At the end of Year 1, the following information is available for Grumpy, Happy, and Doc Companies.
At the end of Year 1, the following information is available for
Grumpy, Happy, and Doc Companies. GrumpyHappyDocTotal Assets$2,000,000$2,000,000$3,000,000Total Liabilities1,400,000800,0001,800,000Stockholders' Equity600,0001,200,0001,200,000Net Income118,000190,000150,0008.1) Which company has the highest level of debt risk? A)
Grumpy B) They all have equal debt
risk C) Happy D) Doc 8.2) Which company is the most profitable from the stockholders'
perspective? A)
Grumpy B) Doc C) Cannot be determined D) Happy8.3) Which company has the highest return-on-assets ratio?
A) They all have equal return-on-assets
ratios.
B) Grumpy.
C) Doc.
D) Happy.
The following financial information is available for Flint
Corporation.
(in millions)
2017
2016
Average common stockholders’...
The following financial information is available for Flint
Corporation.
(in millions)
2017
2016
Average common stockholders’ equity
$2,825
$2,925
Dividends declared for common stockholders
335
630
Dividends declared for preferred stockholders
45
45
Net income
605
685
Calculate the payout ratio and return on common stockholders’
equity ratio for 2017 and 2016. (Round answers to 1
decimal place, e.g. 12.5%)
The following information is available for Bergstrom Inc. and
Sineann Inc. at December 31, 2016:
Accounts...
The following information is available for Bergstrom Inc. and
Sineann Inc. at December 31, 2016:
Accounts
Bergstrom
Sineann
Accounts receivable
$
56,200
$
76,000
Allowance for doubtful accounts
2,748
2,356
Sales revenue
636,960
917,100
Required
a.
What is the accounts receivable turnover for each of the
companies for 2016? (Round your answers to 1 decimal
place.)
Company
Accounts Receivable Turnover
Bergstrom
times
Sineann
times
b.
What is the average days to collect the receivables for 2016?
(Use 365 days in...
Ratios Analyzing Firm Profitability
The following information is available for Crest Company:
Annual Data
2013
2012...
Ratios Analyzing Firm Profitability
The following information is available for Crest Company:
Annual Data
2013
2012
Sales revenue
$6,800,000
$6,000,000
Cost of goods sold
3,806,400
3,720,000
Net income
288,800
264,000
Year-End Data
Dec. 31, 2013
Dec. 31, 2012
Total assets
$2,880,000
$2,360,000
Common stockholders' equity
1,888,000
1,800,000
Calculate the following ratios for 2013:
Round answers to one decimal place, unless otherwise
noted.
a. Gross profit percentage
Answer%
b. Return on sales
Answer%
c. Asset turnover (Round answer to two decimal...
On January 1, 2016, the following information was drawn from the
accounting records of Carter Company:...
On January 1, 2016, the following information was drawn from the
accounting records of Carter Company: cash of $400; land of $2,400;
notes payable of $700; and common stock of $1,540. Required a.
Determine the amount of retained earnings as of January 1, 2016. b.
After looking at the amount of retained earnings, the chief
executive officer (CEO) wants to pay a $500 cash dividend to the
stockholders. Can the company pay this dividend? Yes No c. As of
January...
Selected financial
data from the June 30 year-end statements of Safford Company are
given below:
Total...
Selected financial
data from the June 30 year-end statements of Safford Company are
given below:
Total
assets
$
5,900,000
Long-term debt
(11% interest rate)
$
710,000
Total
stockholders’ equity
$
2,500,000
Interest paid on
long-term debt
$
78,100
Net income
$
390,000
Total assets at the
beginning of the year were $5,700,000; total stockholders’ equity
was $2,300,000. The company’s tax rate is 35%.
Required:
1. Compute the return
on total assets. (Round your percentage answer to 1 decimal
place (i.e.,...
Suppose the following financial information is available for
Walgreen Company.
(in millions)
2017
2016
Average common...
Suppose the following financial information is available for
Walgreen Company.
(in millions)
2017
2016
Average common stockholders’ equity
$ 12,830.0
$ 11,530.0
Dividends declared for common stockholders
465
385
Dividends declared for preferred stockholders
0
0
Net income
1,815
2,115
Calculate the payout ratio and return on common stockholders’
equity for 2017 and 2016
The following information was available for the year ended
December 31, 2016:
Sales
$
460,000
Net...
The following information was available for the year ended
December 31, 2016:
Sales
$
460,000
Net income
66,140
Average total assets
760,000
Average total stockholders' equity
365,000
Dividends per share
1.33
Earnings per share
3.00
Market price per share at year-end
27.60
a. Calculate margin, turnover, and ROI for the
year ended December 31, 2016. (Round your intermediate
calculations and final answers to 2 decimal places.)
b. Calculate ROE for the year ended December
31, 2016. (Round your answer to...
The following information is available for three companies:
Rope Co.
Chain Co.
Line Co.
Face value...
The following information is available for three companies:
Rope Co.
Chain Co.
Line Co.
Face value of bonds payable
$
270,000
$
696,000
$
668,000
Interest rate
6
%
5
%
4
%
Income tax rate
30
%
15
%
20
%
Required
a. Determine the annual before-tax interest cost
for each company in dollars.
b. Determine the annual after-tax interest cost
for each company in dollars. (Round your answers
to the nearest dollar amount.)
c. Determine the annual after-tax...
Recent balance sheet information for two companies in the snack
food industry, Santa Fe Company and...
Recent balance sheet information for two companies in the snack
food industry, Santa Fe Company and Madrid Company, are as
follows:
Santa Fe
Madrid
Net property, plant, and equipment
$298,716
$ 471,870
Liabilities:
Current liabilities
585,938
874,105
Long-term debt
669,848
539,280
Other long-term liabilities
235,352
209,720
Total liabilities
$1,491,138
$1,623,105
Stockholders' equity
292,380
295,110
Total liabilities and stockholders' equity
$1,783,518
$1,918,215
a. Determine the debt ratio for both companies.
Enter your answers as percent values rounded to one decimal
place....