For Neo BE15-3 Using the following data from the comparative…

E15-3
The comparative condensed balance sheets of Conard Corporation are presented below.
CONARD CORPORATION
Comparative Condensed Balance Sheets
December 31
2009 2008
Assets
Current assets $ 74,000 $ 80,000
Property, plant, and equipment (net) 99,000 90,000
Intangibles 27,000 40,000
Total assets $200,000 $210,000
Liabilities and stockholders’ equity
Current liabilities $ 42,000 $ 48,000
Long-term liabilities 143,000 150,000
Stockholders’ equity 15,000 12,000
Total liabilities and stockholders’ equity $200,000 $210,000
Instructions
(a) Prepare a horizontal analysis of the balance sheet data for Conard Corporation using 2008 as
a base.
(b) Prepare a vertical analysis of the balance sheet data for Conard Corporation in columnar
form for 2009.

E15-4 The comparative condensed income statements of Hendi Corporation are shown below.
HENDI CORPORATION
Comparative Condensed Income Statements
For the Years Ended December 31
2009 2008
Net sales $600,000 $500,000
Cost of goods sold 483,000 420,000
Gross profit 117,000 80,000
Operating expenses 57,200 44,000
Net income $ 59,800 $ 36,000
Instructions
(a) Prepare a horizontal analysis of the income statement data for Hendi Corporation using 2008
as a base. (Show the amounts of increase or decrease.)
(b) Prepare a vertical analysis of the income statement data for Hendi Corporation in columnar
form for both years.

E15-10 Rees Corporation experienced a fire on December 31, 2009, in which its financial
records were partially destroyed. It has been able to salvage some of the records and has ascertained
the following balances.
December 31, 2009 December 31, 2008
Cash $ 30,000 $ 10,000
Receivables (net) 72,500 126,000
Inventory 200,000 180,000
Accounts payable 50,000 90,000
Notes payable 30,000 60,000
Common stock, $100 par 400,000 400,000
Retained earnings 113,500 101,000
Additional information:
1. The inventory turnover is 3.5 times.
2. The return on common stockholders’ equity is 24%. The company had no additional paid-in
capital.
3. The receivables turnover is 8.8 times.
4. The return on assets is 20%.
5. Total assets at December 31, 2008, were $605,000.
734 Chapter 15 Financial Statement Analysis
Compute selected ratios.
(SO 5)
Compute amounts from ratios.
(SO 5)
Instructions
Compute the following for Rees Corporation.
(a) Cost of goods sold for 2009.
(b) Net sales (credit) for 2009.
(c) Net income for 2009.
(d) Total assets at December 31, 2009.

missed this question:

E15-4 The comparative condensed income statements of Hendi Corporation are shown below. HENDI CORPORATION Comparative Condensed Income Statements For the Years Ended December 31 2009 2008 Net sales $600,000 $500,000 Cost of goods sold 483,000 420,000 Gross profit 117,000 80,000 Operating expenses 57,200 44,000 Net income $ 59,800 $ 36,000 Instructions (a) Prepare a horizontal analysis of the income statement data for Hendi Corporation using 2008 as a base. (Show the amounts of increase or decrease.) (b) Prepare a vertical analysis of the income statement data for Hendi Corporation in columnar form for both years.

9) The first step in the recording process is to
A.prepare a trial balance.
B.post to a journal.
C.analyze each transaction for its effect on the accounts.
D.prepare financial statements.
10) If a company has overdrawn its bank balance, then
A.the cash account debits will exceed the cash account credits.
B.its cash account will show a credit balance.
C.it cannot be detected by observing the balance of the cash account.
D.its cash account will show a debit balance.
11) Posting
A.involves transferring all debits and credits on a journal page to the trial balance.
B.accumulates the effects of journalized transactions in the individual accounts.
C.is accomplished by examining ledger accounts and seeing which ones need updating.
D.should be performed in account number order.
12) The dividends account
A.is increased with debits and decreased with credits.
B.must show transactions every accounting period.
C.is not a proper subdivision of stockholders' equity.
D.appears on the income statement
13) After journal entries are posted, the reference column
A.of the general journal will show "Dr" or "Cr".
B.of the general ledger will show journal page numbers.
C.of the general ledger will show account numbers.
D.of the general journal will be blank.
14) The procedure of transferring journal entries to the ledger accounts is called
A.reporting.
B.analyzing.
C.posting.
D.journalizing.
15) Posting of journal entries should be done in
A.chronological order.
B.alphabetical order.
C.dollar amount order.
D.account number order.