Simeon Company's year-end balance sheets follow:
2009 2008 2007
Cash $ 31,800 $ 35,625 $ 37,800
Accounts receivable, net 89,500 62,500 50,200
Merchandise inventory 112,500 82,500 54,000
Prepaid expenses 10,700 9,375 5,000
Plant assets, net 278,500 255,000 230,500
Total assets $ 523,000 $ 445,000 $ 377,500
Accounts payable $ 129,900 $ 75,250 $ 51,250
Long-term notes payable secured by mortgages on plant
assets 98,500 101,500 83,500
Common stock, $10 par value 163,500 163,500 163,500
Retained earnings 131,100 104,750 79,250
Total liabilities and equity $ 523,000 $ 445,000 $ 377,500
Required:
Express the balance sheets in common-size percents. (Round your answer to 1 decimal place. Omit the "%"
sign which is provided for you. It is okay if totals in columns do not add to 100% due to rounding.)
Simeon Company
Common-Size Comparative Balance Sheets
December 31, 2007-2009
2009 2008 2007
Assets
Cash % % %
Accounts receivable, net
Merchandise inventory
Prepaid expenses
Plant assets, net
Total assets % % %
Liabilities and Equity
Accounts payable % % %
Long-term notes payable secured by
mortgages on plant assets
Common stock, $10 par value
Retained earnings
Total liabilities and equity % % %.
The solution assists with expressing the balance sheets in common-size percents. Both the problem and the answers are straightforward and well explained.
Problem 13-1A
Ratios, common-size statements, and trend percents
Selected comparative financial statements of Bennington Company follow.
Required
1. Compute each year's current ratio. (Round ratio amounts to one decimal.)
2. Express the income statement data in common-sizepercents. (Round percents to two decimals.)
3
Please see attached file for full problem description.
Required
1. Compute each year's current ratio.
2. Express the income statement data in common-sizepercents.
3. Express the balance sheet data in trend percents with 2004 as the base year.
Analysis Component
4. Comment on any significant relations revealed by the rat
1. Using 2001 as the base year, compute trend percentsfor 2001, 2002, and 2003 for revenues, operating expenses (cost of sales), general and administrative expenses, income taxes, and net income. (Round to the nearest whole percent.)
2. Compute common-sizepercentsfor 2003 and 2002 for the following categories of assets: (a
A "random survey" was conducted of 3274 people of the "microprocessor generation" (people born since 1971, the year the microprocessor were invented). It was reported that 48% of those
individuals surveyed stated that if they had $2000 to spend, they would use it for computer equipment. Also, 66% of those surveyed considered
What types of information do commonsize financial statements reveal about an organization? What is the best use for these commonsize statements? What purpose do common base year statements have? When would you use them?
Please see attached file
Problem 13-1A: Ratios, common-size statements, and trend percents
Selected comparative financial statements of Korbin Company follow:
KORBIN Company
Comparative Income Statements
For Years Ended December 31, 2009, 2008, and 2007
2009 2008 2007
This file contains examples in the preparation and calculation of financial ratios; both - commonsizepercents and trend percentsfor the Bluegrass Corporation. Examples which can used to calculate relevant financial ratios for any company.
My book does not tell me how to prepare the common-size income/balance sheets. I'm pretty sure I understand how to do the comparative statements, but am completely baffled by common-size. Please help!
Please see ** ATTACHED ** for complete details!!
