Prepare a horizontal analysis of the income statement data

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Reference no: EM131183701

Brief Exercise 12-5

Manuel, Inc. reported net income of $2.9 million in 2014. Depreciation for the year was $159,110, accounts receivable decreased $343,160, and accounts payable decreased $289,200.

Compute net cash provided by operating activities using the indirect approach.

Brief Exercise 12-6

The net income for Freeman Co. for 2014 was $292,700. For 2014, depreciation on plant assets was $49,590, and the company incurred a loss on disposal of plant assets of $21,540.

Compute net cash provided by operating activities under the indirect method, assuming there were no other changes in the company's accounts.

Brief Exercise 12-7

The comparative balance sheets for Lowery Company show these changes in noncash current asset accounts: accounts receivable decrease $90,400, prepaid expenses increase $22,610, and inventories increase $33,680.

Compute net cash provided by operating activities using the indirect method, assuming that net income is $180,720.

Exercise 12-1

Putnam Corporation had these transactions during 2014.

Analyze the transactions and indicate whether each transaction resulted in a cash flow from operating activities, investing activities, financing activities, or noncash investing and financing activities.

Exercise 12-2

An analysis of comparative balance sheets, the current year's income statement, and the general ledger accounts of Judd Corp. uncovered the following items. Assume all items involve cash unless there is information to the contrary.

Indicate how each item should be classified in the statement of cash flows using these four major classifications: operating activity (indirect method), investing activity, financing activity, and significant noncash investing and financing activity.

Exercise 12-4

Cosi Company reported net income of $207,090 for 2014. Cosi also reported depreciation expense of $38,910 and a loss of $5,950 on the disposal of plant assets. The comparative balance sheet shows an increase in accounts receivable of $16,380 for the year, a $17,290 increase in accounts payable, and a $5,000 increase in prepaid expenses.

Prepare the operating activities section of the statement of cash flows for 2014. Use the indirect method.

Brief Exercise 13-4

Using these data from the comparative balance sheet of Ramirez Company, perform horizontal analysis.

Brief Exercise 13-5

Using these data from the comparative balance sheet of Ramirez Company, perform vertical analysis.

Exercise 13-3

Here is financial information for Spangles Inc.

	December 31, 2014	December 31, 2013
Current assets	$110,161	$ 92,230
Plant assets (net)	402,230	354,161
Current liabilities	101,230	69,161
Long-term liabilities	126,161	92,230
Common stock, $1 par	134,161	119,161
Retained earnings	150,839	165,839

Prepare a schedule showing a horizontal analysis for 2014, using 2013 as the base year.

Exercise 13-4

Operating data for Jacobs Corporation are presented below.

	2014	2013
Sales revenue	$833,700	$641,200
Cost of goods sold	530,100	413,600
Selling expenses	127,900	78,600
Administrative expenses	73,100	51,800
Income tax expense	37,600	24,700
Net income	65,000	72,500

Prepare a schedule showing a vertical analysis for 2014 and 2013.

Exercise 13-5

Suppose the comparative balance sheets of Nike, Inc. are presented here.

NIKE, INC. Condensed Balance Sheet May 31 ($ in millions)
	2014	2013
Assets
Current Assets	$9,633	$8,745
Property, plant, and equipment (net)	2,033	1,967
Other assets	1,466	1,609
Total assets	$13,132	$12,321
Liabilities and Stockholders' Equity
Current Liabilities	$3,300	$3,346
Long-term liabilities	1,268	1,287
Stockholders' equity	8,564	7,688
Total liabilities and stockholders' equity	$13,132	$12,321

(a) Prepare a horizontal analysis of the balance sheet data for Nike, using 2013 as a base.

(b) Prepare a vertical analysis of the balance sheet data for Nike for 2014.

Exercise 13-6

Here are the comparative income statements of Eudaley Corporation.

EUDALEY CORPORATION Comparative Income Statement For the Years Ended December 31
	2014	2013
Net sales	$603,830	$504,950
Cost of goods sold	451,800	392,980
Gross Profit	152,030	111,970
Operating expenses	70,150	36,180
Net income	$ 81,880	$ 75,790

Prepare a horizontal analysis of the income statement data for Eudaley Corporation, using 2013 as a base.

Prepare a vertical analysis of the income statement data for Eudaley Corporation for both years.

Attachment:- Accounting_Assignment.rar

Reference no: EM131183701

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