In 2008, for every dollar of assets owned by Berry‟s Bug Blasters, they sold $1.68 worth of goods and services. Profit margin: By dividing net income by sales revenue we can determined that the profit margin for Berry‟s Bug Blasters is 6.58% Return on Assets: Asset ratio multiplied by Profit Margin. ROA can help us determine how profitable Berry‟s Bug Blasters is compared to total assets. To analyze ROA, divide Net Income by Total Assets. Berry‟s Bug Blasters had a 25.52% Return on assets.
• $4,072. • $6,100. • $4,100. Multiple Choice Question 198 Given the following account balances at year end, compute the total intangible assets on the balance sheet of Janssen Enterprises. Cash $1,500,000 Accounts Receivable 4,000,000 Trademarks 1,000,000 Goodwill 2,500,000 Research & Development Costs 2,000,000 • $7,500,000.
Capital | + | EarnedCapital | Rev-enues | – | Expen-ses | = | NetIncome | Purchase $10,000 of inventory on credit | | | +10,000(Inventory) | = | +10,000(AP) | | | | | | – | | = | | Sell all inventory for $18,000 on account | | | +18,000(AR)-10,000(Inventory) | = | | | | | +8,000(Retained Earnings) | +18,000(Sales) | – | +10,000(COGS) | = | +8,000 | Collect $4,000 cash for accounts receivable | +4,000 | | –4,000(AR) | = | | | | | | | – | | = | | Pay $6,000 cash toward accounts payable | –6,000 | | | = | –6,000(AP) | | | | | | – | | = | | Topic: Using the Financial Statements Effects Template – Balance Sheet Only 2. Record the following transactions in the financial statements effects template below. a) Founder contributes $12,000 in cash in exchange for common stock. b) Obtain $18,000 short-term bank loan. c) Purchase equipment costing $14,000
How much was the business's net income (or net loss) for 2010? Write the equation to compute the company's net income and indicate which element is a debit and which is a credit? Does the net income represent a net debit or a net credit? Total revenue – Total expenses = Net Income $460,000 - $380,000 = $80,000 Revenue = credit Total expenses = debit Net Income = credit The following transactions occurred for Advanced Engineering R1: Record the transactions in the journal: |DATE |ACCOUNT NAME |DEBIT |CREDIT | |09/02/15 |Utility Expenses |$300.00 | | | |Utilities payable | |$300.00 | |09/05/15 |Equipment |$2,000.00 | | | |Accounts Payable | |$2,000.00 | |09/10/15 |Accounts Recievable
Winston has $10 billion in total as- sets. Its balance sheet shows $1 billion in current liabilities, $3 billion in long-term debt, and $6 billion in common equity. It has 800 million shares of common stock outstanding. What is Winston’s market/book ratio? Answer Market value per share =$75 Common equity= 6,000,000 Number of share outstanding You must Login to view the entire essay.
Associate Program Material Appendix G Sequential and Selection Process Control Structure In the following example, the second line of the table specifies that tax due on a salary of $2,000.00 is $225.00 plus 16% of excess salary over $1,500.00 (that is, 16% of $500.00). Therefore, the total tax is $225.00 + $80.00, or $305.00. Salary Range in Dollars Base Tax in Dollars Percentage of Excess 1. 1 0.00-1,499.99 0.00 15 % 2. 2 1,500.00-2,999.99 225.00 16 % 3.
Winston has $10 billion in total as- sets. Its balance sheet shows $1 billion in current liabilities, $3 billion in long-term debt, and $6 billion in common equity. It has 800 million shares of common stock outstanding. What is Winston’s market/book ratio? Answer Market value per share =$75 Common equity= 6,000,000 Number of share outstanding =800,000,000 Market to book ration = $75/(6,000,000/800,000,000) 6,000,000/800,000,000=.75 Market to book ration= 75/.75= 100 3-4 Price/Earnings Ratio A company has an EPS of $1.50, a cash flow per share of $3.00, and a price/cash flow ratio of 8.0.
It is acquired in exchange for 1,000 shares of common stock in Shabbona Corporation. The stock has a par value per share of $10 and a market price of $13 per share Shabbona Account Titles 1. 2. Debit Truck # 1 Cash Truck #2 Discount on Notes Payable $ Credit 13,900.00 $ $ $ ** $ $ 13,900.00 2,000.00 18,000.00 18,364.00 1,636.00 Cash Notes Payable PV of $18000 @ 10% for 1 year (PV of Single sum 10%, 1 year $14,000) = $18,000*.90909= $16363.62 rnd $16,364 16,634 + $2,000= $18,364 ** 3. 4.
Since the company owed $1,600 to creditors and there are sufficient funds to pay them, the creditors will receive $1,600. The investors will receive the balance of $200. c. Kennedy Company Accounting Equation Event Assets = Liabilities + Stockholders’ Equity Cash Notes Payable Common Stock Retained Earnings Acquired assets $3,400 $1,600 $1,800 earned profit 1,600 1,600 Balance $5,000 = $1,600 + $1,800 $1,600 The creditor will receive the $1,600 that is owed to them. The stockholders will receive their initial investment of $1,800 plus an additional $1,600 of profit for a total of $3,400. EXERCISE 1-4 Entities Distribution of Cash Mr. Chang (personal account) Personal account was decreased by the $30,000 cash deposited in the Chang Enterprises’ business account.
75*800 million= $60 billion Book Value= Assets- Liabilities $10 billion in total assets- $4 billion in current liabilities and long-term debt= $6 billion in common equity Market/Book Ratio= $60 billion/$6 billion= 10 3-4 Price/Earnings Ratio A company has an EPS of $1.50, a cash flow per share of $3.00, and a price/cash flow ratio of 8.0. What is its P/E ratio? P/E Ratio= Price per share/Earnings per share $3*$8= $24 The company has an EPS of $1.50 ($24/$1.50)= 16 3-5 ROE Needham Pharmaceuticals has a profit margin of 3% and an equity multiplier of 2.0. Its sales are $100 million and it has total assets of $50 million. What is its ROE?