ACC 312 Study Guide - Midterm Guide: Income Statement
Get access
Related Documents
Related Questions
[The following information applies to the questionsdisplayed below.]
The balance sheet for FedererSports Apparel for 2013 and 2012 is presented below. |
FEDERER SPORTS APPAREL Balance Sheet December 31 | ||||
2013 | 2012 | |||
Assets | ||||
Cash | $ | 2,189,730 | $ | 1,156,680 |
Accountsreceivable | 1,382,170 | 1,500,930 | ||
Inventory | 2,795,400 | 1,845,180 | ||
Buildings | 11,383,490 | 10,093,410 | ||
Less: Accumulateddepreciation | (2,220,790) | (826,200) | ||
Total assets | $ | 15,530,000 | $ | 13,770,000 |
Liabilitiesand Stockholders' Equity | ||||
Accountspayable | $ | 1,320,050 | $ | 1,762,560 |
Contingentliability | 1,397,700 | 0 | ||
Common stock | 9,022,930 | 7,008,930 | ||
Retainedearnings | 3,789,320 | 4,998,510 | ||
Total liabilities andstockholders' equity | $ | 15,530,000 | $ | 13,770,000 |
ebook & resources
5.
value:
10.00 points
Required: | |
1. | Prepare a vertical analysis of thebalance sheet data for 2013 and 2012. Express each amount as apercentage of total assets. (Negative answers should beindicated by a minus sign. Leave no cells blank - be certain toenter "0" wherever required. Round your answers to 1 decimal place.Omit the "%" sign in your response.) |
FEDERER SPORTS APPAREL Balance Sheet December 31 | ||
2013 | 2012 | |
% | % | |
Assets | ||
Cash | ||
Accountsreceivable | ||
Inventory | ||
Buildings | ||
Less: Accumulateddepreciation | ||
Total assets | ||
Liabilitiesand Stockholders' Equity | ||
Accountspayable | ||
Contingentliability | ||
Common stock | ||
Retainedearnings | ||
Total liabilities andstockholders' equity | ||
check my workView Hint #1references
6.
value:
10.00 points
2. | Prepare a horizontal analysis for2013 using 2012 as the base year. (Enter the increase inAccumulated Depreciation as a negative amount since total assetsare decreased and the percentage change in Accumulated Depreciationas a positive amount since the balance in the account increased.Negative answers should be indicated by a minus sign. Leave nocells blank - be certain to enter "0" wherever required, includinginfinite values. Round your answers to 1 decimal place. Omit the"%" and "$" signs in your response.) |
FEDERER SPORTS APPAREL Balance Sheet December 31 | ||
Increase (Decrease) | ||
Amount | % | |
Assets | ||
Cash | $ | |
Accountsreceivable | ||
Inventory | ||
Buildings | ||
Less: Accumulateddepreciation | ||
Total assets | $ | |
Liabilitiesand Stockholders' Equity | ||
Accountspayable | $ | |
Contingentliability | ||
Common stock | ||
Retainedearnings | ||
Total liabilities and stockholders'equity | $ | |
Oak Industries, Inc is a manufacturer of radio and cable TVequipment. It also operates subscription TV systems. At one timeOak had a military contract, the loss of which was not disclosed inthe financial statements. The government, subject to a customs dutyaudit, is claiming $4 million due it. Oak officials have had atarget earnings per share amount of $.25 per share.
The financial statements, without footnotes, are included in thefollowing two pages. Using the financial information available andthe information above, answer the following questions:
1) Prepare a vertical analysis for both the balance sheet andthe statement of income
2) Prepare a horizontal analysis for both the balance sheet andthe statement of income
3) What ratios might be of some use in analyzing these financialstatements?
4) Using the ratios identified in #3 above, what trends appearto be out of line?
5) Other than failure to disclose the loss of the governmentcontract, can you identify any potential fraudulent, misleading oromitted information from your analysis in number 1-4 above?
6) If your answer to #5 is yes, can you quantify the amount ofthe potential misstatement?
Oak Industries, Inc
Unaudited consolidated Financial Statements
(000âs Omitted)
Balance Sheet
Balance Sheet | 12/31/X1 | 12/31/X2 |
ASSETS | ||
Cash | $10,304 | $12,683 |
Marketable Securities | 66,676 | 33,235 |
Accounts Receivable | 104,953 | 131,017 |
Inventories | 106,569 | 127,305 |
Prepaid Income Taxes | 10,762 | 24,461 |
Total Current Assets | 299,264 | 328,701 |
Fixed Assets | 248,991 | 277,493 |
Accumulated Depreciation | (70,640) | (99,789) |
Notes Receivable | 10,983 | 13,368 |
Intangible Assets (net) | 78,918 | 57,946 |
Investments | 27,323 | 34,164 |
Other Assets | 14,480 | 24,297 |
310,055 | 307,479 | |
Total Assets Liabilities & equity | $609,319 | $636,180 |
Notes Payable | $70,758 | $8,846 |
Accounts Payable | 35,053 | 31,430 |
Accrued Liabilities | 47,765 | 54,857 |
Current Portion LTD | 8,889 | 5,391 |
Subscriber Deposits | 17,502 | 15,378 |
Total Current Liabilities | 179,967 | 115,902 |
Long-Term Debt | 141,744 | 238,417 |
Other L/T Liabilities | 25,325 | 27,746 |
167,069 | 266,163 | |
Common Stock | 16.363 | 16,402 |
Preferred Stock | 72 | 54 |
Capital Surplus | 158,890 | 159,281 |
Retained Earnings | 89,761 | 89,932 |
Currency Adjustments | (2,757) | (11,521) |
Treasury Stock | (46) | (33) |
Total Liabilities & Equity | $609,319 | $636,180 |
Statement of Income
Statement of Income | 12/31/X1 | 12/31/X2 |
Net Sales | $507,119 | $545,720 |
Cost of Goods Sold | 338,682 | 410,209 |
Gross Margin | 168,437 | 135,511 |
General Expenses | 107,707 | 125,982 |
Operation Income | 60,730 | 9,529 |
Other Income | 15,944 | 10,659 |
Interest Expense | 25,430 | 30,170 |
Minority Interests | 8,986 | 3,075 |
Income Taxes (Benefit) | 11,908 | (17,160) |
(30,380) | (5,426) | |
Net Income | $30,350 | $4,103 |
Earnings Per Share | $2.01 | $0.25 |