Search for notes by fellow students, in your own course and all over the country.
Browse our notes for titles which look like what you need, you can preview any of the notes via a sample of the contents. After you're happy these are the notes you're after simply pop them into your shopping cart.
Title: Finance
Description: Solution Manual Financial Accounting 8th Edition by Libby Libby and Short Chapter 13
Description: Solution Manual Financial Accounting 8th Edition by Libby Libby and Short Chapter 13
Document Preview
Extracts from the notes are below, to see the PDF you'll receive please use the links above
4/9/24, 11:48 AM
Solution Manual Financial Accounting 8th Edition by Libby Libby and Short …
Chapter 13 - Analyzing Financial Statements
Chapter 13
Analyzing Financial Statements
ANSWERS TO QUESTIONS
1
...
2
...
The notes call attention to such items as pending
problems, contingent liabilities, and circumstances surrounding certain
judgments that were made in measuring and reporting
...
3
...
For example, the trends of such
factors as sales, expenses, income, amount of debt, retained earnings, and
earnings per share are particularly important in assessing the record of the
company in the past and the present
...
Comparative
statements usually report only two consecutive periods which often is too
short to assess adequately certain trends
...
Statement users are interested especially in financial summaries covering
several years because the long-term trends of the business are revealed
...
Long-term financial
summaries provide particularly useful information in making these
projections
...
The primary limitation of unusually long-term summaries is that early years
may not be useful because of changes in the business, industry, and
environment
...
Ratio analysis is a technique for computing and pinpointing certain
significant relationships in the financial statements
...
This is proprietary material solely for authorized instructor use
...
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part
...
A ratio is computed by dividing one
amount by another amount; the divisor is known as the base amount
...
Ratio analysis is particularly useful because it may reveal critical
relationships that are not readily apparent from absolute dollar amounts
...
Component percentages are representations, as ratios or percents, of the
relationships between each of the several individual amounts that make up a
single total
...
The resulting ratios or percentages will sum to
100 percent
...
7
...
The
two concepts of return on investment are:
(a) Return on equity (net income divided by owners’ investment)
...
(b) Return on assets (return on total assets, which includes both owners’
equity and creditors’ equity)
...
The computation is net income plus after-tax
interest expense divided by total assets
...
Return on equity reflects the viewpoint of the owners
because it measures the net return on their investment only
...
e
...
8
...
This difference is
caused only by interest on debt
...
This advantage accrues to the benefit of the stockholders
(i
...
, positive leverage)
...
Profit margin is the ratio between net income and net sales
...
e
...
Profitability is best measured as the ratio of income to investment
...
The current ratio is computed by dividing total current assets by total current
liabilities
...
e
...
This is proprietary material solely for authorized instructor use
...
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part
...
Time
1
5
2
5
3
5
4
5
5
5
6
5
7
5
8
5
9
5
10
5
Exercises
No
...
Time
1
60
2
45
3
60
4
20
5
60
6
30
7
60
8
30
9
20
10
50
Alternate
Problems
No
...
Time
1
50
2
50
3
60
4
45
5
20
6
30
7
*
* Due to the nature of this project, it is very difficult to estimate the amount of
time students will need to complete the assignment
...
While students often benefit from the extra effort, we find that
some become frustrated by the perceived difficulty of the task
...
For example,
when our goal is to sharpen research skills, we devote class time to discussing
research strategies
...
13–4
Solutions Manual
© 2014 by McGraw-Hill Global Education Holdings, LLC
...
Not authorized for sale or
distribution in any manner
...
about:blank
4/35
4/9/24, 11:48 AM
Solution Manual Financial Accounting 8th Edition by Libby Libby and Short …
Chapter 13 - Analyzing Financial Statements
MINI-EXERCISES
M13–1
...
2015
Sales
$31,198 *
Cost of Goods Sold
($9,107)
Gross Profit
$22,091
*Sales 2015:
$29,600 x 1
...
8%
M13–3
...
6%
M13–4
...
If the average sales volume remains the same, then the cost of goods sold
will also remain the same
...
Financial Accounting, 8/e
13–5
© 2014 by McGraw-Hill Global Education Holdings, LLC
...
Not authorized for sale or
distribution in any manner
...
about:blank
5/35
4/9/24, 11:48 AM
about:blank
Solution Manual Financial Accounting 8th Edition by Libby Libby and Short …
6/35
4/9/24, 11:48 AM
Solution Manual Financial Accounting 8th Edition by Libby Libby and Short …
Chapter 13 - Analyzing Financial Statements
M13–10
...
Profit Margin
Will decrease
Fixed Asset Turnover
Will not be affected
Current Ratio
Will decrease
Quick Ratio
Will not be affected
Financial Accounting, 8/e
13–7
© 2014 by McGraw-Hill Global Education Holdings, LLC
...
Not authorized for sale or
distribution in any manner
...
about:blank
7/35
4/9/24, 11:48 AM
Solution Manual Financial Accounting 8th Edition by Libby Libby and Short …
Chapter 13 - Analyzing Financial Statements
EXERCISES
E13–1
...
2
...
4
...
1
...
3
...
Meat packer (high inventory turnover)
Travel agency (no gross profit or inventory; high receivables)
Hotel (high property & equipment; no gross profit or inventory)
Drug company (high gross profit, low inventory turnover)
E13–3
...
2
...
4
...
V
...
1
...
3
...
13–8
Restaurant (high inventory turnover; high property & equipment)
Full-line department store (high cost of inventory; high gross profit)
Automobile dealer (high cost of inventory; low property & equipment)
Wholesale fish company (high inventory turnover; lower gross profit)
Solutions Manual
© 2014 by McGraw-Hill Global Education Holdings, LLC
...
Not authorized for sale or
distribution in any manner
...
about:blank
8/35
4/9/24, 11:48 AM
about:blank
Solution Manual Financial Accounting 8th Edition by Libby Libby and Short …
9/35
4/9/24, 11:48 AM
Solution Manual Financial Accounting 8th Edition by Libby Libby and Short …
Chapter 13 - Analyzing Financial Statements
E13–6
...
Consolidated Statements of Earnings
(In millions, except per share and
percentage data)
%
Feb 3,
Jan 28,
Fiscal years ended on
2012
Sales
2011
Net sales
$ 50,208 100
...
44
31,663
Gross margin
17,350 34
...
08
12,006
Depreciation
1,480
2
...
74
332
Total expenses
14,444 28
...
79
3,228
Income tax pro
Title: Finance
Description: Solution Manual Financial Accounting 8th Edition by Libby Libby and Short Chapter 13
Description: Solution Manual Financial Accounting 8th Edition by Libby Libby and Short Chapter 13