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Strayer Univeristy Horizontal and Vertical Analysis of Income Statement Data

Strayer Univeristy Horizontal and Vertical Analysis of Income Statement Data

Daniel Kevins

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I’m working on a accounting question and need support to help me understand better.

QUESTION #2

Here are the comparative income statements of Oriole Corporation.

ORIOLE CORPORATION Comparative Income Statement For the Years Ended December 31

	2022	2021
Net sales	$640,400	$584,700
Cost of goods sold	463,600	439,100
Gross Profit	176,800	145,600
Operating expenses	79,100	48,700
Net income	$ 97,700	$ 96,900

(a)

Prepare a horizontal analysis of the income statement data for Oriole Corporation, using 2021 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. 12.1%.)

ORIOLE CORPORATION Comparative Income Statement choose the accounting period
			Increase or (Decrease) During 2022
	2022	2021	Amount	Percentage
Net sales	$640,400	$584,700	$enter a dollar amount	enter percentages rounded to 1 decimal place	%
Cost of goods sold	463,600	439,100	enter a dollar amount	enter percentages rounded to 1 decimal place	%
Gross Profit	176,800	145,600	enter a dollar amount	enter percentages rounded to 1 decimal place	%
Operating expenses	79,100	48,700	enter a dollar amount	enter percentages rounded to 1 decimal place	%
Net income	$ 97,700	$ 96,900	$enter a dollar amount	enter percentages rounded to 1 decimal place	%

(b)

Prepare a vertical analysis of the income statement data for Oriole Corporation for both years. (Round percentages to 1 decimal place, e.g. 12.1%.)

ORIOLE CORPORATION Condensed Income Statements choose the accounting period
	2022	2021
	$	Percent		$		Percent
Net sales	$640,400	enter percentages rounded to 1 decimal place	%		$584,700		enter percentages rounded to 1 decimal place	%
Cost of goods sold	463,600	enter percentages rounded to 1 decimal place	%		439,100		enter percentages rounded to 1 decimal place	%
Gross Profit	176,800	enter percentages rounded to 1 decimal place	%		145,600		enter percentages rounded to 1 decimal place	%
Operating expenses	79,100	enter percentages rounded to 1 decimal place	%		48,700		enter percentages rounded to 1 decimal place	%
Net income	$ 97,700	enter percentages rounded to 1 decimal place	%		$ 96,900		enter percentages rounded to 1 decimal place	%

done

13 hours ago

QUESTION #3

Selected hypothetical financial data of Target and Wal-Mart for 2022 are presented here (in millions).

	Target Corporation		Wal-Mart Stores, Inc.
	Income Statement Data for Year
Net sales		$66,100		$411,000
Cost of goods sold		44,000		302,000
Selling and administrative expenses		15,400		81,000
Interest expense		660		2,100
Other income (expense)		(70	)	(420	)
Income tax expense		1,400		7,300
Net income		$ 4,570		$ 18,180

	Balance Sheet Data (End of Year)
Current assets		$17,000		$49,000
Noncurrent assets		26,800		120,000
Total assets		$43,800		$169,000
Current liabilities		$12,000		$54,000
Long-term debt		17,600		45,000
Total stockholders’ equity		14,200		70,000
Total liabilities and stockholders’ equity		$43,800		$169,000

	Beginning-of-Year Balances
Total assets		$43,000		$162,000
Total stockholders’ equity		14,400		66,000
Current liabilities		10,600		57,000
Total liabilities		28,600		96,000

	Other Data
Average net accounts receivable		$7,900		$4,200
Average inventory		7,200		33,700
Net cash provided by operating activities		5,800		26,200
Capital expenditures		1,700		12,400
Dividends		460		3,600

For each company, compute the following ratios. (Round current ratio answers to 2 decimal places, e.g. 15.50, debt to assets ratio and free cash flow answers to 0 decimal places, e.g. 5,275 and all answers to 1 decimal place, e.g. 1.8 or 1.83%.)

	Ratio	Target		Wal-Mart
(1)	Current ratio	enter the current ratio	:1		enter the current ratio	:1
(2)	Accounts receivable turnover	enter accounts receivable turnover in times	times		enter accounts receivable turnover in times	times
(3)	Average collection period	enter average collection period in days	days		enter average collection period in days	days
(4)	Inventory turnover	enter inventory turnover in times	times		enter inventory turnover in times	times
(5)	Days in inventory	enter days in inventory ratio	days		enter days in inventory ratio	days
(6)	Profit margin	enter percentages	%		enter percentages	%
(7)	Asset turnover	enter asset turnover in times	times		enter asset turnover in times	times
(8)	Return on assets	enter percentages	%		enter percentages	%
(9)	Return on common stockholders’ equity	enter percentages	%		enter percentages	%
(10)	Debt to assets ratio	enter percentages	%		enter percentages	%
(11)	Times interest earned	enter times interest earned	times		enter times interest earned	times
(12)	Free cash flow	$enter a dollar amount			$enter a dollar amount

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Daniel Kevins

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