Question

Please use the following Balance Sheet to answer the questions below Assets Cash $150,000.00 Marketable Securities...

Please use the following Balance Sheet to answer the questions below

Assets

Cash

$150,000.00

Marketable Securities

$200,000.00

Accounts Receivable

$150,000.00

Inventories

$50,000.00

Prepaid Taxes and Insurance

$30,000.00

Manufacturing Plant at cost

$600,000.00

Less Accumulated Depreciation

$100,000.00

Net fixed Assets

$500,000.00

Goodwill

$20,000.00

Liabilities and Shareholders Equity

Notes Payable

$50,000.00

Accounts Payable

$100,000.00

Income Taxes Payable

$80,000.00

Long Term Mortgage Bonds

$400,000.00

Preferred Stock, 6%, $100 par value (1,000 shares)

$100,000.00

Common Stock, $15 par value (10,000 shares)

$150,000.00

Capital Surplus

$150,000.00

Retained Earnings

$70,000.00

Top of Form

Question 1

a)The firm experienced a Net Income of $500,000.00 for the year. What are its earnings per share of common stock?

Group of answer choices

45.45

100.00

50.00

75.00

b)What are the company's total Assets (include the effects of depreciation)?

Group of answer choices

1,100,000.00

1,200,000.00

1,300,000.00

1,400,000.00

c) Is the value of the Manufacturing Plant considered a long term or a short term asset?

Group of answer choices

-Long term because the value is realized and depreciated over several years.

-Short term because the value of the plant was booked within a 12-month window when it was placed into service.

-Neither because the value of the plant is not considered an asset until it is placed into service.

-Short term because it is accounted for within the current calendar year.

Homework Answers

Answer #1

Requirement a:

Answer: $50.00

Calculations:

Earning per share = Net income / Outstanding common shares

= $500,000/10,000

= $50.00

Requirement b:

Answer: $1,100,000.00

Calculations:

Assets
Cash $150,000.00
Marketable Securities $200,000.00
Accounts Receivable $150,000.00
Inventories $50,000.00
Prepaid Taxes and Insurance $30,000.00
Manufacturing Plant at cost $600,000.00
(Less): Accumulated Depreciation ($100,000.00)
Net fixed Assets $500,000.00
Goodwill $20,000.00
Total Assets $1,100,000.00

Requirement c:

Answer: Long term because the value is realized and depreciated over several years

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Answer the following questions: Question A If the sales of a firm increase while all other...
Answer the following questions: Question A If the sales of a firm increase while all other components of ROE remain unchanged including ROE itself, you would expect the firm's: A) ROA to increase B) Equity multiplier to increase C) Profit margin to increase D) Total asset turnover to increase E) None of the above. Question B In words, what does a firm's PE ratio of $15 mean? A) For each $1 of EBIT generated by the firm per share, shareholders...
In the Balance Sheet below determine the unknown values. Cash                                &nbsp
In the Balance Sheet below determine the unknown values. Cash                                    $50,000                       Accounts Payable                    $125.000 Accounts receivable            100,000                       Notes Payable                           50,000 Inventory                            80,000                       Total Short Term Debt                       ? Total Current Assets                                                                                                                                          Mortgages                               350,000 Plant                                   500,000                       Long Term Notes                   175,000 Net Equipment                               ?                      Total Long Term Debt                        ?                                                                                 Stockholders Equity                           ? Total Assets                                    ?                      Total Debt & Equity               775,000 In the previous question, if the Book Value of the Equipment is $65,000 what is the value of the...
QUESTION 1 Co. XYZ Balance Sheet Assets: Cash and marketable securities                              &nbs
QUESTION 1 Co. XYZ Balance Sheet Assets: Cash and marketable securities                                $300,000 Accounts receivable                                                 1,125,000 Inventories                                                               1,837,500 Prepaid expenses                                                          24,000 Total current assets                                                $3,286,500 Fixed assets                                                              2,700,000 Less: accumulated depreciation                               1,087,500 Net fixed assets                                                      $1,612,500 Total assets                                                             $4,899,000 Liabilities: Accounts payable                                                      $240,000 Notes payable                                                              825,000 Accrued taxes                                                                42,000 Total current liabilities                                           $1,107,000 Long-term debt                                                            975,000 Owner’s equity                                                         2,817,000 Total liabilities and owner’s equity                        $4,899,000 Co. XYZ Income Statement Net sales (all credit)                                                $6,375,000 Less: Cost of goods sold                                           4,312,500 Selling and administrative expense                           1,387,500 Depreciation expense                                                  135,000 Interest expense                                                          127,000 Earnings before taxes                                               $ 412,500 Income taxes                                                                225,000 Net income                                                                $ 188,000 Common stock...
1. Asset utilization ratios Group of answer choices relate balance sheet assets to income statement sales....
1. Asset utilization ratios Group of answer choices relate balance sheet assets to income statement sales. are most important to stockholders. measure the firm's ability to generate a profit on sales. measure how much cash is available for reinvestment into current assets. 2. Long-term funds may be used by a financial manger to cover short-term needs and protect against the danger of not being able to provide adequate short-term financing during tight money periods. True/False
The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 20Y7, is...
The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows: *NOTE: Please explain in detail how you got the answers. Thanks in advance! 1 Dec. 31, 20Y8 Dec. 31, 20Y7 2 Assets 3 Cash $80,000.00 $100,000.00 4 Accounts receivable (net) 275,000.00 300,000.00 5 Inventories 510,000.00 400,000.00 6 Prepaid expenses 15,000.00 10,000.00 7 Equipment 1,070,000.00 750,000.00 8 Accumulated depreciation-equipment (200,000.00) (160,000.00) 9 Total assets $1,750,000.00 $1,400,000.00 10 Liabilities and Stockholders’ Equity 11 Accounts...
Use the​ common-size financial statements found​ here: Common-Size Balance Sheet 2016 Cash and marketable securities $...
Use the​ common-size financial statements found​ here: Common-Size Balance Sheet 2016 Cash and marketable securities $ 460 1.4 % Accounts receivable 6,040 18.3 Inventory 9,480 28.8 Total current assets $ 15,980 48.5 % Net property, plant, and equipment 16,960 51.5 Total assets $ 32,940 100.0 % Accounts payable $ 7,220 21.9 % Short-term notes 6,790 20.6 Total current liabilities $ 14,010 42.5 % Long-term liabilities 7,020 21.3 Total liabilities $ 21,030 63.8 % Total common shareholders’ equity 11,910 36.2 Total...
Common-Size Balance Sheet 2016 Cash and marketable securities $ 490 1.5 % Accounts receivable 6,000 18.2...
Common-Size Balance Sheet 2016 Cash and marketable securities $ 490 1.5 % Accounts receivable 6,000 18.2 Inventory 9,490 28.8 Total current assets $ 15,980 48.4 % Net property, plant, and equipment 17,020 51.6 Total assets $ 33,000 100.0 % Accounts payable $ 7,210 21.8 % Short-term notes 6,790 20.6 Total current liabilities $ 14,000 42.4 % Long-term liabilities 6,970 21.1 Total liabilities $ 20,970 63.5 % Total common shareholders’ equity 12,030 36.5 Total liabilities and shareholders’ equity $ 33,000 100.0...
Section 2: Assume the following Balance Sheet for a company: BALANCE SHEET ASSETS Cash $ 5,000...
Section 2: Assume the following Balance Sheet for a company: BALANCE SHEET ASSETS Cash $ 5,000 Accounts Receivable $125,000 Inventory $200,000 Land $70,000 Buildings $200,000 Less: Accumulated Depreciation $100,000 Total Assets $500,000 LIABILITIES AND EQUITY Accounts Payable $100,000 Income Tax Payable $50,000 Mortgage Loan $200,000 Common Stock $100,000 Retained Earnings $50,000 Total Liabilities and Equity $500,000 Compute the current ratio for this company. Group of answer choices 3.25 2.20 3.30 2.17 Using the same Balance Sheet from the prior question,...
4) Common-Size Balance Sheet 2016 Cash and marketable securities $ 450 1.4 % Accounts receivable 5,980...
4) Common-Size Balance Sheet 2016 Cash and marketable securities $ 450 1.4 % Accounts receivable 5,980 18.1 Inventory 9,530 28.9 Total current assets $ 15,960 48.3 % Net property, plant, and equipment 17,050 51.7 Total assets $ 33,010 100.0 % Accounts payable $ 7,220 21.9 % Short-term notes 6,850 20.8 Total current liabilities $ 14,070 42.6 % Long-term liabilities 7,010 21.2 Total liabilities $ 21,080 63.9 % Total common shareholders’ equity 11,930 36.1 Total liabilities and shareholders’ equity $ 33,010...
5. Devon’s bookkeeper provided the following balance sheet. DEVON COMPANY Balance Report for the year ended...
5. Devon’s bookkeeper provided the following balance sheet. DEVON COMPANY Balance Report for the year ended December 31, 2016 Current Assets: Cash $ 58,000 Current Liabilities: Accounts payable $ 25,000 Accounts receivable 123,500 Accumulated depreciation: buildings 20,000 Inventory, at higher of cost or market (cost $29,850) 35,800 Wages payable 22,200 Sinking fund for bond retirement 115,000 Additional paid-in capital on common stock 100,000 Long-Term Investments: Long-Term Liabilities: Treasury stock (at cost) 55,500 Bonds payable 100,000 Investments in bonds Marketable securities,...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT