$20,000*20 days outstanding= AR $400,000 3-2 Debt Ratio Vigo Vacations has an equity multiplier of 2.5. The company’s assets are financed with some combination of long-term debt and common equity. What is the company’s debt ratio? Equity Multiplier= 2.5 Asset/Equity = 2.5/1 1+1.5= 2.5 Debt/Asset= 1.5/2.5= .6 3-3 Market/Book Ratio Winston Washer’s stock price is $75 per share. Winston has $10 billion in total assets.
Answer AR= 20x20000=400,000 3-2 Debt Ratio Vigo Vacations has an equity multiplier of 2.5. The company’s assets are financed with some combination of long-term debt and common equity. What is the company’s debt ratio? Answer Equity multiplier Asset /equity = 2.5/1 A=L+E 2.5=1.5=+1 Debt/asset = 1.5/2.5 = .6 3-3 Market/Book Ratio Winston Washers’s stock price is $75 per share. Winston has $10 billion in total as- sets.
Answer AR= 20x20000=400,000 3-2 Debt Ratio Vigo Vacations has an equity multiplier of 2.5. The company’s assets are financed with some combination of long-term debt and common equity. What is the company’s debt ratio? Answer Equity multiplier Asset /equity = 2.5/1 A=L+E 2.5=1.5=+1 Debt/asset = 1.5/2.5 = .6 3-3 Market/Book Ratio Winston Washers’s stock price is $75 per share. Winston has $10 billion in total as- sets.
Three months later, Lynn sold 3,000 of these shares at $19 per share. If the cost method is used to record treasury stock transactions, to record the sale of the 3,000 treasury shares, Lynn should credit a. Treasury Stock for $57,000. b. Treasury Stock for $30,000 and Paid-in Capital from Treasury Stock for $27,000.
• $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.
Reporting Intercorporate Interests (Equity vs Cost Method) 1. On January 1, 2007, Rotor Corporation acquired 30 percent of Stator Company’s Stock for $150,000. On the acquisition date, Stator reported Net assets of $450,000 valued at historical cost and %500,000 stated at fair Value. The difference was due to the increased value of buildings with a remaining life of 15 years. During 2007 and 2008 Stator reported Net Income of $25,000 and $15,000 and paid dividends $10,000 and $12,000, respectively.
Statement of Cash Flows ACC/537 August 12, 2013 Joseph Mc Donald Statement of Cash Flows Carpino Company Statement of Cash Flows - Indirect Method For the Year Ended January 31, 2007 Cash flows from operating activities Net loss $(30,000) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation expense $55,000 Gain on sale of investment (5,000) 50,000 Net cash provided by operating activities 20,000 Cash flows from investing activities Purchase investment (75,000) Purchase fixtures and equipment (330,000) Sale of investment 80,000 Net cash used by investing activities (325,000) Cash flows from financing activities Sale of capital stock 420,000 Purchase of treasury stock (10,000) Net cash provided by financing activities 410,000 Net increase in cash 105,000 Cash at beginning of period 140,000 Cash at end of period 245,000 Noncash investing and financing activities Issuance of note to purchase truck 20,000 Memo to Shareholders January 31, 2007 To our shareholders, Carpino Company had a performing year. The company is still in the growth phase and first year of business, so there was not a lot of cash from operations. The company had a net loss for the year. Carpino Company had revenue in the amount of $391,000. The revenue was made up of $380,000 for sales of merchandise, $6,000 for interest on investments, and $5,000 for a gain on the sale of investments.
Accounting Homework Assignment #1 1. Question 1: Brady Brothers, a partnership, has total assets of $350,000 and $100,000 of owners' equity. What are the partnership's total liabilities? Assests-Owners Equity= Liabilities $350,000-$100,000= $250,000 Based on the Bradys Brothers partnership, their total liabilities is $250,000. 2.
S To find owner’s equity, we must construct a balance sheet as follows: Balance Sheet CA $4,000 CL $3,400 NFA 22,500 LTD 6,800 OE ?? TA $26,500 TL & OE $26,500 OE = $26,500 – 6,800 – 3,400 = $16,300 NWC = CA – CL = $4,000 – 3,400 = $600 2. The income statement for the company is: Income Statement Sales $634,000 Costs 305,000 Depreciation 46,000 EBIT $283,000 Interest 29,000 EBT $254,000 Taxes (35%) 88,900 Net income $165,100 3. Net income = Dividends + Addition to retained earnings Rearranging, we get: Addition to retained earnings = Net income – Dividends = $165,100 – 86,000 = $79,100 4. EPS = Net income / Shares = $165,100 / 30,000 = $5.50 per share DPS = Dividends / Shares = $86,000 / 30,000 = $2.87 per share 5.
To what extent can its operating income decline before it is unable to meet its interest obligations? 3. The “Mitha-Kara” Company reported Tk.1,000,000 net profit for the year 2002, from which common stockholders were paid Tk.530,000 in dividends. The company’s common stockholders own 250,000 shares of the company. Its year-end retained earnings balance for 2001 was Tk.75,000 and the year-end retained earnings balance for year 2002 was 95,000.