2 Charlie's Construction Company is a growing construction business that has a few contracts to build storefronts in Pasay. Charlie's balance sheet shows beginning assets ofP1,000,000 and an ending balance of P10,000,000 of assets. During the current year, Charlie's company had a net income of P20,000,000. Compute for the company's return onassets and interpret the results. Dave's Guitar Shop is thinking about building an addition onto the back of its existing building for more storage. Dave consults with his banker about applying for a new loan. Thebank asks for Dave's balance to examine his overall debt levels. The banker discovers that Dave has total assets of P5,000,000 and total liabilities of P25,000. Compute for Dave'sdebt ratio.

A financial ratio that estimates a company's leverage is referred to as a "debt ratio." The decimal…

2 Charlie's Construction Company is a growing construction business that has a few contracts to build storefronts in Pasay. Charlie's balance sheet sho 1,000,000 and an ending balance of P10,000,000 of assets. During the current year, Charlie's company had a net income of P20,000,000. Compute for t sccote and intornrot tho roculte

2 Charlie's Construction Company is a growing construction business that has a few contracts to build storefronts in Pasay. Charlie's balance sheet sho 1,000,000 and an ending balance of P10,000,000 of assets. During the current year, Charlie's company had a net income of P20,000,000. Compute for t sccote and intornrot tho roculte

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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Alyeska Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil field in Alaska. Data concerning the most recent year appear below: Sales $ 17,400,000 Net operating income $ 5,400,000 Average operating assets $ 35,300,000 Required: 1. Compute the margin for Alyeska Services Company. (Round your answer to 2 decimal places.) 2. Compute the turnover for Alyeska Services Company. (Round your answer to 2 decimal places.) 3. Compute the return on investment (ROI) for Alyeska Services Company. (Round your intermediate calculations and final answer to 2 decimal places.)
7. The Hopewell Pharmaceutical Company's balance sheet and income state- ment for last year are as follows: Balance Sheet (in Millions of Dollars) Assets Cash and marketable securities $1,100 Accounts receivable 1,300 Inventories* 800 200 Other current assets Total current assets Plant and equipment (net) Other assets Total assets $3,400 2,300 1,000 $6,700 Net sales Cost of sales Liabilities and Equity Accounts payable Accrued liabilities (salaries and benefits) Other current liabilities Earnings before taxes Taxes Earnings after taxes (net income) Total current liabilities Long-term debt and other liabilities Selling, general, and administrative expenses Other expenses Total expenses Common stock Retained earnings Total stockholders' equity Total liabilities and equity *Assume that average inventory over the year was $800 million that is, the same as ending inventory. Income Statement (in Millions of Dollars) a. Determine Hopewell's cash conversion cycle. b. Give an interpretation of…
Below is financial information for the last year for a company that has a number of fast-food stores: Revenue from operations: $10,450,200 9,927,690 Operating costs: Cost of capital: RRR: 12% 15% Average assets: $4,180,080 Required: Calculate several measures that can be used for the financial perspective of a BSC.
The Hopewell Pharmaceutical Company’s balance sheet and income statement for last year are as follows: Balance Sheet (in Millions of Dollars) Assets Liabilities and Equity Cash and marketable securities $900 Accounts payable*** $900 Accounts receivable* 1,100 Accrued liabilities Inventories** 700 (salaries and benefits) 400 Other current assets 200 Other current liabilities 600 Total current assets $2,900 Total current liabilities $1,900 Plant and equipment (net) 2,700 Long-term debt and other Other assets 800 liabilities 700 Total assets $6,400 Common stock 1,300 Retained earnings 2,500 Total stockholders’ equity $3,800 Total liabilities and equity $6,400 *Assume that average accounts receivable are the same as ending accounts receivable. **Assume that average inventory over the year was the same as ending inventory. ***Assume that average accounts payable are the same…
10. The Hopewell Pharmaceutical Company's balance sheet and income statement for last year are as follows: CHALLENGE Balance Sheet (in Millions of Dollars) Assets Liabilities and Equity Cash and marketable $1,100 Accounts payable*** $900 securities Accounts receivable* 1,300 Accrued liabilities Inventories** 800 (salaries and benefits) 300 Other current assets 200 Other current liabilities 700 Total current assets $3,400 Total current liabilities $1,900 Plant and equipment (net) 2,300 Long-term debt and other Other assets 1,000 liabilities 1,000 Total assets $6,700 Common stock 1,800 Retained eamings 2,000 Total stockholders" equity $3,800 Total liabilities and equity $6,700 *Assume that average accounts receivable are the same as ending accounts receivable. **Assume that average inventory over the year was the same as ending inventory. ***Assume that average accounts payable are the same as ending accounts payable. Income Statement (in Millions of Dollars) Net sales $6,500 Cost of…
My Love and Girl Ltd is an agro processing company at Kpando. The companys published financial statements for the year ended 31st December 2008 are as follows: Income statement for the year ended 31st December 2008 GH Revenue 90, 336 Cost of Sales 70,002 Gross Profit 20, 334 Selling, general and administration expenses 4, 520 Profit before tax 15,814 Taxation 3,734 Profit after tax 12,080 Income surplus Balance at 1/01/08 5, 200 Profit for the year 12,080 17,280 Dividends: Equity 7, 600 7% preference 3, 150 Balance as at 31/12/08 6,530 Balance sheet as at 31st December 2008 Non - current assets GH Property plant and Equipment 183, 250 Net current assets 16,750 200,000 Financed by: Stated Capital: Equity shares (issued at 50 pesewas per share) 95,000 75% preference shares ( issued at 25 pesewas per share) 45,000 Income surplus 6, 530 Shareholders funds 146, 530 8% debentures 53, 470 200,000 Additional information Market price per equity shares as at 31st December 2008 was 75 pesewas.…
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Alyeska Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil field in Alaska. Data concerning the most recent year appear below: Sales Net operating income Average operating assets Required: $ 17,200,000 $ 5,100,000 $ 35,500,000 1. Compute the margin for Alyeska Services Company. Note: Round your answer to 2 decimal places. 2. Compute the turnover for Alyeska Services Company. Note: Round your answer to 2 decimal places. 3. Compute the return on investment (ROI) for Alyeska Services Company. Note: Round your intermediate calculations and final answer to 2 decimal places. 1. Margin 2. Turnover 3. ROI % %
A company's total sales in a year were $2,710,000. The cost price of goods sold was $2,040,000. Given below are the overheads paid during the year. Item Wages Amount $198,500 Electricity and gas 15,300 Telephone 1,790 Rent of premises 41,090 Office expenses 17,030 At the end of the year, the company expanded by issuing new shares in the business. It planned to raise $2,450,000 through the issue of 70,00 shares. Calculate the price per share.
The Green Carpet has current liabilities of $72,100 and accounts receivable of $107,800. The firm has total assets of $443,500 and net fixed assets of $323,700. The owners' equity has a book value of $191,400. What is the amount of the net working capital? a. $47,700 b. $6,500 c. $50,100 d. -$29,700 e. -$18,800