Ch 13 Hands On Activity - Problem 13-2B Part 1 Current Ratio Current Assets Current Liabilities 2015 54,860 22,370 Current Ratio 2.4523915959 2014

Ch 13 Hands On Activity - Problem 13-2B Part 1 Current...

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Problem 13-2B Part 1: Current Ratio 2015 2014 2013 Current Assets 54,860 32,660 36,300 Current Liabilities 22,370 19,180 16,500 Current Ratio 2.4523915959 1.7028154327 2.2 Analyze the current ratios. What is this telling you about the company? The company's ratio is a little bit below the industry ratio of 2.5. Part 2: Vertical Analysis with Common Size Percents (add percent in column to right of doll 2015 2014 Sales $ 198,800 100.00% $ 166,000 100.00% Cost of goods sold $ 108,890 54.77% $ 86,175 51.91% Gross Profit $ 89,910 45.23% $ 79,825 48.09% Selling expenses $ 22,680 11.41% $ 19,790 11.92% Administrative expenses $ 16,760 8.43% $ 14,610 8.80% Total expenses $ 39,440 19.84% $ 34,400 20.72% Income before taxes $ 50,470 25.39% $ 45,425 27.36% Income taxes $ 6,050 3.04% $ 5,910 3.56% Net Income $ 44,420 22.34% $ 39,515 23.80% Analyze the common size percents. What is this telling you about the company? Part 3: Horizontal Analysis using Trend Percents 2015 2014 2013 Assets Current Assets 151.13% 89.97% 100.00% Selling and administrative expenses have been decreasing while cost of goods sold has been increasi
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  • Fall '14
  • bohrer
  • Accounting, Balance Sheet, Generally Accepted Accounting Principles, Common Size Percents, 66,200 46.04%, 77,600 53.96%, 79,825 48.09%

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