acc 280 week 5 exercises e15 1 blevins inc e15 2 gallup corporation amp e15 11 scull 510134

Exercise 15-1Financial information for Blevins Inc. is presented below.

December 31, 2009 December 31, 2008

Current assets $125,000 $100,000

Plant assets (net) 396,000 330,000

Current liabilities 91,000 70,000

Long-term liabilities 133,000 95,000

Common stock, $1 par 161,000 115,000

Retained earnings 136,000 150,000

Instructions

Prepare a schedule showing a horizontal analysis for 2009 using 2008 as the base year.

E15-2 Operating data for Gallup Corporation are presented below.
2009 2008
Sales $750,000 $600,000
Cost of goods sold 465,000 390,000
Selling expenses 120,000 72,000
Administrative expenses 60,000 54,000
Income tax expense 33,000 24,000
Net income 72,000 60,000
Instructions
Prepare a schedule showing a vertical analysis for 2009 and 2008.

E15-11 Scully Corporation s comparative balance sheets are presented below.

SCULLY CORPORATION

Balance Sheets

December 31

2008 2007

Cash $ 4,300 $ 3,700

Accounts receivable 21,200 23,400

Inventory 10,000 7,000

Land 20,000 26,000

Building 70,000 70,000

Accumulated depreciation (15,000) (10,000)

Total $110,500 $120,100

Accounts payable $ 12,370 $ 31,100

Common stock 75,000 69,000

Retained earnings 23,130 20,000

Total $110,500 $120,100

Scully s 2008 income statement included net sales of $100,000, cost of goods sold of $60,000, and net income of $15,000.

Instructions

Compute the following ratios for 2008.

(a) Current ratio.

(b) Acid-test ratio.

(c) Receivables turnover.

(d) Inventory turnover.

(e) Profit margin.

(f) Asset turnover.

(g) Return on assets.

(h) Return on common stockholders equity.

(i) Debt to total assets ratio.