Solutions Manual For
Managerial Accounting The
Cornerstone of Business
Decision Making 9th Edition By
Maryanne Mowen, Don
Hansen, Dan Heitger
(All Chapters 1-15, 100%
Original Verified, A+ Grade)
All Chapters Arranged
Reverse: 15-1
This is The Original Solutions
Manual For 9th Edition, All
other Files in The Market are
Fake/Old/Wrong Edition.
, 15 FINANCIAL STATEMENT ANALYSIS
MULTIPLE-CHOICE QUESTIONS
15-1. b
15-2. d
15-3. e
15-4. e
15-5. b
15-6. d
15-7. c
15-8. e
15-9. e
15-10. d
15-11. b
15-12. d
15-1
© 2026 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
,CHAPTER 15 Financial Statement Analysis
BRIEF EXERCISES: SET A
BE 15-13
Year 1 is the base year. Therefore, every dollar amount in Year 1 is 100% of itself.
Dollar Amount of Line Item
Percent for a Line Item =
Dollar Amount of Base Year Line Item
Percent Year 1 Net Sales = $1,000,000/$1,000,000 = 100%
Percent Year 2 Net Sales = $1,100,000/$1,000,000 = 110%
Percent Year 3 Net Sales = $1,300,000/$1,000,000 = 130%
Year 1 Year 2 Year 3
Dollars Percent Dollars Percent Dollars Percent
Net sales…………… $1,000,000 100% $1,100,000 110% $1,300,000 130%
Less: Cost of
goods sold……… 300,000 100 310,000 103 364,000 121
Gross margin……… $ 700,000 100 $ 790,000 113 $ 936,000 134
Less: Operating
expenses………… 421,000 100 484,000 115 591,000 140
Income taxes……… 111,600 100 122,400 110 137,800 123
Net income………… $ 167,400 100 $ 183,600 110 $ 207,200 124
Note: Percents are rounded to the nearest whole percent.
15-2
© 2026 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
, CHAPTER 15 Financial Statement Analysis
BE 15-14
Since the analysis is based on net sales, net sales in each year equals 100% of itself.
Then, every line item on the income statement is expressed as a percent of that
year’s net sales.
Dollar Amount of Line Item
Percent for a Line Item =
Dollar Amount of Base Year Line Item
Percent Year 1 Net Sales = $1,000,000/$1,000,000 = 100%
Percent Year 2 Net Sales = $1,100,000/$1,100,000 = 100%
Percent Year 3 Net Sales = $1,300,000/$1,300,000 = 100%
Year 1 Year 2 Year 3
Dollars Percent Dollars Percent Dollars Percent
Net sales…………… $1,000,000 100% $1,100,000 100% $1,300,000 100%
Less: Cost of
goods sold……… 300,000 30 310,000 28 364,000 28
Gross margin……… $ 700,000 70 $ 790,000 72 $ 936,000 72
Less: Operating
expenses………… 421,000 42 484,000 44 591,000 45
Income taxes……… 111,600 11 122,400 11 137,800 11
Net income………… $ 167,400 17 $ 183,600 17 $ 207,200 16
Note: Percents are rounded to the nearest whole percent.
BE 15-15
Current Assets
1. Current Ratio =
Current Liabilities
$5,000,000
=
$4,000,000
= 1.25
Cash + Marketable Securities + Accounts Receivable
2. Quick Ratio =
Current Liabilities
You first need to calculate marketable securities by subtracting the specific
known current assets from the given total current assets. Therefore, marketable
securities = $5,000,000 – $1,000,000 cash – $2,250,000 accounts receivable –
$500,000 inventory. Thus, marketable securities = $1,250,000.
Cash + Marketable Securities + Accounts Receivable
Finally, Quick Ratio =
Current Liabilities
$1,000,000 + $1,250,000 + $2,250,000
=
$4,000,000
= 1.13
15-3
© 2026 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Managerial Accounting The
Cornerstone of Business
Decision Making 9th Edition By
Maryanne Mowen, Don
Hansen, Dan Heitger
(All Chapters 1-15, 100%
Original Verified, A+ Grade)
All Chapters Arranged
Reverse: 15-1
This is The Original Solutions
Manual For 9th Edition, All
other Files in The Market are
Fake/Old/Wrong Edition.
, 15 FINANCIAL STATEMENT ANALYSIS
MULTIPLE-CHOICE QUESTIONS
15-1. b
15-2. d
15-3. e
15-4. e
15-5. b
15-6. d
15-7. c
15-8. e
15-9. e
15-10. d
15-11. b
15-12. d
15-1
© 2026 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
,CHAPTER 15 Financial Statement Analysis
BRIEF EXERCISES: SET A
BE 15-13
Year 1 is the base year. Therefore, every dollar amount in Year 1 is 100% of itself.
Dollar Amount of Line Item
Percent for a Line Item =
Dollar Amount of Base Year Line Item
Percent Year 1 Net Sales = $1,000,000/$1,000,000 = 100%
Percent Year 2 Net Sales = $1,100,000/$1,000,000 = 110%
Percent Year 3 Net Sales = $1,300,000/$1,000,000 = 130%
Year 1 Year 2 Year 3
Dollars Percent Dollars Percent Dollars Percent
Net sales…………… $1,000,000 100% $1,100,000 110% $1,300,000 130%
Less: Cost of
goods sold……… 300,000 100 310,000 103 364,000 121
Gross margin……… $ 700,000 100 $ 790,000 113 $ 936,000 134
Less: Operating
expenses………… 421,000 100 484,000 115 591,000 140
Income taxes……… 111,600 100 122,400 110 137,800 123
Net income………… $ 167,400 100 $ 183,600 110 $ 207,200 124
Note: Percents are rounded to the nearest whole percent.
15-2
© 2026 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
, CHAPTER 15 Financial Statement Analysis
BE 15-14
Since the analysis is based on net sales, net sales in each year equals 100% of itself.
Then, every line item on the income statement is expressed as a percent of that
year’s net sales.
Dollar Amount of Line Item
Percent for a Line Item =
Dollar Amount of Base Year Line Item
Percent Year 1 Net Sales = $1,000,000/$1,000,000 = 100%
Percent Year 2 Net Sales = $1,100,000/$1,100,000 = 100%
Percent Year 3 Net Sales = $1,300,000/$1,300,000 = 100%
Year 1 Year 2 Year 3
Dollars Percent Dollars Percent Dollars Percent
Net sales…………… $1,000,000 100% $1,100,000 100% $1,300,000 100%
Less: Cost of
goods sold……… 300,000 30 310,000 28 364,000 28
Gross margin……… $ 700,000 70 $ 790,000 72 $ 936,000 72
Less: Operating
expenses………… 421,000 42 484,000 44 591,000 45
Income taxes……… 111,600 11 122,400 11 137,800 11
Net income………… $ 167,400 17 $ 183,600 17 $ 207,200 16
Note: Percents are rounded to the nearest whole percent.
BE 15-15
Current Assets
1. Current Ratio =
Current Liabilities
$5,000,000
=
$4,000,000
= 1.25
Cash + Marketable Securities + Accounts Receivable
2. Quick Ratio =
Current Liabilities
You first need to calculate marketable securities by subtracting the specific
known current assets from the given total current assets. Therefore, marketable
securities = $5,000,000 – $1,000,000 cash – $2,250,000 accounts receivable –
$500,000 inventory. Thus, marketable securities = $1,250,000.
Cash + Marketable Securities + Accounts Receivable
Finally, Quick Ratio =
Current Liabilities
$1,000,000 + $1,250,000 + $2,250,000
=
$4,000,000
= 1.13
15-3
© 2026 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
