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BE6 - Homework 6 Brief Exercises BE19-1 2006 Accounts...

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Homework # 6 Brief Exercises BE19-1 2006 2005 Amount Accounts receivable 540,000 400,000 140,000 Inventory 840,000 600,000 240,000 Total assets 3,640,000 2,800,000 840,000 BE19-2 2006 2006 Amount Percent Amount Percent Accounts receivable 540,000 14.80% 400,000 14.20% Inventory 840,000 23.00% 600,000 21.40% Total assets 3,640,000 100% 2,800,000 100% BE19-3 a) Decrease during 2005 Amount Percent Net Loss -100,000 -20% b) Decrease during 2005 Amount Percent Net Income 108,000 27% BE19-4 (650000 - net income)/net income = 30% = 0.3 net income = 650 000/1.3 net income = 500 000 BE19-5 2006 2005 2004 Vertical Analysis Sales 100% 100% 100% Cost of goods sold 59.20% 62.40% 64.50% Gross profit 40.80% 37.60% 35.50% Expenses 25.00% 26.60% 27.60% Net income 15.80% 11% 8% During the 3-year period Net Income increased from 8% to 15.8%. BE19-6 Increase o durin

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2006 2005 2004 Horizontal Analysis Sales 96.20% 106.80% 100% Cost of goods sold 102% 97% 100% Expenses 109.60% 98.40% 100% We can see that net income in the year 2005 increased insignificantly,
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BE6 - Homework 6 Brief Exercises BE19-1 2006 Accounts...

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