| $780 | C. | $990 | D. | $2,430 | E. | $2,640 | | 2 | D | A firm has common stock of $6,200, paid-in surplus of $9,100, total liabilities of $8,400, current assets of $5,900, and fixed assets of $21,200. What is the amount of the shareholders' equity? A. $6,900B. $15,300C.$18,700D $23,700E.
……………5 f. What types of stock does the company have? How many shares are there outstanding for each type of stock for the most recent year presented?.......................................................................5 g. Does the company use the single-step or multiple-step income statement or a variation?........5 h. Does the income statement contain any separately reported items in any year presented, included discontinued operations or extraordinary items? If it does, describe the even that caused the item. Hint: there should be a related footnote……………………………………………………..6 i. Describe the trend in net income over the years presented……………………………………………………6 j.
What are equity investments? (0.5 points) Investments in the ownership of something, such as a company or real estate, with the hope that the investment will increase in value and be worth more at some future date. Lesson 3 (3.0 points) 1. What are stocks? (0.5 points) A popular type of equity investment in which you can buy partial ownership of company in a tiny fractional amount.
Significant influence over Lennon was achieved by this acquisition. Lennon distributed a dividend of $2.50 per share during 2008 and reported net income of $670,000. What was the balance in the Investment in Lennon Co. account found in the financial records of Pacer as of December 31, 2008? A. $2,040,500 B.
This choice does, however, affect how individual shareholders’ accounts are reported in the balance sheet. Formally retiring shares restores the balances in both the common stock account and paid-in capital - excess of par to how those balances would have looked if the shares never had been issued. Any net increase in assets produced from the sale and ensuing repurchase is reflected as Paid-in capital—share repurchase. On the other hand, any net decrease in assets resulting from the sale and subsequent repurchase is repeated as a subtraction of retained earnings. Inversely, when a share repurchase is seen as treasury stock, the cost of the treasury stock is naturally disclosed as a decrease in total shareholders’ equity.
What does the $2.55 billion increase in Berkshire Hathaway’s market value represent? 2. Choice of valuation methods: What do you think PacifiCorp is worth on its own before its acquisition by Berkshire? Which valuation method should you use to value PacifiCorp and why? Show clearly the steps to arrive at the following estimates in Exhibit 10: Enterprise Value as Multiple of: Revenue EBIT EBITDA Net Income 6,252 8,775 9,023 7,596 6,584 9,289 9,076 7,553 MV Equity as Multiple of: EPS Book Value 4,277 5,904 4,308 5,678 Median Mean If you need to use a discount rate to discount cash flows then an appropriate discount rate estimate for PacifiCorp is approximately 9%.
What is your dividend yield for this investment? 6. XYZ Company has just reported an income statement that indicates that Operating Income is $2,375,486 and Net Profit is $1,375,486. The Corporation currently has 2.5 million shares of common stock outstanding and does not issue preferred stock. What are this corporation's approximate Earnings per Share?
I believe the direct method is a better way for a business to keep track of cash flow because it accounts for every operating activity. This method may not be convenient for every company but it accounts for every receipt and payment, providing the company more details on each cash transaction. The indirect method is easier and it may be less expensive, it is focus on the difference between net income and cash flow from operating expenses. (Weygandt, Kimmel, & Kieso, 2010. p 618). This method converts net income to net cash from operating activities.
What’s the purpose of a profit and loss statement? A profit and loss statement serves as an essential document in financial reporting. The profit and loss statement allows an investor or a manager of the business to evaluate and analyse thing such as their profit margin, gross income, costs of goods, number of sales etc… Interpretation of Whitbread’s profit and loss statement data Turnover Turnover is the amount of money which is taken in by a business over a particular period of time. As shown on Whitbread’s profit and loss statement from 2001/2002 they had a turnover of £2014.3 million but from 2002/2003 they only had a turnover of £1794.1 million this is a decrease of £202.2 million in one year and this is a serious reduction in sales. The decrease in turnover could be due to the year just being quiet or it could be due to the other new businesses under the umbrella