6- Consider the following financial statements (in millions of TL). What would be the retained earnings for the year 2016? Balance Sheet (2016) Income Statement (2016) Credit Sales Cost of Goods Sold (800) Taxable Income 1.000 Cash 160 Accounts Payable Accounts Receivable 440 Short-Term Debt 600 Long-Term Debt 1.800 Common Stock 300 100 800 800 Retained Eamings 1.000 3.000 ? Inventory Fixed Assets Taxes (34%) Net Income Total 3.000 Total Dividend (33.33%) Retained Earnings ? Main assumptions Sales are expected to increase by 25% in 2017. "Cost of goods sold" is a fraction of sales in the income statement. 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. If there is a need for external funding: o raise funds through short term debt first, but current ratio must not be smaller than 3. o raise the remaining funds through 50% long-term debt and 50% equity offering (common stock). I toin O 200 O 88 O 44 132

6- Consider the following financial statements (in millions of TL). What would be the retained earnings for the year 2016? Balance Sheet (2016) Income Statement (2016) Credit Sales Cost of Goods Sold (800) Taxable Income 1.000 Cash 160 Accounts Payable Accounts Receivable 440 Short-Term Debt 600 Long-Term Debt 1.800 Common Stock 300 100 800 800 Retained Eamings 1.000 3.000 ? Inventory Fixed Assets Taxes (34%) Net Income Total 3.000 Total Dividend (33.33%) Retained Earnings ? Main assumptions Sales are expected to increase by 25% in 2017. "Cost of goods sold" is a fraction of sales in the income statement. 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. If there is a need for external funding: o raise funds through short term debt first, but current ratio must not be smaller than 3. o raise the remaining funds through 50% long-term debt and 50% equity offering (common stock). I toin O 200 O 88 O 44 132

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Use the following information to answer this question. Windswept, Incorporated 2022 Income Statement (in millions) Het sales Cost of goods sold Depreciation Earnings before interest and taxes Interest paid Taxable income Taxes Net income Cash Accounts receivable Inventory Total Net fixed assets Total assets 2021 What is the equity multiplier for 20227 $11,100 8,050 430 $ 2,620 104 $2,516 881 $ 1,635 Windswept, 2921 and 2022 Balance Sheets. (in millions) 2022 $300 1,150 1,050 2,060 1,775 $ 3,510 $3,155 3,520 4,120 $7,030 $7,275 $ 330 porated Accounts payable Long-term debt Common stock Retained earnings Total liabilities & equity 2021 $1,870 1,090 3,400 670 2022 $1,932 1,373 3,050 920 $7,030 $7,275.
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Bruno Inc.'s Financial Statement for years 2014-2015. Compute for the Bruno Inc. Year 2015 Debt to Equity Ratio. (Answer Format: 12.23%, if computed answer is 12.343% answer should be 12.34%, if computed answer is 12.347% answer should be 12.35%) INCOME STATEMENTS 2014 2015 BALANCE SHEETS Assets Cash 2014 2015 Net sales $ 4,760 $ 5,000 S 60 50 COGS (excl. depr.) 3,560 3,800 ST Investments 40 . Depreciation 170 200 Accounts receivable 380 500 480 500 Inventories 820 1,000 Other operating expenses EBIT S 550 S 500 Total CA $ 1,300 $ 1,550 Interest expense 100 120 Net PP&E 1,700 2,000 Pre-tax earnings S 450 S 380 $ 3,000 $ 3,550 Taxes (40%) 180 152 NI before pref. div. $ 270 228 Preferred div. 8 8 S 190 $ 200 Net income $ 262 220 280 300 130 280 Other Data $ 600 S 780 Common dividends $48 $50 1,000 1,200 Addition to RE $214 $170 $ 1,600 $ 1,980 Tax rate 40% 40% 100 100 Shares of common stock 50 50 500 500 Earnings per share $5.24 $4.40 800 970 Dividends per share $0.96 $1.00 $ 1,300 S…
Sohar Co. had the following information in 2020: Sales 180000 COGS 80000 ast ... Operating expenses (including depreciation) Depreciation expense Interest expense ber... 32000 4200 en... 9000 ... ... Taxes 4000 Increase in Accounts receivable 7000 [p Decrease in inventory Increase in Accounts payable Decrease in other payables Increase in interest payable Decrease in tax payable 4000 5000 4500 2300 2000 Prepare operating cash flows using direct method.
Flounder Company has been operating for several years, and on December 31, 2017, presented the following balance sheet. FLOUNDER COMPANY BALANCE SHEET DECEMBER 31, 2017 Cash $20,900 Accounts payable $80,000 Receivables 117,000 Long-term notes payable 181,000 Inventory 75,000 Common stock (no par) 110,000 Plant assets (net) 354,000 Retained earnings 195,900 $566,900 $566,900 The net income for 2017 was $43,000. Assume that total assets are the same in 2016 and 2017.
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Bruno Inc.'s Financial Statement for years 2014-2015. Compute for the Bruno Inc. Year 2015 Debt to Equity Ratio. (Answer Format: 12.23%, if computed answer is 12.343% answer should be 12.34%, if computed answer is 12.347% answer should be 12.35%)
64.) Using Financial Statements for 2018-2019. Net book value for 2019 is $8,394,200. TRUE OR FALSE?
Question Description Use the table below to answer the questions. 2014 Sales COGS Interest Depreciation Cash Accounts receivables Current liabilities Inventory Long-term debt Net fixed assets Shareholder's equity Taxes $6,318 3.945 303 1,204 672 601 414 1,215 4,780 7,700 4,994 217 1. What is the change in net working capital from 2014 to 2015? 2. What is the net capital spending for 2015? 2015 $7,202 4,460 277 1,196 418 578 463 1,598 4,103 7,330 5.358 317
Bruno Inc.'s Financial Statement for years 2014-2015. Compute for the Bruno Inc. Year 2015 Debt to Asset Ratio. (Answer Format: 12.23%, if computed answer is 12.343% answer should be 12.34%, if computed answer is 12.347% answer should be 12.35%)
Q7. Calculate debt and equity ratios using the following information- Accounts payable- $10,000 Accounts Receivable- $15,000 Buildings- $42,000 Cash-$4,000 Current Notes payable- $7,000 Office supplies $3,000 Long term notes payable- $40,000 Prepaid insurance- $2,000 Unearned revenue liability- $1,000 Wages payable- $3,000 Retained earnings- $10,000 Company issued 500 common shares @ $2 and 400 Preference shares @$3 during the year.. B W
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…