insert Page Layout Formulas Data Review View Paste G51 DANNO CORPORATION Compara
ID: 2432026 • Letter: I
Question
insert Page Layout Formulas Data Review View Paste G51 DANNO CORPORATION Comparative income Statements For Years Ended December 31, 2010, 2009, and 2008 2010 2008 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes Income taxes Net income $392,000 300304 $208,400 133,376 190092 110,212 41442 26,427 67,869 42,343 8,680 $ 52,969 S33,663 235,984 156,016 $5,664 5,280 90.944 65,072 12,103 12 13 14 15 27.509 17,297 0,218 6,134 24,084 17 DANNO CORPORATION Comparative Balance Sheets For Years Ended December 31, 2010, 2009, and 2008 23 2010 2009 2008 53,776 42494 $ S5,118 4,110 64,382 S 153,647 S 149,197 123,610 Current assets Long-term investments Plant assets, net 99,871 106.303 27 28 Total assets Liabilities and Equity Current liabilties Common stock Other paid-in capital Retained earnings $ 22432 0.000 22,230 21,632 52,000 31 32 70,000 8,750 48217 2.465 Tatol lobilities and equity 36 Required ij Compute each years current ratio. (Round ratio amounts to one deomat 2) Express the income statement data in common-size pencents, (Round percents to two decimals) 38 a) Express the balance sheet data in trend percents with 200o8 as the base vear, (Round percents to two decimab.J 4) Comment on any signficant relations reveaied by the ratios and percents computed 43 DEC 31 10, 553276/22432-24 osExplanation / Answer
1. Calculation of Current ratio:
2. Commion Size Income Statement or Vertical analysis
3. Balance sheet in trend percent or Trend analysis or Horizontal analysis
4.
a. Current ratio's: Company is in good solvency position.
b. Vertical analysis: YOY net income increases.
C. trend analysis: Long term investments has been decreased by 100%.
b,
2008 2009 2010 a. Current assets $53,776 $42,494 $55,118 b. Current liabilities $22,432 $22,230 $21,632 Current ratio (a/b) 2.39 1.91 2.54Related Questions
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