Which of the following statements is CORRECT? Answer: e. If the interest rate the companies pay on their debt is less than their earning power. (BEP), then Company HD will have the higher ROE. 4. Muscarella Inc. has the following balance sheet and income statement data: Cash $ 14,000 Accounts payable $ 42,000 Receivables 70,000 Other current liabilities 28,000 Inventories 210,000 Total CL $ 70,000 Total CA $294,000 Long-term debt 70,000 Net fixed assets 126,000 Common equity $280,000 Total Assets $420,000 Total liab.
ordinary business deduction. None of the above 3. (TCO I) Under the cash method of tax accounting, tax deductions are generally taken when: (Points : 5) the liability arises. payment is made. the expense is actually incurred.
The most recent financial statements for Williamson, Inc., are shown here (assuming no income taxes): Income Statement Balance Sheet Sales $ 6,700 Assets $22,050 Debt $ 8,050 Costs 3,850 Equity 14,000 Net income $ 2,850 Total $22,050 Total $22,050 Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next year’s sales are projected to be $7,906. What is the external financing needed?
ACCOUNTING CASES, RESEARCH, AND ANALYSIS GROUP ASSIGNEMNT #1 MEMORANDUM TO: Professor Siyi Li FROM: Group 5 DATE: October 3, 2013 SUBJECT: Performance Based Stock Compensation This memo is an analysis of the case in which the Company Sooner or Later Inc granted “at the money” performance based stock options and the fair value is not easily determinable. The grant-date fair value of each award is $9. With the revenue target factored into the fair value assessment the grant-date fair value is $6. Management believes it is probable the company will achieve cumulative revenue in excess of $10 million. General Priciple – Performance are only recorded when the target is proable to be acheived Sooner and Later Inc On January 1, 2006, Sooner or Later Inc. granted 1,000 “at-the-money” employee stock options (i.e., the exercise price was equal to the stock price on the grant date).
Huffman TruckingBalance Sheet | (Unaudited) | | | December 31st | | 2011 | 2010 | | (In Thousands) | | Assets | Current Assets | | Cash & Cash Equivalents | $89,664 | $58,003 | Accounts Receivable | 51,869 | 81,557 | Prepaid Expenses & Supplies | 6,267 | 5,529 | Total Current Assets | $147,800 | $145,089 | | Carrier Operating Property (at cost) | $85,306 | $81,461 | Less: Allowance for Depreciation | (69,536) | (67,119) | Net Carrier Operating Property | $15,770 | $14,342 | | Assets of Discontinued Operations | 7,516 | 8,739 | Goodwill (net) | 49,852 | 49,852 | Other Assets | 46,327 | 37,306 | Total Assets | $267,265 | $255,328 | | | Liabilities and Shareholders' Equity |
Brandywine Income Statement, 2007 Revenue 12,000,000 Expenses: Depreciation 1,500,000 Other Expenses 9,000,000 Total Expenses 10,500,000 Net Income 1,500,000 Total Profit Margin 13% Brandywine Cash Flows Statement, 2007 Cash 12,000,000 Add: Depreciation 1,500,000 Less: Expenses (9,000,000) Net Cash 4,500,000 Supposed the company changed its depreciation calculation procedures (still within GAAP) such that its depreciation expenses doubled. How would this change affect Brandywine’s net income, total profit margin, and cash flow? If Brandywine doubled its depreciation expenses, their expenses would increase and the net income would vanish. As for profit margin it would decrease and the company would not be profitable and the cash flow would increase. For example, Brandywine home care would be as follow: Increase of depreciation Revenue 12,000,000 Expenses: Depreciation 3,000,000 Other Expenses 9,000,000 Total Expenses 12,000,000 Net Income - Total Profit Margin 0% Brandywine Cash Flows Statement, 2007 Cash 12,000,000 Add: Depreciation 3,000,000 Less: Expenses (9,000,000) Net Cash 6,000,000 Explain the difference between cash and accrual accounting.
GST inclusive) ADD G6 + G7 Divide G8 by eleven G9 66 191 728 100 G2 G3 Acquisitions you have made Capital acquisitions (GST inclusive) All other acquisitions (GST inclusive) ADD G10 + G11 Acquisitions for making input taxed sales & income & other supplies Acquisitions with no GST in the price Total estimated private use of acquisitions + non-income tax deductible acquisitions ADD G13 + G14 + G15 G7 G8 0 728 100 G12 minus G16 Adjustments (must be total transaction value, i.e. GST inclusive) ADD G17 + G18 Divide G19 by eleven Harcourt Motors ABN 40 915 311 539 G16 G17 2 597 413 244 BAS
Stony Brook University 2014 BUS 210 Final Projects Elker Fashions Incorporated & Louda Company Justin Thomas 108684984 Financial Accounting Stony Brook University 2014 BUS 210 Final Projects Elker Fashions Incorporated & Louda Company Justin Thomas 108684984 Financial Accounting | Account Title & Explanation | Debit | Credit | 31-Dec | Depreciation Expense | 12000 | | | Accumulated Depreciation | | 12000 | | (Record Depreciation on Building) | | | | | | | 31-Dec | Depreciation Expense | 10000 | | | Accumulated Depreciation | | 10000 | | (Record Depreciation on Equipment) | | | | | | | 31-Dec | Interest Expense | 9000 | | | Interest Payable | | 9000 | | (Record Accrued
In addition, we can estimated that a customer with a $4000 credit balance to have an income in between (41.7665, 46.6130) in $1000 using the 95% CI confidence levels to calculate the income level. At the same time, the average mean income is (41.7665+46.6130)/2= 44.19 or $44,190 rounded up to nearest dollar. We cannot really predict the credit balance of $10,000 as it is out of
Return on common stockholders’ equity $29,946,992 - (2430872-15801332) / 200,000 = 82.9% * Solvency ratios 9. Debt to total assets $7,628,563 / 34,825,498 = 22% 10. Times interest earned 3,272,314 / 121,533 = 26.9 Riordan Manufacturing, Inc. Horizontal Analysis for the Balance Sheet Increase or (Decrease) 2010($) 2009($) Amount % Assets Cash $2,807,029 $1,511,253 $1,295,776* 46.1%* Account Receivables $2,695,342 $2,644,307 $51,035 1.9% Current Portion of Note Receivable $102,976 $117,475 ($14,499) (14.1%) Inventory $8,517,203 $7,123,790 $1,393,413 16.4% Deferred Income Taxes – net $0 $0 $0 0% Pre-Paid Expenses and other Items $402,240 $458,875 ($56,635) (14.1%) Total Current Assets $14,524,790 $11,855,700 $2,669,090 18.4% Liabilities Current Liabilities Current Portion of Long-Term Debt $474,032 $484,894 ($10,862) (2.3%) Accounts Payable $1,391,385 $1,636,923 ($245,538) (17.6%) Accrued