ACC 556 Strayer Horizontal and Financial Ratio of Sandhill Corporation Questions

/in /by

Get perfect grades by consistently using www.essayjunction.com. Place your order and get a quality paper today. Take advantage of our current 20% discount by using the coupon code GET20


Order a Similar Paper Order a Different Paper

Current Attempt in Progress

Save your time - order a paper!

Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines

Order Paper Now

Selected hypothetical financial data of Target and Wal-Mart for 2022 are presented here (in millions).

Target
Corporation

Wal-Mart
Stores, Inc.

Income Statement Data for Year

Net sales

$65,000

$406,000

Cost of goods sold

46,000

306,000

Selling and administrative expenses

14,800

76,000

Interest expense

660

2,200

Other income (expense)

(70

)

(390

)

Income tax expense

1,300

6,500

Net income

$ 2,170

$ 14,910

Balance Sheet Data
(End of Year)

Current assets

$19,000

$49,000

Noncurrent assets

26,100

123,000

Total assets

$45,100

$172,000

Current liabilities

$12,000

$55,000

Long-term debt

17,400

43,000

Total stockholders’ equity

15,700

74,000

Total liabilities and stockholders’ equity

$45,100

$172,000

Beginning-of-Year Balances

Total assets

$45,000

$162,000

Total stockholders’ equity

12,900

66,000

Current liabilities

10,300

57,000

Total liabilities

32,100

96,000

Other Data

Average net accounts receivable

$8,000

$3,800

Average inventory

6,800

33,200

Net cash provided by operating activities

5,900

27,400

Capital expenditures

1,700

11,600

Dividends

510

4,200

For each company, compute the following ratios. (Round current ratio answers to 2 decimal places, e.g. 15.50, debt to assets ratio and free cash flow answers to 0 decimal places, e.g. 5,275 and all answers to 1 decimal place, e.g. 1.8 or 1.83%.)

Ratio Target

Wal-Mart
(1)

Current ratio

enter the current ratio

 :1

enter the current ratio

 :1
(2)

Accounts receivable turnover

enter accounts receivable turnover in times

 times

enter accounts receivable turnover in times

 times
(3)

Average collection period

enter average collection period in days

 days

enter average collection period in days

 days
(4)

Inventory turnover

enter inventory turnover in times

 times

enter inventory turnover in times

 times
(5)

Days in inventory

enter days in inventory ratio

 days

enter days in inventory ratio

 days
(6)

Profit margin

enter percentages

 %

enter percentages

 %
(7)

Asset turnover

enter asset turnover in times

 times

enter asset turnover in times

 times
(8)

Return on assets

enter percentages

 %

enter percentages

 %
(9)

Return on common stockholders’ equity

enter percentages

 %

enter percentages

 %
(10)

Debt to assets ratio

enter percentages

 %

enter percentages

 %
(11)

Times interest earned

enter times interest earned

 times

enter times interest earned

 times
(12)

Free cash flow

$enter a dollar amount

$enter a dollar amount

Current Attempt in Progress

Here are the comparative income statements of Sandhill Corporation.

SANDHILL CORPORATION
Comparative Income Statement
For the Years Ended December 31

2022

2021

Net sales

$628,300

$531,300

Cost of goods sold

456,400

409,900

Gross Profit

171,900

121,400

Operating expenses

71,400

41,100

Net income

$ 100,500

$ 80,300

(a)

Prepare a horizontal analysis of the income statement data for Sandhill Corporation, using 2021 as a base. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 1 decimal place, e.g. 12.1%.)

SANDHILL CORPORATION
Comparative Income Statement
choose the accounting period

Increase or (Decrease) During 2022

2022

2021

Amount

Percentage

Net sales

$628,300

$531,300

$enter a dollar amount

enter percentages rounded to 1 decimal place

%

Cost of goods sold

456,400

409,900

enter a dollar amount

enter percentages rounded to 1 decimal place

%

Gross Profit

171,900

121,400

enter a dollar amount

enter percentages rounded to 1 decimal place

%

Operating expenses

71,400

41,100

enter a dollar amount

enter percentages rounded to 1 decimal place

%

Net income

$ 100,500

$ 80,300

$enter a dollar amount

enter percentages rounded to 1 decimal place

%

(b)

Prepare a vertical analysis of the income statement data for Sandhill Corporation for both years. (Round percentages to 1 decimal place, e.g. 12.1%.)

SANDHILL CORPORATION
Condensed Income Statements
choose the accounting period

2022

2021

$

Percent

$

Percent

Net sales

$628,300

enter percentages rounded to 1 decimal place

%

$531,300

enter percentages rounded to 1 decimal place

%

Cost of goods sold

456,400

enter percentages rounded to 1 decimal place

%

409,900

enter percentages rounded to 1 decimal place

%

Gross Profit

171,900

enter percentages rounded to 1 decimal place

%

121,400

enter percentages rounded to 1 decimal place

%

Operating expenses

71,400

enter percentages rounded to 1 decimal place

%

41,100

enter percentages rounded to 1 decimal place

%

Net income

$ 100,500

enter percentages rounded to 1 decimal place

%

$ 80,300

enter percentages rounded to 1 decimal place

%
Writerbay.net

We offer the best essay writing services to students who value great quality at a fair price. Let us exceed your expectations if you need help with this or a different assignment. Get your paper completed by a writing expert today. Nice to meet you! Want 15% OFF your first order? Use Promo Code: FIRST15. Place your order in a few easy steps. It will take you less than 5 minutes. Click one of the buttons below.


Order a Similar Paper Order a Different Paper