The document details financial analysis exercises for companies such as Bramble Corp, Wildhorse Co, Windsor, Inc., Swifty Corporation, and Novak Corp., focusing on income statements, retained earnings statements, and balance sheets. It includes instructions for creating financial statements using provided financial data, requiring identification of assets, liabilities, stockholders' equity, revenues, and expenses. Additionally, it prompts the calculation of financial ratios to assess companies' financial health.

1. Exercise 1-5
Suppose the following information was taken from the 2017
financial statements of pharmaceutical giant Bramble Corp. (All
dollar amounts are in millions.)
Retained earnings, January 1, 2017
$46,836.3
Cost of goods sold
9,460.6
Selling and administrative expenses
8,592.7
Dividends
3,387.0
Sales revenue
38,203.8
Research and development expense
5,960.5
Income tax expense
2,691.2

2. After analyzing the data, prepare an income statement for the
year ending December 31, 2017. (Enter amounts in millions
upto 1 decimal place, e.g. 45.5 million.)
Bramble Corp.
Income Statement
(in millions)
$
$

3. $
SHOW LIST OF ACCOUNTS
LINK TO TEXT
After analyzing the data, prepare a retained earnings statement
for the year ending December 31, 2017. (List items that increase
retained earnings first. Enter amounts in millions upto 1
decimal place, e.g. 45.5 million.)
Bramble Corp.
Retained Earnings Statement
(in millions)
$
:

4. :
$
Exercise 1-11
Wildhorse Co. is the world’s leading producer of ready-to-eat
cereal and a leading producer of grain-based convenience foods
such as frozen waffles and cereal bars. Suppose the following
items were taken from its 2017 income statement and balance
sheet. (All dollars are in millions.)
Retained earnings
$4,800
Cost of goods sold
6,860
Selling and administrative expenses
3,640
Cash
340
Notes payable
40
Interest expense
340

5. Bonds payable
4,700
Inventory
740
Sales revenue
12,400
Accounts payable
1,070
Common stock
140
Income tax expense
430
In each case, identify whether the item is an asset, liability,
stockholders’ equity, revenue, or expense.
Retained earnings
Cost of goods sold

6. Selling and administrative expenses
Cash
Notes payable
Interest expense
Bonds payable
Inventory
Sales revenue
Accounts payable
Common stock
Income tax expense
SHOW LIST OF ACCOUNTS
LINK TO TEXT

7. Prepare an income statement for Wildhorse Co. for the year
ended December 31, 2017. (Enter amounts in millions, e.g. 45.)
Wildhorse Co.
Income Statement
(in millions)
$
$

8. $
Exercise 1-14
Wayne Holtz is the bookkeeper for Windsor, Inc.. Wayne has
been trying to get the balance sheet of Windsor, Inc. to balance.
It finally balanced, but now he’s not sure it is correct.
Windsor, Inc.
Balance Sheet
December 31, 2017
Assets
Liabilities and Stockholders’ Equity
Cash
$12,400
Accounts payable
$10,400
Supplies
15,100

9. Accounts receivable
(17,600
)
Equipment
34,400
Common stock
45,600
Dividends
13,600
Retained earnings
37,100
Total assets
$75,500
Total liabilities and stockholders’ equity
$75,500
Prepare a correct balance sheet. (List assets in order of
liquidity.)
Windsor, Inc.
Balance Sheet
Assets

10. $
$

11. Liabilities and Stockholders' Equity
$
$

12. $
Exercise 2-2
Classify each of the following financial statement items based
upon the major balance sheet classifications.
Prepaid advertising
Equipment
Trademarks
Salaries and wages payable

13. Income taxes payable
Retained earnings
Accounts receivable
Land (held for future use)
Patents
Bonds payable
Common stock
Accumulated depreciation—equipment
Unearned sales revenue
Inventory
Exercise 2-4
Suppose the following information (in thousands of dollars) is
available for Swifty Corporation—famous for ketchup and other
fine food products—for the year ended April 30, 2017.
Prepaid insurance

14. $ 140,700
Buildings
$4,002,900
Land
72,200
Cash
360,900
Goodwill
3,980,400
Accounts receivable
1,146,100
Trademarks
770,800
Accumulated depreciation—buildings
2,144,500
Inventory
1,269,500

15. Prepare the assets section of a classified balance sheet. (List
current assets in order of liquidity.)
Swifty Corporation
Partial Balance Sheet
(in thousands)
Assets
$

16. $
$

17. :

18. $
Exercise 2-8
These financial statement items are for Novak Corp. at year-
end, July 31, 2017.
Salaries and wages payable
$ 3,980
Salaries and wages expense
58,900
Supplies expense
16,800
Equipment
20,400
Accounts payable
4,100
Service revenue
67,500
Rent revenue

19. 9,700
Notes payable (due in 2020)
3,000
Common stock
16,000
Cash
30,300
Accounts receivable
10,980
Accumulated depreciation—equipment
7,700
Dividends
4,000
Depreciation expense
5,700
Retained earnings (beginning of the year)
35,100
Prepare an income statement for the year. Novak Corp. did not

20. issue any new stock during the year.
Novak Corp.
Income Statement
$
$
$

21. $
SHOW LIST OF ACCOUNTS
LINK TO TEXT
LINK TO TEXT
Prepare a retained earnings statement for the year. Novak Corp.
did not issue any new stock during the year.
Novak Corp.
Retained Earnings Statement
$
:
$
:

22. $
SHOW LIST OF ACCOUNTS
LINK TO TEXT
LINK TO TEXT
Prepare a classified balance sheet at July 31. (List current assets
in order of liquidity.)
Novak Corp.
Balance Sheet
Assets

23. $
$

24. :
$
Liabilities and Stockholders' Equity
$

25. $

26. $

27. SHOW LIST OF ACCOUNTS
LINK TO TEXT
LINK TO TEXT
Compute the current ratio and debt to assets ratio. (Round
answers to 1 decimal place, e.g. 15.2.)
Current ratio
:1
Debt to assets ratio
%