# Problem Solving_Solutions

Problem SolvingPlease solve the following: A, B, C, D. I need the asnwer by tomorrow around 10:00 am. I am solving them now and actually answered some but I would like to get a second opinion or another work by someone else. Thank you!A.The following data are from the income statements of Haskin Company.20152014Sales\$6,420,000\$6,240,000Beginning inventory940,000860,000Purchases4,340,0004,661,000Ending inventory1,020,000940,000Compute for each year the inventory turnover (Round answers to 1 decimal place).1. 2015 __________2. 2014 __________B. Guo Company has ownersâ equity of \$400,000 and net income of \$66,000. It has a payout ratio of 20% and a return on assets of 15%.How much did Guo pay in cash dividends, and what were its average assets? (Round answers to 0 decimal places) 3. Cash dividends ________ 4. Average Assets ________C.Operating data for Navarro Corporation are presented below.20152014Net sales\$750,000\$600,000Cost of goods sold465,000390,000Selling expenses105,00066,000Administrative expenses60,00054,000Income tax expense36,00027,000Net income84,00063,000Prepare a schedule showing a vertical analysis for 2015 and 2014. (Round answers to 1 decimal place)NAVARRO CORPORATIONCondensed Income StatementsFor the Years Ended December 3120152014AmountPercentAmountPercentNet sales\$750,000%\$600,000.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>%Cost of goods sold465,000%390,000.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>%Gross profit285,000%210,000.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>%Selling expenses105,000%66,000.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>%Administrative expenses60,000%54,000.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>%Total operating expenses165,000.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>%120,000.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>%Income before income taxes120,000.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>%90,000.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>%Income taxes expense36,000.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>%27,000.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>%Net income\$84,000.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>%\$63,000.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>%D.SupposeNordstrom, Inc., which operates department stores in numerous states, has the following selected financial statement data for the year ending January 30, 2014.NORDSTORM, INC.Balance Sheet (partial)(in millions)End-of-YearBeginning-of-YearCash and cash equivalents\$ 795\$ 72Accounts receivable (net)2,0351,942Inventory898900Prepaid expenses8893Other current assets238210Total current assets\$4,054\$3,217Total current liabilities\$2,014\$1,601For the year, net sales were \$8,258 and cost of goods sold was \$5,328 (in millions).Compute the four liquidity ratios at the end of the year. (Round answers to 1 decimal place, e.g. 1.6 .)1. Current ratio ________ 3. Accounts receivable turnover _______2. Acid-test ratio ________ 4. Inventory turnover __________

# Problem Solving_Solutions

Problem SolvingPlease solve the following: A, B, C, D. I need the asnwer by tomorrow around 10:00 am. I am solving them now and actually answered some but I would like to get a second opinion or another work by someone else. Thank you!A.The following data are from the income statements of Haskin Company.20152014Sales\$6,420,000\$6,240,000Beginning inventory940,000860,000Purchases4,340,0004,661,000Ending inventory1,020,000940,000Compute for each year the inventory turnover (Round answers to 1 decimal place).1. 2015 __________2. 2014 __________B. Guo Company has ownersâ equity of \$400,000 and net income of \$66,000. It has a payout ratio of 20% and a return on assets of 15%.How much did Guo pay in cash dividends, and what were its average assets? (Round answers to 0 decimal places) 3. Cash dividends ________ 4. Average Assets ________C.Operating data for Navarro Corporation are presented below.20152014Net sales\$750,000\$600,000Cost of goods sold465,000390,000Selling expenses105,00066,000Administrative expenses60,00054,000Income tax expense36,00027,000Net income84,00063,000Prepare a schedule showing a vertical analysis for 2015 and 2014. (Round answers to 1 decimal place)NAVARRO CORPORATIONCondensed Income StatementsFor the Years Ended December 3120152014AmountPercentAmountPercentNet sales\$750,000%\$600,000.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>%Cost of goods sold465,000%390,000.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>%Gross profit285,000%210,000.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>%Selling expenses105,000%66,000.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>%Administrative expenses60,000%54,000.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>%Total operating expenses165,000.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>%120,000.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>%Income before income taxes120,000.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>%90,000.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>%Income taxes expense36,000.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>%27,000.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>%Net income\$84,000.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>%\$63,000.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>%D.SupposeNordstrom, Inc., which operates department stores in numerous states, has the following selected financial statement data for the year ending January 30, 2014.NORDSTORM, INC.Balance Sheet (partial)(in millions)End-of-YearBeginning-of-YearCash and cash equivalents\$ 795\$ 72Accounts receivable (net)2,0351,942Inventory898900Prepaid expenses8893Other current assets238210Total current assets\$4,054\$3,217Total current liabilities\$2,014\$1,601For the year, net sales were \$8,258 and cost of goods sold was \$5,328 (in millions).Compute the four liquidity ratios at the end of the year. (Round answers to 1 decimal place, e.g. 1.6 .)1. Current ratio ________ 3. Accounts receivable turnover _______2. Acid-test ratio ________ 4. Inventory turnover __________