Corporate Finance (The Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
11th Edition
ISBN: 9780077861759
Author: Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher: McGraw-Hill Education
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Chapter 2, Problem 22QP
Use the following information for Ingersoll, Inc., for Problems 22 and 23 (assume the tax rate is 34 percent):
| 2014 | 2015 | |
| Sales | $9,402 | $ 10,091 |
| 1,350 | 1,351 | |
| Cost of goods sold | 3,235 | 3,672 |
| Other expenses | 767 | 641 |
| Interest | 630 | 724 |
| Cash | 4,931 | 6,244 |
| Accounts receivable | 6,527 | 7,352 |
| Short-term notes payable | 953 | 895 |
| Long-term debt | 16,152 | 19,260 |
| Net fixed assets | 41,346 | 42,332 |
| Accounts payable | 5,179 | 5,022 |
| Inventory | 11,604 | 11,926 |
| Dividends | 1,147 | 1,261 |
22. Financial Statements Draw up an income statement and
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Use the following information for Ingersoll, Inc., (assume the tax rate is 35 percent):
2015
2014
$9,335 $9,909
Sales
Depreciation
Cost of goods sold
Other expenses
Interest
Cash
Accounts receivable
Short-term notes
payable
Long-term debt
Net fixed assets
Accounts payable
Inventory
Dividends
1,275
2,846
789
675
4,259
5,589
944
1,276
3,210
684
753
15,110
35,955 37,077
Cash flow from assets
Cash flow to creditors
Cash flow to stockholders
5,353
6,277
896
17,550
4,616 4,335
10,088
9,820
1,106
1,201
For 2015, calculate the cash flow from assets, cash flow to creditors, and cash flow to
stockholders. (Do not round intermediate calculations. A negative answer should be
indicated by a minus sign. Round your answers to 2 decimal places, e.g., 32.16.)
$
$
$
Use the following information for Ingersoll, Incorporated. Assume the tax rate is 23
percent.
Sales
Depreciation
2020 2021
$15,073 $15,036
1,731 1,806
Cost of goods sold
4,329
4,777
Other expenses
981
859
Interest
830
961
Cash
6,172
6,676
Accounts receivable
8,110
9,637
Short-term notes payable
1,240
1,217
Long-term debt
20,530
24,811
Net fixed assets
51,042 54,483
Accounts payable
4,496 4,854
Inventory
14,402 15,358
1,300
1,688
Dividends
Prepare a balance sheet for this company for 2020 and 2021. (Do not round
intermediate calculations.)
INGERSOLL, INCORPORATED
Balance Sheet as of December 31
Current assets
Assets
2020
2021
Use the following information to answer this question.
Bayside, Inc.2017 Income Statement($ in thousands)
Net sales
$
6,040
Cost of goods sold
4,200
Depreciation
400
Earnings before interest and taxes
$
1,440
Interest paid
30
Taxable income
$
1,410
Taxes
423
Net income
$
987
Bayside, Inc.2016 and 2017 Balance Sheets($ in thousands)
2016
2017
2016
2017
Cash
$
115
$
220
Accounts payable
$
1,580
$
1,510
Accounts rec.
990
830
Long-term debt
810
610
Inventory
1,705
2,040
Common stock
3,240
3,280
Total
$
2,810
$
3,090
Retained earnings
880
1,130
Net fixed assets
3,700
3,440
Total assets
$
6,510
$
6,530
Total liab. & equity
$
6,510
$
6,530
What is the return on equity for 2017?
Chapter 2 Solutions
Corporate Finance (The Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
Ch. 2 - Prob. 1CQCh. 2 - Prob. 2CQCh. 2 - Prob. 3CQCh. 2 - Prob. 4CQCh. 2 - Prob. 5CQCh. 2 - Cash Flow from Assets Why is it not necessarily...Ch. 2 - Operating Cash flow Why is it not necessarily bad...Ch. 2 - Net Working Capital and Capital Spending Could a...Ch. 2 - Cash Flow to Stockholders and Creditors Could a...Ch. 2 - Prob. 10CQ
Ch. 2 - Building a Balance Sheet Sankey, Inc., has current...Ch. 2 - Building an Income Statement Shellon, Inc., has...Ch. 2 - Market Values and Book Values Klingon Cruisers,...Ch. 2 - Prob. 4QPCh. 2 - Calculating OCF Barrell, Inc., has sales of...Ch. 2 - Calculating Net Capital Spending Gordon Driving...Ch. 2 - Building a Balance Sheet The following table...Ch. 2 - Cash Flow to Creditors The 2014 balance sheet of...Ch. 2 - Cash. Flow to Stockholders The 2014 balance sheet...Ch. 2 - Prob. 10QPCh. 2 - Cash Flows Ritter Corporations accountants...Ch. 2 - Financial Cash flows The Stancil Corporation...Ch. 2 - Building an Income Statement During the year, the...Ch. 2 - Calculating total Cash Flows Schwert Corp. shows...Ch. 2 - Using Income Statements Given the .following...Ch. 2 - Prob. 16QPCh. 2 - Marginal versus Average Tax Rates (Refer to Table...Ch. 2 - Prob. 18QPCh. 2 - Accounting Values versus Cash Flows In Problem 18,...Ch. 2 - Calculating Cash Flows Cusic Industries had the...Ch. 2 - Prob. 21QPCh. 2 - Use the following information for Ingersoll, Inc.,...Ch. 2 - Prob. 23QPCh. 2 - Prob. 24QPCh. 2 - Net Fixed Assets and Depreciation On the balance...Ch. 2 - Prob. 26QPCh. 2 - Prob. 1MCCh. 2 - Prob. 2MCCh. 2 - Prob. 3MC
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