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Account to
be changed
Ch 9 Ex 3
Edison
Cash
Stagg
Cash
Thornton
Cash
Original
Amount
$4,000
$2,500
$1,000
YOUR ANSWERS
BASED UPON
COURSE START
DATE
Questions
Compute the current and quick
ratios for each of the three
companies. (Round calculations
to two decimal places.) Which
firm is the most liquid? Why?
Edison
Current ratio
Quick ratio
Stagg
Current ratio
Quick ratio
Thornton
Current ratio
Quick ratio
Suppose Thornton is using
FIFO for inventory
valuation and Edison is
using LIFO. Comment on
the comparability of
information between
these two companies.
If all short-term notes
payable are due on July
11 at 8 a.m., comment on
each company's ability to
settle its obligation in a
timely manner.
Net Credit Sales
Cost of Goods Sold
Account to
be changed
Ch 9 Ex 4
20X5
$832,000
440,000
Questions
The company is
planning to borrow
$300,000 via a 90day bank loan to
cover short-term
operating needs.
a. Compute the
accountsreceivable and
inventory-turnover
ratios for 20X5
Accounts
Receivable
Turnover
Original
Amount
20X4
$760,000
350,000
YOUR ANSWERS
BASED UPON
COURSE START
DATE
Inventory Turnover
Study the ratios
from part (a) and
comment on the
company's ability
to repay a bank
loan in 90 days.
Suppose that
Alaska's major
line of business
involves the
processing and
distribution of
fresh and frozen
fish throughout
the United States.
Do you have any
concerns about the
company's
inventory-turnover
Account to
be changed
Original
Amount
Ch 9 Pb 1
20X5
20X4
Assets
Current Assets
Cash
Accounts Receivable (net)
Inventories
Prepaid Expense
Total Current Assets
Buildings (net)
Equipment (net)
Vehicles (net)
Total Property, Plant, and Equipment
Trademarks (net)
Total assets
Accounts Payable
PLACE YOUR ANSWERS
BELOW STARTING ON
11250
18500
38500
3750
72000
102750
28500
32000
163250
14750
250000
49000
12500
25000
35000
3750
76250
101250
30000
40000
171250
2500
250000
70000
Notes Payable
Federal Taxes Payable
Total Current Liabilities
Long-Term Debt
Total Liabilities
Common Stock, $10 par
Retained Earnings
Total Stockholders' Equity
Total Liabilities and Stockholders' Equity
WATERLOO CORPORATION
Comparative Income Statements
For the Years Ending December 31, 20X5 and 20X4
Net Sales
Prepare a horizontal analysis of the
balance sheet showing percentage changes
from 20X4 to 20X5. Round all calculations
in parts (a) and (b) to two decimal
places.
Questions
13500
2500
65000
50000
115000
25000
110000
135000
250000
40000
25000
135000
25000
160000
25000
65000
90000
250000
550000
20X4
500000
20X5
YOUR ANSWERS
BASED UPON
COURSE START
DATE
WATERLOO CORPORATION
Comparative Balance Sheets
December 31,20X5 and 20X4
Assets
Current Assets
Cash
Accounts Receivable (net)
Inventories
Prepaid Expense
Total Current Assets
Buildings (net)
Equipment (net)
Vehicles (net)
Total Property, Plant, and Equipment
Trademarks (net)
Total assets
Accounts Payable
Notes Payable
Federal Taxes Payable
Total Current Liabilities
Long-Term Debt
Total Liabilities
Common Stock, $10 par
Retained Earnings
% Change
Total Stockholders' Equity
Total Liabilities and Stockholders'
Equity
WATERLOO CORPORATION
Comparative Income Statements
Prepare a vertical analysis of the
20X5 income statement by relating each
item to net sales.
20X5
Net Sales
Cost of Goods Sold
Gross Profit
Operating Expense
Income Before Interest and Taxes
Interest Expense
Income Before Taxes
Income Tax Expense
Net Income
Account to
be changed
Original
Amount
Ch 9 Pb 2
LONE PINE COMPANY
Comparative Balance Sheets
December 31, 20X2 and 20X1 ($000 Omitted)
20X2
20X1
Assets
Current Assets
Cash and Short-Term Investments
Accounts Receivable (net)
Inventories
Total Current Assets
Land
Buildings and Equipment (net)
Total Property, Plant, and Equipment
Total Assets
Accounts Payable
Notes Payable
Total Current Liabilities
PLACE YOUR ANSWERS
BELOW STARTING ON
400
3000
2000
5400
1700
1500
3200
8600
1800
1100
2900
600
2400
2200
5200
600
1000
1600
6800
1700
1900
3600
Bonds Payable
Total Liabilities
Common Stock Par value $1 (Par value
not in original problem, but needed to
calculate ratio - dividend payout rate)
Number of Shares
Retained Earnings
Total Stockholders' Equity
Total Liabilities and Stockholders' Equity
4100
7000
2100
5700
200
200
1400
1600
8600
200
200
900
1100
6800
LONE PINE COMPANY
Statement of Income and Retained Earnings
For the Year Ending December 31,20X2 ($000 Omitted)
Net Sales*
36000
Questions
YOUR ANSWERS
BASED UPON
COURSE START
DATE
Compute the following items for Lone Pine
Company for 20X2, rounding all
calculations to two decimal places and do
nt insert a percent symbol.
Quick ratio
Current ratio
Inventory-turnover ratio
Accounts-receivable-turnover ratio
Return-on-assets ratio
Net-profit-margin ratio
Return-on-common-stockholders' equity
Debt-to-total assets
Number of times that interest is earned
Dividend payout rate
Account to
Original
be changed
Amount
Ch 9 Pb 3
Cost of goods sold % of sales60.0%
Questions
LOCK BOX INC.
Income Statement
For the Year Ending December 31, 20X3
Sales
Cost of Goods Sold
Gross Profit
Operating Expenses and Interest
Income Before Taxes
Income taxes, 40%
Net income
LOCK BOX INC.
Balance Sheet
December 31, 20X3
Assets
Cash
Accounts Receivable
Inventory
Property, Plant, and Equipment
Total assets
Liabilities and Stockholders' Equity
Accounts Payable
Notes Payable: Short-Term
Bonds Payable
Common Stock
Retained Earnings
Total Liabilities and Stockholders' Equity
YOUR ANSWERS
BASED UPON
COURSE START
DATE
Ashford University ACC205
Guidance Report
Week Five
Guidance Report Download
Date
NING THE GUIDANCE REPORT
11/28/2017
Guidance Report Revision
Date
YELLOW INDICATES ACCOUNT AMOUNTS CHANGED
Change Account to:
Based Upon Course Start Date
Jan - Feb
Mar-Apr
May-Jun
Jul-Aug
Sept-Oct
Nov-Dec
5,000
6,000
7,000
8,000
9,000
10,000
3,500
4,500
5,500
6,500
7,500
8,500
2,000
3,000
4,000
5,000
6,000
7,000
Jan - Feb
20X5
842,000
450,000
20X4
760,000
350,000
Mar-Apr
20X5
852,000
460,000
20X4
760,000
350,000
May-Jun
20X5
862,000
470,000
20X4
760,000
350,000
Jul-Aug
20X5
872,000
480,000
Jan - Feb
20X5
$12,250
19,500
39,500
4,750
$73,000
$103,750
29,500
33,000
$164,250
$15,750
$251,000
$50,000
Mar-Apr
20X4
$13,400
25,900
35,900
4,650
$77,150
$102,150
30,900
40,900
$172,150
$3,400
$250,900
$70,900
20X5
$13,250
20,500
40,500
5,750
$74,000
$104,750
30,500
34,000
$165,250
$16,750
$252,000
$51,000
May-Jun
20X4
$14,300
26,800
36,800
5,550
$78,050
$103,050
31,800
41,800
$173,050
$4,300
$251,800
$71,800
20X5
Jul-Aug
20X4
21,500
27,700
41,500
37,700
6,750
6,450
$75,000
$78,950
$105,750 $103,950
31,500
32,700
35,000
42,700
$166,250 $173,950
$17,750
$5,200
$253,000 $252,700
$52,000
$72,700
16,500
42,700
20X5
$15,250
22,500
42,500
7,750
$76,000
$106,750
32,500
36,000
$167,250
$18,750
$254,000
$53,000
14,500
3,500
$66,000
$51,000
$116,000
$26,000
111,000
$136,000
$251,000
20X5
575,000
40,900
25,900
$135,900
$25,900
$160,900
$25,900
65,900
$90,900
$250,900
20X4
510,000
15,500
4,500
$67,000
$52,000
$117,000
$27,000
112,000
$137,000
$252,000
20X5
580,000
41,800
26,800
$136,800
$26,800
$161,800
$26,800
66,800
$91,800
$251,800
20X4
520,000
5,500
27,700
$68,000 $137,700
$53,000
$27,700
$118,000 $162,700
$28,000
$27,700
113,000
67,700
$138,000
$92,700
$253,000 $252,700
258,000
258,000
20X5
585,000
20X4
521,000
17,500
6,500
$69,000
$54,000
$119,000
$29,000
114,000
$139,000
$254,000
20X5
590,000
Jan - Feb
Mar-Apr
May-Jun
Jul-Aug
20X2
20X1
20X2
20X1
20X2
20X1
20X2
1,400
4,000
4,000
9,400
2,700
2,500
5,200
14,600
2,800
2,100
3,900
1,400
3,200
3,000
7,600
1,400
1,800
3,200
10,800
2,500
2,700
4,400
2,400
5,000
4,000
11,400
3,700
3,500
7,200
18,600
3,800
3,100
4,900
2,200
4,000
3,800
10,000
2,200
2,600
4,800
14,800
3,300
3,500
5,200
3,400
6,000
5,000
14,400
4,700
4,500
9,200
23,600
4,800
4,100
5,900
3,000
4,800
4,600
12,400
3,000
3,400
6,400
18,800
4,100
4,300
6,000
4,400
7,000
6,000
17,400
5,700
5,500
11,200
28,600
5,800
5,100
6,900
5,100
9,000
2,900
7,300
6,100
11,000
3,700
8,900
7,100
13,000
4,500
10,500
8,100
15,000
1,200
1,200
4,400
5,600
14,600
1,000
1,000
2,500
3,500
10,800
2,200
2,200
5,400
7,600
18,600
1,800
1,800
4,100
5,900
14,800
3,200
3,200
7,400
10,600
23,600
2,600
2,600
5,700
8,300
18,800
4,200
4,200
9,400
13,600
28,600
39,000
41,000
45,000
46,000
Jan - Feb
Mar-Apr
May-Jun
Jul-Aug
Sept-Oct
Nov-Dec
60.1%
60.2%
60.3%
60.4%
60.5%
60.6%
12/1/2017
Jul-Aug
20X4
760,000
350,000
Sept-Oct
20X5
882,000
490,000
Nov-Dec
20X4
760,000
350,000
20X5
892,000
500,000
20X4
760,000
350,000
Jul-Aug
Sept-Oct
20X4
$16,100
28,600
38,600
7,350
$79,850
$104,850
33,600
43,600
$174,850
$6,100
$253,600
$73,600
20X5
$16,250
23,500
43,500
8,750
$77,000
$107,750
33,500
37,000
$168,250
$19,750
$255,000
$54,000
Nov-Dec
20X4
20X5
$17,000
$17,250
29,500
24,500
39,500
44,500
8,250
9,750
$80,750
$78,000
$105,750 $108,750
34,500
34,500
44,500
38,000
$175,750 $169,250
$7,000
$20,750
$254,500 $256,000
$74,500
$55,000
20X4
$17,900
30,400
40,400
9,150
$81,650
$106,650
35,400
45,400
$176,650
$7,900
$255,400
$75,400
43,600
28,600
$138,600
$28,600
$163,600
$28,600
68,600
$93,600
$253,600
20X4
523,000
18,500
7,500
$70,000
$55,000
$120,000
$30,000
115,000
$140,000
$255,000
20X5
595,000
44,500
19,500
29,500
8,500
$139,500
$71,000
$29,500
$56,000
$164,500 $121,000
$29,500
$31,000
69,500
116,000
$94,500 $141,000
$254,500 $256,000
20X4
525,000
20X5
600,000
45,400
30,400
$140,400
$30,400
$165,400
$30,400
70,400
$95,400
$255,400
20X4
535,000
Jul-Aug
Sept-Oct
Nov-Dec
20X1
20X2
20X1
20X2
20X1
3,800
5,600
5,400
14,800
3,800
4,200
8,000
22,800
4,900
5,100
6,800
5,400
8,000
7,000
20,400
6,700
6,500
13,200
33,600
6,800
6,100
7,900
4,600
6,400
6,200
17,200
4,600
5,000
9,600
26,800
5,700
5,900
7,600
6,400
9,000
8,000
23,400
7,700
7,500
15,200
38,600
7,800
7,100
8,900
5,400
7,200
7,000
19,600
5,400
5,800
11,200
30,800
6,500
6,700
8,400
5,300
12,100
9,100
17,000
6,100
13,700
10,100
19,000
6,900
15,300
3,400
3,400
7,300
10,700
22,800
5,200
5,200
11,400
16,600
33,600
4,200
4,200
8,900
13,100
26,800
6,200
6,200
13,400
19,600
38,600
5,000
5,000
10,500
15,500
30,800
49,000
55,000
Net Credit
#######Sales
#######
Cost 440,000
of Goods350,000
Sold
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