# Ch12a - Chapter 12 - Financial Statement Analysis Exercise...

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Chapter 12 - Financial Statement Analysis 12-1 Exercise 12-4 Requirement 1: Prepare a vertical analysis of the balance sheet data for 2013 and 2012. Express each amount as a percentage of total assets.

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Chapter 12 - Financial Statement Analysis 12-2 Federer Sports Apparel Balance Sheet December 31 2013 2012 Assets Amount % Amount % Cash \$ 2,300,000 14.7 \$ 800,000 5.8 Accounts receivable 1,500,000 9.6 1,200,00 0 8.8 Inventory 2,800,000 18.0 1,700,00 0 12.4 Buildings 11,000,000 70.5 11,000,0 00 80.3 Less: Accumulated depreciation (2,000,000) (12.8) (1,000,0 00) (7.3) Total assets \$15,600,00 0 100.0 \$13,700, 000 100.0 Accounts payable \$ 1,450,000 9.3 \$ 1,700,00 0 12.4 Litigation liability 1,500,000 9.6 0 0.0 Common stock 8,000,000 51.3 8,000,00 0 58.4 Retained earnings 4,650,000 29.8 4,000,00 0 29.2 Total liabilities and stockholders’ equity \$15,600,00 0 100.0 \$13,700, 000 100.0
Chapter 12 - Financial Statement Analysis 12-3 Requirement 2: Prepare a horizontal analysis for 2013 using 2012 as the base year. Federer Sports Apparel Balance Sheet December 31 Year Increase (Decrease) Assets 2013 2012 Amount % Cash \$ 2,300,000 \$ 800,000 \$1,500,000 187.5 Accounts receivable 1,500,000 1,200,000 300,000 25.0 Inventory 2,800,000 1,700,000 1,100,000 64.7 Buildings 11,000,000 11,000,000 0 0 Less: Accumulated depreciation (2,000,000) (1,000,000) (1,000,000) 100.0 Total assets \$15,600,000 \$13,700,000 1,900,000 13.9 Accounts payable \$ 1,450,000

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## This note was uploaded on 02/23/2012 for the course MGMT 200 taught by Professor Greigg during the Summer '08 term at Purdue.

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Ch12a - Chapter 12 - Financial Statement Analysis Exercise...

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