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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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.
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%)
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 $7,202 4,460 277 1,196 418 578 463 1,598 4,103 7,330 5.358 317
Bruno Inc.'s Financial Statement for years 2014-2015. Compute for the Bruno Inc. Year 2015 Debt to Asset Ratio. (Answer Format: 12.23%, if computed answer is 12.343% answer should be 12.34%, if computed answer is 12.347% answer should be 12.35%)
Following are income statements for Hossa Corporation for 2017 and 2016. Percentage of sales amounts are also shown for each operating expense item. Hossa’s income tax rate was 38% in 2016 and 40% in 2017. How do you calculate the cause of change analysis past sales?
6- Consider the following financial statements (in millions of TL). In 2016, the company did not pay any dividends. If this is the case, what was the retained earnings at the end of year 2015? Balance Sheet (2017) Income Statement (2017) Credit Sales Cost of Goods Sold Taxable Income Cash Accounts Payable Short-Term Debt 1.500 Accounts Receivable 125 Inventory Fixed Assets Long-Term Debt 2.092 Common Stock 845 845 Retained Eamings 1.132 Taxes (34%) Net Income Total Total Dividend (33.33%) Retained Earmings Main assumphions: Sales has increased by 25% in 2017. "Cost of goods sold is 80% of sales in the income statement at all times. All other items are independent of sales. Each current asset and accounts payable are fractions of sales in the balance sheet. All other items are independent of sales. Current ratio is 3, accounts receivable turnover is 2, inventory turnover is 4, accounts payable turmover is 5 at all times. Turnovers are calculated with respect to the current period…
($n millions) Net soles Cost of goods sold Depreciation Earnings before interest and taxes Interest paidl Taxable incone 7,010 470 $1,320 165 $1,214 425 Taxes Net. incone $789 windswept, Inc. 2016 and 2017 Balance sheets, ($ in nillions) 2016 2017 2016 2017 Cash Accounts re. Inventory Total Net fixed 33sets Accounts payable Long-tera debt, Conmon stock Retained earnings $240 S 270 $1,410 $1,410 1,110 1,318 1,820 920 1,848 1,710 3,368 3,280 658 3,430 4,008 Total assets $6,530 S6,9 Total 11ab. & equity $6,530$6.988
2.The Moon Company had net income in 2022 of AED 40 million. Here are some of the financial ratios from the annual report. Return on Assets = 5% Debt Assets Ratio = 55% Profit Margin = 4.5% Inventory in days = 20 days Using these ratios, calculate the following for the Remal Company: a) Salesb) Total assetsc) Total asset turnover d) Total debte) Stockholders' equity f) Return on equityg) Inventory
Use the following information to answer this question. Windswept, Inc.2017 Income Statement($ in millions) Net sales $ 9,000 Cost of goods sold 7,350 Depreciation 360 Earnings before interest and taxes $ 1,290 Interest paid 87 Taxable income $ 1,203 Taxes 421 Net income $ 782 Windswept, Inc.2016 and 2017 Balance Sheets($ in millions) 2016 2017 2016 2017 Cash $ 160 $ 190 Accounts payable $ 1,150 $ 1,332 Accounts rec. 840 740 Long-term debt 1,000 1,233 Inventory 1,570 1,565 Common stock 3,190 2,910 Total $ 2,570 $ 2,495 Retained earnings 470 720 Net fixed assets 3,240 3,700 Total assets $ 5,810 $ 6,195 Total liab. & equity $ 5,810 $ 6,195 What is the equity multiplier for 2017?
what is net income ?
5. 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%)*
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%) INCOME STATEMENTS 2014 2015 BALANCE SHEETS Assets Cash 2014 2015 Net sales $ 4,760 S 5,000 S 60 50 3,560 3,800 ST Investments 40 . COGS (excl. depr.) Depreciation 170 200 Accounts receivable 380 500 480 500 Inventories 820 1,000 Other operating expenses EBIT S 550 500 Total CA $ 1,300 $ 1,550 Interest expense 100 120 Net PP&E 1,700 2,000 Pre-tax earnings S 450 S 380 Total assets $ 3,000 $ 3,550 . Taxes (40%) 180 152 NI before pref. div. S 270 $ 228 Liabilities and equity Preferred div. 8 8 S 200 Accounts payable Accruals Net income $ 262 $ 220 300 280 Notes payable Total CL Other Data S 780 Common dividends $48 $50 1,000 1,200 Long-term bonds Total liabilities Addition to RE $214 $170 $ 1,600 $ 1,980 Tax rate 40% 40% 100 100 Preferred stock…