ($45,583 ÷ $6,942) =xx (365 ÷ 6.6) =xx ($2,488 ÷ $65,357) =xx ($65,357 ÷ $44,319.5a) =xx ($2,488 ÷ $44,319.5a) =xx
($2,488 ÷ $14,529.5b) =xx ($29,186 ÷ $44,533) =xx ($4,579c ÷ $707) =xx ($5,881 ÷ $10,919.5d) =xx ($5,881 ÷ $29,790e) =xx ($5,881 – $1,729 – $496) =xx |
($48,331 ÷ $55,561) =xx ($408,214 ÷ $4,025) =xx (365 ÷ 101.4) =xx ($304,657 ÷ $33,836) =xx (365 ÷ 9.0) =xx ($14,335 ÷ $408,214) =xx ($408,214 ÷ $167,067.5f) =xx ($14,335 ÷ $167,067.5f) =xx ($14,335 ÷ $68,369g) =xx ($99,650 ÷ $170,706) =xx ($23,539h ÷ $2,065) =xx
($26,249 ÷ $55,475.5i) =xx ($26,249 ÷ $98,698.5j) =xx ($26,249 – $12,184 – $4,217) =xx |
a($44,533 + $44,106) ÷ 2 f($170,706 + $163,429) ÷ 2
b($15,347 + $13,712) ÷ 2 g($71,056 + $65,682) ÷ 2
c($2,488 + $1,384 + $707) h($14,335 + $7,139 + $2,065)
d($11,327 + $10,512) ÷ 2 i($55,561 + $55,390) ÷ 2
e(($11,327 + $17,859) + $30,394) ÷ 2 j(($55,561 + $44,089) + $97,747) ÷ 2
(b) Use the ratio calculation above for Target and Wal-mart and compare the two companies ratio values to one another and explain which company’s ratio is better and why.
Liquidity—
Solvency—
Profitability—
-
Rating:
/5
Solution: ACC PROBLEM 13-1A - Gold Company (Solution)