|
|
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 |
|
Dec. 31, 2011 |
||||||
|
|
|
Amount |
|
Percentage |
|
Amount |
|
Percentage |
||
|
Accounts receivable |
|
$ 566,400 |
|
|
% |
|
$ 372,800 |
|
|
% |
|
Inventory |
|
$ 767,100 |
|
|
% |
|
$ 607,800 |
|
|
% |
|
Total assets |
|
$3,124,300 |
|
|
% |
|
$2,840,100 |
|
|
% |
|
Question 3 |
|
|
Vertical analysis (common-size) percentages for Vallejo Company’s sales, cost of goods sold, and expenses are listed here.
|
Vertical Analysis |
|
2012 |
|
2011 |
|
2010 |
|||
|
Sales |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
Cost of goods sold |
|
61.3 |
|
|
64.2 |
|
|
65.2 |
|
|
Expenses |
|
24.1 |
|
|
27.7 |
|
|
28.4 |
|
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.
|
Question 4 |
|
|
Horizontal analysis (trend analysis) percentages for Spartan Company’s sales, cost of goods sold, and expenses are listed here.
|
Horizontal Analysis |
|
2012 |
|
2011 |
|
2010 |
|||
|
Sales |
|
96.2 |
% |
|
104.8 |
% |
|
100.0 |
% |
|
Cost of goods sold |
|
101.0 |
|
|
98.0 |
|
|
100.0 |
|
|
Expenses |
|
105.6 |
|
|
95.4 |
|
|
100.0 |
|
Explain whether Spartan’s net income increased, decreased, or remained unchanged over the 3-year period.
|
|
|
|
|
|
|
|
Question 6 |
|
|
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.’s asset turnover ratio and profit margin ratio? (Round answers to 2 decimal places, e.g. 1.25 or 2.05%.)
|
Asset turnover ratio |
|
|
times |
|
Profit margin ratio |
|
|
% |
Warning
|
|
|
Question 7 |
|
|
Selected data taken from a recent year’s financial statements of trading card company Topps Company, Inc. are as follows (in millions).
|
Net sales |
|
$326.7 |
|
Current liabilities, beginning of year |
|
41.1 |
|
Current liabilities, end of year |
|
62.4 |
|
Net cash provided by operating activities |
|
10.4 |
|
Total liabilities, beginning of year |
|
65.2 |
|
Total liabilities, end of year |
|
73.2 |
|
Capital expenditures |
|
3.7 |
|
Cash dividends |
|
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 |
|
|
times |
|
Cash debt coverage ratio |
|
|
times |
|
Free Cash Flow |
|
$ |
millions |
