147.Revenue and expense data for Bluestem Company are as follows:
|
Year 2
|
Year 1
|
Administrative expenses
|
$ 37,000
|
$ 20,000
|
Cost of goods sold
|
350,000
|
320,000
|
Income tax
|
40,000
|
32,000
|
Sales
|
800,000
|
700,000
|
Selling expenses
|
150,000
|
110,000
|
(a)Prepare a comparative income statement, with vertical analysis, stating each item for bothyears as a percent of sales.
(b)Comment upon significant changes disclosed by the comparative income statement.
Round percentages to one decimal place.
148.What is a major advantage of using percentages rather than dollar changes in doing horizontal and vertical analysis?
149.The following items are reported on a company’s balance sheet:
Cash
|
$230,000
|
Marketable securities
|
50,000
|
Accounts receivable
|
200,000
|
Inventory
|
240,000
|
Accounts payable
|
300,000
|
Determine the (a) current ratio, and (b) quick ratio. Round your answer to one decimal place.
150.The following items are reported on a company’s balance sheet:
Cash
|
$400,000
|
Marketable securities
|
50,000
|
Accounts receivable
|
150,000
|
Inventory
|
200,000
|
Accounts payable
|
250,000
|
Determine the (a) current ratio, and (b) quick ratio. Round your answer to one decimal place.
151.The following items are reported on Denver Company’s balance sheet:
Cash
|
$190,000
|
Marketable securities
|
160,000
|
Accounts receivable (net)
|
240,000
|
Inventory
|
350,000
|
Accounts payable
|
600,000
|
Determine (a) the current ratio and (b) the quick ratio. Round to one decimal place.