Mata kuliah : F0024 – Pengantar Akuntansi II
Tahun
: 2010
CH 18
FINANCIAL STATEMENT ANALYSIS
Lecture 25, 26
QUESTIONS
3. Two popular methods of financial statement analysis
are horizontal analysis and vertical analysis. Explain
the difference between these two methods.
6. Name the major ratios useful in assessing:
a. Liquidity
b. Solvency
Bina Nusantara University
3
QUESTIONS
8. What do the following classes of ratios measure?
a. Liquidity ratios
b. Profitability ratios
c. Solvency ratios
9. What is the difference between the current ratio and
the acid-test ratio?
Bina Nusantara University
4
E18-3
The comparative condensed balance sheets of Conard
Corporation are presented below.
CONARD CORPORATION
Comparative Condensed Balance Sheets
December 31
2011
2010
Assets
Current Assets
74,000
80,000
Property, plant, and equipment net
99,000
90,000
Intangibles
27,000
40,000
200,000
210,000
Total Assets
Bina Nusantara University
$
5
E18-3
CONARD CORPORATION
Comparative Condensed Balance Sheets
December 31
2011
2010
Liabilities and stockholders’ equity
Current liabilities
42,000
48,000
Long-term liabilities
143,000
150,000
Stockholders’ equity
15,000
12,000
200,000
210,000
Total liabilities and stockholders’ equity
Bina Nusantara University
6
E18-3
Instructions:
a. Prepare a horizontal analysis of the balance sheet
data for Conard Corporation using 2010 as a base.
b. Prepare a vertical analysis of the balance sheet data
for Conard Corporation in columnar form for 2011.
Bina Nusantara University
7
P18-2
The comparative statement of Villa Tool Company are
presented below.
VILLA TOOL COMPANY
Income Statement
For the Year Ended December 31
2011
Net sales
1,818,500
1,750,500
1,011,500
996,000
Gross Profit
807,000
754,500
Selling administrative expense
516,000
479,000
Income from operations
291,000
275,500
Cost of Goods Sold
Bina Nusantara University
$
2010
8
P18-2
VILLA TOOL COMPANY
Income Statement
For the Year Ended December 31
2011
Income from operations
Other expenses and losses interest
Income before income taxes
Income tax expense
Net Income
Bina Nusantara University
2010
291,000
275,500
18,000
14,000
273,000
261,500
81,000
77,000
192,000
184,500
9
P18-2
VILLA TOOL COMPANY
Balance Sheets
December 31
2011
2010
Assets
Current assets
Cash
60,100
64,200
69,000
50,000
Accounts receivable (net)
117,800
102,800
Inventory
123,000
115,500
Total current assets
369,900
332,500
Short-term investments
Bina Nusantara University
$
10
P18-2
VILLA TOOL COMPANY
Balance Sheets
December 31
2011
2010
Total current assets
369,900
332,500
Plant assets (net)
600,300
520,300
970,200
852,800
Total assets
Bina Nusantara University
11
P18-2
VILLA TOOL COMPANY
Balance Sheets
December 31
2011
2010
Liabilities & stockholders’ equity
Current liabilities
Account payable
160,000
145,400
Income taxes payable
43,500
42,000
Total current liabilities
203,500
187,400
200,000
200,000
403,500
387,400
Bonds Payable
Total liabilities
Bina Nusantara University
12
P18-2
VILLA TOOL COMPANY
Balance Sheets
December 31
2011
Total liabilities
2010
403,500
387,400
Common stock ($5 par)
280,000
300,000
Retained earnings
286,700
165,400
Total stockholders’ equity
566,700
465,400
970,200
852,800
Stockholders’ equity
Total liabilities and stockholders’ equity
Bina Nusantara University
13
P18-2
All sales were on account. The allowance for doubtful
accounts $3,200 on December 31, 2011 and $3,000 on
December 31, 2010.
Instructions:
Compute the following ratios for 2011. (Weighted
average common shares in 2011 were 57,000)
a.Earnings per share
b.Return on common stockholders’ equity.
c.Return on assets
d.Current
Bina Nusantara University
14
P18-2
e.
f.
g.
h.
i.
j.
Acid-test
Receivables turnover
Inventory turnover
Times interest earned
Assets turnover
Debt to total assets.
Bina Nusantara University
15