1. Moogle Inc.’s 2019 financial statements show operating profit
before tax of $542, net income of...
1. Moogle Inc.’s 2019 financial statements show operating profit
before tax of $542, net income of $380, provision for income taxes
of $108 and net nonoperating expense before tax of $54. Moogle’s
statutory tax rate for 2019 is 35.4%. Moogle’s 2019 tax shield of
net nonoperating expense is:
2.The fiscal 2019 financial statements of BT Services shows net
operating profit margin (NOPM) of 11.69%, net operating asset
turnover (NOAT) of 1.46, return on equity of 19.37%, and adjusted
return on...
Turnball Ltd. is developing financial statements for the year
ended December 31, 2019. The average income...
Turnball Ltd. is developing financial statements for the year
ended December 31, 2019. The average income tax rate is 40 percent.
The following pre-tax data are available:
Revenues
$420,000
Expenses
360,000
Gain from Discontinued Operations (pre-tax)
24,000
Unrealized foreign exchange loss on translation of foreign
subsidiary (net of tax)
10,000
Required:
Assuming all of the above items are subject to the average tax rate
of 40%, prepare a statement of Comprehensive Income (in proper
form) for the year ended December...
Montpellier Company discovered that in its 2019 financial
statements, the 2019 ending inventory was overstated by...
Montpellier Company discovered that in its 2019 financial
statements, the 2019 ending inventory was overstated by $12,000 and
that the 2019 beginning inventory was overstated by $7,000. Before
correcting these errors, Montpellier had reported $110,000 of
pre-tax income.
What should Montpellier report as the correct 2019
pre-tax income? (Hint: Determine separately the
effect of each of the two errors on pre-tax income, and then
determine the net effect of the two.)
$91,000.
$105,000.
$117,000.
$129,000.
Brooks Sisters' operating income (EBIT) is $168 million. The
company's tax rate is 40.0%, and its...
Brooks Sisters' operating income (EBIT) is $168 million. The
company's tax rate is 40.0%, and its operating cash flow is $142.1
million. The company's interest expense is $17 million. What is the
company's net cash flow? (Assume that depreciation is the only
non-cash item in the firm's financial statements.) (Answers are in
$ millions.)
You have reformulated the Imber Aedax Company’s most recent
financial statements and extracted the following information:...
You have reformulated the Imber Aedax Company’s most recent
financial statements and extracted the following information:
Year ended 31 Dec 2019
$ million
Sales
35,200
Interest expense minus interest income
291
Earnings before tax
13,168
Tax expense
2,384
Comprehensive Income (CE)
11,809
As at 31 Dec 2019
$ million
Net operating working capital (OWC)
936
Net non-current operating assets (NNCOA)
42,287
Net financial obligations (NFO)
11,906
a) Calculate NOA (net operating assets) and CSE (common
shareholders’ equity) at the end...
1. Mattel Inc.’s 2016 financial statements show operating profit
before interest and tax of $519,233 thousand,...
1. Mattel Inc.’s 2016 financial statements show operating profit
before interest and tax of $519,233 thousand, net income of
$318,022 thousand, provision for income taxes of $91,720 thousand
and net nonoperating expense before tax of $109,491 thousand.
Assume Mattel’s statutory tax rate for 2016 is 37%.
-Mattel’s 2016 effective tax rate is:
2. The fiscal 2016 financial statements of Nike Inc. shows net
operating profit margin (NOPM) of 11.4%, net operating asset
turnover (NOAT) of 3.83, return on equity of...
Rate of Change Analyses
Teicher Company presents the following condensed comparative
income statements for 2020, 2019,...
Rate of Change Analyses
Teicher Company presents the following condensed comparative
income statements for 2020, 2019, and 2018:
For Years Ended December 31,
2020
2019
2018
Sales (net)
$120,000
$100,000
$85,000
Cost of goods sold
(72,000)
(55,000)
(45,000)
Gross profit
$48,000
$45,000
$40,000
Operating expenses
(22,000)
(20,000)
(18,000)
Operating income
$26,000
$25,000
$22,000
Other items:
Dividend revenue
400
500
200
Interest expense
(1,200)
(1,000)
(500)
Income before income taxes
$25,200
$24,500
$21,700
Income tax expense
(8,200)
(8,000)
(6,000)
Net income...
Income statements for
Finch Company for 2018 and 2019 follow:
FINCH COMPANY
Income Statements
2019
2018...
Income statements for
Finch Company for 2018 and 2019 follow:
FINCH COMPANY
Income Statements
2019
2018
Sales
$
200,400
$
180,400
Cost of goods
sold
142,200
120,200
Selling
expenses
21,700
19,700
Administrative
expenses
13,000
15,000
Interest
expense
3,500
5,500
Total
expenses
$
180,400
$
160,400
Income before
taxes
20,000
20,000
Income taxes
expense
6,000
3,900
Net income
$
14,000
$
16,100
Required
Perform a horizontal
analysis, showing the percentage change in each income statement
component between 2018 and 2019.
Perform...
The following table presents selected 2019 financial information
for Sunder Company.
Sunder Company
Selected 2019 Financial...
The following table presents selected 2019 financial information
for Sunder Company.
Sunder Company
Selected 2019 Financial Data
Balance Sheet:
Average total assets
$1,000,000
Average total liabilities
500,000
Average stockholders' equity
500,000
Income Statement
Sales revenue
$1,000,000
Earnings before interest (net of tax)
20,000
Interest expense (net of tax)
15,000
Net income
5,000
Round answers to one decimal place (i.e., 0.0025 = 0.3%). Use
negative signs with answers, when appropriate.
a. Compute Sunder's ROE, ROA, and ROFL for 2019
ROE
ROA...
During its first year of operations, Alcoa Corporation reported
a net operating loss of $800,000 for...
During its first year of operations, Alcoa Corporation reported
a net operating loss of $800,000 for financial reporting and tax
purposes. The enacted tax rate is 25%. Which of the following is
true?
a. Deferred tax assets are increased by $800,000 b. Deferred tax
liabilities are increased by $800,000 c. Net income is -$600,000 d.
Income tax expense is debited by $200,000 e. Net income is
-$800,000