ACC Week 8 Questions and Answers
14 pages of Homework Screenshots
Examples:

Question 1
Using the following data from the comparative balance sheet of Rodenbeck Company, illustrate horizontal analysis

Question 2
Using the following data from the comparative balance sheet of Rodenbeck Company, illustrate vertical analysis

Question 3
If Soule Company had net income of $585,000 in 2011 and it experienced a 30% increase in net income over 2010,
what was its 2010 net income?
ACC_Week_8_HW
Question 4
Horizontal analysis (trend analysis) percentages for Epstein Company’s sales, cost of goods sold, and expenses are
shown below.

Question 5
Selected condensed data taken from a recent balance sheet of Perkins Inc. are as follows.

Question 6
McLaren Corporation has net income of $11.44 million and net revenue of $80 million in 2010. Its assets are $14 million
at the beginning of the year and $18 million at the end of the year. What are McLaren’s (a) asset turnover and (b) profit
margin?

Question 7
The following data are from the income statements of Huntsinger Company

Question 8
The comparative condensed income statements of Hendi Corporation are shown below.
HENDI CORPORATION
Comparative Condensed Income Statements

Question 8
Complete the horizontal analysis of the income statement data for Hendi Corporation using 2010 as a base

Question 8
Complete the vertical analysis of the income statement data for Hendi Corporation in columnar form for both years.

Question 9
Nordstrom, Inc. operates department stores in numerous states. Selected financial statement data for the year ending
February 2, 2008, are as follows.
NORDSTROM, INC.
Balance Sheet (partial)

Question 9
Compute the four liquidity ratios at the end of the year

Question 9
Using the data in the chapter, compare Nordstrom’s liquidity with (1) that of J.C. Penney Company, and (2) the
industry averages for department stores.