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The liabilities and stockholders’ equity sections of comparative balance sheets for Jenson International are presented below for 2014 and 2013 December 31 20142013 Liabilities and Stockholders

The liabilities and stockholders’ equity sections of comparative balance sheets for Jenson International are presented below for 2014 and 2013:

 

December 31

20142013

Liabilities and Stockholders’ Equity

Current liabilities:

Accounts payable$     67,500              $  85,451

Other current liabilities      3,488                   5,157

Total current liabilities70,988              90,608

Long term debt  333,777              436,215

Total liabilities404,765              526,823

Stockholders’ equity:

Common stock100,000              100,000

Additional paid in capital275,000              275,000

Retained earnings   350,171                 78,583

Total stockholders’ equity   725,171              453,583

Total liabilities and stockholders’ equity              $1,129,936              $980,406

 

Prepare a horizontal analysis of the liabilities and stockholders’ equity sections of Jenson International’s balance sheets.

 

141.Comparative income statements for Jenson International are shown below for 2014 and 2013:

 

Year Ended December 31

20142013

Net sales$2,451,000              $2,321,000

Cost of goods sold1,650,455              1,348,330

Gross margin800,545              972,670

Operating expenses   385,000                 420,408

Operating income415,545              552,262

Interest expense     45,600                   33,181

Income before taxes369,945              519,081

Income taxes expense      98,357                 135,600

Net income$   271,588              $   383,481

 

Prepare a vertical analysis of the company’s income statements.

 

142.The following information for Redwood Junction, a retail furniture and design firm, is presented for 2014 and 2013:

December 31

20142013

Assets

Current assets

Cash$     42,000              $      54,000

Accounts receivable580,000445,000

Inventory5,010,000              4,950,000

Prepaid expenses       84,000                    79,000

Total current assets5,716,000              5,528,000

Building and equipment, net 1,097,000              1,095,000

Total assets$6,813,000              $6,623,000

 

Liabilities and Stockholders’ Equity

Current liabilities:

Accounts payable$   605,000              $   628,000

Bank loan payable679,000625,000

Other accrued payables    215,000                  315,000

Total current liabilities1,499,000              1,568,000

Long-term debt 1,729,000              1,791,000

Total liabilities3,228,000              3,359,000

Stockholders’ equity:

Common stock1,307,000              1,307,000

Retained earnings 2,278,000              1,957,000

Total stockholders’ equity 3,585,000              3,264,000

Total liabilities and stockholders’ equity              $6,813,000              $6,623,000

 

Perform a horizontal analysis of the assets section of the balance sheets for Redwood Junction. Identify the largest change.

 

143.The following information for Woodchuck, a retail furniture and design firm, is presented for the years ending December 31, 2014 and 2013:

 

Year Ended December 31

20142013

Net sales$5,628,000$5,253,000

Cost of goods sold 2,900,000 2,700,000

Gross margin2,728,000  2,553,000

Operating expenses:

Selling expenses500,000600,000

General and administrative expenses    835,000    788,000

Total operating expenses 1,335,000 1,388,000

Operating income1,393,000  1,165,000

Interest expense    139,000    158,000

Income before taxes1,254,000  1,007,000

Income taxes    439,000    368,000

Net income$   815,000$   639,000

 

Perform a horizontal analysis of the income statements for Woodchuck. Identify the largest change and list some of the causes that may have led to this change.

 

costs.

144.The following information for Redwood Junction, a retail furniture and design firm, is presented for 2014 and 2013:

December 31

Assets2014              2013

Current assets

Cash$     42,000              $      54,000

Accounts receivable580,000445,000

Inventory5,010,000              4,950,000

Prepaid expenses       84,000                    79,000

Total current assets5,716,000              5,528,000

Building and equipment, net 1,097,000              1,095,000

Total assets$6,813,000              $6,623,000

 

Perform a vertical analysis of the asset section of the balance sheets for the company. Identify any major changes between 2013 and 2014. Indicate what could have led to the changes you noted in this analysis.

Jan 24 2020 Read more Less More

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