Qrb 501 Week 5 Case Study 21-15-9

Case 21-1 Contemporary Wood Furniture Balance Sheet Decmeber 31, 2010 and 2011 Vertical Analysis 2011 2010 Amount Percent Amount Percent Assets Cash $1,844 1.0 $3,278 1.9 Accounts receivable 11,807 6.5 6,954 4.0 Merchandise Inventory 9,628 5.3 17,417 10.1 Total Current Assets 23,279 12.8 27,649 16.1 Plant and equipment Total plant and equipment 158,700 87.2 144,500 83.9 Total Assets $181,979 100.0 $172,149 100.0 Liabilities Curent liabilities Accounts payable $13,446 7.4 $9,250 5.4 Wages payable 650 0.4 1,110 0.6 Property and Taxes payable 4,124 2.3 3,650 2.1 Total current liabilities 18,220 10.0 14,010 8.1 Long-term liabilities Mortgage note payable Total long-term liabilities 92,800 51.0 75,800 44.0 Total Liabilities 111,020 61.0 89,810 52.2 Owner's Equity Owner's capital 70,959 39.0 82,339 47.8 Total liabilits and owner's equity $181,979 100.0 $172,149 100.0 Contemporary Wood Furniture Balance Sheet Decmeber 31, 2010 and 2011 Horizontal Analysis 2011 2010 Increase (Decrease) Amount

Case 8-3 Template Variables Used S1 S2 PP= $300.00 $300.00 1st CDF 0.80 0.82 2nd CDF 0.90 0.88 3rd CDF 0.95 0.93 Excel Formula NP= $205.20 $201.33 2. What is the net decimal equivalent for supplier 1? For supplier 2? Variables Used S1 S2 1st CDF 0.80 0.82 2nd CDF 0.90 0.88 3rd CDF 0.95 0.93 Excel Formula NDE= 0.684 0.671088 3. What is the trade discount from supplier 1? From supplier 2? Variables Used S1 S2 PP= $300.00 $300.00 NDE 0.684 0.671088 Excel Formula TD= $94.80 $98.67 INSTRUCTIONS: Read the case in the textbook. As a team, answer the quesTons in this spreadsheet, then save and submit the assignment as one Microsof® Excel® a±achment. Also, submit a 1-paragraph Microsof® Word document explaining any issues or successes you had in answering these quesTons. ReFer to and use the Following abbreviaTons For the problems below: • PP = Parma minimum supply purchase • S1 = Supplier 1 • S2 = Supplier 2 • CD² = Chain Discount ²actor • NP = Net Price • NDE = Net Decimal Equivalent • ³D = ³rade Discount 1. The Ar±st’s Pale²e purchases its inventory from a number of suppliers and each supplier o³ers di³erent purchasing discounts. The manager of The Ar±st’s Pale²e, Marty Parma, is currently comparing two o³ers for (Use this cell to answer parts a, b, and c. Be sure to show your work.) a)S1 100%-20%CD²=80%=0.80NDE 100%-10%CD²=90%=0.90NDE 100%-5%CD²=95%=0.95NDE 0.8(0.9) (0.95)=0.684NDE 0.684($300)=$205.20NP b)S2 100%-18%CD²=82%=0.82NDE 100%-12%CD²=88%=0.88NDE 100%-7%CD²=93%=0.93NDE 0.82(0.88)(0.93)=0.671088NDE 0.671088($300)=$201.33NP c)RecommendaTons would be to purchase From supplier 2 as the net price is lower at $201.33 compared to supplier 1 at $205.20. Now use the marked cells below to ´ll in the appropriate numbers For the variables to check your answers. In the yellow cells, create the Microsof® Excel® Formulas that will give you the net prices For the two suppliers. Use cell reFerences in the Formula—do NO³ use numbers. (Show your work in this cell to solve For the net decimal equivalent For the two suppliers.) S1 Complements oF ³D 0.8(0.9)(0.95)=0.684NDE S2 Complements oF ³D 0.82(0.88)(0.93)=0.671088 Use the marked cells below to ´ll in the appropriate numbers For the variables to check your answers.

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