Here are the comparative income statements of Crane Corporation.
CRANE CORPORATION
Comparative Income Statement
For the Years Ended December 3120222021Net sales$ 640,900$ 570,000Cost of goods sold 434,700 405,900Gross Profit 206,200 164,100Operating expenses 77,800 41,200Net income$ 128,400$ 122,900
(a)
Prepare a horizontal analysis of the income statement data for Crane Corporation, using 2021 as a base. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 1 decimal place, e.g. 12.1%.)
CRANE CORPORATION
Comparative Income Statement
choose the accounting period
Increase or (Decrease) During 202220222021AmountPercentageNet sales$ 640,900$ 570,000$ enter a dollar amount enter percentages rounded to 1 decimal place %Cost of goods sold 434,700 405,900 enter a dollar amount enter percentages rounded to 1 decimal place %Gross Profit 206,200 164,100 enter a dollar amount enter percentages rounded to 1 decimal place %Operating expenses 77,800 41,200 enter a dollar amount enter percentages rounded to 1 decimal place %Net income$ 128,400$ 122,900$ enter a dollar amount enter percentages rounded to 1 decimal place %
(b)
Prepare a vertical analysis of the income statement data for Crane Corporation for both years. (Round percentages to 1 decimal place, e.g. 12.1%.)
CRANE CORPORATION
Condensed Income Statements
choose the accounting period
2022
2021
$
Percent
$
Percent
Net sales
$ 640,900
enter percentages rounded to 1 decimal place
%
$ 570,000
enter percentages rounded to 1 decimal place
%
Cost of goods sold
434,700
enter percentages rounded to 1 decimal place
%
405,900
enter percentages rounded to 1 decimal place
%
Gross Profit
206,200
enter percentages rounded to 1 decimal place
%
164,100
enter percentages rounded to 1 decimal place
%
Operating expenses
77,800
enter percentages rounded to 1 decimal place
%
41,200
enter percentages rounded to 1 decimal place
%
Net income
$ 128,400
enter percentages rounded to 1 decimal place
%
$ 122,900
enter percentages rounded to 1 decimal place
Selected hypothetical financial data of Target and Wal-Mart for 2022 are presented here (in millions).
Target
CorporationWal-Mart
Stores, Inc.Income Statement Data for YearNet sales$65,600$418,000Cost of goods sold45,000310,000Selling and administrative expenses14,30075,000Interest expense7202,200Other income (expense)(90)(380)Income tax expense1,400 6,900 Net income$ 4,090 $ 23,520 Balance Sheet Data
(End of Year)Current assets$18,000$47,000Noncurrent assets26,100 121,000 Total assets$44,100 $168,000 Current liabilities$10,000$55,000Long-term debt18,30043,000Total stockholders equity15,800 70,000 Total liabilities and stockholders equity$44,100 $168,000 Beginning-of-Year BalancesTotal assets$44,000$165,000Total stockholders equity13,20066,000Current liabilities10,80054,000Total liabilities30,80099,000Other DataAverage net accounts receivable$7,900$4,100Average inventory7,10034,100Net cash provided by operating activities5,70025,900Capital expenditures1,60011,500Dividends5204,200
For each company, compute the following ratios. (Round current ratio answers to 2 decimal places, e.g. 15.50, debt to assets ratio and free cash flow answers to 0 decimal places, e.g. 5,275 and all answers to 1 decimal place, e.g. 1.8 or 1.83%.)
RatioTargetWal-Mart(1)Current ratioenter the current ratio :1enter the current ratio :1(2)Accounts receivable turnoverenter accounts receivable turnover in times timesenter accounts receivable turnover in times times(3)Average collection periodenter average collection period in days daysenter average collection period in days days(4)Inventory turnoverenter inventory turnover in times timesenter inventory turnover in times times(5)Days in inventoryenter days in inventory ratio daysenter days in inventory ratio days(6)Profit marginenter percentages %enter percentages %(7)Asset turnoverenter asset turnover in times timesenter asset turnover in times times(8)Return on assetsenter percentages %enter percentages %(9)Return on common stockholders equityenter percentages %enter percentages %(10)Debt to assets ratioenter percentages %enter percentages %(11)Times interest earnedenter times interest earned timesenter times interest earned times(12)Free cash flow$enter a dollar amount $enter a dollar amount
