[meteor_slideshow slideshow=”arp1″]
(a) 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 |
xxx xxx xxx xxx xxx
xxx xxx xxx xxx |
$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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(b) <fill in based on the ratios calculated below>
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2012 |
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2011 |
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| Current assets
Plant assets Total assets |
$325,975 526,800 $852,775 |
+ |
$312,410 500,000 $812,410 |
= |
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2012 |
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2011 |
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| Current assets
Plant assets Total assets |
$ 83,336 139,728 $223,064 |
+ |
$ 79,467 125,812 $205,279 |
= |
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2012 |
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2011 |
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| Common stock
Retained earnings Stockholders’ equity |
$500,000 172,460 $672,460 |
+ |
$500,000 146,595 $646,595 |
= |
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2012 |
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2011 |
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| Common stock
Retained earnings Stockholders’ equity |
$120,000 38,096 $158,096 |
+ |
$120,000 29,998 $149,998 |
= |
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PROBLEM 13-5A |
| (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 |
xx($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) |
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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) The comparison of the two companies shows the following:
Liquidity—<fill in>
Solvency—<fill in>
Profitability—<fill in>
[meteor_slideshow slideshow=”arp2″]
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