Brief Exercise 13-4 Using these data from the comparative balance sheet of Rosalez Company, perform horizontal analysis. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 0 decimal places, e.g. 12%.)

Accounts receivable Inventory Total assets

Dec. 31, 2012 Dec. 31, 2011 \$ 488,200 \$ 360,000 \$ 818,100 \$ 601,200 \$3,173,600 \$2,774,300

Increase or (Decrease) Amount Percentage

Brief Exercise 13-5 Using these data from the comparative balance sheet of Rosalez Company, perform vertical analysis. (Round percentages to 1 decimal place, e.g. 12.5%.) Dec. 31, 2012 Amount Percentage

Dec. 31, 2011 Amount Percentage

Accounts receivable

\$ 544,700

\$ 393,300

Inventory

\$ 804,600

\$ 609,700

\$3,137,000

\$2,763,400

Total assets

Brief Exercise 13-8 (Essay)

Vertical Analysis

2012

2011

2010

Sales

100%

100%

100%

Cost of goods sold

61.2

64.6

65.7

Expenses

24.8

26.3

28.0

Vertical analysis (common-size) percentages for Vallejo Company’s sales, cost of goods sold, and expenses are listed here. Did Vallejo’s net income as a percent of sales increase, decrease, or remain unchanged over the 3-year period? Provide numerical support for your answer.

Brief Exercise 13-9 (Essay)

Horizontal analysis (trend analysis) percentages for Spartan Company’s sales, cost of goods sold, and expenses are listed here. Horizontal Analysis Sales Cost of goods sold Expenses

2012 96.2% 101.0 105.6

2011 104.8% 98.0 95.4

2010 100.0% 100.0 100.0

Explain whether Spartan’s net income increased, decreased, or remained unchanged over the 3-year period.

Brief Exercise 13-15

Selected data taken from a recent year’s financial statements of trading card company Topps Company, Inc. are as follows (in millions). Net sales Current liabilities, beginning of year

\$326.7 41.1

Current liabilities, end of year Net cash provided by operating activities Total liabilities, beginning of year Total liabilities, end of year Capital expenditures Cash dividends

62.4 10.4 65.2 73.2 3.7 6.2

Compute these ratios: current cash debt coverage ratio, cash debt coverage ratio, and free cash flow. Provide a brief interpretation of your results. (Round answers to 2 decimal places, e.g. 0.12.) Current cash debt coverage ratio Cash debt coverage ratio Free Cash Flow

Brief Exercise 13-13 Staples, Inc. is one of the largest suppliers of office products in the United States. It had net income of \$738.7 million and sales of \$24,275.5 million in 2009. Its total assets were \$13,073.1 million at the beginning of the year and \$13,717.3 million at the end of the year. What is Staples, Inc.â&#x20AC;&#x2122;s asset turnover ratio and profit margin ratio? (Round answers to 2 decimal places, e.g. 1.25 or 2.05%.) Asset turnover ratio Profit margin ratio

Brief Exercise 13-10 These selected condensed data are taken from recent balance sheets of Bob Evans Farms (in thousands). Cash Accounts receivable Inventories Other current assets Total current assets Total current liabilities

2009 \$ 13,606 23,045 31,087 12,522 \$ 80,260 \$245,805

2008 \$ 7,669 19,951 31,345 11,909 \$ 70,874 \$326,203

Compute the current ratio for each year. (Round answers to 2 decimal places, e.g. .12 : 1.) 2009 2008 Current ratio:

Final Guide

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