Saturday, 10 August 2013

AP14-13 (a) & (b) Common-Size Financial Statements [LO 1, 2] The financial statements for the Bao Corporation are given below. Bao Corporation Comparative Balance Sheets December 31, 2012 and 2011 2012 2011 Assets Current assets: Cash $2,500 $1,780 Accounts receivable net 14,100 9,700 Inventory 16,100 13,300 Prepaid expenses 680 310 Total current assets 33,380 25,090 Property and equipment: Land 107,000 107,000 Buildings and equipment, net 63,600 67,000 Total property and equipment 170,600 174,000 Total assets 203,980 199,090 Liabilities and stockholders’ equity Current liabilities: Accounts payable $23,600 $28,200 Accrued expenses 2,100 6,230 Notes payable, short term 660 280 Total current liabilities 26,360 34,710 Long-term liabilities: Bonds payable 6,500 6,980 Notes payable 49,200 47,600 Total liabilities 82,060 89,290 Stockholders’ equity: Common stock 14,000 14,000 Additional paid-in capital 25,600 25,000 Total paid-in capital 39,600 39,000 Retained earnings 82,320 70,800 Total stockholders’ equity 121,920 109,800 Total liabilities and stockholders’ equity $203,980 $199,090 Bao Corporation Comparative Income Statement For the Year Ended December 31, 2012 and 2011 2012 2011 Sales $160,000 $135,000 Cost of goods sold 85,000 77,800 Gross margin 75,000 57,200 Operating expenses: Selling expenses 28,100 22,400 Administrative expenses 20,500 16,400 Total operating expenses 48,600 38,800 Income from operations 26,400 18,400 Interest expense 6,920 4,750 Income before taxes 19,480 13,650 Less income taxes 7,792 5,460 Net income $11,688 $8,190 Present the balance sheet with each account balance as a percent of total assets. (Round answers to 1 decimal place, e.g. 2.1%.) Bao Corporation Comparative Balance Sheet December 31, 2012 and 2011 2012 2011 Assets Current assets: Cash $2,500 % $1,780 % Accounts receivable, net 14,100 % 9,700 % Inventory 16,100 % 13,300 % Prepaid expenses 680 % 310 % Total current assets 33,380 % 25,090 % Property and equipment: Land 107,000 % 107,000 % Building and equipment, net 63,600 % 67,000 % Total property and equipment $170,600 % 174,000 % Total Assets $203,980 % $199,090 % Liabilities and stockholders equity Current liabilities Accounts payable $23,600 % $28,200 % Accrued expenses 2,100 % 6,230 % Notes payable, short term 660 % 280 % Total current liabilities 26,360 % 34,710 % Long-term liabilities: Bonds payable 6,500 % 6,980 % Notes payable 49,200 % 47,600 % Total long-term liabilities 55,700 % 54,580 % Total liabilities 82,060 % 89,290 % Stockholders’ equity Common stock 14,000 % 14,000 % Additional paid-in capital 25,600 % 25,000 % Total paid-in capital 39,600 % 39,000 % Retained earnings 82,320 % 70,800 % Total stockholders’ equity 121,920 % 109,800 % Total liabilities and stockholders’ equity $203,980 % $199,090 Present the income statement with each balance as a percent of sales. (Round answers to 1 decimal place, e.g. 2.1%.) Bao Corporation Comparative Income Statement For the Year Ended December 31, 2012 and 2011 2012 2011 Net sales $160,000 % $135,000 % Cost of goods sold 85,000 % 77,800 % Gross margin 75,000 % 57,200 % Operating expenses: Selling expenses 28,100 % 22,400 % Administrative expenses 20,500 % 16,400 % Total operating expenses 48,600 % 38,800 % Operating income 26,400 % 18,400 % Interest expense 6,920 % 4,750 % Income before taxes 19,480 % 13,650 % Income taxes 7,792 % 5,460 % Net income $11,688 % $8,190 % ________________________________________



AP14-13 (a) & (b)
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Common-Size Financial Statements [LO 1, 2]

The financial statements for the Bao Corporation are given below.
Bao Corporation
Comparative Balance Sheets
December 31, 2012 and 2011

2012

2011
Assets



Current assets:




Cash
$2,500

$1,780

Accounts receivable net
14,100

9,700

Inventory
16,100

13,300

Prepaid expenses
680

310

Total current assets
33,380

25,090
Property and equipment:




Land
107,000

107,000

Buildings and equipment, net
63,600

67,000
Total property and equipment
170,600

174,000
Total assets
203,980

199,090





Liabilities and stockholders’ equity



Current liabilities:




Accounts payable
$23,600

$28,200

Accrued expenses
2,100

6,230

Notes payable, short term
660

280
 Total current liabilities
26,360

34,710
Long-term liabilities:




Bonds payable
6,500

6,980

Notes payable
49,200

47,600
Total liabilities
82,060

89,290
Stockholders’ equity:




Common stock
14,000

14,000

Additional paid-in capital
25,600

25,000

Total paid-in capital
39,600

39,000

Retained earnings
82,320

70,800
 Total stockholders’ equity
121,920

109,800
Total liabilities and stockholders’ equity
$203,980

$199,090




Bao Corporation
Comparative Income Statement
For the Year Ended December 31, 2012 and 2011

2012

2011
Sales
$160,000

$135,000
Cost of goods sold
85,000

77,800
Gross margin
75,000

57,200
Operating expenses:




Selling expenses
28,100

22,400

Administrative expenses
20,500

16,400
Total operating expenses
48,600

38,800
Income from operations
26,400

18,400
Interest expense
6,920

4,750
Income before taxes
19,480

13,650
Less income taxes
7,792

5,460
Net income
$11,688

$8,190



Present the balance sheet with each account balance as a percent of total assets. (Round answers to 1 decimal place, e.g. 2.1%.)
Bao Corporation
Comparative Balance Sheet
December 31, 2012 and 2011










2012



2011










Assets







Current assets:








Cash
$2,500

%

$1,780

%

Accounts receivable, net
14,100

%

9,700

%

Inventory
16,100

%

13,300

%

Prepaid expenses
680

%

310

%
Total current assets
33,380

%

25,090

%
Property and equipment:








Land
107,000

%

107,000

%

Building and equipment, net
63,600

%

67,000

%
Total property and equipment
$170,600

%

174,000

%
Total Assets
$203,980

%

$199,090

%
   








Liabilities and stockholders equity







Current liabilities








Accounts payable
$23,600

%

$28,200

%

Accrued expenses
2,100

%

6,230

%

Notes payable, short term
660

%

280

%
 Total current liabilities
26,360

%

34,710

%
Long-term liabilities:








Bonds payable
6,500

%

6,980

%

Notes payable
49,200

%

47,600

%
Total long-term liabilities
55,700

%

54,580

%
Total liabilities
82,060

%

89,290

%








Stockholders’ equity








Common stock
14,000

%

14,000

%

Additional paid-in capital
25,600

%

25,000

%

Total paid-in capital
39,600

%

39,000

%

Retained earnings
82,320

%

70,800

%
Total stockholders’ equity
121,920

%

109,800

%
Total liabilities and stockholders’ equity
$203,980

%

$199,090


Present the income statement with each balance as a percent of sales. (Round answers to 1 decimal place, e.g. 2.1%.)

Bao Corporation

Comparative Income Statement

For the Year Ended December 31, 2012 and 2011





  






 2012



 2011



Net sales
$160,000

%

$135,000

%

Cost of goods sold
85,000

%

77,800

%

Gross margin
75,000

%

57,200

%

Operating expenses:









Selling expenses
28,100

%

22,400

%


Administrative expenses
20,500

%

16,400

%

Total operating expenses
48,600

%

38,800

%

Operating income
26,400

%

18,400

%

Interest expense
6,920

%

4,750

%

Income before taxes
19,480

%

13,650

%

Income taxes
7,792

%

5,460

%

Net income
$11,688

%

$8,190

%