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Given the financial statements for Jones Corporation and Smith Corporation:
award:
1 out of
1.00 point
Frantic Fast Foods had earnings after taxes of $1,140,000 in the year 2012 with 316,000 shares outstanding. On January 1, 2013, the firm issued 31,000 new shares. Because of the proceeds from these new shares and other operating improvements, earnings after taxes increased by 26 percent.
a. Compute earnings per share for the year 2012. (Round your answer to 2 decimal places.)
b. Compute earnings per share for the year 2013. (Round your answer to 2 decimal places.)
Earnings per share $ 3.61 ± 1%
Earnings per share $ 4.14 ± 1%
award:
1 out of
1.00 point
Hillary Swank Clothiers had sales of $442,000 and cost of goods sold of $326,000.
a. What is the gross profit margin (ratio of gross profit to sales)? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)
b. If the average firm in the clothing industry had a gross profit of 36 percent, how is the firm doing?
award:
1 out of
point
A-Rod Fishing Supplies had sales of $2,460,000 and cost of goods sold of $1,310,000. Selling and administrative expenses represented 14 percent of sales. Depreciation was 12 percent of the total assets of
$4,930,000.
What was the firm’s operating profit?
Gross profit $ 1,150,000
Selling and administrative expense 344,400
Depreciation expense 591,600
award:
2 out of
points
Given the following information, prepare in good form an income statement for the Dental Drilling Company.
(Input all amounts as positive values.)
Selling and administrative expense $ 108,000
Depreciation expense 73,000
Sales 551,000
Interest expense 48,000
Cost of goods sold 180,000
Taxes 53,000
Selling and administrative expense $ 108,000
Depreciation expense 73,000
Sales 551,000
Interest expense 48,000
Cost of goods sold 180,000
Taxes 53,000
award:
2 out of
2.00 points
Given the following information, prepare in good form an income statement for Jonas Brothers Cough Drops. (Input all amounts as positive values.)
Selling and administrative expense $ 289,000
Depreciation expense 193,000
Sales 1,720,000
Interest expense 123,000
Cost of goods sold 508,000
Taxes 168,000
Selling and administrative expense $ 289,000
Depreciation expense 193,000
Sales 1,720,000
Interest expense 123,000
Cost of goods sold 508,000
Taxes 168,000
Cost of goods sold 508,000
Gross profit $ 1,212,000 ± .1%
Operating profit $ 730,000 ± .1%
Taxes 168,000
Earnings after taxes $ 439,000 ± .1%
award:
2 out of
2.00 points
Stein Books Inc. sold 1,500 finance textbooks for $200 each to High Tuition University in 2013. These books cost
$160 to produce. Stein Books spent $12,200 (selling expense) to convince the university to buy its books.
Depreciation expense for the year was $15,100. In addition, Stein Books borrowed $101,000 on January 1, 2013, on which the company paid 14 percent interest. Both the interest and principal of the loan were paid on December 31, 2013. The publishing firm’s tax rate is 30 percent.
Prepare an income statement for Stein Books. (Input all amounts as positive values.)
Earnings after taxes $ 12,992 ± .1%
award:
3 out of
3.00 points
Arrange the following items in proper balance sheet presentation: (Be sure to list the assets and
liabilities in order of their liquidity. Input all amounts as positive values.)
Accumulated depreciation $ 395,000
Retained earnings 9,000
Cash 15,000
Bonds payable 215,000
Accounts receivable 54,000
Plant and equipment—original cost 764,000
Accounts payable 44,000
Allowance for bad debts 7,000
Common stock, $1 par, 100,000 shares outstanding 100,000
Inventory 70,000
Preferred stock, $52 par, 1,000 shares outstanding 52,000
Marketable securities 24,000
Investments 24,000
Notes payable 35,000
Capital paid in excess of par (common stock) 94,000
Assets Balance Sheet
Liabilities and Stockholders’ Equity
Current Assets: Current Liabilities:
Cash $ 15,000 Accounts payable $ 44,000
Marketable securities 24,000 Notes payable 35,000
Accounts receivable $ 54,000
Less: Allowance for bad debts 7,000 Total current liabilities $ 79,000
Long-term liabilities
Net accounts receivable 47,000 Bonds payable 215,000
Inventory 70,000
Total current assets $ 156,000 Total liabilities $ 294,000
Other Assets: Stockholders’ Equity:
Investments 24,000 Common stock $ 100,000
Fixed assets: Preferred stock 52,000
Plant and equipment $ 764,000 Capital paid in excess of par 94,000
Less: Accumulated depreciation 395,000 Retained earnings 9,000
Net plant and equipment 369,000 Total stockholders’ equity $ 255,000
Total assets $ 549,000 Total liabilities and stockholders’ equity $ 549,000
Arrange the following items in proper balance sheet presentation: (Be sure to list the assets and liabilities in order of their liquidity. Input all amounts as positive values.)
Accumulated depreciation $ 395,000 Retained earnings 9,000
Cash 15,000
Bonds payable 215,000
Accounts receivable 54,000
Plant and equipment—original cost 764,000
Accounts payable 44,000
Allowance for bad debts 7,000
Common stock, $1 par, 100,000 shares outstanding 100,000 Inventory 70,000
Preferred stock, $52 par, 1,000 shares outstanding 52,000 Marketable securities 24,000
Investments 24,000
Notes payable 35,000
Capital paid in excess of par (common stock) 94,000
Balance Sheet
Assets Liabilities and Stockholders’ Equity
Current Assets: Current Liabilities:
15,000 Accounts payable $ 44,000
Marketable securities 24,000 Notes payable 35,000
54,000
Less: Allowance for bad debts 7,000 Total current liabilities $ 79,000 ± .1%
Long-term liabilities
Net accounts receivable 47,000 ± .1% Bonds payable 215,000
Inventory 70,000
156,000 ± .1% Total liabilities $ 294,000 ± .1%
Other Assets: Stockholders’ Equity:
764,000 Capital paid in excess of par 94,000
Less: Accumulated depreciation 395,000 Retained earnings 9,000 Net plant and equipment 369,000 ± .1% Total stockholders’ equity $ 255,000 ± .1% Total assets $ 549,000 ± .1% Total liabilities and stockholders’ equity $ 549,000 ± .1%
award:
2 out of
2.00 points
Elite Trailer Parks has an operating profit of $300,000. Interest expense for the year was $38,100; preferred dividends paid were $29,500; and common dividends paid were $36,700. The tax was $69,100. The firm has 16,400 shares of common stock outstanding.
a. Calculate the earnings per share and the common dividends per share for Elite Trailer Parks. (Round your answers to 2 decimal places.)
b. What was the increase in retained earnings for the year?
Elite Trailer Parks has an operating profit of $300,000. Interest expense for the year was $38,100; preferred dividends paid were $29,500; and common dividends paid were $36,700. The tax was $69,100. The firm has 16,400 shares of common stock outstanding.
a. Calculate the earnings per share and the common dividends per share for Elite Trailer Parks. (Round your answers to 2 decimal places.)
Earnings per share $ 9.96 ± 1%
Common dividends per share $ 2.24 ± 1%
b. What was the increase in retained earnings for the year?
126,600 ± .1%
award:
1 out of
1.00 point
Quantum Technology had $664,000 of retained earnings on December 31, 2013. The company paid common dividends of $31,300 in 2013 and had retained earnings of $588,000 on December 31, 2012.
a. How much did Quantum Technology earn during 2013?
b. What would earnings per share be if 44,900 shares of common stock were outstanding? (Round your answer to 2 decimal places.)
Quantum Technology
Retained earnings, December 31, 2013 $ 664,000
Less: Retained earnings, December 31, 2012 588,000
Change in retained earnings $ 76,000
Add: Common stock dividends 31,300
Earnings available to common stockholders $ 107,300
award:
2 out of
2.00 points
Botox Facial Care had earnings after taxes of $284,000 in 2012 with 200,000 shares of stock outstanding. The stock price was $45.80. In 2013, earnings after taxes increased to $350,000 with the same 200,000 shares outstanding. The stock price was $56.00.
a. Compute earnings per share and the P/E ratio for 2012. (The P/E ratio equals the stock price divided by earnings per share.) (Do not round intermediate calculations. Round your final answers to 2 decimal places.)
b. Compute earnings per share and the P/E ratio for 2013. (Do not round intermediate calculations. Round your final answers to 2 decimal places.)
c. Why did the P/E ratio change? (Do not round intemediate calculations. Input your answers as percents rounded to 2 decimal places.)
Botox Facial Care had earnings after taxes of $284,000 in 2012 with 200,000 shares of stock outstanding. The stock price was $45.80. In 2013, earnings after taxes increased to $350,000 with the same 200,000 shares outstanding. The stock price was $56.00.
a. Compute earnings per share and the P/E ratio for 2012. (The P/E ratio equals the stock price divided by earnings per share.) (Do not round intermediate calculations. Round your final answers to 2 decimal places.)
Earnings per share $ 1.42 ± 1%
P/E ratio 32.25 ± 1% times
b. Compute earnings per share and the P/E ratio for 2013. (Do not round intermediate calculations. Round your final answers to 2 decimal places.)
Earnings per share $ 1.75 ± 1%
P/E ratio 32.00 ± 1% times
c. Why did the P/E ratio change? (Do not round intemediate calculations. Input your answers as percents rounded to 2 decimal places.)
The stock price increased by 22.27 ± 1% percent while EPS increased by 23.24 ± 1% percent.
award:
2 out of
2.00 points
The Rogers Corporation has a gross profit of $784,000 and $314,000 in depreciation expense. The Evans Corporation also has $784,000 in gross profit, with $48,900 in depreciation expense. Selling and administrative expense is $200,000 for each company.
a. Given that the tax rate is 40 percent, compute the cash flow for both companies.
b. Calculate the difference in cash flow between the two firms.
Rogers Corporation – Evans Corporation
Rogers Evans
Gross profit $ 784,000 $ 784,000
Selling and adm. expense 200,000 200,000
Depreciation 314,000 48,900
Operating profit $ 270,000 $ 535,100
Taxes (40%) 108,000 214,040
Earnings after taxes $ 162,000 $ 321,060
Plus: Depreciation expense 314,000 48,900
Cash flow $ 476,000 $ 369,960
award:
1 out of
1.00 point
Nova Electrics anticipated cash flow from operating activities of $8 million in 2011. It will need to spend $5.5 million on capital investments in order to remain competitive within the industry. Common stock dividends are projected at $.60 million and preferred stock dividends at $.40 million.
a. What is the firm’s projected free cash flow for the year 2011? (Enter your answer in millions of dollars rounded to 2 decimal places.)
b. What does the concept of free cash flow represent?
Free cash flow represents the funds that are available for special financing activities, such as a leveraged buyout.
Nova Electronics
Cash flow from operating activities $ 8.00 million
Less:
Capital expenditures 5.50
Common stock dividends .60
Preferred stock dividends .40
award:
2 out of
2.00 points
The Holtzman Corporation has assets of $414,000, current liabilities of $72,000, and long-term liabilities of
$134,000. There is $32,600 in preferred stock outstanding; 20,000 shares of common stock have been issued.
a. Compute book value (net worth) per share. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
b. If there is $34,400 in earnings available to common stockholders, and Holtzman’s stock has a P/E of 16 times earnings per share, what is the current price of the stock? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
c. What is the ratio of market value per share to book value per share? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
The Holtzman Corporation has assets of $414,000, current liabilities of $72,000, and long-term liabilities of
$134,000. There is $32,600 in preferred stock outstanding; 20,000 shares of common stock have been issued.
a. Compute book value (net worth) per share. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
8.77 ± 1%
b. If there is $34,400 in earnings available to common stockholders, and Holtzman’s stock has a P/E of 16 times earnings per share, what is the current price of the stock? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
27.52 ± 1%
c. What is the ratio of market value per share to book value per share? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Market value to book value 3.14 ± 1% times
award:
3 out of
3.00 points
Amigo Software Inc. has total assets of $848,000, current liabilities of $243,000, and long-term liabilities of
$161,000. There is $110,000 in preferred stock outstanding. Thirty thousand shares of common stock have been issued.
a. Compute book value (net worth) per share. (Round your answer to 2 decimal places.)
b. If there is $55,600 in earnings available to common stockholders and the firm’s stock has a P/E of 24 times earnings per share, what is the current price of the stock? (Do not round intermediate calculations. Round you final answer to 2 decimal places.)
c. What is the ratio of market value per share to book value per share? (Do not round intermediate calculations. Round you final answer to 2 decimal places.)
Amigo Software Inc. has total assets of $848,000, current liabilities of $243,000, and long-term liabilities of
$161,000. There is $110,000 in preferred stock outstanding. Thirty thousand shares of common stock have been issued.
a. Compute book value (net worth) per share. (Round your answer to 2 decimal places.)
11.13 ± 1%
b. If there is $55,600 in earnings available to common stockholders and the firm’s stock has a P/E of 24 times earnings per share, what is the current price of the stock? (Do not round intermediate calculations. Round you final answer to 2 decimal places.)
44.48 ± 1%
c. What is the ratio of market value per share to book value per share? (Do not round intermediate calculations. Round you final answer to 2 decimal places.)
Market value to book value 4.00 ± 1% times
award:
4 out of
4.00 points
For December 31, 2012, the balance sheet of Baxter Corporation was as follows:
Current Assets Liabilities
Cash $ 18,000 Accounts payable $ 20,000
Accounts receivable 23,000 Notes payable 28,000
Inventory 33,000 Bonds payable 58,000
Prepaid expenses 12,800
Fixed Assets Stockholders’ Equity
Gross plant and equipment $ 258,000 Preferred stock $ 28,000
Less: Accumulated depreciation 51,600 Common stock 63,000
Paid-in capital 33,000
Net plant and equipment 206,400 Retained earnings 63,200
Total assets $ 293,200 Total liabilities and stockholders’ equity $ 293,200
Sales for 2013 were $260,000, and the cost of goods sold was 55 percent of sales. Selling and administrative expense was $26,000. Depreciation expense was 11 percent of plant and equipment (gross) at the beginning of the year. Interest expense for the notes payable was 9 percent, while the interest rate on the bonds payable was 15 percent. This interest expense is based on December 31, 2012 balances. The tax rate averaged 35 percent.
$2,800 in preferred stock dividends were paid and $8,750 in dividends were paid to common stockholders. There were 10,000 shares of common stock outstanding.
During 2013, the cash balance and prepaid expenses balances were unchanged. Accounts receivable and inventory increased by 9 percent. A new machine was purchased on December 31, 2013, at a cost of
$43,000.
Accounts payable increased by 25 percent. Notes payable increased by $6,800 and bonds payable decreased by $14,000, both at the end of the year. The preferred stock, common stock, and capital paid in excess of par accounts did not change.
a. Prepare an income statement for 2013. (Round EPS answer to 2 decimal places. Input all amounts as positive values.)
b. Prepare a statement of retained earnings for 2013. (Input all amounts as positive values.)
BAXTER CORPORATION
2013 Income Statement
Retained earnings balance, January 1, 2013 $ 63,200
Add: Earnings available to common stockholders, 2013 30,610
Less: Cash dividend declared in 2013 8,750
Retained earnings balance, December 31, 2013 $ 85,060
c. Prepare a balance sheet as of December 31, 2013. (Be sure to list the assets and liabilities in order of their liquidity. Input all amounts as positive values.)
Current Assets Liabilities
Cash $ 18,000 Accounts payable $ 25,000
Accounts receivable 25,070 Notes payable 34,800
44,000
Prepaid expenses 12,800
Total current assets $ 91,840 Total liabilities $ 103,800
For December 31, 2012, the balance sheet of Baxter Corporation was as follows:
Current Assets Liabilities
Cash $ 18,000 Accounts payable $ 20,000
Accounts receivable 23,000 Notes payable 28,000
Inventory 33,000 Bonds payable 58,000
Prepaid expenses 12,800
Fixed Assets Stockholders’ Equity
Gross plant and equipment $ 258,000 Preferred stock $ 28,000
Less: Accumulated depreciation 51,600 Common stock 63,000
Paid-in capital 33,000
Net plant and equipment 206,400 Retained earnings 63,200
Total assets $ 293,200 Total liabilities and stockholders’ equity $ 293,200
Sales for 2013 were $260,000, and the cost of goods sold was 55 percent of sales. Selling and administrative expense was $26,000. Depreciation expense was 11 percent of plant and equipment (gross) at the beginning of the year. Interest expense for the notes payable was 9 percent, while the interest rate on the bonds payable was 15 percent. This interest expense is based on December 31, 2012 balances. The tax rate averaged 35 percent.
$2,800 in preferred stock dividends were paid and $8,750 in dividends were paid to common stockholders. There were 10,000 shares of common stock outstanding.
During 2013, the cash balance and prepaid expenses balances were unchanged. Accounts receivable and inventory increased by 9 percent. A new machine was purchased on December 31, 2013, at a cost of
$43,000.
Accounts payable increased by 25 percent. Notes payable increased by $6,800 and bonds payable decreased by $14,000, both at the end of the year. The preferred stock, common stock, and capital paid in excess of par accounts did not change.
a. Prepare an income statement for 2013. (Round EPS answer to 2 decimal places. Input all amounts as positive values.)
Sales $ 260,000
Cost of goods sold 143,000
Gross profit
$
117,000 ± .1%
Selling and administrative expense 26,000
Depreciation expense 28,380
Operating profit $ 62,620 ± .1%
Interest expense 11,220
Earnings before taxes $ 51,400 ± .1%
Taxes 17,990
Earnings after taxes $ 33,410 ± .1%
Preferred stock dividends 2,800
Earnings available to common stockholders $ 30,610 ± .1%
Shares outstanding
10,000
Earnings per share $ 3.06 ± 1%
b. Prepare a statement of retained earnings for 2013. (Input all amounts as positive values.)
BAXTER CORPORATION
2013 Income Statement
Retained earnings balance, January 1, 2013 $ 63,200
Add: Earnings available to common stockholders, 2013 30,610 ± .1%
Less: Cash dividend declared in 2013 8,750
Retained earnings balance, December 31, 2013 $ 85,060 ± .1%
c. Prepare a balance sheet as of December 31, 2013. (Be sure to list the assets and liabilities in order of their liquidity. Input all amounts as positive values.)
Current Assets Liabilities
Cash
Accounts receivable 25,070 ± .1% Notes payable 34,800 ± .1%
Inventory 35,970 ± .1% Bonds payable 44,000 ± .1%
Prepaid expenses 12,800
Total current assets $ 91,840 ± .1% Total liabilities $ 103,800 ± .1%
Gross plant and equipment
$
301,000 ± .1%
Preferred stock $ 28,000
79,980 ± .1% Common stock 63,000
Capital paid in excess of par 33,000
Net plant and equipment 221,020 ± .1% Retained earnings 85,060 ± .1%
209,060 ± .1%
award:
2 out of
2.00 points
Refer to the following financial statements for Crosby Corporation:
CROSBY CORPORATION
Income Statement
For the Year Ended December 31, 2011
Sales $3,650,000
Cost of goods sold 2,330,000
Gross profit $1,320,000
Selling and administrative expense 664,000
Depreciation expense 291,000
Interest expense 82,900
Earnings before taxes $ 282,100
Taxes 141,000
Earnings after taxes $ 141,100
Preferred stock dividends 10,000
Earnings available to common stockholders $ 131,100
Shares outstanding 150,000
Earnings per share $ .87
Statement of Retained Earnings For the Year Ended December 31, 2011
Retained earnings, balance, January 1, 2011 $ 119,900 Add: Earnings available to common stockholders, 2011 131,100 Deduct: Cash dividends declared and paid in 2011 197,000
Retained earnings, balance, December 31, 2011 $ 54,000
Comparative Balance Sheets For 2010 and 2011
Year-End
2010 Year-End
2011
Assets
Current assets:
Cash $ 144,000 $ 118,500
Accounts receivable (net) 505,000 524,000
Inventory 624,000 670,000
Prepaid expenses 62,700 32,400
Total current assets $ 1,335,700 $ 1,344,900
Investments (long-term securities) 97,500 87,800
Gross plant and equipment $ 2,320,000 $ 2,870,000
Less: Accumulated depreciation 1,920,000 2,211,000
Net plant and equipment 400,000 659,000
Total assets $ 1,833,200 $ 2,091,700
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $ 323,000 $ 641,000
Notes payable 534,000 534,000
Accrued expenses 77,300 52,700
Total current liabilities $ 934,300 $ 1,227,700
Long-term liabilities:
Bonds payable, 2011 189,000 220,000
Total liabilities $ 1,123,300 $ 1,447,700
Stockholders’ equity:
Preferred stock, $100 par value $ 90,000 $ 90,000
Common stock, $1 par value 150,000 150,000
Capital paid in excess of par 350,000 350,000
Retained earnings 119,900 54,000
Total stockholders’ equity $ 709,900 $ 644,000 Total liabilities and stockholders’ equity $ 1,833,200 $ 2,091,700
a. Prepare a statement of cash flows for the Crosby Corporation: (Amounts to be deducted should be indicated with a minus sign.)
CROSBY CORPORATION
Statement of Cash Flows
For the Year Ended December 31, 2011 Cash flows from operating activities:
Adjustments to determine cash flow from operating activities:
Increase in inventory -46,000
Decrease in prepaid expenses 30,300
Decrease in accrued expenses -24,600
Cash flows from investing activities:
Decrease in investments $ 9,700
Increase in plant and equipment -550,000
Net cash flows from investing activities -540,300
Cash flows from financing activities:
Increase in bonds payable $ 31,000
Preferred stock dividends paid -10,000
Common stock dividends paid -197,000
Net cash flows from financing activities -176,000
Net increase (decrease) in cash flows $ -25,500
b. Compute the book value per common share for both 2010 and 2011 for the Crosby Corporation. (Round your answers to 2 decimals places.)
Book value 2010 $ 4.13
2011 $ 3.69
c. If the market value of a share of common stock is 2.7 times book value for 2011, what is the firm’s P/E ratio for 2011? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Refer to the following financial statements for Crosby Corporation:
CROSBY CORPORATION
Income Statement
For the Year Ended December 31, 2011
Sales $3,650,000
Cost of goods sold 2,330,000
Gross profit $1,320,000
Selling and administrative expense 664,000
Depreciation expense 291,000
Operating income $ 365,000
Interest expense 82,900
Earnings before taxes $ 282,100
Taxes 141,000
Earnings after taxes $ 141,100
Preferred stock dividends 10,000
Earnings available to common stockholders $ 131,100
Shares outstanding 150,000
Earnings per share $ .87
Statement of Retained Earnings For the Year Ended December 31, 2011
Retained earnings, balance, January 1, 2011 $ 119,900 Add: Earnings available to common stockholders, 2011 131,100 Deduct: Cash dividends declared and paid in 2011 197,000
Retained earnings, balance, December 31, 2011 $ 54,000
Comparative Balance Sheets For 2010 and 2011
Year-End Year-End
2010 2011
Assets
Current assets:
Cash $ 144,000 $ 118,500
Accounts receivable (net) 505,000 524,000
Inventory 624,000 670,000
Prepaid expenses 62,700 32,400
Total current assets $ 1,335,700 $ 1,344,900
Investments (long-term securities) 97,500 87,800
Gross plant and equipment $ 2,320,000 $ 2,870,000
Less: Accumulated depreciation 1,920,000 2,211,000
Net plant and equipment 400,000 659,000
Total assets $ 1,833,200 $ 2,091,700
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $ 323,000 $ 641,000
Notes payable 534,000 534,000
Accrued expenses 77,300 52,700
Total current liabilities $ 934,300 $ 1,227,700
Long-term liabilities:
Bonds payable, 2011 189,000 220,000
Total liabilities $ 1,123,300 $ 1,447,700
Stockholders’ equity:
Preferred stock, $100 par value $ 90,000 $ 90,000
Common stock, $1 par value 150,000 150,000
Capital paid in excess of par 350,000 350,000
Retained earnings 119,900 54,000
Total stockholders’ equity $ 709,900 $ 644,000 Total liabilities and stockholders’ equity $ 1,833,200 $ 2,091,700
a. Prepare a statement of cash flows for the Crosby Corporation: (Amounts to be deducted should be indicated with a minus sign.)
CROSBY CORPORATION
Statement of Cash Flows
For the Year Ended December 31, 2011 Cash flows from operating activities:
Adjustments to determine cash flow from operating activities:
Cash flows from investing activities:
Cash flows from financing activities:
Preferred stock dividends paid
Common stock dividends paid
Net cash flows from financing activities
Net increase (decrease) in cash flows $ -25,500 ± .1%
b. Compute the book value per common share for both 2010 and 2011 for the Crosby Corporation. (Round your answers to 2 decimals places.)
2010 $ 4.13 ± 1%
2011 $ 3.69 ± 1%
c. If the market value of a share of common stock is 2.7 times book value for 2011, what is the firm’s P/E ratio for 2011? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
P/E ratio 11.41 ± 1% times
award:
1 out of
1.00 point
Gates Appliances has a return-on-assets (investment) ratio of 17 percent.
a. If the debt-to-total-assets ratio is 60 percent, what is the return on equity? (Input your answer as a percent rounded to 2 decimal places.)
b. If the firm had no debt, what would the return-on-equity ratio be? (Input your answer as a percent rounded to 2 decimal places.)
award:
2 out of
2.00 points
Using the Du Pont method, evaluate the effects of the following relationships for the Butters Corporation.
a. Butters Corporation has a profit margin of 9 percent and its return on assets (investment) is 20 percent. What is its assets turnover? (Round your answer to 2 decimal places.)
b. If the Butters Corporation has a debt-to-total-assets ratio of 45.00 percent, what would the firm’s return on equity be? (Input your answer as a percent rounded to 2 decimal places.)
c. What would happen to return on equity if the debt-to-total-assets ratio decreased to 40.00 percent?
(Input your answer as a percent rounded to 2 decimal places.)
award:
2 out of
2.00 points
Jerry Rice and Grain Stores has $4,030,000 in yearly sales. The firm earns 2.5 percent on each dollar of sales and turns over its assets 2 times per year. It has $165,000 in current liabilities and $323,000 in long- term liabilities.
a. What is its return on stockholders’ equity? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)
b. If the asset base remains the same as computed in part a, but total asset turnover goes up to 2.50, what will be the new return on stockholders’ equity? Assume that the profit margin stays the same as do current and long-term liabilities. (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)
Jerry Rice and Grain Stores has $4,030,000 in yearly sales. The firm earns 2.5 percent on each dollar of sales and turns over its assets 2 times per year. It has $165,000 in current liabilities and $323,000 in long- term liabilities.
a. What is its return on stockholders’ equity? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)
Return on stockholders' equity 6.60 ± 1% %
b. If the asset base remains the same as computed in part a, but total asset turnover goes up to 2.50, what will be the new return on stockholders’ equity? Assume that the profit margin stays the same as do current and long-term liabilities. (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)
New return on stockholders' equity 8.25 ± 1% %
award:
2 out of
2.00 points
Assume the following data for Cable Corporation and Multi-Media Inc.
Cable Multi-Media Inc.
Net income $ 39,800 $ 190,000
Sales 352,000 2,170,000
Total assets 409,000 966,000
Total debt 234,000 545,000
Stockholders' equity 175,000 421,000
a-1. Compute return on stockholders’ equity for both firms. (Input your answers as a percent rounded to 2 decimal places.)
Return on Stockholders’ Equity
Cable Corporation 22.74 %
Multi-Media, Inc. 45.13 %
a-2.
Which firm has the higher return?
Multi-Media Inc.
b. Compute the following additional ratios for both firms. (Input your Net income/Sales, Net
income/Total assets and Debt/Total asset answers as a percent rounded to 2 decimal places. Round your Sales/Total assets answers to 2 decimal places.)
Cable Corporation Multi-Media Inc.
Net income/Sales 11.31 % 8.76 %
Net income/Total assets 9.73 % 19.67 %
Sales/Total assets .86 times 2.25 times
Debt/Total assets 57.21 % 56.42 %
Assume the following data for Cable Corporation and Multi-Media Inc.
Cable
Corporation Multi-Media Inc.
Net income $ 39,800 $ 190,000
Sales 352,000 2,170,000
Total assets 409,000 966,000
Total debt 234,000 545,000
Stockholders' equity 175,000 421,000
a-1. Compute return on stockholders’ equity for both firms. (Input your answers as a percent rounded to 2 decimal places.)
Return on Stockholders’ Equity
Cable Corporation 22.74 ± 1% %
Multi-Media, Inc. 45.13 ± 1% %
a-2. Which firm has the higher return?
Multi-Media Inc.
b. Compute the following additional ratios for both firms. (Input your Net income/Sales, Net income/Total assets and Debt/Total asset answers as a percent rounded to 2 decimal places. Round your Sales/Total assets answers to 2 decimal places.)
Cable Corporation Multi-Media Inc.
Net income/Sales 11.31 ± 1% % 8.76 ± 1% %
Net income/Total assets 9.73 ± 1% % 19.67 ± 1% %
Sales/Total assets .86 ± 1% times 2.25 ± 1% times
Debt/Total assets 57.21 ± 1% % 56.42 ± 1% %
award:
2 out of
points
The balance sheet for Stud Clothiers is shown next. Sales for the year were $3,190,000, with 75 percent of sales sold on credit.
STUD CLOTHIERS
Balance Sheet 20XX
Assets Liabilities and Equity
Cash $ 24,000 Accounts payable $ 279,000
Accounts receivable 283,000 Accrued taxes 107,000
Inventory 266,000 Bonds payable (long-term) 130,000
Plant and equipment 450,000 Common stock 100,000
Paid-in capital 150,000
Retained earnings 257,000
Total assets $1,023,000 Total liabilities and equity $ 1,023,000
Compute the following ratios: (Use a 360-day year. Do not round intermediate calculations. Round your answers to 2 decimal places. Input your debt-to-total assets answer as a percent rounded to 2 decimal places.)
a. Current ratio 1.48 times
b. Quick ratio .80 times
c. Debt-to-total-assets ratio 50.44 %
d. Asset turnover 3.12 times
e. Average collection period 42.58 days
The balance sheet for Stud Clothiers is shown next. Sales for the year were $3,190,000, with 75 percent of sales sold on credit.
STUD CLOTHIERS
Balance Sheet 20XX
Assets Liabilities and Equity
Cash $ 24,000 Accounts payable $ 279,000
Accounts receivable 283,000 Accrued taxes 107,000
Inventory 266,000 Bonds payable (long-term) 130,000
Plant and equipment 450,000 Common stock 100,000
Paid-in capital 150,000
Retained earnings 257,000
Total assets $1,023,000 Total liabilities and equity $ 1,023,000
Compute the following ratios: (Use a 360-day year. Do not round intermediate calculations. Round your answers to 2 decimal places. Input your debt-to-total assets answer as a percent rounded to 2 decimal places.)
a. Current ratio 1.48 ± 1% times
b. Quick ratio .80 ± 1% times
c. Debt-to-total-assets ratio 50.44 ± 1% %
d. Asset turnover 3.12 ± 1% times
e. Average collection period 42.58 ± 1% days
award:
2 out of
2.00 points
Using the income statement for Times Mirror and Glass Co., compute the following ratios:
TIMES MIRROR AND GLASS Co.
Income Statement
Sales $ 223,000
Cost of goods sold 130,000
Gross profit $ 93,000
Selling and administrative expense 44,000
Lease expense 19,100
Operating profit* $ 29,900
Interest expense 10,600
Earnings before taxes $ 19,300
Taxes (30%) 7,720
Earnings after taxes $ 11,580
*Equals income before interest and taxes.
a. Compute the interest coverage ratio. (Round your answer to 2 decimal places.)
b. Compute the fixed charge coverage ratio. (Round your answer to 2 decimal places.)
The total assets for this company equal $174,000. Set up the equation for the Du Pont system of ratio analysis.
c. Compute the profit margin ratio. (Input your answer as a percent rounded to 2 decimal places.)
d. Compute the total asset turnover ratio. (Round your answer to 2 decimal places.)
e. Compute the return on assets (investment). (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)
Using the income statement for Times Mirror and Glass Co., compute the following ratios:
TIMES MIRROR AND GLASS Co.
Income Statement
Sales $ 223,000
Cost of goods sold 130,000
Gross profit $ 93,000
Selling and administrative expense 44,000
Lease expense 19,100
Operating profit* $ 29,900
Interest expense 10,600
Earnings before taxes $ 19,300
Taxes (30%) 7,720
Earnings after taxes $ 11,580
*Equals income before interest and taxes.
a. Compute the interest coverage ratio. (Round your answer to 2 decimal places.)
Interest coverage 2.82 ± 1% times
b. Compute the fixed charge coverage ratio. (Round your answer to 2 decimal places.)
Fixed charge coverage 1.65 ± 1% times
The total assets for this company equal $174,000. Set up the equation for the Du Pont system of ratio analysis.
c. Compute the profit margin ratio. (Input your answer as a percent rounded to 2 decimal places.)
Profit margin 5.19 ± 1% %
d. Compute the total asset turnover ratio. (Round your answer to 2 decimal places.)
Total asset turnover 1.28 ± 1% times
e. Compute the return on assets (investment). (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)
Return on assets 6.66 ± 1% %
award:
1 out of
1.00 point
A firm has net income before interest and taxes of $179,000 and interest expense of $29,500.
a. What is the times-interest-earned ratio? (Round your answer to 2 decimal places.)
b. If the firm’s lease payments are $44,000, what is the fixed charge coverage? (Round your answer to 2 decimal places.)
award:
2 out of
2.00 points
Quantum Moving Company has the following data. Industry information also is shown.
2011 $ 388,000 $ 2,868,000 12.8 %
2012 412,000 3,244,000 8.2
2013 408,000 3,762,000 4.4
Year
Debt
Total Assets Industry Data on Debt/Total Assets
2011 $ 1,692,000 $ 2,868,000 55.4 %
2012 1,740,000 3,244,000 49.0
2013 1,981,000 3,762,000 30.0
a. Calculate the company's data in terms of: (Input your answers as a percent rounded to 1 decimal place.)
2011 2012 2013
Net income/Total assets 13.5 % 12.7 % 10.8 %
Debt/Total assets 59.0 % 53.6 % 52.7 %
b. As an industry analyst comparing the firm to the industry, are you likely to praise or criticize the firm in terms of:
Praise/Criticize
Quantum Moving Company has the following data. Industry information also is shown.
2011 $ 388,000 $ 2,868,000 12.8 %
2012 412,000 3,244,000 8.2
2013 408,000 3,762,000 4.4
Year
Debt
Total Assets Industry Data on Debt/Total Assets
2011 $ 1,692,000 $ 2,868,000 55.4 %
2012 1,740,000 3,244,000 49.0
2013 1,981,000 3,762,000 30.0
a. Calculate the company's data in terms of: (Input your answers as a percent rounded to 1 decimal place.)
2011 2012 2013
Net income/Total assets 13.5 ± 1% % 12.7 ± 1% % 10.8 ± 1% %
Debt/Total assets 59.0 ± 1% % 53.6 ± 1% % 52.7 ± 1% %
b. As an industry analyst comparing the firm to the industry, are you likely to praise or criticize the firm in terms of:
Praise/Criticize Net income/Total assets Praise
Debt/Total assets Criticize
award:
1.34 out of
2.00 points
The Canton Corporation shows the following income statement. The firm uses FIFO inventory accounting.
CANTON CORPORATION
Income Statement for 2013
Sales $ 152,100 (11,700 units at $13.00) Cost of goods sold 93,600 (11,700 units at $8.00)
Gross profit $ 58,500
Selling and administrative expense 9,126
Depreciation 19,400
Operating profit $ 29,974
Taxes (30%) 8,992
Aftertax income $ 20,982
a. Assume in 2014 the same 11,700-unit volume is maintained, but that the sales price increases by 10 percent. Because of FIFO inventory policy, old inventory will still be charged off at $8.00 per unit. Also assume selling and administrative expense will be 6 percent of sales and depreciation will be unchanged. The tax rate is 30 percent. Compute aftertax income for 2014. (Do not round intermediate calculations. Round your answer to the nearest whole number.)
b. In part a, by what percent did aftertax income increase as a result of a 10 percent increase in the sales price? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)
c. Now assume that in 2015 the volume remains constant at 11,700 units, but the sales price decreases by 15 percent from its year 2014 level. Also, because of FIFO inventory policy, cost of goods sold reflects the inflationary conditions of the prior year and is $8.50 per unit. Further, assume selling and administrative expense will be 6 percent of sales and depreciation will be unchanged. The tax rate is 30 percent. Compute the aftertax income. (Round the sales price per unit to 2 decimal places but do not round any other intermediate calculations. Round your final answer to the nearest whole dollar amount.)
The Canton Corporation shows the following income statement. The firm uses FIFO inventory accounting.
CANTON CORPORATION
Income Statement for 2013
Sales $ 152,100 (11,700 units at $13.00)
Cost of goods sold 93,600 (11,700 units at $8.00)
Gross profit $ 58,500
Selling and administrative expense 9,126
Depreciation 19,400
Operating profit $ 29,974
Taxes (30%) 8,992
Aftertax income $ 20,982
a. Assume in 2014 the same 11,700-unit volume is maintained, but that the sales price increases by 10 percent. Because of FIFO inventory policy, old inventory will still be charged off at $8.00 per unit. Also assume selling and administrative expense will be 6 percent of sales and depreciation will be unchanged. The tax rate is 30 percent. Compute aftertax income for 2014. (Do not round intermediate calculations. Round your answer to the nearest whole number.)
Aftertax income $ 30,990 ± .1%
b. In part a, by what percent did aftertax income increase as a result of a 10 percent increase in the sales price? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)
Gain in aftertax income 47.70 ± 1% %
c. Now assume that in 2015 the volume remains constant at 11,700 units, but the sales price decreases by 15 percent from its year 2014 level. Also, because of FIFO inventory policy, cost of goods sold reflects the inflationary conditions of the prior year and is $8.50 per unit. Further, assume selling and administrative expense will be 6 percent of sales and depreciation will be unchanged. The tax rate is 30 percent. Compute the aftertax income. (Round the sales price per unit to 2 decimal places but do not round any other intermediate calculations. Round your final answer to the nearest whole dollar amount.)
Aftertax income $ 10,420 ± 0.1%
award:
3 out of
3.00 points
The Griggs
- @
- 165 orders completed
- ANSWER
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Tutor has posted answer for $60.00. See answer's preview
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************ *********** *********** *** Stockholders’ ************* ******* Current Liabilities:15000 Accounts payable * *************** ********** ***** ***** ******* *************** Allowance *** *** ***** **** ***** ******* *********** $ ***** ** *********** liabilitiesNet ******** receivable ***** ± ** Bonds ******* *************** *********** ± 1% ***** *********** $ 294000 ± ******* ******* *************** *************** ******* **** ** excess of *** ********** Accumulated ************ ****** ******** ******** **** Net ***** and ********* ****** ** ** ***** *************** ****** * ****** ± ** Total ****** * ****** ** ** Total *********** *** *************** ****** * ****** ± ********* out of200 pointsElite Trailer ***** has an operating ****** of ******* ******** expense for *** **** *** ******* ********* dividends **** **** ******* *** ****** ********* **** **** ****** *** *** was $69100 *** firm has ***** ****** ** ****** ***** ************ ********* *** earnings *** share 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= ******** available ** common ************ ****** of shares of ****** ***** ************ $163300 / ***** shares= ************* *** share= ****** dividends * ****** ** ******* ****** * 16400 ******* ************* ** retained ******** = Earnings ********* ** ****** ************ − ****** ********** $163300 *** ****** ************** *** of100 ************ ********** *** ******* of retained earnings on ******** ** **** The ******* paid common dividends ** ****** ** 2013 *** *** retained ******** of ******* ** December ** ***** *** **** *** ******* Technology earn ****** 2013?b What ***** earnings per ***** ** ** ***** shares ** ****** stock **** ************ ****** **** ****** to * decimal ************** TechnologyRetained ******** ******** 31 2013 * *********** ******** ******** ******** 31 **** 588000 ****** ** retained ******** * ********* ****** ***** dividends ***** ******** ********* ** ****** stockholders * ****** award:2 *** ***** pointsBotox Facial **** had ******** ***** ***** ** ******* ** 2012 **** 200000 shares ** ***** *********** The ***** ***** *** ***** In **** ******** ***** ***** ********* ** ******* with the **** 200000 ****** outstanding The ***** ***** was $5600a ******* ******** *** ***** *** the P/E ***** for 2012 **** *** ratio ****** *** ***** ***** ******* ** ******** *** ****** (Do *** ***** ************ ************ Round **** ***** answers to 2 ******* ******** ******* ******** *** share and the P/E ratio *** **** *** *** round ************ ************ Round **** ***** ******* ** * decimal ******** *** *** *** *** ***** change? 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*** *** round intermediate ************ ***** **** final ****** ** * ******* places)2752 ± *** What ** the ratio ** market ***** per share ** **** ***** *** ****** *** not ***** ************ ************ ***** **** ***** answer to * ******* ******* Market value ** book value 314 ** ** ************************** CorporationTotal assets * *********** ******* *********** ************** liabilities ****** Stockholders’ equity $ 208000Less: ********* stock ********** ***** Net ***** ******** to ****** * ****** ****** shares outstanding ********* value **** ****** *** ***** $ ******* value *** share * ******* * ****** $877bEarnings *** ***** * Earnings ********* to ****** stockholders * ****** ** shares= $34400 / ****** $172Price * P/E ** **** ** ** ***** $2752cMarket value *** ***** ******* / **** ***** per share = $2752 * $877= *** ************** *** ***** *********** ******** *** *** total assets ** ******* ******* *********** ** $243000 *** long-term *********** ********* There ** ******* in ********* ***** *********** ****** ******** ****** ** ****** ***** **** been ******* ******* **** ***** (net ****** per ***** ****** **** answer ** * decimal places)b If ***** ** $55600 ** ******** ********* ** common ************ and the firm’s ***** *** * *** ** ** ***** ******** *** share **** ** *** ******* ***** of *** stock? 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************* ********** 23000 ***** payable ************** 33000 ***** ******* ************ ******** 12800 ***** Assets *************** ****** Gross ***** *** ********* * ****** Preferred stock * ********** Accumulated ************ ***** ****** stock ***** ******* ******* ******** ***** *** equipment ****** ******** ******** ***** ***** assets * ****** Total liabilities *** *************** ****** $ 293200 Sales *** **** **** $260000 *** *** cost ** ***** **** *** 55 ******* ** ***** Selling *** ************** ******* *** ****** ************ expense was ** ******* ** ***** and ********* ******* ** *** beginning ** *** **** ******** ******* *** *** ***** payable *** * percent while the ******** rate ** *** ***** ******* *** ** percent This ******** expense ** ***** on December 31 **** balances *** *** **** ******** 35 ************ ** ********* ***** ********* **** **** *** ***** ** ********* were **** to ****** stockholders ***** were ***** shares ** ****** stock ***************** **** *** **** balance *** ******* ******** ******** were ********* ******** ********** *** ********* ********* ** * percent * *** machine *** ********* on ******** ** **** at * cost **************** ******* ********* by ** percent ***** ******* increased ** ***** *** ***** payable decreased ** ****** **** ** *** *** ** the **** *** ********* ***** ****** ***** *** ******* **** ** ****** ** par ******** *** not ******* Prepare ** ****** statement *** **** ****** *** ****** to * decimal ****** ***** *** amounts ** ******** ******** ******* * ********* ** retained earnings *** **** (Input all ******* as ******** ************* *************** Income ***************** ******** ******* ******* * **** * 63200Add: ******** ********* to common ************ **** ********** Cash dividend ******** in **** **** Retained ******** ******* ******** 31 **** * 85060 * ******* * balance ***** as ** ******** 31 2013 *** **** ** **** *** assets *** liabilities ** order ** ***** ********* Input *** amounts ** ******** ************** ****** LiabilitiesCash * ***** ******** ******* * ************* ********** 25070 ***** ******* 3480044000Prepaid ******** 12800Total current assets $ ***** ***** *********** $ ******** *** December ** 2012 *** balance ***** ** ****** Corporation was ** follows: ******* Assets *********** Cash * 18000 ******** payable * 20000Accounts ********** ***** ***** payable 28000Inventory ***** ***** payable 58000Prepaid ******** ***** Fixed ****** *************** ****** ***** ***** *** ********* * ****** ********* stock * ********** *********** ************ ***** ****** stock ***** ******* ******* ******** ***** *** ********* ****** ******** ******** ***** Total ****** * 293200 Total liabilities *** stockholders’ ****** $ 293200 ***** *** 2013 **** ******* *** the cost ** ***** sold was ** ******* ** ***** Selling and ************** ******* was ****** Depreciation expense *** ** ******* ** ***** and ********* ******* at the ********* of the year Interest ******* *** the ***** ******* *** 9 ******* ***** *** ******** **** ** *** bonds ******* *** ** percent **** ******** expense is ***** ** ******** 31 **** ******** The tax **** ******** 35 ************ in ********* ***** ********* **** paid *** $8750 ** ********* were paid ** ****** stockholders ***** **** ***** shares of ****** ***** ***************** **** the **** ******* *** ******* expenses ******** **** unchanged ******** ********** *** inventory increased ** 9 ******* * *** ******* was purchased on ******** ** 2013 ** * cost **************** payable ********* ** ** ******* Notes ******* ********* by $6800 *** ***** ******* decreased by ****** **** ** *** *** ** the **** The ********* ***** ****** ***** *** ******* **** in ****** ** *** ******** *** not changea Prepare ** income ********* for **** ****** EPS ****** to * ******* places ***** *** ******* ** positive values)Sales $ 260000 **** ** ***** **** ************* ************* ** ********* *** ************** ******* 26000 ************ ******* 28380Operating profit $ 62620 ± ********** ******* 11220Earnings ****** ***** * ***** ± ** ***** ************* ***** taxes $ ***** ** *********** ***** ********* ************ ********* ** ****** ************ * ***** ** ** Shares outstanding 10000Earnings *** ***** * *** ± 1%b ******* * ********* ** ******** ******** *** **** (Input *** amounts ** ******** ************* *************** ****** ***************** earnings ******* January 1 **** * ***** **** ******** available to ****** stockholders **** ***** ** ******* **** dividend declared ** 2013 ************ ******** ******* ******** 31 **** * 85060 ** *** Prepare * ******* ***** ** ** ******** ** **** (Be **** ** **** *** ****** *** *********** in order ** ***** ********* ***** *** ******* ** ******** ************** ****** LiabilitiesCashAccounts ********** ***** ** ** ***** ******* ***** ± ** ********* ***** ** ** ***** ******* 44000 ** ********* expenses ********** ******* ****** * ***** ** ** ***** *********** $ ****** ** 1%Gross ***** and **************** ** *********** ***** * ********** ** 1% ****** ***** ************ **** in ****** ** *** 33000 *** ***** *** ********* ****** ** ** ******** ******** ***** ** ******** ** 1%Explanation:aCost of ***** **** * 55 × ******* * ******* ************ ******* * ** × $258000 * ************** expense * *** ** ******* * (15 × ******* = ****** Taxes * ** ** ****** * *************** receivable * *** ** ****** * $25070 ********* = *** × $33000 * *********** ***** and ********* * ******* * 43000 * ******* *********** ************ * $51600 * ***** * ****** ******** payable = *** ** $20000 = *********** payable * ****** + 6800 * ****** ***** ******* = ****** *** 14000 * $44000award:2 *** ***** *********** ** *** ********* financial ********** *** Crosby ****************** ***************** StatementFor *** **** Ended December ** ********* ************ of ***** **** 2330000 ***** ****** *************** *** administrative ******* ****************** ******* 291000 ******** expense ***** ******** ****** taxes * *********** ****** ******** ***** ***** * *************** ***** dividends ***** Earnings available ** ****** stockholders * 131100 ****** *********** 150000Earnings *** ***** * *********** ** ******** Earnings *** *** Year Ended December ** ************ ******** ******* January * **** $ ****** Add: ******** ********* ** ****** ************ **** ****** Deduct: Cash ********* ******** and paid in 2011 ************** earnings balance December ** **** * ****************** ******* ****** *** **** *** **** ************ ****************** Current assets: **** $ 144000 * ************** ********** ***** ****** 524000Inventory ****** ************* expenses ***** 32400 ***** ******* ****** * ******* * ****************** (long-term securities) 97500 87800Gross ***** and ********* $ ******* * ******* ***** *********** ************ 1920000 ******* Net ***** *** ********* ****** ****** Total ****** * ******* * ******* *********** *** Stockholders’ Equity ******* liabilities: Accounts ******* * ****** * 641000Notes ******* 534000 ************* ******** ***** ***** ***** ******* *********** * ****** $ **************** ************ ***** ******* 2011 ****** 220000 Total *********** * ******* * 1447700Stockholders’ equity: ********* ***** **** *** ***** * ***** * 90000Common ***** $1 par value ****** 150000Capital **** ** ****** ** *** ****** ************** ******** 119900 ***** Total stockholders’ equity * ****** * ****** ***** *********** *** *************** ****** * ******* * 2091700 a ******* a statement ** **** ***** *** the ****** ************ ******** ** ** deducted ****** ** ********* with * ***** *********** ******************** ** Cash ******** the **** Ended ******** ** **** Cash ***** **** operating ********************** ** ********* **** flow **** ********* ******************* ** ********* ****** ******** ** prepaid ******** ***** Decrease in accrued ******** -24600 **** ***** **** investing ******************* ** *********** * **** Increase ** plant *** ********* ******* *** **** ***** from ********* ********** ******* **** ***** from ********* activities: Increase in ***** ******* $ ***** ********* ***** dividends paid ****** ****** stock dividends **** ******* Net **** ***** from financing ********** ******* Net ******** (decrease) ** **** ***** $ -25500 b Compute the **** value *** ****** ***** *** **** 2010 *** **** *** *** ****** *********** ****** your ******* to * ******** ******* **** ***** **** * ******* * 369c If *** ****** ***** ** * ***** of common ***** ** ** ***** **** ***** for **** **** ** *** ******** *** ***** *** ***** (Do *** round ************ ************ ***** **** ***** answer ** * ******* places)Refer to *** ********* ********* statements *** ****** ****************** ***************** ************ *** **** ***** December ** 2011Sales ************ ** ***** sold 2330000 ***** profit *************** *** administrative expense ****************** expense 291000 ********* income * 365000Interest ******* ***** ******** ****** ***** $ *********** 141000 ******** ***** ***** $ *************** ***** dividends ***** ******** available ** ****** ************ $ ****** ****** *********** ************** *** ***** * 87Statement ** Retained ******** For *** **** ***** December 31 ************ ******** ******* January 1 2011 * 119900 **** Earnings available ** ****** ************ 2011 131100 Deduct: Cash ********* ******** and paid ** 2011 197000Retained ******** ******* ******** ** **** $ **************** Balance Sheets For 2010 and **** Year-End Year-End 2010 ********** Current ******* Cash $ ****** * ************** receivable ***** ****** *************** 624000 ************* ******** ***** ***** Total ******* assets $ 1335700 * ****************** ********** securities) ***** ********** ***** and equipment $ ******* * ******* ***** *********** depreciation ******* ******* *** ***** *** ********* ****** ****** ***** ****** $ ******* $ ******* *********** *** Stockholders’ Equity ******* liabilities: Accounts ******* $ 323000 $ *********** ******* ****** 534000Accrued ******** 77300 ***** ***** ******* *********** $ ****** * **************** ************ ***** ******* **** 189000 ****** ***** *********** * ******* * ********************** ******* ********* ***** $100 *** ***** * ***** $ 90000Common ***** ** *** value ****** ************* paid ** ****** ** par ****** 350000Retained ******** 119900 ***** ***** *************** ****** $ 709900 $ ****** ***** *********** *** *************** ****** $ ******* $ ******** Prepare * statement ** cash ***** for *** ****** ************ ******** to ** ******** ****** ** ********* **** * minus *********** ******************** of Cash FlowsFor *** **** ***** ******** ** **** **** ***** **** ********* ********************** ** determine **** **** **** operating *************** flows from investing *************** ***** **** ********* activities:Preferred stock ********* **** ****** ***** dividends **** *** **** ***** **** financing ********** Net ******** (decrease) ** **** ***** * ****** ** ** *** ******* *** **** value *** ****** share *** **** 2010 *** 2011 *** *** ****** Corporation ****** your answers ** * ******** *********** $ *** ** ****** $ *** ** ** c If the ****** ***** ** a ***** of ****** ***** ** ** ***** **** ***** *** **** what is *** ******** *** ***** for ***** (Do not ***** intermediate ************ ***** **** final answer ** 2 ******* places) *** ***** **** ± ** ********************* ******** ** cash flows **** ***** *** ********** in *** **** account **** the ********* ** *** ****** ** *** *** of the *********** ***** *** ***** = ************** ****** *** ********* ****** * ****** ****** outstandingBook ***** *** ********* * ($709900 *** ****** * ******* $413Book ***** per ********* = ($644000 − ****** * ******* *********** ***** * 27 ** **** * $997P/E ***** * ****** ***** * ******** *** share= **** * $087= **** ************ *** of100 ********** ********** *** * **************** (investment) ***** of ** ******** If *** ******************** ***** ** ** ******* **** ** *** return ** ******* (Input your ****** ** * ******* rounded to * ******* ******** ** *** firm *** ** debt **** ***** *** **************** ***** be? (Input **** ****** ** * ******* rounded to * ******* places)award:2 out ***** pointsUsing *** Du **** ****** ******** *** ******* ** the following relationships for the Butters ************ ******* *********** *** * ****** ****** ** * ******* *** *** ****** ** ****** ************ ** ** ******* What ** *** ****** ********* (Round your ****** to * ******* places)b ** the ******* *********** *** a ******************** ***** ** **** ******* what ***** *** ******** return ** ****** be? ****** your ****** ** a percent ******* to * decimal ******** What ***** happen ** ****** ** ****** ** *** ******************** ***** ********* ** 4000 ************** **** ****** ** * ******* ******* to * ******* ************** out ***** *********** Rice *** ***** ****** has ******** ** yearly ***** *** **** ***** ** percent ** **** dollar ** ***** *** ***** **** its assets 2 ***** *** **** ** *** ******* ** ******* *********** and ******* in ***** **** ************ **** ** *** ****** on *************** ******* *** *** ***** intermediate ************ ***** your ****** ** a ******* ******* ** * ******* ********** ** *** asset **** ******* *** **** ** ******** ** **** a but ***** ***** ******** **** ** ** *** what **** ** *** new ****** ** *************** equity? ****** **** *** ****** ****** ***** *** **** ** ** ******* and ********* *********** (Do not round ************ ************ ***** **** answer ** * ******* ******* ** 2 ******* ************ **** *** Grain ****** *** $4030000 ** yearly sales *** **** ***** ** ******* ** **** dollar ** sales *** turns **** its ****** 2 ***** *** **** ** *** ******* in ******* *********** and ******* in ***** term ************ What ** *** ****** on *************** equity? (Do *** round ************ ************ ***** **** answer ** * percent rounded ** * ******* places) ****** ** ************* ****** 660 ± 1% ** If *** ***** **** ******* *** **** ** ******** in **** * *** ***** ***** ******** **** ** ** *** **** will ** *** *** ****** ** *************** equity? ****** **** *** ****** ****** ***** *** **** ** ** ******* *** ********* *********** *** *** ***** intermediate ************ Input **** ****** ** a percent ******* ** * decimal ******* *** return ** ************* ****** *** ** ** ***************** ****** = Sales ** ****** ******* ******** ** **** ************ assets * ***** * ***** ***** ********* $4030000 * *** ************* *********** * ******* liabilities * Long-term ************ ******* * ******* ******************** ****** = ***** ****** *** ***** ************ ******** *** ******* ************** ** ************* ****** * *** income / ************* equity= ******* * $1527000= 0660 ** ******** *** ***** ** sales will be:Sales * ***** ****** ** Total ***** ********* ******** × **** ************* ****** * ***** ** ****** margin= ********** ** **** ************** ** ************* equity * *** income * ************* ******* $1259375 / ********* **** or 825%award:2 *** ***** ************ the following **** *** ***** *********** *** *********** ******** *********** IncNet income $ ***** * 190000Sales ****** ************ ****** 409000 *********** **** ****** ******************* equity 175000 ********* Compute ****** on *************** ****** *** **** ***** ****** **** ******* ** * ******* rounded ** * decimal ************* ** *************** ****** ***** Corporation 2274 % *********** *** **** **** ***** firm *** *** ****** return? *********** *** * ******* *** ********* additional ****** *** **** ***** ****** **** *** ************ *************** ****** and ********** ***** ******* as * ******* rounded ** * ******* places ***** your *********** ****** ******* ** 2 ******* ******* ***** Corporation *********** *** Net ************ **** % *** **** ************ ****** *** % 1967 ************ ****** ** times *** *************** assets 5721 * **** %Assume *** ********* **** *** ***** *********** *** Multi-Media ******************* Multi-Media IncNet ****** * ***** $ 190000Sales ****** 2170000Total ****** ****** *********** **** ****** ******************* ****** ****** ********* Compute return ** *************** ****** *** both ***** (Input **** ******* ** a ******* rounded ** 2 ******* ************* on *************** EquityCable Corporation **** ** 1% ************ *** **** ** 1% **** ***** **** *** *** higher ****************** **** ******* *** ********* ********** ****** for **** ***** ****** **** Net ************ *** ************ assets *** ********** ***** answers ** * ******* rounded ** 2 ******* ****** ***** **** *********** ****** answers ** 2 ******* ************ *********** *********** ****** ************ **** ** 1% * *** ** 1% **** ************ ****** *** ** ** % **** ** 1% % *********** ****** 86 ** ** ***** *** ** 1% timesDebt/Total ****** **** ** 1% % **** ** 1% * ******************** *********** *********** *** Net income * ****** * **** or ***** ******* = 4513 ** ****************** ****** ******* ********************* *** *** * much ****** ****** ** stockholders’ equity than ***** CorporationbCable Corporation *********** *** *** ****** = $39800 * 1131 ** ***** $190000 = 0876 ** 876% Sales $352000 ******** Net ****** * $39800 * **** ** **** $190000 * 1967 ** ********** assets ******* $966000 Sales * $352000 * 86 times $2170000 * 225 ***** Total ****** $409000 ******* **** = $234000 * 5721 ** ***** $545000 = **** ** 5642%Total assets ******* $966000award:2 *** ** ********* ******* sheet *** Stud Clothiers ** ***** **** ***** *** *** **** were $3190000 with ** ******* ** ***** sold on ********** **************** ***** ********** *********** *** ********** * ***** ******** ******* * ************** ********** 283000 ******* taxes *************** ****** ***** ******* *********** 130000Plant and equipment 450000 ****** ***** ****** ******* capital 150000 Retained ******** 257000 Total ****** ******** ***** liabilities *** ****** * 1023000Compute the ********* ******* **** * ******* year Do *** round intermediate ************ ***** your ******* ** 2 ******* ****** ***** **** debt-to-total ****** answer ** * percent ******* ** 2 ******* ******* * ******* ratio 148 ****** ***** ***** 80 timesc ******************** ***** 5044 %d ***** ******** 312 timese Average ********** ****** 4258 ******* ******* ***** *** Stud ********* ** ***** next ***** *** the **** were ******** **** ** ******* ** sales **** ** ********** **************** ***** 20XXAssets Liabilities *** EquityCash $ ***** ******** ******* $ ************** receivable ****** ******* ***** 107000Inventory ****** ***** ******* *********** *********** and ********* ****** ****** stock 100000 Paid-in ******* ****** ******** earnings ****** ***** ****** $1023000 Total liabilities and ****** $ ************** *** ********* ratios: **** * ******* **** ** *** ***** ************ calculations Round your ******* ** * decimal ****** Input **** ************* ****** ****** ** * percent ******* to 2 ******* ******** ******* ***** 148 ** ** ****** Quick ***** ** ** 1% ***** * ******************** ***** **** ± ** ** ***** turnover 312 ** 1% ***** * Average ********** period 4258 ** ** ************************ ***** = Current ****** ******* ************ ****** + ****** + ************* * 107000= 148 timesbQuick ***** * ******* ****** *** ********* ******* ************ ****** * ****** $279000 * ******* 80 ********** ** ***** ***** * Total **** ***** assets= $279000 * ****** * ****** ********* 5044 or 5044%dAsset turnover * ***** ***** assets= ******** ********* 312 ************* ***** ****** ***** = ******* ***** × ****** ***** ******** * **** ** **** ** ($3190000 ** *** / ***************** ********** ****** *** ******** ********** / ******* ***** ****** ************ / *********** daysaward:2 *** ***** pointsUsing the income ********* *** ***** Mirror and ***** Co compute *** following ************ MIRROR *** ***** ******** StatementSales * ********** of ***** **** ****** ***** profit * 93000Selling *** ************** ******* ********** ******* ***** ********* ******* * ************* expense ***** Earnings ****** ***** * 19300Taxes (30%) **** Earnings ***** taxes $ ***** ******* ****** ****** ******** *** ***** a ******* *** interest ******** ***** ****** your ****** ** * ******* ******** ******* *** ***** ****** ******** ***** (Round **** ****** ** * ******* ********** ***** ****** *** this ******* ***** ******* *** ** *** ******** *** the ** **** ****** of ratio ********* ******* *** ****** ****** ***** ****** **** answer ** a ******* ******* to 2 decimal ******** ******* *** ***** ***** ******** ratio ****** **** ****** ** 2 ******* ******** ******* *** ****** on ****** (investment) *** *** ***** ************ calculations ***** **** ****** ** * ******* rounded to * ******* ************ *** ****** ********* *** ***** ****** *** Glass ** ******* the ********* ************ ****** *** GLASS CoIncome ************** * ********** of goods **** 130000 ***** ****** * ************ and administrative ******* 44000Lease expense ***** ********* ******* * ************* ******* ***** Earnings ****** ***** * ********** (30%) 7720 ******** after ***** * ***** ******* income ****** ******** and ***** * Compute *** interest ******** ***** ****** **** ****** ** * ******* ******* ******** ******** 282 ** ** ***** * ******* *** fixed ****** ******** ratio ****** your ****** ** * ******* ******* Fixed ****** ******** *** ** 1% ***** *** ***** ****** *** **** ******* equal ******* *** ** *** equation for the Du **** system ** ratio ********* ******* *** ****** ****** ***** ****** **** ****** ** a ******* ******* ** 2 ******* places) ****** margin *** ± ** ** ******* *** total asset ******** ratio ****** your ****** ** * ******* ******* ***** ***** ******** 128 ± ** ***** * Compute the return ** ****** ************ *** *** ***** ************ ************ ***** **** ****** ** * ******* ******* ** * decimal ******* ****** ** ****** *** ** ** ******************* ******** ****** = ****** before ******** and taxes Interest= ************* *** timesbFixed charge coverage = ****** before ***** ******* and ***** ***** charges= ****** * ***** $10600 * 19100= *** ************ margin * *** ****** Sales= $11580 $223000= **** ** ********** asset turnover * ***** Total ******* $223000 ******** *** timeseReturn ** assets (Investments) = *** income ×Sales ***** ***** assets = 0519 × 128 times= 0666 ** *********** out ***** ****** **** *** net ****** ****** interest *** ***** ** ******* and interest ******* of ******* **** ** *** ********************* ratio? ****** your answer to * ******* ******** ** the ******** ***** ******** *** $44000 **** ** the ***** ****** ********* ****** **** ****** ** 2 decimal ************** *** ***** ************* ****** ******* *** *** following data ******** information **** ** ***** 2011 * ****** * ******* *** % 2012 ****** ******* 82 **** ****** 3762000 44 Year Debt Total Assets ******** **** ** Debt/Total Assets2011 * 1692000 * ******* *** ***** ******* ******* ******* ******* ******* **** ********* *** company's **** ** ***** of: ****** **** ******* ** * ******* rounded to * decimal ****** 2011 **** 2013 Net income/Total ****** *** * *** * *** %Debt/Total ****** *** * *** * 527 %b ** ** ******** ******* ********* *** firm ** the ******** *** *** ****** to ****** or ********* *** **** ** ***** *** **************** Quantum ****** ******* *** the ********* data Industry *********** **** ** shown **** * 388000 * 2868000 128 * **** ****** 3244000 ** **** ****** ******* 44 Year **** ***** ****** Industry **** ** ********** ********** * ******* * ******* *** ***** ******* ******* ******* ******* ******* **** ********* *** ********* **** ** ***** *** (Input your ******* ** a ******* rounded ** * ******* ****** **** **** ******* ************ ****** 135 ± ** % *** ** ** % *** ** 1% *********** ****** *** ** ** * 536 ** ** * 527 ** 1% %b ** ** ******** ******* ********* *** **** ** the ******** *** *** ****** ** ****** ** ********* *** firm ** ***** *** Praise/Criticize *** ************ ****** **************** ****** ************************* ****** * ***** ********** ******* ***** ******** ********* *** % *** ***** *** * ** %2013 *** * 44 ***** * ***** assetsYear ******* Ratio ******** ********* *** * *** ***** 536 % *** ***** 527 * *** ***** income/Total ************** the ******* *** ***** * ********* return ** assets ***** **** ** *** performed **** ****** **** the ******** ****** *** ** more appropriate **** ******************* *********** *** *********** **** ***** is ********* ** ** *** ********* ****** ** ******* ** *** ******** ***** Criticism *** ** **** appropriate **** *************** *** ***** ********* Canton *********** ***** *** ********* ****** ********* The **** **** **** ********* **************** ***************** ********* for 2013Sales * 152100 (11700 units ** $1300) **** of ***** **** ***** ****** ***** ** $800)Gross ****** $ 58500Selling *** ************** ******* **************** ***** ********* ****** $ ********** ***** **** ******** ****** $ ***** * ****** ** 2014 *** same ********** ****** ** ********** but **** *** sales ***** ********* ** ** ******* ******* of **** ********* ****** *** ********* **** ***** be charged *** ** **** *** unit **** assume ******* *** ************** ******* **** be * ******* of sales and ************ **** ** unchanged The *** **** ** 30 percent ******* ******** ****** for **** *** *** round ************ ************ ***** **** answer ** *** ******* ***** ******** ** **** a ** **** ******* did ******** income ******** ** * ****** ** * 10 percent increase in *** sales ****** *** not ***** ************ calculations ***** **** ****** ** * percent ******* ** * ******* places)c *** ****** **** in 2015 *** ****** ******* constant ** ***** ***** *** *** ***** price ********* ** ** ******* **** *** **** 2014 ***** **** because ** **** ********* policy **** ** ***** sold ******** *** ************ ********** ** *** ***** **** *** ** **** *** unit ******* ****** selling and ************** expense **** be 6 percent ** ***** *** ************ **** be ********* *** *** **** ** ** percent Compute the ******** income ****** the ***** ***** *** **** ** 2 ******* places but ** not ***** *** ***** ************ calculations Round **** ***** answer ** the ******* ***** ****** ********** ****** Corporation shows *** ********* income ********* The **** uses **** ********* **************** CORPORATIONIncome Statement for ********* $ 152100 ****** units at ********** ** goods **** ***** ****** units at ***** ***** ****** * ************ and ************** ******* **************** ***** Operating ****** * ********** (30%) 8992 ******** ****** * ***** a ****** ** **** *** **** ********** volume is maintained *** that the ***** ***** ********* ** ** ******* ******* of FIFO ********* policy old ********* will ***** ** ******* off ** **** *** **** Also ****** selling *** ************** ******* **** ** * percent ** ***** *** depreciation will ** ********* *** tax **** is ** ******* ******* aftertax ****** for **** (Do *** round ************ ************ ***** your ****** ** the nearest ***** number)Aftertax ****** * ***** ** ** b ** **** * by **** ******* *** ******** ****** ******** as a result ** * ** ******* increase ** the ***** ****** (Do not ***** ************ ************ ***** **** ****** as * percent rounded ** * decimal places) Gain ** aftertax ****** **** ** 1% %c Now ****** **** in 2015 *** ****** ******* constant ** ***** ***** but *** sales ***** ********* ** 15 ******* **** *** **** **** ***** **** because ** FIFO ********* ****** **** ** ***** sold ******** *** inflationary ********** of *** ***** **** *** ** $850 *** **** ******* ****** ******* *** administrative ******* will ** * ******* of ***** *** ************ will ** ********* *** *** **** ** ** ******* Compute *** ******** ****** (Round the ***** ***** per **** to * decimal places *** ** not ***** *** ***** ************ ************ Round your ***** ****** ** *** ******* ***** ****** amount)Aftertax ****** * ***** ** **************************** **************** $ 167310 (11700 ***** at ********** ** goods **** ***** ****** ***** ** $800) Gross ****** * ***** ******* *** administrative expense ***** *** ** sales)Depreciation 19400 ********* ****** $ ***** ***** (30%) 13281 Aftertax income * 30990 ***** ** ******** ****** 2014 * ********* 20982 Increase * ***** Increase * ****** * 4770 ** ***** **** value ****** ************** ****** increased much **** **** sales ******* of **** ********* ****** *** this **** *** **** ** old inventory *** *** go ** ** **** *** because of ********** cost ************ ****** did *** ****************** × ** * ******** *** ******* ******** *** ****** ** ********* ******** ** disinflationaward:3 *** of300 pointsThe ****** Corporation *** ****** ***** ** $1137650Total ****** ******** 305 timesCash to ***** ****** 170 * ******** ********** ******** 10 ************** turnover ** ***** ******* ***** *** timesDebt to ***** ****** ** %Using *** ***** ****** complete the balance ***** ****** **** ******* ** *** ******* ***** ************* *********** and ************* ********** $ 6341 ******* **** * 95070Accounts ********** ****** ********* **** ***** Total ******* assets * ****** ***** **** $ *********** ****** ****** ****** ****** *** ****** *********** has ****** ***** ** $1137650Total ****** ******** *** ********* ** ***** ****** *** * ******** ********** ******** ** ************** ******** ** times ******* ***** *** timesDebt to ***** assets 30 ****** *** ***** ****** ******** the ******* ***** (Round **** ******* to *** nearest ***** number)Assets Liabilities and ************* ********** ********* receivable ****** ** ** ********* **** ***** ** ** ********* ****** ± ******* ******* ****** * ****** ± 1% Total debt ****** ****** ****** ** 1% ****** ****** ± ********* ******* 373000 ** 1% Total **** and ************* ****** * 373000 ** ********************* / Total ****** * *** ********** assets = $1137650 * 305= *********** = **** ** ***** assets= **** ** ******** $6341Sales * Accounts ********** * 10 ***** ******** receivable = $1137650 / 10= ************ / ********* * 10 ************** * $1137650 * *** ************** ****** = ***** + 113765 + ******* $233871Fixed assets = ***** assets *** Current ******* ******* *** 233871= ************** assets * ******* debt * 246Current debt * Current assets / **** ******* * 246= *********** **** * Total assets * ******** **** * ** ** ******** **************** **** * ***** debt – ******* ***** $111900 *** 95070= ************ = ***** ****** *** ***** ***** ******* *** ******* ************** *** ***** pointsUsing the ********* ********** *** *** Snider *********** calculate *** ** ***** ratios ***** ** *** ************* Current *********** $ *************** securities 28700Accounts ********** (net) *************** 216000 Total ******* ****** * ***************** 62300 Plant *** ********* * ****** Less: Accumulated ************ ****** Net ***** *** ********* 453000 Total assets $ ******* *********** and ************* Equity ******* ************ ******** ******* * ********** ******* ************ ***** 15900 Total current *********** * *************** ************ ***** payable 155300 ***** *********** * ******************* equity ********* stock *** *** ***** * ************ stock ** par value 80000Capital **** in excess ** par ************** earnings ****** Total ************* ****** * ****** ***** liabilities *** ************* equity * 1023700SNIDER CORPORATIONIncome ************ *** Year ****** December ** ********* *** credit) ************ of goods **** ******* Gross ****** * ************* *** ************** ******** ******* ********* ****** ****** * 214000Interest ******* ***** ******** before ***** ***** * *********** ***** Earnings after ***** (EAT) * 99900*Includes $39700 ** ***** ************* *** above ********* statements *** *** Snider *********** ********* the ********* ******* ************* ****** *** not round ************ calculations ***** **** ******* ** a percent ******* ** 2 ******* places) ************* ************ ****** *** %Return ** assets (investment) *** **** ****** *********** ratios *** *** ***** ************ calculations Round your ******* to * ******* ******* ****** *********** ****** ********** ******** 971 ************ ********** ****** **** ************* ******** *** ********** ***** ******** 450 ********** ***** turnover *** timesc ********* ratios *** *** ***** ************ calculations ***** **** ******* ** 2 decimal ******* Liquidity Ratios ******* ***** 275 ********** ***** *** timesd **** *********** ****** *** *** ***** ************ ************ ***** your **** ** ***** assets ****** as a percent ******* to * ******* ****** ***** **** other answers ** 2 decimal ******* Debt *********** ****** **** ** ***** ****** 3320 ****** ******** ****** *** ********** charge ******** *** timesUsing *** ********* ********** for *** Snider *********** ********* *** 13 ***** ratios ***** ** *** ******************** assets:Cash * *************** ********** 28700Accounts ********** (net) 210000Inventory ****** ***** ******* ****** $ ***************** ***** Plant *** ********* * ****** Less: *********** ************ ****** Net ***** *** ********* ****** ***** assets * ******* *********** *** ************* ****** ******* ************ ******** ******* * 90800Notes payable ************ taxes ***** ***** current *********** * *************** ************ ***** payable ****** Total liabilities * 339900Stockholders' ****** ********* ***** *** *** ***** * ************ ***** ** *** ***** ************ **** ** excess of *** 190000Retained ******** ****** Total ************* equity $ 683800 ***** *********** *** ************* equity * 1023700 ****** *********** ****** StatementFor *** Year Ending ******** ** ********* (on ******* ************ ** ***** sold 1310000 ***** ****** $ ************* *** ************** ******** ******* ********* ****** ****** * 214000Interest ******* ***** ******** ****** ***** (EBT) $ 186400Taxes 86500 ******** ***** taxes ***** * ************** ****** ** ***** ************* the above ********* ********** *** *** ****** *********** ********* *** ********* ratiosa Profitability ****** *** *** round intermediate calculations ***** your ******* ** * ******* ******* ** 2 decimal ******** ****** *********** ****** *** *** round ************ ************ ***** **** ******* ** * ******* places)c ********* ratios *** not round intermediate ************ ***** **** answers to * ******* places)Quick ***** *** ** 1% ***** * **** *********** ****** *** not ***** ************ ************ Input **** debt ** ***** ****** ****** ** * percent ******* to * decimal ****** ***** your ***** ******* ** * ******* ********************************* ************ ****** * ****** * ******** = **** or ********** on assets ************ = ****** * $1023700 * **** ** **** ****** ** ****** * ****** * ******* = 1461 or ************ utilization **************** ******** * $2040000 * ******* * 971 ***** ******* ********** period * ******* * $5667 = **** **** ********* ******** * ******** * $216000 * *** ***** ***** asset turnover = ******** / $453000 * *** ***** ***** ***** turnover * ******** / ******** * 199 timescLiquidity *************** ratio * $508400 * ******* = *** ***** ***** ratio = ******* * ******* = *** ********** *********** ********** ** total ****** * $339900 * ******** * **** or ***** Times ******** ****** = ******* / ****** * 775 timesFixed ****** ******** * $253700 * ****** * *** ************ *** of400 *********** *** financial ********** *** ***** *********** *** ***** Corporation:JONES ****************** Assets *************** * ****** Accounts payable * 106000Accounts ********** 80700 Bonds ******* ***** ***** 89300Inventory ***** Long-Term Assets ************* *********** ***** assets * ****** Common ***** $ *********** *********** depreciation 154900 ******* capital 70000 Net ***** ******* 410100 Retained earnings ****** Total ****** * ****** ***** *********** *** ****** * ****** Sales *** ******* * 1855000Cost ** ***** **** ****** ***** ****** * ************** *** administrative ********** ****************** ******* 50500 Operating ****** * ************** expense ***** ******** before ***** * 724900Tax ******* ***** *** ****** $ ****** **** *** fixed ****** ** computing fixed ***** turnover†Includes ****** ** ***** paymentsCurrent ****** *************** * ***** Accounts ******* * ***** ********** securities 16100 ***** payable ***** term) 234000Accounts ********** ************** ********** ***** ****** $ ****** ****** ***** * ********** Accumulated ************ ****** ******* ******* 30000*Use *** ***** ****** ** ********* fixed asset ************* *********** ***** *** ******* $ *********** of ***** **** 674000 ***** ****** * 416000Selling *** ************** ********** ****************** ******* ***** ********* ****** * ************** ******* ***** ******** ****** taxes * ******** ******* 55300 Net income * ****************** ****** ** lease ********* ******* *** following ratios **** * 360-day **** ** *** ***** ************ ************ ***** **** profit ****** ****** ** ****** ****** ** ****** and **** to ***** ****** ******* as * percent ******* ** * ******* ****** ***** all ***** ******* ** * ******* places) Jones Corp ***** Corp ****** ****** **** * *** ******* ** ****** ************* **** * *** ******* on ****** 13400 * **** *********** ******** 2299 times 1376 ************ ********** ****** **** **** **** ************* turnover **** ***** **** ********** ***** ******** *** ***** *** ********** ***** ******** *** ***** *** ************ ratio *** times 278 ********** ***** *** ***** *** ********* ** total ****** **** * 6630 ****** interest ****** 6939 ***** *** ********** ****** coverage **** ***** *** ********** *** financial ********** *** ***** *********** *** ***** Corporation:JONES CORPORATIONCurrent ****** LiabilitiesCash * ****** ******** ******* * ************** ********** ***** Bonds ******* (long ***** ************** ***** ********* ****** ************* *********** ***** ****** * 565000 ****** ***** * *********** *********** ************ 154900 Paid-in ******* ***** Net ***** ******* ****** ******** earnings ****** Total ****** * ****** ***** liabilities *** ****** * 666100 ***** (on ******* * *********** of goods **** ****** ***** profit * ************** *** ************** ********** ****************** ******* ***** ********* ****** $ ************** expense ***** Earnings before ***** * ********* ******* ***** *** ****** * ****** **** net ***** ****** ** ********* ***** ***** ******************* $13200 ** ***** *************** ****** LiabilitiesCash * ***** Accounts ******* * ***** ********** ********** 16100 Bonds payable (long ***** ************** ********** 79200Inventory 76400Gross ***** ****** $ 507000 ****** ***** $ ********** *********** ************ ****** Paid-in capital ********* *** ***** ****** ** ********* fixed asset *************** *********** Sales *** ******* * *********** ** ***** **** 674000 Gross ****** $ ************* *** ************** expense† ****************** expense 51400 ********* ****** $ 115600Interest expense ***** Earnings before ***** $ ******** expense 55300 *** ****** * ***** †Includes ****** ** ***** ********* Compute the ********* ratios (Use * ******* **** Do *** ***** ************ calculations ***** your ****** ****** return ** assets return ** equity *** **** ** total ****** answers ** a ******* rounded ** 2 decimal places ***** *** other ******* ** 2 decimal ************ ****** coverage **** ± ** ***** 350 ** ** timesExplanation:a Jones Corp ***** ********** margin ******* * $1855000 ****** / $1090000Return ** ****** ************* ******* * ******* ****** * $466500Return ** equity $630900 * $470800 ****** * $157200Receivable ******** $1855000 * ****** ******** * ************* ********** ****** ******** * ******* $7920000 * **************** ******** ******** * ****** $1090000 / *********** ***** ******** ******** / ******* ******** / ************ ***** ******** $1855000 * ******* ******** * ************** ***** $256000 / ******* ******* / $75300Quick ***** ******** + 80700) * $106000 ******* * ***** + ****** * ********** ** ***** ****** ******** * ****** * ******* ******* * ******* / ************ ******** ****** $735500 * ****** ******* / *********** charge ******** ******* / $23800 ******* * ******
