2023 Horizontal and Vertical Analysis Sanborn Corporation s condensed comparative income statements for 20×8 and 20×7 appear below The corporation s | Assignments Online
2023 Horizontal and Vertical Analysis Sanborn Corporation s condensed comparative income statements for 20×8 and 20×7 appear below The corporation s | Assignments Online
Assignments Online 2023 Business & Finance
Horizontal and Vertical Analysis
Sanborn Corporation’s condensed comparative income statements for 20×8 and 20×7 appear below. The corporation’s condensed comparative balance sheets for 20×8 and 20×7 appear on the next page.
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Sanborn Corporation |
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Comparative Income Statements |
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For the Years Ended December 31, 20×8 and 20×7 |
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(in thousands of dollars) |
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20×8 |
20×7 |
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Net sales |
$3,276,800 |
$3,146,400 |
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Cost of goods sold |
2,088,800 |
2,008,400 |
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Gross margin |
$1,188,000 |
$1,138,000 |
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Operating expenses |
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Selling expenses |
$ 476,800 |
$ 518,000 |
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Administrative expenses |
447,200 |
423,200 |
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Total operating expenses |
$ 924,000 |
$ 941,200 |
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Income from operations |
$ 264,000 |
$ 196,800 |
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Interest expense |
65,600 |
39,200 |
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Income before income taxes |
$ 198,400 |
$ 157,600 |
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Income taxes expense |
62,400 |
56,800 |
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Net income |
$ 136,000 |
$ 100,800 |
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Earnings per share |
$3.40 |
$2.52 |
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a
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Sanborn Corporation |
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Comparative Balance Sheets |
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December 31, 20×8 and 20×7 |
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20×8 |
20×7 |
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Assets |
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Cash |
$ 81,200 |
$ 40,800 |
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Accounts receivable (net) |
235,600 |
229,200 |
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Inventory |
574,800 |
594,800 |
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Property, plant, and |
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equipment (net) |
750,000 |
720,000 |
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Total assets |
$1,641,600 |
$1,584,800 |
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Liabilities and Stockholders’ Equity |
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Accounts payable |
$ 267,600 |
$ 477,200 |
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Notes payable (short-term) |
200,000 |
400,000 |
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Bonds payable |
400,000 |
— |
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Common stock, $10 par value |
400,000 |
400,000 |
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Retained earnings |
374,000 |
307,600 |
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Total liabilities and |
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stockholders’ equity |
$1,641,600 |
$1,584,800 |
a
1. Prepare schedules showing the amount and percentage changes from 20×7 to 20×8 for the comparative income statements and the balance sheets. You may use the forms below. (40 points)
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Sanborn Corporation |
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Comparative Income Statements |
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For the Years Ended December 31, 20×8 and 20×7 |
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(in thousands of dollars) |
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20×8 |
20×7 |
Increase or Decrease |
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Amount |
Percentage |
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Net sales |
$3,276,800 |
$3,146,400 |
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Cost of goods sold |
2,088,800 |
2,008,400 |
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|
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Gross margin |
$1,188,000 |
$1,138,000 |
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|
|
|
Operating expenses |
|
|
|
|
|
|
|
Selling expenses |
$ 476,800 |
$ 518,000 |
|
|
|
|
Administrative expenses |
447,200 |
423,200 |
|
|
|
|
Total operating expenses |
$ 924,000 |
$ 941,200 |
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Income from operations |
$ 264,000 |
$ 196,800 |
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|
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Interest expense |
65,600 |
39,200 |
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|
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Income before income taxes |
$ 198,400 |
$ 157,600 |
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Income taxes expense |
62,400 |
56,800 |
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Net income |
$ 136,000 |
$ 100,800 |
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Earnings per share |
$3.40 |
$2.52 |
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Remaining question in attached file …
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