Acc/561 Wk 2 E13-5, E13-6, E13-9

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Exercise E13-5
Exercise E13-6
Exercise E13-9

The comparative balance sheets of Nike, Inc. are presented here.
NIKE INC.
Comparative Balance Sheets
May 31
($ in millions)
Assets20072006
Current assets$8,076$7,346
Property, plant, and equipment (net)1,6781,658
Other assets934866
Total assets$10,688$9,870

Liabilities and Stockholders' Equity
Current liabilities$2,584$2,612
Long-term liabilities1,079973
Stockholders' equity7,0256,285
Total liabilities and stockholders' equity$10,688$9,870

Complete the horizontal analysis of the balance sheet data for Nike using 2006 as a base. (If amount decreases, use either a negative sign preceding the number, e.g. -45 or parenthesis, e.g. (45). Round all percentages to 1 decimal place, e.g. 12.5.) NIKE, INC.

Condensed Balance Sheet
December 31
($ in millions)
Increase or (Decrease)
20072006AmountPercentage
Assets
Current assets$8,076$7,346$7309.9%
Property, plant and equipment (net)1,6781,658201.2%
Other assets934866687.9%
Total assets$10,688$9,870$8188.3%

Liabilities and stockholders' equity
Current liabilities$2,584$2,612$(28)(1.1)%
Long-term liabilities1,07997310610.9%
Total stockholders' equity7,0256,28574011.8%
Total liabilities & stockholders' equity$10,688$9,870$8188.3%

Complete the vertical analysis of the balance sheet data for Nike for 2007. (Round all of the percentages to 1 decimal place, e.g. 12.5.) NIKE, INC.
Condensed Balance Sheet
May 31, 2007
$ (in millions)Percent
Assets
Current assets$8,07675.6%
Property, plant and equipment (net)1,67815.7%
Other assets9348.7%
Total assets$10,688100.0%

Liabilities and stockholders' equity
Current liabilities$2,58424.2%
Long-term liabilities1,07910.1%
Stockholders' equity7,02565.7%
Total liabilities and stockholder's equity$10,688100.0%

Question 2

Here are the comparative income statements of Winfrey Corporation.
WINFREY CORPORATION
Comparative Income Statements
For the Years Ended December 31
20102009
Net sales$598,000$520,000
Cost of goods sold477,000450,000
Gross profit$121,000$70,000
Operating expenses80,00045,000
Net income$41,000$25,000
Complete the horizontal analysis of the income statement data for Winfrey Corporation using 2009 as a base. (Round all percentages to 1 decimal place, e.g. 12.5.) WINFREY CORPORATION
Condensed Income Statements
For the Years Ended December 31
Increase or (Decrease)
During 2010
20102009AmountPercentage
Net sales$598,000$520,000$78,00015.0%
Cost of goods sold477,000450,00027,0006.0%
Gross profit121,00070,00051,00072.9%
Operating expenses80,00045,00035,00077.8%
Net income$41,000$25,000$16,00064.0%
Complete the vertical analysis of the income statement data for Winfrey Corporation for both years.(Round all percentages to 1 decimal place, e.g. 12.5.) WINFREY CORPORATION
Condensed Income Statements
For the Years Ended December 31
20102009
$Percent$Percent
Net sales$598,000100.0%$520,000100.0%
Cost of goods sold477,00079.8%450,00086.5%
Gross profit121,00020.2%70,00013.5%
Operating expenses80,00013.4%45,0008.7%
Net income$41,0006.8%$25,0004.8%

Question 3

Armada Company has these comparative balance sheet data:
ARMADA COMPANY
Balance Sheets
December 31
20102009
Cash$25,000$30,000
Receivables (net)65,00060,000
Inventories60,00050,000
Plant assets (net)200,000180,000
$350,000$320,000

Accounts payable$50,000$60,000
Mortgage payable (15%)100,000100,000
Common stock, $10 par140,000120,000
Retained earnings60,00040,000
$350,000$320,000
Additional information for 2010:
1.Net income was $25,000.
2.Sales on account were $375,000. Sales returns and allowances amounted to $25,000. 3.Cost of goods sold was $198,000.
4.Net cash provided by operating activities was...
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