Question

1. Using these data from the comparative balance sheet of Crane Company, perform horizontal analysis. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 0 decimal places, e.g. 12%.)

						Increase or (Decrease)
		Dec. 31, 2022		Dec. 31, 2021		Amount		Percentage
Accounts receivable		$ 489,060		$ 429,000		$enter a dollar amount		enter percentages rounded to 0 decimal places	%
Inventory		$ 731,250		$ 625,000		$enter a dollar amount		enter percentages rounded to 0 decimal places	%
Total assets		$3,069,150		$2,765,000		$enter a total amount		enter percentages rounded to 0 decimal places	%

2. Suppose these selected condensed data are taken from recent balance sheets of Bob Evans Farms (in thousands).

		2022		2021
Cash		$12,190		$11,991
Accounts receivable		23,800		20,200
Inventory		30,200		30,800
Other current assets		11,500		11,909
Total current assets		$77,690		$74,900
Total current liabilities		$228,500		$299,600

Compute the current ratio for each year. (Round answers to 2 decimal places, e.g. 2.12.)

		2022			2021
Current ratio		enter the current ratio	:1		enter the current ratio	:1

3. Nordstrom, Inc. operates department stores in numerous states. Selected hypothetical financial statement data (in millions) for 2022 are presented below.

		End of Year				Beginning of Year
Cash and cash equivalents			$ 790				$ 75
Accounts receivable (net)			2,080				1,870
Inventory			870				830
Other current assets			440				505
Total current assets			$4,180				$3,280
Total current liabilities			$2,090				$1,600

For the year, net credit sales were $8,295 million, cost of goods sold was $5,355 million, and net cash provided by operating activities was $1,251 million.

Compute the current ratio, accounts receivable turnover, average collection period, inventory turnover, and days in inventory at the end of the current year. (Round current ratio to 2 decimal places, e.g. 1.82 and all other answers to 1 decimal place, e.g. 1.8. Use 365 days for calculation.)

Current ratio		Enter current ratio rounded to two decimal places	:1
Accounts receivable turnover		Enter accounts receivable turnover in times rounded to one decimal place	times
Average collection period		Enter average collection period in days rounded to one decimal place	days
Inventory turnover		Enter inventory turnover in times rounded to one decimal place	times
Days in inventory		Enter days in inventory rounded to one decimal place	days

Answer 1

Q.1

Account	Amount	Percentage
Account recievable	$60,060	14%
Inventory	$106250	17%
Total Assets	$304,150	11%

Q.2

Current Ratio=Current Assets/Current liabilities

Particluars	2022	2021
Total Current Assts	$77,690	$74,900
Total Current Liabilities	$228,500	$299,600
Current Ratio	0.34:1	0.25:1

Q.3

1.Current Ratio=Current Assets/Current liabilties

=4180/2090=2:1

2. Accounts Recievable Turnover=Net Credit sales/(Average accounts recievable)

=8925/{(2080+1870)/2}

=8925/1975

=4.2 times

3 Average collection period= 365/Accounts receivable turnover ratio

=365/4.2

=87 days

4 inventory Turover ratio= (Cost of Goods sold)/(average inventory)

=5355/{(870+830)/2}

=5355/850

=6.3 times

5. Days in Inventory= 365/inventory TO ratio

=365/6.3

=58 days