Company:RevenuesOperating expensesGain from disposal of discontinued componentRestructuring costsInterest expenseUnrealized gain on AFS Debt Investment (OCI)Gain on sale of operating assetsA. $240,000.B. $88,000C. $46,400D. $72,000E. $80,000nglish (United States) Text Predictions OnDebitsAccessibility: Investigate420,000100,00020,000Income tax expense has not yet been accrued. The company's income tax rate is 20% onall items. What amount should be reported in the company's Year 6 income statement asincome from continuing operations?ICredits$600.000200,00010,00030,000Focus Company:RevenuesOperating expensesGain from disposal of discontinued componentRestructuring costsInterest expenseUnrealized gain on AFS Debt Investment (OCI)Gain on sale of operating assetsA. $240,000.B. $88,000C. $46,400D. $72,000E. $80,000nglish (United States) Text Predictions OnDebitsAccessibility: Investigate420,000100,00020,000Income tax expense has not yet been accrued. The company's income tax rate is 20% onall items. What amount should be reported in the company's Year 6 income statement asincome from continuing operations?ICredits$600.000200,00010,00030,000Focus

Change in method of depreciation will be treated as change in accounting policies and this change in…

10. In Year 10, the Perasso Meat Packing Company changed the depreciation method used from the straight-line method to an accelerated method. Depreciation recorded in prior years on existing equipment was $126,000 applying the straight-line method. Depreciation in prior years would have been $186,000 if the accelerated method had been used. Assuming an income tax rate of 20%, Perasso's increase in Year 10's beginning retained earnings would be: A. $80,000 B. $48,000 C. $32,000 D. SO I

10. In Year 10, the Perasso Meat Packing Company changed the depreciation method used from the straight-line method to an accelerated method. Depreciation recorded in prior years on existing equipment was $126,000 applying the straight-line method. Depreciation in prior years would have been $186,000 if the accelerated method had been used. Assuming an income tax rate of 20%, Perasso's increase in Year 10's beginning retained earnings would be: A. $80,000 B. $48,000 C. $32,000 D. SO I

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 90PSB

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Data needed: SFP Asset section 1. Cash 16.3% 2. AR 6.3% 3. Short term investment 0.2% 4. Inventory 2.2% 5. Prepaid expenses 0.4% 6. PPE 74.7% Data needed: SFP Liabilities and OE section. 1. Current liab 16% 2. Non-current liab 34.2% 3. OE 49.9% Data needed: SCI 1. COGS 38.6% 2. Selling and admin exp 6.8% 3. Interest exp 0.1% 4. Income tax exp 0.5% 5. Net income 54%
Income Statement for CharmCorp: Total sales Cost of sales Gross Profit Selling, general, and administrative expenses Research and development Depreciation and amortization Operating Income Other income Earnings before interest and taxes (EBIT) Interest income (expense) Q Search OA. $1.60 OB. $2.40 OC. $1.00 OD. $2.00 2008 600 -532 68 36 87년에 -4 23 24 -7 2009 540 - 488 52 ܘܕܢܕ 21 26 -7 21 Time Remaining: 01:04:54
Analyze the influence of return on sales and asset turnover on the return on assets (ROA). Use absolute differences method. Year 200A Year 200B Sales, S'000 Profit, S'000 45612 46418 12116 12813 Assets, $'000 32745 33186
Use the following information to answer the questionsProperty:Purchase Price$7,017,000Acquisition Costs$0Year 1 PGI$1,263,060PGI Growth Rate/year4.0%Year 1 Miscellaneous Income$0Miscellaneous Income Growth Rate/year0.0%Annual Vacancy and Collection Losses/year11.0%Year 1 Operating Expense$415,926Operating Expense Annual Growth Rate2.8%Year 1 Capital Expenditures$38,220Capital Expenditures Annual Growth Rate1.6%Holding period (years)5Property to be sold for NOI6 capitalized at (Terminal Cap Rate):7.5%Selling Expenses in year 56.5%Financing:LTV67%Loan Costs (% of Mortgage Value)1.40%Loan term (years)30Monthly Amortization / monthly paymentsLoan is a 2/2 ARMLoan Rate = T-Bill + 0.37%Teaser Rate3.420%T-Bill Rate at Initiation2.990%T-Bill on Reset Date 15.540%T-Bill on Reset Date 25.910%T-Bill on Reset Date 36.850%T-Bill on Reset Date 47.250%T-Bill on Reset Date 58.120%T-Bill on Reset Date 68.900%Pre-tax Required Return32.00% 1-Find the annual debt service in year 3 2-Find the Annual Debt…
Consider the following income statement: $ 529,192 344,288 78,300 23% Sales Costs Depreciation Taxes Calculate the EBIT. EBIT
Revenues -Cost of Goods Sold -Depreciation =EBIT -Taxes (20%) -Unlevered net income +Depreciation -Additions to Net Working Capital -Capital Expenditures =Free Cash Flow Year 0 OA. by 38% OB. by 64% OC. by 51% OD. by 32% Year 2 475,000 -155,000 - 95,000 Year 1 475,000 - 155,000 - 95,000 225,000 225,000 225,000 -45,000 -45,000 -45,000 - 300,000 Year 3 475,000 - 155,000 - 95,000 180,000 95,000 - 20,000 255,000 255,000 Visby Rides, a livery car company, is considering buying some new luxury cars. After extensive research, they come up with the above estimates of free cash flow from this project. Visby learns that a competitor is thinking of offering similar services, thus reducing Visby's sales. By how much could sales fall before the net present value (NPV) was zero, given that the cost of capital is 10%, and that cost of goods sold is 45% of revenues? 180,000 95,000 - 20,000 180,000 95,000 - 20,000 255,000
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QUESTION 1 Below are the statements of Financial Position for Grace Ltd as at 31 December, 2009 and 31 December, 2008 and the Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December, 2009. 2009 2008 ASSETS GHS'000 GHS'000 Non-current assets Tangible assets Intangible assets 832 681 1,415 817 2,247 1,498 s Current assets Inventory 619 701 Receivables 584 492 Investments 396 125 Cash 17 81 1,616 1,399 Total assets 3,863 2,897 EQUITY AND LIABILITIES Equity Equity shares (GHS1) Revaluation surplus Retained earnings 500 300 150 40 1,924 1494 2.574 1,834 Non-current liabilities Provision for court case 73 50 5% Debentures 220 88 293 138 .Current liabílities Interest payable Bank Dividends payable Tax payable Trade payables 100 30 60 81 140 238 226 517 529 996 925 Total equity and liabilities 3.863 2,897
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Market Values and Book Values [L LO1] Klingon Widgets, Inc., purchased new cloaking machinery three years ago for $6 million. The machinery can be sold to the Romulans today for $5.4 million. Klingon's current balance sheet shows net fixed assets of $3.5 million, current liabilities of $945,000, and net working capital of $275,000. If the current assets and current liabilities were liquidated today, the company would receive a total of $1.25 million cash. What is the book value of Klingon's total assets today? What is the sum of the market value of NWC and the market value of fixed assets?
Revenues - Cost of Goods Sold - Depreciation =EBIT - Taxes (20%) =Unlevered net income +Depreciation - Additions to Net Working Capital - Capital Expenditures =Free Cash Flow Year 0 OA. by 35% OB. by 41% OC. by 69% O D. by 55% Year 1 500,000 - 300,000 Year 2 500,000 - - 100,000 -100,000 165,000-165,000 235,000 -47,000 235,000 -47,000 Year 3 500,000 -165,000 -100,000 188,000 188,000 100,000 100,000 - 20,000 - 20,000 268,000 268,000 Visby Rides, a livery car company, is considering buying some new luxury cars. After extensive research, they come up with the above estimates of free cash flow from this project. Visby learns that a competitor is thinking of offering similar services, thus reducing Visby's sales. By how much could sales fall before the net present value (NPV) was zero, given that the cost of capital is 8%, and that cost of goods sold is 45% of revenues? 235,000 - 47,000 188,000 100,000 - 20,000 268,000
PROBLEM The following data were taken from the Statement of Affairs of ABC Company: P175,000 90,000 Assets pledged for fully secured liabilities Assets pledged for partially secured liabilities Free assets Fully secured liabilities Partially secured liabilities Unsecured liabilities without priority Unsecured liabilities with priority 54,000 100,000 110,000 90,000 12,000 REQUIREMENT: How much is the ESTIMATED RECOVERY FOR UNSECURED LIABILITIES WITHOUT PRIORIT Presentation of solution is required.