Make a vertical analysis for Ambrose for balance sheet

Assignment Help Accounting Basics
Reference no: EM133139978

Question - a) Selected financial information for DMV Corp. for a? six-year period? follows:

(Amounts in thousands)

2020

2019

2018

2017

2016

2015

Net sales

$1,820

$1,775

$1,610

$1,725

$1,680

$1,590

Net income

148

128

91

136

118

96

Ending common shareholders' equity

958

876

774

692

634

618

1. Make a horizontal analysis to compare 2020 to 2019. Which accounts increased the? most?

2. Compute trend percentages for 2016 through 2020?, using 2015 as the base year.

3. From the above? data, what can we infer about expenses from 2015 through 2020??

b) The president of Ambrose Car? Parts, Inc. has asked you to compare the? company's profit performance and financial position with the averages for the industry. The accounting office has given you the? company's income statement and balance? sheet, as well as the industry average data for? competitors:

Ambrose Car Parts, Inc. Income Statement Compared with Industry AverageFor the Year Ended December 31, 2020





Ambrose

Industry

 


Car Parts

Average

 

Net sales

$781,000

100.00%

 

Cost of goods sold

526,394

65.8

 

Gross margin

254,606

34.2

 

Operating expenses

163,229

19.7

 

Operating income

91,377

14.5

 

Other expenses

6,248

0.4

 

Net income

$85,129

14.10%

 

 

Ambrose Car Parts, Inc. Balance Sheet Compared with Industry Average 31-Dec-20


Ambrose

Industry


Car Parts

Average

Current assets

$297,440

70.90%

Property, plant, and equipment

111,760

23.6

Intangible assets, Net

8,360

0.8

Other assets

22,440

4.7

Total assets

$440,000

100.00%

Current liabilities

$205,040

48.10%

Long-term liabilities

96,800

16.6

Total liabilities

301,840

64.7

Shareholders' equity

138,160

35.3

Total liabilities and shareholders' equity

$440,000

100.00%

1. Make a vertical analysis for Ambrose for both its income statement and balance sheet.

2. Compare the? company's gross margin percentage? (gross margin as a percent of net? sales) with the average for the industry. Comment on their investment in assets compared to the industry information shown.

Reference no: EM133139978

Questions Cloud

Calculate the mean-standard deviation : Calculate the mean, standard deviation, skew, 5-number summary, and interquartile range (IQR) for each of the variables.
Layer OSI model incorporates security measures : Each layer of the 7-layer OSI model incorporates security measures. Discuss briefly security measures at each of the 7 layers
What is meant by the Break-even point for an activity : What is meant by the Break-even point (BEP) for an activity? How is it calculated? Explain why MDG Ltd should know the BEP
Calculate the cost to service each of the two customers : The annual fee charged to each customer is $3,800. Calculate the cost to service each of the two customers highlighted by the company president
Make a vertical analysis for Ambrose for balance sheet : The accounting office has given you the? company's income statement and balance? sheet, Make a vertical analysis for Ambrose for balance sheet
Design a new position for an individual contributor : Design a new position for an individual contributor in a non-clinical department such as Billing, Admitting, HR. The job should be entry to mid-level
BUS 475 Business and Society Assignment : BUS 475 Business and Society Assignment Help and Solution, Strayer University - Assessment Writing Service - Evaluating a Corporate-Societal Relationship
Propose the value proposition : Propose the value proposition of the product or service the business will offer and explain the rationale - Determine at least two strategies for protecting
Healthcare system in the us : With the shortage of medical personnel and the increased need for additional help in the healthcare system in the U.S. during the COVID19 pandemic, what are you

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd