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Linda_us
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I need help with this...need it back by Wednesday night 2/13/13...Will

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I need help with this...need it back by Wednesday night 2/13/13...Will pay...
The condensed financial statements of Leeward Corporation for 2006 and 2005 are presented below.

Leeward Corporation Leeward Corporation
Balance Sheet Income Statement
December 31, 2006 For the Year Ended December 31, 2006

Assets Revenues $2,500,000
Current assets Expenses
Cash and temporary Cost of goods sold 1,080,000
investments $ 50,000 Selling and administrative
Accounts receivable 70,000 expenses 495,000
Inventories 120,000 Interest expense 30,000
Total current assets 240,000 Total expenses 1,605,000
Property, plant, and Income before income taxes 895,000
equipment (net) 780,000 Income tax expense 268,500
Total assets $1,020,000 Net income $ 626,500


Liabilities and Stockholders' Equity
Current liabilities $ 100,000
Long-term liabilities 300,000
Common stockholders' equity 620,000
Total liabilities and
stockholders' equity $1,020,000






Leeward Corporation Leeward Corporation
Balance Sheet Income Statement
December 31, 2005 For the Year Ended December 31, 2005

Assets Revenues $2,500,000
Current assets Expenses
Cash and temporary Cost of goods sold 1,750,000
investments $ 40,000 Selling and administrative
Accounts receivable 90,000 expenses 500,000
Inventories 150,000 Interest expense 30,000
Total current assets 280,000 Total expenses 2,280,000
Property, plant, and Income before income taxes 220,000
equipment (net) 800,000 Income tax expense 66,000
Total assets $1,080,000 Net income $ 154,000


Liabilities and Stockholders' Equity
Current liabilities $ 140,000
Long-term liabilities 320,000
Common stockholders' equity 620,000
Total liabilities and
stockholders' equity $1,080,000






























Instructions

1. Compute the following listed ratios for 2006.

(a) Current ratio = .

(b) Debt to total assets = .

(d) Profit margin ratio = .

(e) Return on common stockholders' equity = .

(f) Return on assets = .




2. Perform horizontal analysis on both the balance sheet and income statement.

Leeward Corporation
Balance Sheet
Horizontal Analysis

2006 2005 Change Percent
Assets
Cash and temporary investments $50,000 $40,000
Accounts receivable $70,000 $90,000
Inventories $120,000 $150,000
Total current assets $240,000 $280,000
Property, plant and equipment $780,000 $800,000
Total assets $1,020,000 $1,080,000

Liabilities & Stockholder’s Equity
Current liabilities $100,000 $140,000
Long-term liabilities $300,000 $320,000
Common stockholder’s equity $620,000 $620,000
Total liabilities and stockholder’s equity $1,020,000 $1,080,000













Leeward Corporation
Income Statement
Horizontal Analysis

2006 2005 Change Percent
Revenues $2,500,000 $2,500,000
Expenses
Cost of goods sold $1,080,000 $1,750,000
Selling & administrative expense $495,000 $500,000
Interest expense $30,000 $30,000
Total Expenses $1,605,000 $2,280,000
Income before income taxes $895,000 $220,000
Income tax expense $268,500 $66,000
Net Income $626,500 $154,000





3. Perform vertical analysis on both the balance sheet and income statement for 2005 and 2006.

Leeward Corporation
Balance Sheet
Vertical Analysis

2006 2005
Amount Percent Amount Percent
Assets
Cash and temporary investments $50,000 $40,000
Accounts receivable $70,000 $90,000
Inventories $120,000 $150,000
Total current assets $240,000 $280,000
Property, plant and equipment $780,000 $800,000
Total assets $1,020,000 $1,080,000

Liabilities & Stockholder’s Equity
Current liabilities $100,000 $140,000
Long-term liabilities $300,000 $320,000
Common stockholder’s equity $620,000 $620,000
Total liabilities and stockholder’s equity $1,020,000 $1,080,000







Leeward Corporation
Income Statement
Vertical Analysis

2006 2005
Amount Percent Amount Percent
Revenues $2,500,000 $2,500,000
Expenses
Cost of goods sold $1,080,000 $1,750,000
Selling & administrative expense $495,000 $500,000
Interest expense $30,000 $30,000
Total Expenses $1,605,000 $2,280,000
Income before income taxes $895,000 $220,000
Income tax expense $268,500 $66,000
Net Income $626,500 $154,000





4. Assess the financial performance of Leeward, using your analysis in #2 and #3 above. How have things changed from 2005 to 2006?













5. If the company wanted to perform industry comparison analysis, what references would you recommend it use?
Submitted: 1 year ago.
Category: Homework
Expert:  Linda_us replied 1 year ago.
Hi

Welcome and Thanks for asking your question. I can help you with this question.

Considering the amount of work involved please let me know if you are willing to add a Bonus of $30 once I post the solution.

Regards

Linda
Customer: replied 1 year ago.

Can you do it for a total of $50?

Expert:  Linda_us replied 1 year ago.
Its lots of work but since its your first time I will do it for $50.
Expert:  Linda_us replied 1 year ago.
Do you have better formatted version? Also request you to please recheck figures of 2006?
Customer: replied 1 year ago.

is there any way I can send to you as an attachment

Expert:  Linda_us replied 1 year ago.

You can upload a document here as a reply see upload process here.

Or you can upload it on site like www.box.com or www.mediafire.com and share the link here.
Customer: replied 1 year ago.

Ok lets give this a try...Here's the link


let me know if you are able to open it, thanks

Expert:  Linda_us replied 1 year ago.
Got it. I will post the solution by Wednessday evening this time.
Customer: replied 1 year ago.

Can I request your assistance? Thanks again

Expert:  Linda_us replied 1 year ago.
You can request me in future by writing "FOR LINDA" at start of your post.
Customer: replied 1 year ago.

Thanks for your response, sorry for the delay in response, I am just now getting home, left this morning at 9am...long day!! Thanks again for your assistance, I will check in tomorrow evening and I will be sure to rate your service, to this point your customer service skill are AWESOME!! Have a blessed evening and Thanks!!

Expert:  Linda_us replied 1 year ago.
Thanks you. I will post the solution by tomorrow.

Once I post the solution and you have you need any explanation for my solution feel free to ask.
Expert:  Linda_us replied 1 year ago.
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Linda_us, Finance, Accounts & Homework Tutor
Category: Homework
Satisfied Customers: 7060
Experience: Post Graduate Diploma in Management (MBA)
Linda_us and 3 other Homework Specialists are ready to help you
Customer: replied 1 year ago.

Hi Linda, how are you? I need your help again, easy one this time, are you one line?

Expert:  Linda_us replied 1 year ago.
Yes I am online.
Please create a new post and do write FOR LINDA at the start of the post so it come to me immediately.

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