The comparative condensed balance sheets of Garcia Corporation

The comparative condensed balance sheets of Garcia Corporation are presented below.
GARCIA CORPORATION
Comparative Condensed Balance Sheets
December 31
2014
Assets
Current assets

2013

$ 73,520

91,470
39,000
$211,210

$ 40,080
143,250
16,570

Total assets

98,810
27,570
$199,900

Property, plant, and equipment (net)
Intangibles

$ 80,740

$ 47,690
149,470
14,050

$199,900

$211,210

Liabilities and stockholders’ equity
Current liabilities
Long-term liabilities
Stockholders’ equity
Total liabilities and stockholders’ equity

(a) Prepare a horizontal analysis of the balance sheet data for Garcia Corporation using 2013 as a base. (If am ount and percentage are a decrease show the num bers as negativ e, e.g. – 55,000, – 20% or (55,000). (20%). Round percentages to 1 decimal place, e.g. 12.3%.)
GARCIA CORPORATION
Condensed Balance Sheets
December 31
2014

2013

Increase
(Decrease)

Percentage
Change from 2013

Assets
Current Assets
Property, Plant &
Equipment (net)
Intangibles

Total assets

$73,520

$80,740

98,810

91,470

27,570

39,000

$199,900

$211,210

$40,080

$47,690

143,250

149,470

Liabilities and
Stockholders’
Equity
Current Liabilities
Long-term
Liabilities

1/2

4/30/2014

Exercise 14-3

Stockholders’
Equity
Total liabilities
and
stockholders’
equity

16,570

14,050

$199,900

$211,210

(b) Prepare a vertical analysis of the balance sheet data for Garcia Corporation in columnar form for 2014. (Round percentages to 1 decim al place, e.g. 12.3%.)
GARCIA CORPORATION
Condensed Balance Sheet
December 31, 2014
Amount

Percent

Assets
Current Assets $73,520

Property, Plant, and Equipment (net) 98,810

Intangibles 27,570

Total assets $199,900

Liabilities and Stockholders’ Equity
Current Liabilities $40,080

Long-term Liabilities 143,250

Stockholders’ Equity

Total liabilities and stockholders’ equity

16,570
$199,900

*Problem 14-1A (Part Level Submission)
Comparative statement data for Lionel Company and Barrymore Company, two competitors, appear below . All balance
sheet data are as of December 31, 2014, and December 31, 2013.
Lionel Company Barrymore
Company
2014 2013 2014 2013
Net sales $1,500,730 $339,796
Cost of goods sold 1,021,462 236,917
Operating
expenses
276,354 76,026
Interest expense 7,560 2,380
Income tax
expense
60,151 7,670
Current assets 409,776 $386,259 86,417 $ 82,659
Plant assets (net) 594,702 574,664 142,667 126,552
Current liabilities 64,688 75,227 18,448 13,884
Long-term liabilities 101,560 83,767 15,295 10,732
Common stock, $5
par
580,000 580,000 132,000 132,000
Retained earnings 258,230 221,929 63,341 52,595
*(a)
Prepare a vertical analysis of the 2014 income statement data for Lionel Company and Barrymore Company in columnar
form. (Round percentages to 1 decimal place, e.g. 12.1%.)

Exercise 14-5
Nordstrom, Inc. operates department stores in numerous states. Selected financial
statement data for the year ending January 30, 2010, are shown below .
Nordstrom, Inc.
Balance Sheet (partial)
(in millions) End-of-Year Beginning-of-Year
Cash and cash equivalents $ 795 $ 72
Accounts receivable (net) 2,035 1,942
Merchandise inventory 898 900
Prepaid expenses 88 93
Other current assets 238 210
Total current assets $4,054 $3,217
Total current liabilities $2,014 $1,601
For 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 all answers to 1 decimal
place, e.g. 1.6 .)
Current ratio :1
Acid-test ratio :1
Receivables turnover times
Inventory turnover