6- Consider the following financial statements (in millions of TL). In 2016, the company did not pay any dividends. If this is the case, what was the retained earnings at the end of year 2015? Income Statement (2017) Credit Sales Cost of Goods Sold Balance Sheet (2017) Cash Accounts Payable ? Short-Term Debt ? Long-Term Debt 2.092 Common Stock 1.500 Accounts Receivable 125 Taxable Income Inventory Foxed Assets 845 845 Taxes (34%) Net Income Retained Eamings 1.132 Total Total ? Dividend (33.33%) Retained Eamings Main assumphons Sales has increased by 25% in 2017. "Cost of goods sold is 80% of sales in the income statement at all times. Al ofher tems are independent of sales. Each curent asset and accounts payable are fracions of sales in the balance sheet. All other items are independent of sales. Current ratio is 3, acoounts receivable tumover is 2, inventory turnover is 4, accounts payable tumover is 5 at all times. Tumovers are calculated with respect to the current period balances without averaging with past year balances. Throughout the year 2017: o the company raised funds through short term debt first. o the company raised the remaning funds through 50% long-term debt and 50% equity offering (oommon stock). 1.000 TL 842 TL 868 TL 974 TL Diğer.
6- Consider the following financial statements (in millions of TL). In 2016, the company did not pay any dividends. If this is the case, what was the retained earnings at the end of year 2015? Income Statement (2017) Credit Sales Cost of Goods Sold Balance Sheet (2017) Cash Accounts Payable ? Short-Term Debt ? Long-Term Debt 2.092 Common Stock 1.500 Accounts Receivable 125 Taxable Income Inventory Foxed Assets 845 845 Taxes (34%) Net Income Retained Eamings 1.132 Total Total ? Dividend (33.33%) Retained Eamings Main assumphons Sales has increased by 25% in 2017. "Cost of goods sold is 80% of sales in the income statement at all times. Al ofher tems are independent of sales. Each curent asset and accounts payable are fracions of sales in the balance sheet. All other items are independent of sales. Current ratio is 3, acoounts receivable tumover is 2, inventory turnover is 4, accounts payable tumover is 5 at all times. Tumovers are calculated with respect to the current period balances without averaging with past year balances. Throughout the year 2017: o the company raised funds through short term debt first. o the company raised the remaning funds through 50% long-term debt and 50% equity offering (oommon stock). 1.000 TL 842 TL 868 TL 974 TL Diğer.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:6- Consider the following financial statements (in millions of TL). In 2016, the
company did not pay any dividends. If this is the case, what was the retained
earnings at the end of year 2015?
Balance Sheet (2017)
Income Statement (2017)
Credit Sales
Cost of Goods Sold
Taxable Income
Cash
Accounts Payable
Short-Term Debt
1.500
Accounts Receivable
125
Inventory
Fixed Assets
Long-Term Debt
2.092 Common Stock
845
845
Retained Eamings 1.132
Taxes (34%)
Net Income
Total
Total
Dividend (33.33%)
Retained Earmings
Main assumphions:
Sales has increased by 25% in 2017.
"Cost of goods sold is 80% of sales in the income statement at all times. All other items are
independent of sales.
Each current asset and accounts payable are fractions of sales in the balance sheet. All other items
are independent of sales.
Current ratio is 3, accounts receivable turnover is 2, inventory turnover is 4, accounts payable
turmover is 5 at all times. Turnovers are calculated with respect to the current period balances
without averaging with past year balances.
Throughout the year 2017.
o the company raised funds through short-term debt first.
o the company raised the remaining funds through 50% long-term debt and 50% equity
offering (oommon stock).
1.000 TL
842 TL
868 TL
974 TL
Diğer:
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