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
Total liabilities ÷ Total stockholders' equity 283,800÷292,200=97.1% 248,000÷268,000 = 92.5% j. (Income before taxes+ Interest) Interest (55,000 + 8,000) ÷ 8,000 = 7.9 times (54,800 + 7,200) ÷ 7,200 = 8.6 times k. Plant assets ÷ Long-term debt 270,000 ÷ 132,000 = 2.05 : 1 255,000 ÷ 127,000 = 2.01 : 1 l. Net income ÷ Net sales 32,000 ÷ 230,000 = 13.9% 32,800 ÷ 210,000 = 15.6% m. Net sales ÷ Avg. total assets 230,000 ÷ 546,000=0.42 210,000 ÷ 516,000=0.41* n. Net income ÷ Avg. total assets OR (l.) x (m.) 32,000 ÷ 546,000 = 5.9% 32,800 ÷ 516,000 = 6.4%* o. Net income ÷ Avg.
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. and equity $420,000 Sales $280,000 Net income $ 21,000 The new CFO thinks that inventories are excessive and could be lowered sufficiently to cause the current
years. | | The step-by-step calculation is: P | = | S(1 + rt)-1 | | | = | 400,000(1 + 0.0892 x 0.24657534...)-1 | | | = | 400,000 x 0.97847883... | | | = | $391,391.53 | Rounded as last step | b)You are correct. When the first bill matures at time 90 days, the investor purchases a second bill. We must find the purchase price of the second bill. This can be displayed on a time line: | | | | | $P | $400,000 | | | | | | 0 | 90 | 180 | 270 | | | | | | | | | P | = | price | = | unknown | | S | = | Maturity value | = | $400,000 | | r | = | Simple interest rate (decimal) | = | 9.16 | 100 | | = | 0.0916 | | t | = | Time period (years) | = | 90 | 365 | | = | 0.24657534... years.
Since Profit Margin are calculated using EBIT, Income Tax plays a great role to affecting the results. Step Seven….figures are in $000’s TOTAL | 2012 | 2011 | 2010 | 2009 | Current Asset | 55,838 | 64,438 | 53,315 | 70,140 | Non-Current Asset | 69,936 | 75,013 | 75,879 | 71,528 | Asset | 119,774 | 139,451 | 129,194 | 141,668
Notes Payable | 12000 | | Interest Payable | 9000 | | Total Current Liabilities | 58500 | | Long Term Liabilities | | | Notes Payable | 28000 | | Total Liabilities | | 86500 | Stockholder's Equity | | | Common Stock | 205500 | | Retained Earnings - December 31 | 97400 | | Total Stockholder's Equity | | 302900 | Total Liabilities & Stockholder's Equity | | 389400 | Elker Fashions Incorporated Closing Entries For Year Ended December 31, 2008 Date | Account Title & Explanation | Debit | Credit | 31-Dec | Merchandise Inventory - December 31 | 80000 | | | Sales | 865800 | | | Purchase Discounts | 16400 | | | Income Summary | | 962200 | | (To record ending inventory and close accounts with credit balances) | | | | | | | 31-Dec | Income Summary | 860100 | | | Depreciation Expense - Buildings | | 12000 | | Depreciation Expense - Equipment | | 10000 | | Gas & Oil Expense | | 7600 | | Salary Expense | | 70700 | | Utilities Expense | | 11400 | | Repair Expense | | 5900 | | Insurance Expense | | 3500 | | Sales Discounts | | 6100 | | Purchases | | 720000
Dividends and dividend equivalent rights declared | | | 0 | | | | 0 | | | | (10,676 | ) | | | 0 | | | | (10,676 | ) | Repurchase of common stock | | | (46,976 | ) | | | 0 | | | | (22,950 | ) | | | 0 | | | | (22,950 | ) | Share-based compensation | | | 0 | | | | 2,253 | | | | 0 | | | | 0 | | | | 2,253 | | Common stock issued under stock plans, net of shares withheld for employee taxes | | | 6,981 | | | | (143 | ) | | | (444 | ) | | | 0 | | | | (587 | ) | Tax benefit from equity awards, including transfer pricing adjustments | | | 0 | | | | 1,232 | | | | 0 | | | | 0 | | | | 1,232 | | | | | | | | | | | | | | | | | | | | | | | Balances as of September 28, 2013 | | | 899,213 | | | $ | 19,764 | | | $ | 104,256 | | | $ | (471 | ) | | $ | 123,549 | | | | | | | | | | | | | | | | | | | | | |
| | Instructor Explanation: | Chapter 38. | | | | Points Received: | 1 of 1 | | Comments: | | | | 6. | Question : | (TCO 9) Answer the next question(s) on the basis of the following table which indicates the dollar price of libras, the currency used in the hypothetical nation of Libra. Assume that a system of freely floating exchange rates is in place. (1)Quantity of Libras Demanded (billions) | (2)Dollar Price of Libras | (3)Quantity of Libras Supplied (billions) | 100200300400 | $5432 | 32520010075 | The equilibrium dollar price of libras is | | | Student Answer: | | $5.
The calculations illustrated on the next pages will refer to the Balance Sheet and Income Statement which follow. Balance Sheet 2004 2005 2004 2005 Assets USD USD Liabilities and Equity USD USD Current Assets Current Liabilities Notes payable 9 800 10 700 Cash 12 165 18 380 Accounts payable 21 500 24 350 Accounts Recievable 8 620 11 182 Total Current Liabilities 31 300 35 050 Inventory 18 140 24 894 Total Current Assets 38 925 54 456 Long-Term Liabilities LT debt 53 000 61 000 Total liabilities 84 300 96 050 Net Fixed Assets 105 000 134 000 Owner's equity New equity 0 10 000 Retained Earnings 59 625 82 406 Total equity 59 625 92 406 Total Assets 143 925 188 456 Total Liab. and Equity 143 925 188 456 Income Statement 2004 2005 USD USD Sales 165 390,0 201 600,0 COGS 84 310,0 106 450,0 Depreciation 23 800,0 26 900,0 Selling and adm. Exp 16 580,0 21 640,0 EBIT 40 700,0 46 610,0 Interest paid 5 180,0 5 930,0 EBT 35 520,0 40 680,0 Taxes 7 104,0 8 136,0 Net income 28 416,0 32 544,0 Dividends paid 8 524,8 9 763,2 Addition to RE 19 891,2 22 780,8 Operating Cash Flow measures the cash flows generated by the firm's main operations. Operating Cash Flow can be determined as follows: Operating Cash Flow= EBIT + Depreciation-Taxes (Ross, Westerfield, Jaffe, 2006). Then, using the figures from the company’s Balance sheet and Income statement we’ll find the Sunset Board’s Operating Cash
Regulating the Payday Loan Industry Business Law I, MG260 Regulating the Payday Loan Industry I. Introduction- Attention gaining story about Johnny and his payday loans A. Statistics II. Payday loans A. Explain what they are 1. short term loans- normally 2 weeks 2. extremely high interest rates (a) up to 400% annually B. Who uses payday loans III.