Chapter 4 practice problems

Please help prepare Financial position and comprehensive income statement

Title INGRAM INDUSTRIES Balance Sheet June 30, 2008 Assets Current assets: Cash (including $13,000 in... Description INGRAM INDUSTRIES Balance Sheet June 30, 2008   Assets Current assets: Cash (including $13,000 in sinking fund for bonds payable) $ 70,000 Marketable securities 23,400 Investment in subsidiary company 23,000 Accounts receivable 21,000 Inventories (lower-of-cost-or-market) 117,00 $254,400 Plant assets: Land and buildings $160,000 Less: Accumulated depreciation 100,000 60,000 Investments: Treasury stock 4,000 Deferred charges: Discount on bonds payable $ 6,000 Prepaid expenses 2,000 8,000 Total Assets $326,400 Liabilities and Stockholders’ Equity Liabilities: Notes payable to bank $ 60,000 Accounts payable 18,000 Bonds payable 61,000 Total liabilities $139,000 Stockholders’ equity: Preferred and common (each $10 par, 5,000 shares preferred and 6,000 shares common) $110,000 Capital in excess of par 61,000 Retained earnings 16,400 187,400 Total liabilities and…

Information: Long-term debt                                                   $40 Retained earnings                                                 30 Current assets                                                       150 Property, plant, and equipment                            60 Common stock                                                     130 Current liabilities                                                   50   Working capital amounts to a. $150 b. $130 c. $120 d. $100

Prepaid rent Long-term assets: Investment in bonds Land Equipment 13,200 11,200 5,040 97,000 97,000 0 292,000 202,000 232,000 292,000 262,000 202,000 Less: Accumulated depreciation (79,000) (57,000) (34,000) Total assets $1,004,200 $863,200 $720,040 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $264,600 $58,000 $93,640 Interest payable 6,600 4,400 2,200 Income tax payable Long-term liabilities: Notes payable 11,200 11,000 13,200 320,000 277,000 217,000 Stockholders' equity: Common stock 292,000 292,000 292,000 Retained earnings 109,800 220,800 102,000 Total liabilities and stockholders' equity $1,004,200 $863,200 $720,040 Required: 1. Assuming that all sales were on account, calculate the following risk ratios for 2024 and 2025: (Round your answers to 1 decimal place.) Receivables turnover ratio Inventory turnover ratio Current ratio Debt to equity ratio 2024 2025 times times times times 4.9 1.4 % %

15. You work for the CEO of a new company that plans to manufacture and sell a new product, a watch that has an embedded TV set and a magnifying glass crystal. The issue now is how to finance the company, with only equity or with a mix of debt and equity. Expected operating income is $510,000. Other data for the firm are shown below. How much higher or lower will the firm's expected ROE be if it uses some debt rather than all equity, i.e., what is ROEL - ROEU? Do not round your intermediate calculations. 0% Debt, U 60% Debt, L

How can calculate the gearing ratio for both company?

Company: Revenues Operating expenses Gain from disposal of discontinued component Restructuring costs Interest expense Unrealized gain on AFS Debt Investment (OCI) Gain on sale of operating assets A. $240,000. B. $88,000 C. $46,400 D. $72,000 E. $80,000 nglish (United States) Text Predictions On Debits Accessibility: Investigate 420,000 100,000 20,000 Income tax expense has not yet been accrued. The company's income tax rate is 20% on all items. What amount should be reported in the company's Year 6 income statement as income from continuing operations? I Credits $600.000 200,000 10,000 30,000 Focus

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.

Total fixed assets 31420 OMR Total long term liabilities 9970 OMR Total current assets 18930 OMR Total current liabilities 4765 OMR Shareholders’ funds 35615 OMR Capital employed 45585 OMR Gross profit 175000 OMR Net profit 113950 OMR  Return on capital employed 25% Current ratio 3.97 Liquid ratio 3.34 Return on Equity 3.191 Gross Profit  Margin 53,03% Net Profit Margin 34.53%   Q/Give a brief report on the financial position of the company based on the above figures?

O Assignment Exercise 10-25A (Algo) Determining the effects of financing alternatives on ratios LO 10-8 Clayton Industries has the following account balances: Current assets Noncurrent assets $ 22,000 Current liabilities 72,000 Noncurrent liabilities Stockholders' equity Required a-1. Compute the current ratio for Clayton's management. Note: Round your answers to 2 decimal places. Currently If bonds are issued If stock is issued The company wishes to raise $35,000 in cash and is considering two financing options: Clayton can sell $35,000 of bonds payable, or it can issue additional common stock for $35,000. To help in the decision process, Clayton's management wants to determine the effects of each alternative on its current ratio and debt-to-assets ratio. Currently If bonds are issued Current Ratio 3.14 to 1 to 1 to 1 a-2. Compute the debt-to-assets ratio for Clayton's management. Note: Round your answers to 1 decimal place. Debt to Assets Ratio Saved % % $7,000 47,000 40,000

Question Content Area What type of analysis is indicated by the following?       Increase (Decrease)   Current Year Preceding Year Amount Percent Current assets $430,000 $500,000 $(70,000) (14%) Fixed assets 1,740,000 1,500,000 240,000  16     a.vertical analysis b.liquidity analysis c.horizontal analysis d.common-size analysis

Initial investment (CF) Year (t) 1 567GA WN 2 3 4 8 Machine A $85,300 $17,500 $17,500 $17,500 $17,500 $17,500 $17,500 $17,500 $17,500 Machine B $60,300 Cash inflows (CF₂) $11,500 $13,700 $15,600 $18,400 $20,300 $25,400 Machine C $130,300 $50,200 $30,300 $20,500 $20,100 $20,300 $29,900 $39,600 $49,900

A fhas a debt to asset solve this question general Accounting

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An entity provided the following information for the current year: Income from continuing operations 4,000,000Income from discontinued operation 500,000Unrealized gain on financial asset – FVPL 800,000Unrealized loss on equity investment – FVOCI 1,000,000Unrealized gain on debt investment – FVOCI 1,200,000Unrealized gain on futures contract designated as a cash flow hedge 400,000Translation loss on foreign operation 200,000Net “remeasurement” gain on defined benefit plan during the year 600,000Loss on credit risk of a financial liability designated at FVPL 300,000Revaluation surplus during the year 2,500,000 Question 1: What net amount should be reported as other comprehensive income for the current year?a. 4,000,000 c. 3,200,000b. 3,500,000 d. 7,000,000Question 2: What amount should be reported as comprehensive income for the current year?a. 5,200,000 c. 8,500,000b. 7,700,000 d. 7,200,000