Problem Solving

Please solve the following: A, B, C, D. I need the asnwer by tomorrow around 10:00 am. I am solving them now and actually answered some but I would like to get a second opinion or another work by someone else. Thank you!

 

A.The following data are from the income statements of Haskin Company.

		2015			2014
Sales		$6,420,000			$6,240,000
Beginning inventory		940,000			860,000
Purchases		4,340,000			4,661,000
Ending inventory		1,020,000			940,000

 

Compute for each year the inventory turnover (Round answers to 1 decimal place).

1.      2015 __________

2.      2014 __________

B. Guo Company has owners’ equity of $400,000 and net income of $66,000. It has a payout ratio of 20% and a return on assets of 15%.

How much did Guo pay in cash dividends, and what were its average assets? (Round answers to 0 decimal places)

       3.  Cash dividends ________

       4.  Average Assets ________

C. Operating data for Navarro Corporation are presented below.

		2015		2014
Net sales		$750,000		$600,000
Cost of goods sold		465,000		390,000
Selling expenses		105,000		66,000
Administrative expenses		60,000		54,000
Income tax expense		36,000		27,000
Net income		84,000		63,000

 

Prepare a schedule showing a vertical analysis for 2015 and 2014. (Round answers to 1 decimal place)

NAVARRO CORPORATION Condensed Income Statements For the Years Ended December 31
	2015				2014
	Amount		Percent		Amount		Percent
Net sales	$750,000		[removed]%		$600,000		[removed]%
Cost of goods sold	465,000		[removed]%		390,000		[removed]%
Gross profit	285,000		[removed]%		210,000		[removed]%
Selling expenses	105,000		[removed]%		66,000		[removed]%
Administrative expenses	60,000		[removed]%		54,000		[removed]%
Total operating expenses	165,000		[removed]%		120,000		[removed]%
Income before income taxes	120,000		[removed]%		90,000		[removed]%
Income taxes expense	36,000		[removed]%		27,000		[removed]%
Net income	$84,000		[removed]%		$63,000		[removed]%

 

D. Suppose Nordstrom, Inc., which operates department stores in numerous states, has the following selected financial statement data for the year ending January 30, 2014.

NORDSTORM, INC. Balance Sheet (partial)
(in millions)		End-of-Year				Beginning-of-Year
Cash and cash equivalents			$ 795				$ 72
Accounts receivable (net)			2,035				1,942
Inventory			898				900
Prepaid expenses			88				93
Other current assets			238				210
Total current assets			$4,054				$3,217
Total current liabilities			$2,014				$1,601

For the year, net sales were $8,258 and cost of goods sold was $5,328 (in millions).

Compute the four liquidity ratios at the end of the year. (Round answers to 1 decimal place, e.g. 1.6 .)

1.      Current ratio    ________ 3. Accounts receivable turnover _______

2.      Acid-test ratio  ________ 4. Inventory turnover      _____________