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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: https://www.askmehelpdesk.com/financ...-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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