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  • Apr 29, 2010, 03:23 AM
    warrenjustice
    Accounting homework solutions
    Problem 13-1A: Ratios, common-size statements, and trend percents L.O. P1, P2, P3

    Selected comparative financial statements of Astalon Company follow:

    ASTALON COMPANY

    Comparative Income Statements

    For Years Ended December 31, 2010, 2009, and 2008



    2010


    2009


    2008

    Sales




    $


    526,304






    $


    403,192






    $


    279,800


    Cost of goods sold






    316,835








    255,624








    179,072


    Gross Profit






    209,469








    147,568








    100,728


    Selling expenses






    74,735








    55,640








    36,934


    Administrative expenses






    47,367








    35,481








    23,223


    Total expenses






    122,102








    91,121








    60,157


    Income before taxes






    87,367








    56,447








    40,571


    Income taxes






    16,250








    11,572








    8,236


    Net income




    $


    71,117






    $


    44,875






    $


    32,335



    ASTALON COMPANY

    Comparative Balance Sheets

    December 31, 2010, 2009, and 2008



    2010


    2009


    2008

    Assets
























    Current assets




    $


    48,242






    $


    38,514






    $


    51,484


    Long-term investments






    0








    800








    3,620


    Plant assets, net






    92,405








    97,259








    58,047


    Total assets




    $


    140,647






    $


    136,573






    $


    113,151


    Liabilities and Equity
























    Current liabilities




    $


    20,534






    $


    20,349






    $


    19,801


    Common stock






    69,000








    69,000








    51,000


    Other paid-in capital






    8,625








    8,625








    5,667


    Retained earnings






    42,488








    38,599








    36,683


    Total liabilities and equity




    $


    140,647






    $


    136,573






    $


    113,151



    Required:

    1.


    Compute each year's current ratio. (Round your answers to 1 decimal place.)



    Current ratio


    December 31, 2010:


    To

    Current ratio


    December 31, 2009:


    To

    Current ratio


    December 31, 2008:


    To



    2.


    Express the income statement data in common-size percents. (Round your answers to 2 decimal places. Omit the "%" sign in your response.)



    ASTALON COMPANY

    Common-Size Comparative Income Statements

    For Years Ended December 31, 2010, 2009, 2008




    2010


    2009


    2008

    Sales




    %




    %




    %

    Cost of goods sold
















    Gross profit
















    Selling expenses
















    Administrative expenses
















    Total expenses
















    Income before taxes
















    Income taxes
















    Net income




    %




    %




    %



    3.


    Express the balance sheet data in trend percents with 2008 as the base year. (Round your answers to 2 decimal places. Leave no cells blank - be certain to enter "0" wherever required. Omit the "%" sign in your response.)

    ASTALON COMPANY

    Balance Sheet Data in Trend Percents

    December 31, 2010, 2009, 2008




    2010


    2009


    2008

    Assets



















    Current assets




    %




    %




    %

    Long-term investments
















    Plant assets
















    Total assets
















    Liabilities and Equity



















    Current liabilities




    %




    %




    %

    Common stock
















    Other paid-in capital
















    Retained earnings
















    Total liabilities and equity
  • Apr 29, 2010, 03:26 AM
    Curlyben
    Thank you for taking the time to copy your homework to AMHD.
    Please refer to this announcement: http://www.askmehelpdesk.com/finance...-b-u-font.html
  • Apr 29, 2010, 04:00 AM
    warrenjustice
    I did. LOOK BELOW

    Required:

    1.


    Compute each year's current ratio. (Round your answers to 1 decimal place.)



    Current ratio 2.3


    December 31, 2010:


    To 1

    Current ratio 1.9


    December 31, 2009:


    To 1

    Current ratio 2.6


    December 31, 2008:


    To 1

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