CON589 Assignment #1 On a separate file, respond to the following 3 problems: 1. The comparative balance sheet of Dunbar Company appears below: DUNBAR CONSTRUCTION COMPANY Comparative Balance Sheet...

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CON589 Assignment #1 On a separate file, respond to the following 3 problems: 1. The comparative balance sheet of Dunbar Company appears below: DUNBAR CONSTRUCTION COMPANY Comparative Balance Sheet December 31, Assets 20182019 Current assets $ 340$280 Plant assets 675 520 Total assets $1,015$800 Liabilities and stockholders' equity Current liabilities $ 180$120 Long-term debt 250160 Common stock 325320 Retained earnings 260 200 Total liabilities and stockholders' equity $1,015$800 Instructions (a)Using horizontal analysis, show the percentage change for each balance sheet item using 20189 as a base year. (b)Using vertical analysis, prepare a common size comparative balance sheet. In a short paragraph, describe any observations about the financial performance of Dunbar you discern. 2. Selected financial data of Target for 2020are presented here (in millions). Target Corporation Income Statement Data for Year Net sales $48,163 Cost of goods sold 31,790 Selling and administrative expenses 10,696 Interest expense 559 Other income (expense) (2,158) Income tax expense 1,119 Net income $ 1,841 Balance Sheet Data (End of Year) Current assets $12,928 Noncurrent assets 18,464 Total assets $31,392 Current liabilities $ 8,314 Long-term debt 12,013 Total stockholders’ equity 11,065 Total liabilities and stockholders’ equity $31,392 Other Data Average net receivables $ 5,670.5 Average inventory 5,051.5 Average Total Assets 30,894 Average Stockholder’s Equity 10,967 Dividends 237 Instructions Compute the following ratios: (1) Current. (2) Receivables turnover. (3) Average collection period. (4) Inventory turnover. (5) Days in inventory. (6) Profit margin. (7) Return on assets (ROI). (8) Return on common stockholders’ equity (ROE). (9) Debt to total assets. For each of these, describe what the ratio means in 3 to 4 setences. Prepare an income statement for the month of October, 2018 and a balance sheet at October 31, 2020 for Linda Denny Concrete from the items listed below. Retained earnings (October 1)$15,000 Common stock30,000 Accounts payable6,000 Equipment29,000 Service revenue23,000 Dividends6,000 Insurance expense3,500 Cash11,000 Utilities expense700 Supplies2,800 Salaries and wages expense9,000 Accounts receivable10,000 Rent expense2,000
Jan 28, 2021
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