14-3 GARCIA CORPORATION Comparative Condensed Balance Sheets December 31 2014 2013 Assets Current assets $ 72,970 $ 81,190 Property, plant, and equipment (net) 98,670 90,9

14-3 GARCIA CORPORATION

Comparative Condensed Balance Sheets

December 31

2014 2013

Assets

Current assets $ 72,970 $ 81,190

Property, plant, and equipment (net) 98,670 90,920

Intangibles 27,370 39,890

Total assets $199,010 $212,000

Liabilities and stockholders’ equity

Current liabilities $ 41,020 $ 48,650

Long-term liabilities 142,190 150,630

Stockholders’ equity 15,800 12,720

Total liabilities and stockholders’ equity $199,010 $212,000

(a) Prepare a horizontal analysis of the balance sheet data for Garcia Corporation using 2013 as a base. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000). (20%). Round percentages to 1 decimal place, e.g. 12.3%.)

GARCIA CORPORATION

Condensed Balance Sheets

December 31

2014 2013 Increase

(Decrease) Percentage

Change from 2013

Assets

Current Assets $72,970 $81,190 $ %

Property, Plant & Equipment (net) 98,670 90,920 %

Intangibles 27,370 39,890 %

Total assets $199,010 $212,000 $ %

Liabilities and Stockholders’ Equity

Current Liabilities $41,020 $48,650 $ %

Long-term Liabilities 142,190 150,630 %

Stockholders’ Equity 15,800 12,720 %

Total liabilities and stockholders’ equity $199,010 $212,000 $ %

(b) Prepare a vertical analysis of the balance sheet data for Garcia Corporation in columnar form for 2014. (Round percentages to 1 decimal place, e.g. 12.3%.)

GARCIA CORPORATION

Condensed Balance Sheet

December 31, 2014

Amount Percent

Assets

Current Assets $72,970 %

Property, Plant, and Equipment (net) 98,670 %

Intangibles 27,370 %

Total assets $199,010 %

Liabilities and Stockholders’ Equity

Current Liabilities $41,020 %

Long-term Liabilities 142,190 %

Stockholders’ Equity 15,800 %

Total liabilities and stockholders’ equity $199,010 %

Exercise 14-5

Nordstrom, Inc. operates department stores in numerous states. Selected financial statement data for the year ending January 30, 2010, are shown below.

Nordstrom, 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

Merchandise 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 all answers to 1 decimal place, e.g. 1.6 .)

Current ratio :1

Acid-test ratio :1

Receivables turnover times

Inventory turnover

Problem 14-1A (Part Level Submission)

Comparative statement data for Lionel Company and Barrymore Company, two competitors, appear below. All balance sheet data are as of December 31, 2014, and December 31, 2013.

Lionel Company Barrymore Company

2014 2013 2014 2013

Net sales $1,509,706 $339,474

Cost of goods sold 1,002,183 237,126

Operating expenses 278,049 77,219

Interest expense 7,320 2,780

Income tax expense 61,255 7,030

Current assets 408,362 $386,462 85,695 $ 82,904

Plant assets (net) 596,373 576,250 142,760 126,031

Current liabilities 64,398 75,647 19,475 12,593

Long-term liabilities 101,945 83,788 16,494 10,148

Common stock, $5 par 578,000 578,000 131,000 131,000

Retained earnings 260,392 225,277 61,486 55,194

(a)

Prepare a vertical analysis of the 2014 income statement data for Lionel Company and Barrymore Company in columnar form. (Round percentages to 1 decimal place, e.g. 12.1%.)

Condensed Income Statement

For the Year Ended December 31, 2014

Lionel Company Barrymore Company

Dollars Percent Dollars Percent

Cost of Goods SoldDividendsExpensesGross ProfitIncome Before Income TaxesIncome From OperationsIncome Tax ExpenseInterest ExpenseNet Income / (Loss)Net SalesOperating ExpensesOther Expenses and LossesRevenuesTotal ExpensesTotal Revenues $ % $ %

Cost of Goods SoldDividendsExpensesGross ProfitIncome Before Income TaxesIncome From OperationsIncome Tax ExpenseInterest ExpenseNet Income / (Loss)Net SalesOperating ExpensesOther Expenses and LossesRevenuesTotal ExpensesTotal Revenues % %

Cost of Goods SoldDividendsExpensesGross ProfitIncome Before Income TaxesIncome From OperationsIncome Tax ExpenseInterest ExpenseNet Income / (Loss)Net SalesOperating ExpensesOther Expenses and LossesRevenuesTotal ExpensesTotal Revenues % %

Cost of Goods SoldDividendsExpensesGross ProfitIncome Before Income TaxesIncome From OperationsIncome Tax ExpenseInterest ExpenseNet Income / (Loss)Net SalesOperating ExpensesOther Expenses and LossesRevenuesTotal ExpensesTotal Revenues % %

Cost of Goods SoldDividendsExpensesGross ProfitIncome Before Income TaxesIncome From OperationsIncome Tax ExpenseInterest ExpenseNet Income / (Loss)Net SalesOperating ExpensesOther Expenses and LossesRevenuesTotal ExpensesTotal Revenues % %

Cost of Goods SoldDividendsExpensesGross ProfitIncome Before Income TaxesIncome From OperationsIncome Tax ExpenseInterest ExpenseNet Income / (Loss)Net SalesOperating ExpensesOther Expenses and LossesRevenuesTotal ExpensesTotal Revenues

Cost of Goods SoldDividendsExpensesGross ProfitIncome Before Income TaxesIncome From OperationsIncome Tax ExpenseInterest ExpenseNet Income / (Loss)Net SalesOperating ExpensesOther Expenses and LossesRevenuesTotal ExpensesTotal Revenues % %

Cost of Goods SoldDividendsExpensesGross ProfitIncome Before Income TaxesIncome From OperationsIncome Tax ExpenseInterest ExpenseNet Income / (Loss)Net SalesOperating ExpensesOther Expenses and LossesRevenuesTotal ExpensesTotal Revenues % %

Cost of Goods SoldDividendsExpensesGross ProfitIncome Before Income TaxesIncome From OperationsIncome Tax ExpenseInterest ExpenseNet Income / (Loss)Net SalesOperating ExpensesOther Expenses and LossesRevenuesTotal ExpensesTotal Revenues % %

Cost of Goods SoldDividendsExpensesGross ProfitIncome Before Income TaxesIncome From OperationsIncome Tax ExpenseInterest ExpenseNet Income / (Loss)Net SalesOperating ExpensesOther Expenses and LossesRevenuesTotal ExpensesTotal Revenues $ % $ %

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