accounting homework 78

Brief Exercise 18-04

Using these data from the comparative balance sheet of Rollaird Company, perform horizontal analysis.

	December 31, 2020	December 31, 2019
Accounts receivable	$550,200	$420,000
Inventory	870,000	600,000
Total assets	2,858,900	2,530,000

(Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

			Increase or (Decrease)
	December 31, 2020	December 31, 2019	Amount	Percentage
Accounts receivable	$550,200	$420,000	$		%
Inventory	870,000	600,000			%
Total assets	2,858,900	2,530,000			%

Brief Exercise 18-05

Using these data from the comparative balance sheet of Rollaird Company, perform vertical analysis.

	December 31, 2020	December 31, 2019
Accounts receivable	$475,450	$419,220
Inventory	745,300	673,200
Total assets	2,570,000	3,060,000

(Round percentages to 1 decimal place, e.g. 12.1%.)

	December 31, 2020				December 31, 2019
		Amount	Percentage			Amount	Percentage
Accounts receivable		$475,450		%		$419,220		%
Inventory		745,300		%		673,200		%
Total assets		2,570,000		%		3,060,000		%

Brief Exercise 18-12 a1-a2

The following data were taken from the income statements of Mydorf Company.

	2020	2019
Sales revenue	$6,310,000	$6,120,000
Beginning inventory	970,000	910,000
Purchases	4,391,500	4,666,000
Ending inventory	1,040,000	970,000

Compute for each year the inventory turnover. (Round answers to 1 decimal place, e.g. 1.6.)

2020

2019

Inventory turnover

times

Compute for each year the days in inventory. (Use 365 days for calculation. Round answers to 1 decimal place, e.g. 1.6.)

2020

2019

Days in inventory

days

Exercise 18-02

Trayer Corporation has income from continuing operations of $254,000 for the year ended December 31, 2020. It also has the following items (before considering income taxes).

1.		An unrealized loss of $77,000 on available-for-sale securities.
2.		A gain of $27,000 on the discontinuance of a division (comprised of a $ 15,000 loss from operations and a $ 42,000 gain on disposal).

Assume all items are subject to income taxes at a 20% tax rate.

Prepare a statement of comprehensive income, beginning with income from continuing operations. (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).)

TRAYER CORPORATION Partial Statement of Comprehensive Income
		$

	$


		$


		$

Exercise 18-03 (Video)

Here is financial information for Glitter Inc.

	December 31, 2020	December 31, 2019
Current assets	$123,000	$100,000
Plant assets (net)	395,300	335,000
Current liabilities	89,279	73,000
Long-term liabilities	130,592	88,000
Common stock, $1 par	166,959	117,000
Retained earnings	131,470	157,000

Prepare a schedule showing a horizontal analysis for 2020, using 2019 as the base year. (Enter negative amounts and percentages using either a negative sign preceding the number e.g. -45, -45% or parentheses e.g. (45), (45%). Round percentages to 1 decimal place, e.g. 12.3%.)