Question

1 Dzajah Smith Chapter 12 - Part 1 Principles of Financial Accounting (ACC 221) Winter 2020 LA CROSSE CORPORATION Vertical Analysis of Balance Sheet G ets 2021 2020 7 8 9 10 11 Asus Current Assets: Cash and cash equivalents Receivables, ne! Inventory S 48.978 12.875 79,360 8.640 147.693 25 989 261.682 122.337 24.905 202.495 13 Total curent assets 14 Property, plant and equipment at cost Land and buildings Fund equipment 17 Camour hardware and so were 18 Less-accumulated depreciation and aronization 19 Property.plant & equipment, net 20 Tatal assets 76.560 69,751 80 378 (98,941) 127,748 70.918 67 513 68.419 185.936) 120,854 100.0% 100.0% 21 70.846 49,801 120.646 8.345 79.410 38.858 116.288 22 Listilities and it 23 Current liabilities: 24 | Accounts payable 25 Accued liabilities 26 Tak l idiliis 27 Longterm disabilities 28 Equity 29 Cormon stock, 28100 shares outstanding, 51 par 30 Additional paid in capital, common stock 31 Retained earings 32 Treasury stock 33 Total shareholders investment 34 Total liabilities and shareholder investment 281 261 238 113 184 997 (162,932) 260.440 32.430 173.342 119.584 188,944) 204 223 329.959 100.0% 100.0% nes LA CROSSE CORPORATION Vertical Analysis of Income Statement For the period ended December 31 2021 2020 1,020,8093 950.434 570.153 546,393 450.656 404091 373 115 384,012 77,541 40,729 2021 100.0% 2020 100.0% 40 Net Sales 41 Cas of sales 42 Gross Profit 43 Selling general and admin. 44 Income from operations 45 Other income fexpense 46 Inscxpense, ne! 47 Depreciation & amort. 48 Gains & Jasses 49 Total other income (expense) 50 Income before income taxes 51 leemelerisien Notingeme 13781 (14266) 22.582 7,438 84.979 983) 19.9351 (4.798) 14322) 35,757 8 224 27.533 19.545 65.434 54 LA CROSSE CORPORATION Horizontal Analysis of Balance Sheet Dec 31 2021 2020 Increase oral $ Amount 3 79.360 8.640 147.693 25 989 281.8R2_ 40,978 12.875 122.337 24.905 20.025 76.560 69.751 80 378 198.941) 70.918 67 513 68 419 185,988) 120,854 127.748 59,471 57 Arts 58 Curront Assets: 59 Cash and cash equivalents 60 Receivables, ne! 61 Inventory 62 Prepaid expenses 63 TL 64 Property, plant and equipment, at cost 65 and and buildings 66 Fixtures and equipment 67 Computer hardware and software 68 Less-accumulated depreciation and aronization 69 Property.plant & equipment, ne! 70 Total assets 71 72 Listilities and it 73 Current liabilities: 74 Accounts payable 75 Acued liabilises 76 Tel liskies 77 Longterm listilities 78 Equity 79 Common stock, 28100 shares outstanding, 51 par 80 Additional paid in capital, common stock 81 Retained earings 82 Treasury stock 83 Total shareholders investment 84 Totallatsilities and share investment 5 79,410 70.846 49.801 121.648 A 45 110289 261 238.113 184987 (162.932) 280.440 382430 281 173.342 119.584 (88,944) 204 223 329.959 59,471 86 Increase (decrease 20124 LA CROSSE CORPORATION Horizontal Analysis of Income Statement For the period ended December 31 2020 1,020,809 S 950,494 570,153 546,393 450 656 404.091 373,115 384,012 77,541 40.729 $ Amount 20.325 7.4% 90 Not Sales 91 Cast of sales 92 Gross Profi 93 Selling general and admin. 94 Income from operations 95 Other incore expense): 96 Interest expense, ne! 97 Depreciation & amort. 98 Guns & doseest 99 Total other income expense) 100 Inoomne before income taxes 101 leeme vision 102 Netiname (14266) 22.582 7438 84.979 19.545 65.434 1983) (9,935) 14,798) (4,322) 35,757 .224 272523 103

Answer 1

			% of total assets
	2021	2020	2021	2020
Current Asset
cash and cash equivalents	79360	48978	20.38	14.84
receivables net	8640	12875	2.22	3.90
inventory	147693	122337	37.93	37.08
prepaid expenses	25989	24905	6.67	7.55
total current assets	261682	209095	67.20	63.37
PPE at cost
land and building	76560	70918	19.66	21.49
fixture and equipment	69751	67513	17.91	20.46
computer hardware and software	80378	68419	20.64	20.74
less: ad	-98941	-85986	(25.41)	(26.06)
PPE net	127748	120864	32.80	36.63
total assets	389430	329959	100	100
Liabilities and Equity
Accounts Payable	70846	79410	18.19	24.07
Accrued liabilities	49800	36857	12.79	11.17
Total current liabilities	120646	116267	30.98	35.24
Long term liabilities	8345	9469	2.14	2.87
Equity
common stock 26100 shares os $1 per	261	261	0.07	0.08
additional paid in capital	238113	173342	61.14	52.53
retained earning	184997	119564	47.50	36.24
treasury stock	-162932	-88944	(41.84)	(26.96)
total shareholders investment	260439	204223	66.88	61.89
total liabilities and shareholder inv	389430	329959	100	100
Net sales	1020809	950484	100.00	100.00
cost of sales	570153	546393	55.85	57.49
gross profit	450656	404091	44.15	42.51
selling general and admin	373115	364012	36.55	38.30
income from operation	77541	40079	7.60	4.22
other income (expense)
interest expense (net)	-878	-983	(0.09)	(0.10)
depr	-14266	-9935	(1.40)	(1.05)
gains and (losses)	22582	-4798	2.21	(0.50)
total other income (expense)	7438	-4322	0.73	(0.45)
income before it	84979	35757	8.32	3.76
it prov	19545	8224	1.91	0.87
net income	65434	27533	6.41	2.90
			Increase / decrease
			amount	%
Current Asset
cash and cash equivalents	79360	48978	30382	62.03
receivables net	8640	12875	-4235	(32.89)
inventory	147693	122337	25356	20.73
prepaid expenses	25989	24905	1084	4.35
total current assets	261682	209095	52587	25.15
PPE at cost
land and building	76560	70918	5642	7.96
fixture and equipment	69751	67513	2238	3.31
computer hardware and software	80378	68419	11959	17.48
less: ad	-98941	-85986	-12955	15.07
PPE net	127748	120864	6884	5.70
total assets	389430	329959	59471	18.02
Liabilities and Equity
Accounts Payable	70846	79410	-8564	(10.78)
Accrued liabilities	49800	36857	12943	35.12
Total current liabilities	120646	116267	4379	3.77
Long term liabilities	8345	9469	-1124	(11.87)
Equity
common stock 26100 shares os $1 per	261	261	0	-
additional paid in capital	238113	173342	64771	37.37
retained earning	184997	119564	65433	54.73
treasury stock	-162932	-88944	-73988	83.18
total shareholders investment	260439	204223	56216	27.53
total liabilities and shareholder inv	389430	329959	59471	18.02
			Increase / decrease
			amount	%
Net sales	1020809	950484	70325	7.40
cost of sales	570153	546393	23760	4.35
gross profit	450656	404091	46565	11.52
selling general and admin	373115	364012	9103	2.50
income from operation	77541	40079	37462	93.47
other income (expense)
interest expense (net)	-878	-983	105	(10.68)
depr	-14266	-9935	-4331	43.59
gains and (losses)	22582	-4798	27380	570.65
total other income (expense)	7438	-4322	11760	272.10
income before it	84979	35757	49222	137.66
it prov	19545	8224	11321	137.66
net income	65434	27533	37901	137.66