Accounting: What the Numbers Mean
11th Edition
ISBN: 9781259535314
Author: David Marshall, Wayne William McManus, Daniel Viele
Publisher: McGraw-Hill Education
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Chapter 2, Problem 2.10E
Exercise 2.10
LO 2 , 3
Understanding financial statement relationships The information presented here represents selected data from the December 31, 2016, balance sheets and income statements for the year then ended for three firms:
| Firm A | Firm B | Firm C | |
| Total assets, 12/31/16 | ? | $435,000 | S 155,000 |
| Total liabilities, 12/31/16 | $8o,ooo | ? | 75,000 |
| Paid-in capital, 12/31/16 | 55,000 | 59,000 | 45,000 |
| ? | 186,000 | ? | |
| Net income for 2016 | 68,000 | 110,000 | 25,000 |
| Dividends declared and paid during 2016 | 12,000 | ? | 16,000 |
| Retained earnings, 1/1/16 | 50,000 | 124,000 | ? |
Required:
Calculate the missing amounts for each firm.
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INSTRUCTIONS
Section 1- Financial Analysis
FSA Company's Summary Financial Data
(In billions, except per share
data)
2020
2019
2018
2017
2016
Net Sales
30.20
29.70
29.10
29.40
28.50
Gross Profit
16.10
17.30
17.20
16.80
16.60
Operating Income
Net Income
12.50
12.90
12.10
12.70
12.80
11.90
0.90
12.80
11.60
11.80
1.70
11.80
Restructuring charge (after tax)
Net Income before restructuring
Op Income before restructuring
1.30
1.00
0.50
L10
12.80
12.90
1390
12.90
12.20
13.80
13.90
13.00
13.20
17.80
20.90
14.40 13 50
5.00
Total Assets
21.00
19.00
18.30
Total Liabilities
15.00
13.80
12.60
Long Term Debt
Shareholder Equity
Treasury Stock at cost
6.60
6.00
6.00
5.20
5.40
6.50
5.70
5.50
5.20
4.00
3.50
6. 10
5.30
5.20
29 32
28.54
28 29
28.04
Basic Earnings per share.
Cash Dividends per share
29.00
14.50
14.20
14.00
13.60
13.00
53.00
Closing Stock Price
Shares Outstatiding (billions)
75.00
63.00
64.00
69.00
0.40
0.41
0.42
0,41
0 42
Using the above information, kindly prepare the following:
a)…
Question 6 of 10
A company has total assets of $600,000 and total liabilities of $200,000. What is the company's
Debt Ratio?
O Debt Ratio = $400,000 (Total Assets – Total Liabilities)
O Debt Ratio = 3 (Total Assets/Total Liabilities)
O Debt Ratio = 0.33 (Total Liabilities / Total Assets)
O Debt Ratio = $800,000 (Total Assets + Total Liabilities)
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Suppose selected comparative statement data for the giant bookseller Barnes & Noble are presented here. All balance sheet data are
as of the end of the fiscal year (in millions).
2017
2016
Net sales
$4,750
$5,401
Cost of goods sold
3,901
3,500
Net income
55
120
Accounts receivable
65
109
Inventory
1,250
1,350
Total assets
2,850
3,150
Total common stockholders' equity
961
1,111
Compute the following ratios for 2017. (Round asset turnover to 2 decimal places, e.g 1.83 and all other answers to 1 decimal place, e.g. 1.8
or 2.5%)
Chapter 2 Solutions
Accounting: What the Numbers Mean
Ch. 2 - Prob. 2.1MECh. 2 - Prob. 2.2MECh. 2 - Prob. 2.3MECh. 2 - Prob. 2.4MECh. 2 - Mini-Exercise 2.5 LO 2. 4 Identify accounts by...Ch. 2 - Mini-Exercise 2.6 LO 2. 4 Identify accounts by...Ch. 2 - Prob. 2.7ECh. 2 - Exercise 2.8 LO 2. 4 Identify accounts by category...Ch. 2 - Exercise 2.9 LQ 2 , 3 Understanding financial...Ch. 2 - Exercise 2.10 LO 2 , 3 Understanding financial...
Ch. 2 - Prob. 2.11ECh. 2 - Exercise 2.12 LQ 2. 3 Calculate retained earnings...Ch. 2 - Prob. 2.13ECh. 2 - Prob. 2.14ECh. 2 - Prob. 2.15PCh. 2 - Prob. 2.16PCh. 2 - Problem 2.17 LO 2, 3, 4 Understanding and...Ch. 2 - Problem 2.18 LO 2. 3, 4 Understanding and...Ch. 2 - Problem 2.19 LO 2, 3, 4 Prepare an income...Ch. 2 - Prob. 2.20PCh. 2 - Problem 2.21
LO 2, 3
Transaction...Ch. 2 - Prob. 2.22PCh. 2 - Problem 2.23 LO 2, 3, 5 Complete the balance sheet...Ch. 2 - Prob. 2.24PCh. 2 - Prob. 2.25PCh. 2 - Prob. 2.26PCh. 2 - Case 2.27 LO 2, 4, 6, 7 Prepare a personal balance...
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