warrenjustice
Apr 29, 2010, 03:23 AM
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
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