Print by: ALEXANDER GERACE 5485_21850L: Managerial Accounting Chapter 12 Assignm

Question

Print by: ALEXANDER GERACE 5485_21850L: Managerial Accounting Chapter 12 Assignment *Exercise 12-9 Carla Vista Medical manufactures hospital beds and other institutional furniture. The company's comparative balance sheet and income statement for 2015 and 2016 follow Carla Vista Medical Comparative Balance Sheet As of December 31 2016 2015 Assets Current assets Cash Accounts receivable, net Inventory Other current assets $417,400 776,500 681,100 247,000 2,122,000 8,440,010 $11,248,310 $10,562,010 $394,000 1,072,000 787,000 355,000 2,608,000 8,640,310 Total current assets Property, plant, & equipment, net Total assets Liabilities and Stockholders' Equity Current liabilities Long-term debt $3,122,000 2,846,000 3,764,000 3,892,700 6,738,700 58,950 103,900 3,660,460 3,823,310 Total liabilities and stockholders' equity $11,248,310 $10,562,010 Total liabilities Preferred stock, $5 par value Common stock, $0.25 par value Retained earning:s 6,886,000 69,000 101,000 4,192,310 4,362,310 Total stockholders' equity Carla Vista Medical Comparative Income Statement and Statement of Retained Earnings For the Yea 2016 2015 Sales revenue (a on account) Cost of goods sold Gross profit Operating expenses Net operating income Interest expense Net income before taxes $10,177,250 $9,613,900 5,298,800 4,315,100 2,634,150 1,680,950 308,650 1,372,300 5,612,000 4,565,250 2,840,250 1,725,000 304,000 1,421,000

Explanation / Answer

Increase (Decrease) Comparative balance sheet 2016 2015 Amount Percent Assets Cash 394000 417400 -23400 -5.61% Accounts receivable (net) 1072000 776500 295500 38.06% Inventory 787000 681100 105900 15.55% Other current assets 355000 247000 108000 43.72% Total current assets 2608000 2122000 486000 22.90% Property plant and equipment 8640310 8440010 200300 2.37% Total assets 11248310 10562010 686300 6.50% Liabilities Current liabilities 3122000 2846000 276000 9.70% Long term debt 3764000 3892700 -128700 -3.31% Total liabilities 6886000 6738700 147300 2.19% Stockholders equity Preferred $5 par 69000 58950 10050 17.05% Common stock $.25 par 101000 103900 -2900 -2.79% Retained earnings 4192310 3660460 531850 14.53% Total stockholders equity 4362310 3823310 539000 14.10% Total liabilities and stockholders equity 11248310 10562010 686300 6.50% Increase /decrease Comparative income statement 2016 2015 Amount Percentage Net sales 10177250 9613900 563350 5.9% Cost of goods sold 5612000 5298800 313200 5.9% Gross profit 4565250 4315100 250150 5.8% Operating expense 2840250 2634150 206100 7.8% Net operating income 1725000 1680950 44050 2.6% Interest expense 304000 308650 -4650 -1.5% Net income before taxes 1421000 1372300 48700 3.5%

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