ch14 - SOLUTIONS TO EXERCISESSET B EXERCISE 14-1B LONGBINE...

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Unformatted text preview: SOLUTIONS TO EXERCISESSET B EXERCISE 14-1B LONGBINE INC. Condensed Balance Sheets December 31 Increase or (Decrease) 2009 2008 Amount Percentage Assets Current assets Plant assets (net) Total assets $125,000 363,000 $488,000 $100,000 330,000 $430,000 ( $25,000 ( 33,000 58,000 ( 25.0% ) ( 10.0% ) ( 13.5% ) Liabilities Current liabilities Long-term liabilities Total liabilities $ 84,000 133,000 217,000 $ 70,000 95,000 165,000 ( $14,000 ) ( 38,000 ) ( 52,000 ) ( 20.0% ) ( 40.0% ) ( 31.5% ) Stockholders Equity Common stock, $1 par Retained earnings Total stockholders equity Total liabilities and stockholders equity 161,000 110,000 271,000 $488,000 115,000 150,000 265,000 $430,000 ( 46,000 (15,000 ) (40,000 ) ( 6,000 ( $58,000 ) ( 40.0% ) (26.7%) ( 2.3% ) 13.5% 2008 For Instructor Use Only 14-1 EXERCISE 14-2B HERNDON CORPORATION Condensed Income Statements For the Year Ended December 31 2009 2008 Amount Percent Amount Percent Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Income before income taxes Income tax expense Net income $750,000 450,000 300,000 120,000 60,000 180,000 120,000 36,000 $ 84,000 100.0% 60.0% 40.0% 16.0% 8.0% 24.0% 16.0% 4.8% 11.2% $600,000 390,000 210,000 84,000 54,000 138,000 72,000 21,000 $ 51,000 100.0% 65.0% 35.0% 14.0% 9.0% 23.0% 12.0% 3.5% 8.5% EXERCISE 14-3B (a) DOOLEY CORPORATION Condensed Balance Sheets December 31 2009 2008 Increase (Decrease) Percentage Change from 2008 Assets Current assets Property, plant & equipment (net) Intangibles Total assets $ 76,000 99,000 25,000 $200,000 $ 80,000 90,000 40,000 $210,000 $ (4,000) ( 9,000 ) (15,000 ) $(10,000 ) (5.0%) ( 10.0% ) (37.5%) (4.8%) 2008 For Instructor Use Only 14-2 EXERCISE 14-3B (Continued) DOOLEY CORPORATION Condensed Balance Sheets (Continued) December 31 2009 2008 Increase (Decrease) Percentage Change from 2008 Liabilities and stock- holders equity Current liabilities Long-term liabilities Stockholders equity Total liabilities and stockholders equity $ 40,800 143,000 16,200 $200,000 $ 48,000 150,000 12,000 $210,000 $ (7,200) (7,000) 4,200 ) $(10,000 ) (15.0%) (4.7%) ( 35.0% ) (4.8%) (b) DOOLEY CORPORATION Condensed Balance Sheet December 31, 2009 Amount Percent Assets Current assets Property, plant, and equipment (net) Intangibles Total assets Liabilities and stockholders equity Current liabilities Long-term liabilities Stockholders equity Total liabilities and stockholders equity $ 76,000 99,000 25,000 $200,000 $ 40,800 143,000 16,200 $200,000 38.0% 49.5% 12.5% 100.0% 20.4% 71.5% 8.1% 100.0% 2008 For Instructor Use Only 14-3 EXERCISE 14-4B (a) FILEY CORPORATION Condensed Income Statements For the Year Ended December 31 Increase or (Decrease) During 2008 2009 2008 Amount Percentage Net sales Cost of goods sold Gross profit Operating expenses Net income $550,000 440,000 110,000 49,500 $ 60,500 $500,000 420,000 80,000 44,000 $ 36,000 $50,000 20,000 30,000 5,500 $24,500 10.0%10....
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This note was uploaded on 12/12/2009 for the course ACCT 2102 taught by Professor Constable,d during the Fall '08 term at Georgia Perimeter.

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ch14 - SOLUTIONS TO EXERCISESSET B EXERCISE 14-1B LONGBINE...

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