Question: The net income reported on the income

> The following data are taken from recent financial statements of Nike, Inc. (NKE) (in millions): a. Determine the amount of change (in millions) and percent of change in operating income from Year 1 to Year 2. Round to one decimal place. b. Determine t

> Chipotle Mexican Grill, Inc. (CMG) is a quick-service restaurant providing a focused menu of burritos, tacos, and salads. Chipotle’s income statements through operating income for two recent years are as follows (in thousands): a. Pre

> World Wrestling Entertainment, Inc. (WWE) is a sports media and entertainment company primarily focused on professional wrestling. WWE’s income statements through operating income for two recent years are as follows (in thousands): *$

> Pandora Media, Inc. (P) provides Internet music platform services in North America. Pandora’s income statements through operating income for two recent years are as follows (in thousands): a. Prepare a vertical analysis of the two inc

> Amazon.com, Inc. (AMZN) is the largest Internet retailer in the United States. Amazon’s income statements through operating income for two recent years are as follows (in millions): a. Prepare a vertical analysis of the two income sta

> The following data (in millions) are taken from the financial statements of Wal-Mart Stores, Inc. (WMT): a. For Walmart, determine the amount of change in millions and the percent of change rounded to one decimal place from Year 1 to Year 2 for: 1. Rev

> The following data (in millions) are taken from the financial statements of Target Corporation (TGT), the owner of Target stores: a. For Target, determine the amount of change in millions and the percent of change rounded to one decimal place from Year

> Vera Bradley, Inc. (VRA) is a leading designer, producer, and retailer of fashion handbags, accessories, and travel items for women. Income statements for two recent years for Vera Bradley are as follows: a. Prepare a horizontal analysis of the two inc

> Chipotle Mexican Grill, Inc. (CMG) is a quick-service restaurant providing a focused menu of burritos, tacos, and salads. Chipotle’s income statements for the end of two recent years are as follows: a. Prepare a horizontal analysis of

> Amazon.com, Inc. (AMZN) is the largest Internet retailer in the United States. Amazon’s income statements for two recent years follow: a. Prepare a horizontal analysis of the income statements. Round percentages to one decimal place.

> The transactions completed by PS Music during June 20Y5 were described at the end of Chapter 1. The following transactions were completed during July, the second month of the business’s operations: Enter the following transactions on P

> The following total liabilities and stockholders’ equity information (in millions) is provided for Papa John’s International, Inc. (PZZA) and Yum! Brands, Inc. (YUM) at the end of a recent year: Yum! Brands is a much

> Using your answers for The Home Depot, Inc. (HD) in MAD 1-2 and Lowe’s Companies, Inc. (LOW) in MAD 1-3, compare and interpret Home Depot’s ratio of liabilities to stockholders’ equity to that of Lowe

> Lowe’s Companies, Inc. (LOW), a major competitor to The Home Depot, Inc. (HD) in the home improvement retail business, operates over 1,800 stores. Lowe’s recently reported the following end-of-year balance sheet data (

> The Home Depot, Inc. (HD), is the world’s largest home improvement retailer and one of the largest retailers in the United States based on sales volume. Home Depot operates over 2,200 stores that sell a wide assortment of building, home

> Amazon.com, Inc. (AMZN) is one of the largest Internet retailers in the world. We will use Amazon as a continuing company exercise to reinforce the various tools and techniques for analyzing financial statements. We will begin with the ratio of liabiliti

> The following preliminary unadjusted trial balance of Ranger Co., a sports ticket agency, does not balance: When the ledger and other records are reviewed, you discover the following: (1) the debits and credits in the cash account total $77,600 and $62

> The following balance sheet was prepared by Labyrinth Services Co. for its year ended August 31, 20Y3. a. List the errors in the preceding balance sheet. b. Prepare a corrected balance sheet. Labyrinth Services Co. Balance Sheet For the Year Ended

> The accounts in the ledger of Seaside Furniture Company as of August 20Y5 are listed in alphabetical order as follows. All accounts have normal balances. The balance of the cash account has been intentionally omitted. Prepare an unadjusted trial balanc

> Four different corporations, Amber, Blue, Coral, and Daffodil, show the same balance sheet data at the beginning and end of a year. These data, exclusive of the amount of stockholders’ equity, are summarized as follows: On the basis o

> Based upon the T accounts in Exercise 2-13, prepare the nine journal entries from which the postings were made. Journal entry explanations may be omitted. Exercise 2-13: Rocky Mountain Tours Co. is a travel agency. The nine transactions recorded by Roc

> Peyton Smith enjoys listening to all types of music and owns countless CDs. Over the years, Peyton has gained a local reputation for knowledge of music from classical to rap and the ability to put together sets of recordings that appeal to all ages. Duri

> Rocky Mountain Tours Co. is a travel agency. The nine transactions recorded by Rocky Mountain Tours during June 20Y2, its first month of operations, are indicated in the following T accounts: Indicate for each debit and each credit: (a) whether an asset

> As of January 1, Retained Earnings had a credit balance of $314,000. During the year, dividends totaled $10,000, and the business incurred a net loss of $320,000. a. Compute the balance of Retained Earnings as of the end of the year. b. Assuming that the

> During the month, Bavarian Auto Co. received $1,245,000 in cash and paid out $974,200 in cash. a. Does this information indicate that Bavarian Auto Co. had net income of $270,800 during the month? Explain. b. If the balance of the cash account is $421,00

> a. A vacant lot acquired for $115,000 is sold for $298,000 in cash. What is the effect of the sale on the total amount of the seller’s (1) assets, (2) liabilities, and (3) stockholders’ equity? b. Assume that the seller owes $80,000 on a loan for the lan

> Triton Consulting is a consulting firm owned and operated by Jayson Neese. The following end of- period spreadsheet was prepared for the year ended April 30, 20Y3: Based on the preceding spreadsheet, prepare an income statement, statement of stockholde

> On February 11, 20Y9, Quick Fix Company purchased $2,250 of supplies on account. In Quick Fix’s chart of accounts, the supplies account is No. 15, and the accounts payable account is No. 21. a. Journalize the February 11, 20Y9, transaction on page 73 of

> Innovative Consulting Co. has the following accounts in its ledger: Cash, Accounts Receivable, Supplies, Office Equipment, Accounts Payable, Common Stock, Retained Earnings, Dividends, Fees Earned, Rent Expense, Advertising Expense, Utilities Expense, Mi

> Identify each of the following accounts of Liken Services Co. as asset, liability, stockholders’ equity, revenue, or expense, and state in each case whether the normal balance is a debit or a credit: a. Accounts Payable b. Accounts Receivable c. Cash d.

> Demo Consulting is a consulting firm owned and operated by Jesse Flatt. The following end of period spreadsheet was prepared for the year ended August 31, 20Y9: Based on the preceding spreadsheet, prepare an income statement, statement of stockholders&

> The following accounts were taken from the unadjusted trial balance of Murray Co., a congressional lobbying firm. Indicate whether or not each account would normally require an adjusting entry. If the account normally requires an adjusting entry, use the

> Adieu Company reported the following current assets and current liabilities for two recent years: a. Compute the quick ratio on December 31 for each year. Round to one decimal place. b. Interpret the company’s quick ratio. Is the quic

> LeadCo School is a newly organized business that teaches people how to inspire and influence others. The list of accounts to be opened in the general ledger is as follows: Accounts Payable ………………………………….………………………. Prepaid Insurance Accounts Receivable …

> Superior Interiors is owned and operated by Ken Lopez, an interior decorator. In the ledger of Superior Interiors, the first digit of the account number indicates its major account classification (1—assets, 2—liabilities, 3—stockholders’ equity, 4—revenu

> The Boeing Company (BA) is one of the world’s major aerospace firms with operations involving commercial aircraft, military aircraft, missiles, satellite systems, and information and battle management systems. As of a recent year, Boeing had $4,639 milli

> PepsiCo, Inc. (PEP), the parent company of Frito-Lay snack foods and Pepsi beverages, had the following current assets and current liabilities at the end of two recent years: a. Determine the (1) current ratio and (2) quick ratio for both years. Round

> The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years: a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place. b. What c

> Anson Industries, Inc., reported the following information on its 20Y1 income statement: Sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,000,000 Cost of goods sold. . . . . . . . . . . . . . . . .

> The table that follows shows the stock price, earnings per share, and dividends per share for three companies for a recent year: a. Determine the price-earnings ratio and dividend yield for the three companies. Round ratios and percentages to one decim

> Ralph Lauren Corporation (RL) sells apparel through company-owned retail stores. Financial information for Ralph Lauren follows (in thousands): Assume the apparel industry average return on total assets is 8.0%, and the average return on stockholders&a

> The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 20Y7, 20Y6, and 20Y5: The 20Y7 net income was $372,000, and the 20Y6 net income was $492,000. No dividends on common stock were declared between 20Y5

> Three major segments of the transportation industry are motor carriers, such as YRC Worldwide (YRCW); railroads, such as Union Pacific (UNP); and transportation logistics services, such as C.H. Robinson Worldwide, Inc. (CHRW). Financial statement informa

> On April 1, a patent with an estimated useful economic life of 12 years was acquired for $1,500,000. In addition, on December 31, it was estimated that goodwill of $6,000,000 was impaired. a. Record the acquisition of patent. b. Journalize the adjusting

> Recent balance sheet information for two companies in the food industry, Mondelez International, Inc. (MDLZ), and The Hershey Company (HSY), is as follows (in thousands): a. Determine the ratio of liabilities to stockholders’ equity f

> Hasbro, Inc. (HAS), and Mattel, Inc. (MAT), are the two largest toy companies in North America. Condensed liabilities and stockholders’ equity from a recent balance sheet are shown for each company as follows (in thousands): The opera

> An analysis of the general ledger accounts indicates that delivery equipment, which cost $75,000 and on which accumulated depreciation totaled $58,000 on the date of sale, was sold for $20,200 during the year. Using this information, indicate the items t

> An analysis of the general ledger accounts indicates that office equipment, which cost $245,000 and on which accumulated depreciation totaled $112,500 on the date of sale, was sold for $105,900 during the year. Using this information, indicate the items

> The income statement disclosed the following items for the year: Depreciation expense ……………………………………………………………. $ 57,600 Gain on disposal of equipment …………………………………………………. 33,600 Net income …………………………………………………………………………… 508,000 The changes in the curren

> The net income reported on the income statement for the current year was $93,700. Depreciation recorded on store equipment for the year amounted to $31,200. Balances of the current asset and current liability accounts at the beginning and end of the year

> List the errors you find in the following statement of cash flows. The cash balance at the beginning of the year was $240,000. All other amounts are correct, except the cash balance at the end of the year. Shasta Inc. Statement of Cash Flows For th

> On the basis of the details of the following fixed asset account, indicate the items to be reported on the statement of cash flows: ACCOUNT Land ACCOUNT NO. Balance Date Item Debit Credit Debit Credit Jan. 1 Balance 925,000 Mar. 12 Purchased for cas

> In a prior year, United Continental Holdings, Inc. (UAL), the parent company of United Airlines, reported a net loss of $723 million from operations. However, on its statement of cash flows, it reported $935 million of cash flows from operating activitie

> Climate Control Systems Co. offers its services to residents in the Spokane area. Selected accounts from the ledger of Climate Control Systems for the fiscal year ended December 31, 20Y2, are as follows: Prepare a statement of stockholdersâ€

> Professional Products Inc., a wholesaler of office products, was organized on February 5 of the current year, with an authorization of 50,000 shares of preferred 2% stock, $60 par and 1,000,000 shares of $8 par common stock. The following selected transa

> On May 15, Helena Carpet Inc., a carpet wholesaler, issued for cash 750,000 shares of no-par common stock (with a stated value of $1.50) at $4, and on June 30, it issued for cash 17,500 shares of preferred stock, $50 par at $60. a. Journalize the entries

> On January 22, Jefferson County Rocks Inc., a marble contractor, issued for cash 210,000 shares of $30 par common stock at $34, and on February 27, it issued for cash 15,000 shares of preferred stock, $9 par at $12. a. Journalize the entries for January

> Sumter Pumps Corporation, a manufacturer of industrial pumps, reports the following results for the year ended December 31, 20Y3: Retained earnings, January 1, 20Y3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $59,650,000 Net income . .

> Specialty Auto Racing Inc. retails racing products for BMWs, Porsches, and Ferraris. The following accounts and their balances appear in the ledger of Specialty Auto Racing on July 31, the end of the current year: Common Stock, $36 par. . . . . . . . .

> SprayCo Inc. develops and produces spraying equipment for lawn maintenance and industrial uses. On March 9 of the current year, SprayCo reacquired 62,000 shares of its common stock at $51 per share. On June 9, 48,000 of the reacquired shares were sold at

> Mystic Lake Inc. bottles and distributes spring water. On July 9 of the current year, Mystic Lake reacquired 60,000 shares of its common stock at $42 per share. On September 22, Mystic Lake sold 45,000 of the reacquired shares at $51 per share. The remai

> Selected transactions completed by Canyon Ferry Boating Corporation during the current fiscal year are as follows: Journalize the transactions. 8. Split the common stock 2 for 1 and reduced the par from $100 to $50 per share. After the split, there

> Healthy Life Co. is an HMO for businesses in the Fresno area. The following account balances appear on Healthy Life’s balance sheet: Common stock (3,000,000 shares authorized; 2,200,000 shares issued), $15 par, $33,000,000; Paid-in capital in excess of p

> Determine the present value of $200,000 to be received at the end of each of four years, using an interest rate of 7%, compounded annually, as follows: a. By successive computations, using the present value of $1 table in Exhibit 5. Exhibit 5: b. By u

> Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 20Y8, were as follows: a. Issued 15,000 shares of $20 par common stock at $30, receiving cash. b. Issued 4,000 shares of $80 par preferred 5% stock at $10

> Palisade Creek Co. is a retail business that uses the perpetual inventory system. The account balances for Palisade Creek as of May 1, 20Y6 (unless otherwise indicated), are as follows: During May, the last month of the fiscal year, the following trans

> Photo Chemicals produces two types of photograph-developing fluids at a cost of E1.00 per litre. Let: x1 = litre of product 1 x2 = litre of product 2 Photo Chemicals management requires that at least 30 litres of product 1 and at least 20 litres

> A local health clinic is keen to raise awareness and understanding of AIDS/HIV in the local community and has managed to attract some funding for local advertising. The clinic would like to determine the best way to allocate a monthly advertising budge

> Management Decision Systems (MDS) is a consulting company that specializes in the development of decision support systems. MDS obtained a contract to develop a computer system to assist the management of a large company in formulating its capital expen

> For Problem 6: a. How much would profit increase if an additional 30 hours became available in the cutting and dyeing department (i.e., if b1 were increased from 630 to 660)? b. How much would profit decrease if 40 hours were removed from the sewin

> For Problem 6: a. Calculate the range of feasibility for b1 (cutting and dyeing capacity). b. Calculate the range of feasibility for b2 (sewing capacity). c. Calculate the range of feasibility for b3 (finishing capacity). d. Calculate the range o

> A product is produced at three plants and shipped to three warehouses (the transportation costs per unit are shown in the following table). a. Show a network representation of the problem. b. Develop a linear programming model for minimizing

> North Yorkshire University is installing a secure electronic mail system. The following network shows the possible electronic connections among the offices. Distances between offices are shown in km. Develop a design for the office communication system

> Solve the following linear programme using the graphical approach: Put the linear programme in tableau form, and solve using the Simplex method. Show the sequence of extreme points generated by the Simplex method on your graph.  

> Kunz and Sons manufactures two products used in the heavy equipment industry. Both products require manufacturing operations in two departments. The following are the production time (in hours) and profit contribution figures for the two products.

> EZ-Windows manufactures replacement windows for the home renovation business. In January, the company produced 15 000 windows and ended the month with 9000 windows in inventory. EZ-Windows management team would like to develop a production schedule for

> The Our-Bags-Don’t-Break (OBDB) plastic bag company manufactures three plastic refuse bags for home use: a 20 litre garbage bag, a 30 litre garbage bag and a 33 litre leaf-andgrass bag. Using purchased plastic material, three operations are requi

> Filtron Corporation produces filtration containers used in water treatment systems. Although business has been growing, the demand each month varies considerably. As a result, the company utilizes a mix of part-time and full-time employees to meet prod

> For the HighTech problem, we found the range of feasibility for b1, the assembly time available (see Section 6.1). a. Find the range of feasibility for b2. b. Find the range of feasibility for b3. c. How much will HighTech’s profit increase

> Liva’s Lumber manufactures three types of plywood. The following table summarizes the production hours per unit in each of three production operations and other data for the problem. How many units of each grade of plywood should be prod

> Use the pairwise comparison matrix for the price criterion shown in Table 14.8 to verify that the priorities after synthesization are 0.123, 0.320 and 0.557. Calculate the consistency ratio and comment on its acceptability. Data from table 14.8:

> A committee in charge of promoting a Ladies’ Professional Golf Association tournament is trying to determine how best to advertise the event during the two weeks prior to the tournament. The committee obtained the following information about the

> Refer to Problem 12. Suppose that the individual had stated the following judgements instead of those given in Problem 12. A is strongly more preferable than C. B is equally to moderately more preferable than A. B is strongly more preferable than

> An organization is investigating relocating its corporate headquarters to one of three possible cities. The following pairwise comparison matrix shows the president’s judgements regarding the desirability for the three cities. a. Determi

> Zondo Industries is considering purchasing an insurance policy for its new office building in Port Elizabeth. The policy has an annual cost of €10 000. If Zondo Industries does not purchase the insurance and minor fire damage occurs to the office

> Three decision makers have assessed utilities for the following decision problem (payoff in euros). The indifference probabilities are as follows. For the payoff of 20, what is the premium that the risk avoider will pay to avoid risk?

> Use the single-channel drive-up bank teller operation referred to in Problems 1 and 2 to determine the following operating characteristics for the system. a. The probability that no customers are in the system. b. The average number of customers wa

> Jobs arrive randomly at a particular assembly plant; assume that the mean arrival rate is five jobs per hour. Service times (in minutes per job) do not follow the exponential probability distribution. Two proposed designs for the plant’s assembly

> Patients arrive at a dentist’s office at a mean rate of 2.8 patients per hour. The dentist can treat patients at the mean rate of three patients per hour. A study of patient waiting times shows that, on average, a patient waits 30 minutes before

> Show a separate graph of the constraint lines and feasible solutions for each of the following constraints:  

> A fast-food franchise is considering operating a drive-up window food-service operation. Assume that customer arrivals follow a Poisson probability distribution, with a mean arrival rate of 24 cars per hour, and that service times follow an exponential

> Stad National Bank operates a drive-up teller window that allows customers to complete bank transactions without getting out of their cars. On weekday mornings, arrivals to the drive-up teller window occur at random, with a mean arrival rate of 24 cust

> The reorder point [see Equation (10.6)] is defined as the lead-time demand for an item. In cases of long lead times, the lead-time demand and thus the reorder point may exceed the economic order quantity Q*. In such cases, the inventory position will n

> For Isa Distributors in Problem 17, we were given Q* = 25, D = 200, Ch = €5 and a normal lead-time demand distribution with / a. What is Isa’s reorder point if the firm is willing to tolerate two stock-outs during the year? b. What is Is

> A retail outlet sells a seasonal product for E10 per unit. The cost of the product is E8 per unit. All units not sold during the regular season are sold for half the retail price in an end of- season clearance sale. Assume that demand for the product i

> Apply the EOQ model to the following quantity discount situation in which D = 500 units per year, Co = E40 and the annual holding cost rate is 20 per cent. What order quantity do you recommend?  

> HamiltonCounty Parks is planning to develop a new park and recreational area. Project development activities include clearing playground and picnic areas, constructing roads, constructing a shelter house, purchasing picnic equipment and so on. The foll

> The product development group at Landon Corporation has been working on a new computer software product that has the potential to capture a large market share. Through outside sources, Landon’s management learned that a competitor is working to i

> Consider the following minimum cost transportation problem. a. Use the minimum cost method to find an initial feasible solution. b. Use the transportation Simplex method to find an optimal solution. c. How would the optimal solution change i

> Consider the following minimum cost transportation problem. a. Use the minimum cost method to find an initial feasible solution. b. Use the transportation Simplex method to find an optimal solution. c. Using your solution to part (b), identi