Comparative Balance Sheet of Rollaird Company Perform Horizontal Analysis
Brief Exercise 18-04
Using these data from the comparative balance sheet of Rollaird Company, perform horizontal analysis.
December 31, 2020
December 31, 2019
Accounts receivable
$550,200
$420,000
Inventory
870,000
600,000
Total assets
2,858,900
2,530,000
(Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Increase or (Decrease)
December 31, 2020
December 31, 2019
Amount
Percentage
Accounts receivable
$550,200
$420,000
$
Inventory
870,000
600,000
Total assets
2,858,900
2,530,000
Brief Exercise 18-05
Using these data from the comparative balance sheet of Rollaird Company, perform vertical analysis.
December 31, 2020
December 31, 2019
Accounts receivable
$475,450
$419,220
Inventory
745,300
673,200
Total assets
2,570,000
3,060,000
(Round percentages to 1 decimal place, e.g. 12.1%.)
December 31, 2020
December 31, 2019
Amount
Percentage
Amount
Percentage
Accounts receivable
$475,450
%
$419,220
Inventory
745,300
%
673,200
Total assets
2,570,000
%
3,060,000
Brief Exercise 18-12 a1-a2
The following data were taken from the income statements of Mydorf Company.
2020
2019
Sales revenue $6,310,000 $6,120,000
Beginning inventory 970,000 910,000
Purchases 4,391,500 4,666,000
Ending inventory 1,040,000 970,000
Compute for each year the inventory turnover. (Round answers to 1 decimal place, e.g. 1.6.)
2020
2019
Inventory turnover
times
times
Compute for each year the days in inventory. (Use 365 days for calculation. Round answers to 1 decimal place, e.g. 1.6.)
2020
2019
Days in inventory
days
days
Exercise 18-02
Trayer Corporation has income from continuing operations of $254,000 for the year ended December 31, 2020. It also has the following items (before considering income taxes).
1. An unrealized loss of $77,000 on available-for-sale securities.
2. A gain of $27,000 on the discontinuance of a division (comprised of a $15,000 loss from operations and a $42,000
Assume all items are subject to income taxes at a 20% tax rate.
Prepare a statement of comprehensive income, beginning with income from continuing operations. (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).)
TRAYER CORPORATION
Partial Statement of Comprehensive Income
$
$
$
$
Exercise 18-03 (Video)
Here is financial information for Glitter Inc.
December 31, 2020
December 31, 2019
Current assets $123,000 $100,000
Plant assets (net) 395,300 335,000
Current liabilities 89,279 73,000
Long-term liabilities 130,592 88,000
Common stock, $1 par 166,959 117,000
Retained earnings 131,470 157,000
Prepare a schedule showing a horizontal analysis for 2020, using 2019 as the base year. (Enter negative amounts and percentages using either a negative sign preceding the number e.g. -45, -45% or parentheses e.g. (45), (45%). Round percentages to 1 decimal place, e.g. 12.3%.)
GLITTER INC.
Condensed Balance Sheets
December 31
Increase or (Decrease)
2020
2019
Amount
Percentage
Assets
Current assets
$123,000
$100,000
$
%
Plant assets (net)
395,300 335,000
%
Total assets
$518,300 $435,000
$
%
Liabilities
Current liabilities
$89,279
$73,000
$
%
Long-term liabilities
130,592 88,000
%
Total liabilities
219,871 161,000
%
Stockholders’ Equity
Common stock, $1 par
166,959
117,000
%
Retained earnings
131,470 157,000
%
Total stockholders’ equity
298,429 274,000
%
Total liabilities and stockholders’ equity
$518,300 $435,000 $
%
Exercise 18-06
Here are the comparative income statements of Delaney Corporation.
Delaney Corporation
Comparative Income Statements
For the Years Ended December 31
2020
2019
Net sales $611,000 $506,000
Cost of goods sold 487,578 424,028
Gross profit 123,422 81,972
Operating expenses 86,762 48,576
Net income $ 36,660 $ 33,396
(a)
Prepare a horizontal analysis of the income statement data for Delaney Corporation, using 2019 as a base. (Show the amounts of increase or decrease.) (Enter negative amounts and percentages using either a negative sign preceding the number e.g. -45, -45% or parentheses e.g. (45), (45%). Round percentages to 1 decimal place, e.g. 12.3%.)
DELANEY CORPORATION
Condensed Income Statements
Increase or (Decrease)
During 2020
2020
2019
Amount
Percentage
Net sales
$611,000
$506,000
$
%
Cost of goods sold
487,578
424,028
%
Gross profit
123,422
81,972
%
Operating expenses
86,762
48,576
%
Net income
$36,660
$33,396
$
%
(b)
Prepare a vertical analysis of the income statement data for Delaney Corporation for both years. (Round percentages to 1 decimal place, e.g. 12.3%.)
DELANEY CORPORATION
Condensed Income Statements
2020
2019
Amount
Percent
Amount
Percent
Net sales
$611,000
%
$506,000
%
Cost of goods sold
487,578
%
424,028
%
Gross profit
123,422
%
81,972
%
Operating expenses
86,762
%
48,576
%
Net income
$ 36,660
%
$ 33,396
%
Problem 18-05A a
Suppose selected financial data of Target and Wal-Mart for 2020 are presented here (in millions).
Target
Corp
