Last year the Digby company increased their equity. In 2019
their equity was $49,136. Last year...
Last year the Digby company increased their equity. In 2019
their equity was $49,136. Last year (2020) it increased to $52,451.
What are causes of change in equity? Check all that apply.
Select: 3 An accounts payable change of$999. A change in short
term debt of-$4,473. Depreciation of -$41,287 A change of plant and
equipment of$9,580. Profits of $11,419 Issue and retirement of
stock . A bond issue of$1,378. Change in inventory of-$4,227. A
change in cash of -$19. Plant...
A firm’s balance sheets for the last two years are
as follows:
Year 2019
Assets &
A firm’s balance sheets for the last two years are
as follows:
Year 2019
Assets
Liabilities and Equity
Cash
$
9,000
Accounts payable $12,000
Market
securities
10,000
Accruals
10,000
Accounts receivable
21,000
Current bank note 10,000
Inventory
20,000
Long-term
debt
30,000
Plant
40,000
Common stock
14,000
Retained earnings 24,000
$100,000
$100,000
Year 2020
Assets
Liabilities
and Equity
Cash
$12,000
Accounts payable $12,000
Market
securities
18,000
Accruals
10,000
Accounts receivable
18,000
Current bank note 30,000
Inventory
10,000
Long-term
debt ...
On January 1, 2019, Tonika Company issued a six-year, $10,000,
6% bond. The interest is payable...
On January 1, 2019, Tonika Company issued a six-year, $10,000,
6% bond. The interest is payable annually each December 31. The
issue price was $9,523 based on an 7% effective interest rate.
Tonika uses the effective-interest amortization method. The
December 31, 2020 book value after the December 31, 2020 interest
payment was made is closest to: A) $9590 B) $9519 C) $9523 D)
$9661
Company Baldwin
invested $51,960,000 in plant and equipment last year. The plant
investment was funded with...
Company Baldwin
invested $51,960,000 in plant and equipment last year. The plant
investment was funded with bonds at a face value of $34,355,973 at
13.6% interest, and equity of $17,604,027. Depreciation is 15 years
straight line. For this transaction alone which of the following
statements are true?
Select: 5
a. Cash was pulled from retained earnings to cover the
$17,604,027 difference between the plant purchase and bond
issue.
b. Depreciation increased by $3,464,000.
c. Since the new plant was funded...
Company Baldwin invested $45,300,000 in plant and equipment last
year. The plant investment was funded with...
Company Baldwin invested $45,300,000 in plant and equipment last
year. The plant investment was funded with bonds at a face value of
$24,178,667 at 13.6% interest, and equity of $21,121,333.
Depreciation is 15 years straight line. For this transaction alone
which of the following statements are true?
[X ] On the Balance sheet, Plant &
Equipment increased by $45,300,000.
[X] On the Balance sheet, Long Term Debt
changed by $24,178,667.
[ ] Since the new plant was funded with debt...
Sybil Inc. had sales of $1,600,000 last year. The company has
shown a steady profit margin...
Sybil Inc. had sales of $1,600,000 last year. The company has
shown a steady profit margin of 16% over the last few years and has
a consistent dividend payout of 60%. Both of these ratios are not
expected to change in future years. The balance sheet for the year
just ended is provided:
Sybil Inc.
Balance Sheet
As at December 31, 2017
Cash
50,000
Accounts receivable
130,000
Prepaid expenses
170,000
Total current assets
350,000
Property, plant and equipment (net)...
Last year company x paid a dividend of $2 per share. Use a
growth rate of...
Last year company x paid a dividend of $2 per share. Use a
growth rate of 2% per year and a discount rate of 5% to value the
stock. What is the implied stock price? State your answer in
Dollars and cents.
LewCo, a construction company, pays an
annual dividend to the stock owners on the last day of each year.
LewCo paid a dividend of $10 per share on December 31st,
2019. LewCo increased the dividend by 6% per...
Megan Corporation's net income last year was $109,000. Changes
in the company's balance sheet accounts for...
Megan Corporation's net income last year was $109,000. Changes
in the company's balance sheet accounts for the year appear
below:
Increases
(Decreases)
Asset and Contra-Asset
Accounts:
Cash and cash equivalents
$
(11,800
)
Accounts receivable
$
(25,000
)
Inventory
$
8,500
Prepaid expenses
$
(14,700
)
Long-term investments
$
91,000
Property, plant, and
equipment
$
77,000
Accumulated depreciation
$
80,000
Liability and Equity
Accounts:
Accounts payable
$
0
Accrued liabilities
$
20,380
Income taxes payable
$
(13,080
)
Bonds payable...
On January 1, 2019, Gleason Corp. issued $700,000, 8% bonds
payable to finance company expansion. The...
On January 1, 2019, Gleason Corp. issued $700,000, 8% bonds
payable to finance company expansion. The bonds were dated January
1, 2019 and mature in four years on January 1, 2023. The bonds pay
interest semi-annually each June 30th and December 31st. At the
time of issuance, the market rate of interest for similarly risky
investments was 6%.
1. At what amount were the bonds issued on January 1, 2019?
2. Prepare an amortization schedule for the life of the...
Financial data for Bingham Company for last year appear
below:
Bingham Company
Balance Sheet
For the...
Financial data for Bingham Company for last year appear
below:
Bingham Company
Balance Sheet
For the years ended Dec 31 2018 and 2019
ASSETS
Dec 31, 2018
Dec 31, 2019
Cash
135,000
266,000
Accounts Receivable
225,000
475,000
Inventory
314,000
394,000
Plant+Equipment (net)
940,000
860,000
Investment in Carr Corp.
104,000
101,000
Land
198,000
65,000
Total Assets
1,916,000
2,161,000
LIABILITIES + EQUITY
Accounts Payable
88,000
119,000
Long-Term Debt
585,000
665,000
Owner’s equity
1,243,000
1,377,000
Total Liabilities + Equity
1,916,000
2,161,000
Bingham Company...