Description
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E14-1 |
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Financial information for Blevins Inc. is presented below.
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December 31, 2012 |
December 31, 2011 |
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Current assets |
$125,000 |
$100,000 |
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Plant assets (net) |
396,000 |
330,000 |
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Current liabilities |
91,000 |
70,000 |
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Long-term liabilities |
133,000 |
95,000 |
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Common stock, $1 par |
161,000 |
115,000 |
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Retained earnings |
136,000 |
150,000 |
Complete the schedule showing a horizontal analysis for 2012 using 2011 as the base year.(If amount is a decrease, use either a negative sign preceding the number eg -45 or parentheses eg (45). Round percentages to 1 decimal place, e.g. 10.5. List items in the order given in the question.)
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BLEVINS INC. |
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Condensed Balance Sheet |
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December 31 |
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Increase or (Decrease) |
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2012 |
2011 |
Amount |
Percentage |
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Assets |
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$
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$
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$
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% |
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% |
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Total assets |
$
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$
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$
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% |
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Liabilities |
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$
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$
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$
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% |
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% |
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Total liabilities |
$
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$
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$
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% |
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Stockholders’ Equity |
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$
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$
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$
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% |
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% |
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Total stockholders equity |
$
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$
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$
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% |
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Total liabilities and stockholders’ equity |
$
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$
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$
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% |
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DO IT! 14-2 |
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The condensed financial statements of Eau Fraîche Company for the years 2010 and 2011 are presented below.
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EAU FRAÃŽHE COMPANY |
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Balance Sheets |
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December 31 |
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2011 |
2010 |
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Current assets |
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Cash and cash equivalents |
$330 |
$360 |
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Accounts receivable (net) |
470 |
400 |
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Inventories |
460 |
390 |
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Prepaid expenses |
120 |
160 |
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Total current assets |
1,380 |
1,310 |
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Property, plant, and equipment |
420 |
380 |
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Investments |
10 |
10 |
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Intangibles and other assets |
530 |
510 |
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Total assets |
$2,340 |
$2,210 |
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Current liabilities |
$900 |
$790 |
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Long-term liabilities |
410 |
380 |
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Stockholders’ equity – common |
1,030 |
1,040 |
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Total liabilities and stockholders’ equity |
$2,340 |
$2,210 |
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EAU FRAÃŽHE COMPANY |
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Income Statement |
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For the Years Ended December 31 |
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2011 |
2010 |
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Revenues |
$3,800 |
$3,480 |
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Costs and expenses |
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Cost of goods sold |
970 |
890 |
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Selling and administrative expenses |
2,400 |
2,330 |
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Interest expense |
10 |
20 |
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Total costs and expenses |
3,380 |
3,240 |
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Income before income taxes |
420 |
220 |
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Income tax expense |
168 |
132 |
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Net income |
$252 |
$88 |
Compute the following ratios for 2010 and 2011.(Round current ratio and inventory turnover to 2 decimal places, e.g. 2.50. Round all other answers to 1 decimal place, e.g. 5.2.)
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2011 |
2010 |
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Current ratio |
:1 |
:1 |
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Inventory turnover (Inventory on 12/31/09 was $340) |
times |
times |
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Profit margin |
% |
% |
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Return on assets (Assets on 12/31/09 were $1,900) |
% |
% |
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Return on common stockholders’ equity. (Stockholders’ equity-common on 12/31/09 was $900.) |
% |
% |
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Debt to total assets ratio. |
% |
% |
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Times interest earned. |
times |
times |
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