– working capital 3. Current assets divided by current liabilities is known as the – current ratio 4. Danner Corporation reported net sales of $600,000, $680,000, and $800,000 in the years 2011, 2012, and 2013, respectively. If 2011 is the base year, what percentage do 2013 sales represent of the base? – 133 2013 net sales / base year 2011 net sales = 800,000 / 600,000 = 1.33 1.33 x 100% = 133% 5.
Retrieved from http://www.frbsf.org /education/publications/doctor-econ/2005/october/debt-equity-market Kimmel, P. D., Weygandt, J. J., & Kieso, D. E. (2011). Financial accounting: Tools for business decision making (6th ed.). Hoboken, NJ: John Wiley & Sons. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands) | | | | | | | | | | | September 28, 2013 | | | September 29, 2012 |
DSO = Receivables / Ave. sales per day Receivables= DSO * Ave. sales per day = 20 * 20,000 Receivables= $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? Debt ratio = 1 – (1 / Equity multiplier) Debt ratio = 1 – (1/2.5) = 1 - .40 = .60 Debt ratio = 60% (3-3) Market/Book Ratio: Winston Washers’s stock price is $75 per share. Winston has $10 billion in total assets.
A. $16,500 B. $9,000 C. $25,500 D. $7,500 E. $50,000 Difficulty: Easy 2. Yaro Company owns 30% of the common stock of Dew Co. and uses the equity method to account for the investment. During 2008, Dew reported income of $250,000 and paid dividends of $80,000.
Abstract Apple, Inc. creates and sells personal computers, high-tech mobile phones, portable music players, and related hardware and software within the technology sector. Their fiscal year ended on September 25, 2010, and figures discussed in this paper are based on the numbers in the annual 10-K report from that year. The company’s major revenue account is net sales, which is itemized by operating segment and by product. Its major expense account is cost of sales. The company’s total asset turnover ratio is slightly lower than the computer industry average but higher than the technology sector’s average as a whole.
The key elements of the Apple financial statements: Balance sheet & Stockholders’ equity: All the following numbers are in thousands and in US dollars. Period Ending | Sep 25, 2010 | Sep 26, 2009 | Sep 27, 2008 | | Assets | Current Assets | | Cash And Cash Equivalents | 11,261,000 | 5,263,000 | 11,875,000 | | Short Term Investments | 14,359,000 | 18,201,000 | 12,615,000 | | Net Receivables | 11,560,000 | 6,192,000 | 6,151,000 | | Inventory | 1,051,000 | 455,000 | 509,000 | | Other Current Assets | 3,447,000 | 1,444,000 | 3,540,000 | | Total Current Assets | 41,678,000 | 31,555,000 | 34,690,000 | Long Term Investments | 25,391,000 | 10,528,000 | - | Property Plant and Equipment | 4,768,000 | 2,954,000 | 2,455,000 | Goodwill | 741,000 | 206,000 | 207,000 | Intangible Assets | 342,000 | 247,000 | 352,000 | Accumulated Amortization | - | - | - | Other Assets | 2,263,000 | 2,011,000 | 641,000 | Deferred Long Term Asset Charges | - | 1,727,000 | 1,227,000 | | Total Assets | 75,183,000 | 47,501,000 | 39,572,000 | | Liabilities | Current Liabilities | | Accounts Payable | 17,738,000 | 9,453,000 | 8,558,000 | | Short/Current Long Term Debt | - | - | - | | Other Current Liabilities | 2,984,000 | 2,053,000 | 5,534,000 | | Total Current Liabilities | 20,722,000 | 11,506,000 | 14,092,000 | Long Term Debt | - | - | - | Other Liabilities | 5,531,000 | 3,502,000
In 2011, of the $3.31B in total assets reported, $2.15B would be considered tangible: property, plant and equipment. However, the category of other assets contained only $9.09B which includes intangibles: copyrights, patents and trademarks (ExxonMobil Corporation, 2012). Likewise, in 2012, the company reported $3.34B in total assets. Of that, $2.27B was tangible and intangible assets were contained in the $7.66B other assets reported (ExxonMobil Corporation, 2013). The 2012 net income of $44.88B reported showed a 9.30% growth of $3.82B compared to the $41.06B in net income reported in 2011 (ExxonMobil Corporation, 2013).
Corporation AB had a net long-term capital loss is 2005 and net operating loss in 2004. What are the earliest year(s) to which these losses can be carried? Answer: Capital loss to 2003 or 2010 and net operating loss to 2002 or 2024 3. Cloud corporation has a taxable income of $100,000 in 2005 along with a $30,000 general business credit. What is the amount of its credit carryover and the last year to which the carryover could be used?
The bonds mature in 10 years. The firm’s average tax rate is 30% and its marginal tax rate is 34%. b. A new common stock issue that paid a $1.75 dividend last year. The par value of the stock is $15, and earnings per share have grown at a rate of 8% per year.
C. accounting profits produced. D. increase in total sales produced. 3. Assume your firm has an unused machine that originally cost $75,000, has a book value of $20,000, and is currently worth $25,000. Ignoring taxes, the correct opportunity cost for this machine in capital budgeting decisions is: A.