The financial statements for Castile Products, Incorporated, are given below:Castile Products, IncorporatedBalance SheetDecember 31AssetsCurrent assets:CashAccounts receivable, netMerchandise inventoryPrepaid expensesTotal current assetsProperty and equipment, netTotal assetsLiabilities and Stockholders' EquityLiabilities:Current liabilitiesBonds payable, 10%Total liabilities.StockholdersequityConnon stock, $5 per value.Retained earningsTotal stockholders equityTotal liabilities and stockholders' equityCastile Products, IncorporatedIncome StatementFor the Year Ended December 31SalesCost of goods soldGross marginSelling and administrative expensesNet operating incomeInterest expenseNet incone before taxesIncome taxes (30%)Net income$24,000230,000370,0009,000633,000860,000$1,493,000$ 290,000320,000610,000$150,000.733,000883,000$1,493,000$ 2,290,0001,220,0001,070,000580,000490,00032,000458,000137,400$ 320,600 Account balances at the beginning of the year were: accounts receivable, $230,000; and inventory, $320,000. All sales were onaccount. Assets at the beginning of the year totaled $1,010,000, and the stockholders' equity totaled $645,000.Required:Compute the following:Note: For Requirements 1 to 4, enter your percentage answers rounded to 2 decimal places (i.e., 0.1234 should be entered as12.34).1. Gross margin percentage.2. Net profit margin percentage.3. Return on total assets.4. Return on equity.5. Was financial leverage positive or negative for the year?1. Gross margin percentage2. Net profit margin percentage3. Return on total assets4. Return on equity5. Financial Leverage%%

Analysis of financial statements is an essential tool for all parties involved, such as creditors,…

Castile Products, Incorporated Balance Sheet December 31 Assets Current assets: Cash Accounts receivable, net Merchandise inventory Prepaid expenses Total current assets Property and equipment, net Total assets Liabilities and Stockholders' Equity Liabilities: Current liabilities Bonds payable, 10% Total liabilities Stockholders' equity! Common stock, 55 per value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 24,000 230,000 370,000 9,000 633,000 860,000 $1,493,000 290,000 320,000 610,000 $150,000. 733,000 863,000 $1,493,000

Castile Products, Incorporated Balance Sheet December 31 Assets Current assets: Cash Accounts receivable, net Merchandise inventory Prepaid expenses Total current assets Property and equipment, net Total assets Liabilities and Stockholders' Equity Liabilities: Current liabilities Bonds payable, 10% Total liabilities Stockholders' equity! Common stock, 55 per value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 24,000 230,000 370,000 9,000 633,000 860,000 $1,493,000 290,000 320,000 610,000 $150,000. 733,000 863,000 $1,493,000

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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Accounts Payable Notes Payable Long Term Debt Common Stock Retained Earnings Total Liabilities & Equity $ 275,000 $ 315,000 $ 495,000 $ 925,000 $2,450,000 $4,460,000 Pre-Tax Cost of Debt: Intermediate Debt: 4.5% Long Term Debt: 6.5% Tax Rate: 21% Return on Equity: 11% Dividends per share: $0.20 Earnings per share: $0.90 C/S market price: $55 C/S outstanding: 80000 shares This company uses intermediate debt, long-term debt and common equity to finance its operations. With the information presented above: a. Calculate the firm's debt ratio (book value and market value based) b. Calculate the firm's WACC c. Calculate the new firm's WACC if the firm issued 150,000 new common stock at a flotation cost of $1.20 per share. The new issuance generates $4.5 million.
Assets Cash Joel de Paris, Incorporated Balance Sheet Beginning Balance $ 136,000 339,000 579,000 Ending Balance $ 126,000 475,000 Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped) Total assets Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity Total liabilities and stockholders' equity 846,000 409,000 251,000 $ 2,560,000 $ 375,000 1,043,000 1,142,000 481,000 858,000 426,000 251,000 $ 2,617,000 $ 332,000 1,043,000 1,242,000 $ 2,560,000 $ 2,617,000 Joel de Paris, Incorporated Income Statement Sales $ 4,800,000 Operating expenses Net operating income 4,032,000 768,000 Interest and taxes: Tax expense Interest expense Net income $ 125,000 193,000 318,000 $ 450,000 The company paid dividends of $350,000 last year. The "Investment in Buisson, S.A.," on the balance sheet represents an investment in the stock of another company. The company's minimum required rate of return of 15%. Required: 1. Compute…
K The balance sheets of Prima Ltd. and Donna Corp. on December 31, Year 5, are shown below: Mc Graw Hill Cash Accounts receivable Inventory Plant Patents Current liabilities Long-term debt Common shares Retained earnings Cash Accounts receivable Inventory Plant Prima $ 374,200 84,200 100,400 514,800 104,400 $1,178,000 Trademarks Patents Current liabilities Long-term debt $ 164,800 262,000 356,800 394,400 $1,178,000 The fair values of the identifiable net assets of Donna Corp. on this date are as follows: $ 10,650 22,800 85,000 197,000 30,000 60,000 36,400 78,000 Donna $ 10,650 26,800 69,600 166,000 26,800 $ 299,850 $36,400 68,000 102,000 93,450 $ 299,850 In addition to the assets identified above, Donna owned a significant number of Internet domain names, which are unique alphanumeric names used to identify a particular numeric Internet address. These domain names can be sold separately and are estimated to be worth a total of $58,000. On January 1, Year 6, Prima Ltd. paid $315,000 in…
E Balance Sheet Murawski Company Balance Sheet December 31 Current Assets Cash and cash equivalents $330 $360 Accounts receivable (net) 470 400 Inventory 460 390 120 160 Prepaid expenses Total current assets 1.380 1.310 investments 10 10 Property, plant, and equipment 420 380 Intangibles and other assets 530 510 Total assets $2.340 $2.210 Current liabilities $900 $790 410 380 Long term liabilities. Stockholder's equity common 1.030 1,040 Total liabilities and stockholder's equity $2.340 $2.210 Income Statement Murawski Company Income Statement For the Years Ended December 31 2022 2021 $3.460 Sales Revenue Costs and expenses Cost of goods sold 890 Selling and Administrative expens 7.310 interest expense 20 Total costs and expenses 3,240 income before income taxes 220 income tax expense 60 Net Income $134 C 22 V 2022 $3,800 955 7,400 25 3,380 420 126 5294 2021 W Calculate the 2021 Inventory Turnover ratio. Use whole numbers rounded to 2 decimal places, if needed, as seen in the example…
Miscellaneous financial information Amount Retained earnings 786 Total stockholders' equity 14, 971 Operating net working capital 28,483 Net working capital 29,102 Nonoperating current assets other than cash 347 Short-term debt 1, 126 Total current liabilities 13, 613 Total long-term liabilities 107,872 Inventory ? ? Current portion of long-term debt 561 Accounts receivable 2,052 Treasury stock -5,279 What did Madison Makeup report as long-term assets? 93,741 What did Madison Makeup report as cash? 42,368
Brock Company's financial information is listed below. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit. Assets Cash and short-term investments $35,766 Accounts receivable (net) 32,541 Inventory 34,460 Property, plant, and equipment 215,693 Total assets $318,460 Liabilities and Stockholders' Equity Current liabilities $67,513 Long-term liabilities 90,221 Common stock, $10 par 61,070 Retained earnings 96,656 Total liabilities and stockholders' equity $318,460 Income Statement Sales $99,202 Cost of goods sold 44,641 Gross margin $54,561 Operating expenses 28,479 $26,082 Net income
Long-term assets: Equipment Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: $104,000 0 34,500 490,000 Notes payable Stockholders' equity: Common stock 590,000 590,000 Retained earnings 1,815,500 1,754,200 Total liabilities and stockholders' equity $3,034,000 $2,948,000 Earnings per share for the year ended December 31, 2024, are $1.25. The closing stock price on December 31, 2 Required: Calculate the following profitability ratios for 2024. (Use 365 days a year. Round your final answers to 1 decima Profitability Ratios 1. Gross profit ratio 2. Return on assets 3. Profit margin 4. Asset turnover 5. Return on equity 6. Price-earnings ratio 38.6% 42.3 % 14.4 % 2.9 times 53.2 % 17.1 1,095,000 (398,000) $3,034,000 1,095,000 (199,000) $2,948,000 $80,000 3,900 29,900 490,000
Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated Balance Sheet Assets Cash Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped) Total assets Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity Joel de Paris, Incorporated Income Statement $ 386,000 978,000 1,192,000 Total liabilities and stockholders' equity $ 2,556,000 Sales Operating expenses Net operating income. Interest and taxes: Interest expense Tax expense Net income Beginning Balance. $ 112,000 197,000 $ 130,000 346,000 563,000 871,000 400,000 246,000 $ 2,556,000 $ 3,860,000 3,242,400 617,600 309,000 $ 308,600 $ Ending Balance $ 139,000 477,000 486,000 848,000 431,000 253,000 2,634,000 $ 341,000 978,000 1,315,000 $ 2,634,000 The company paid dividends of $185,600 last year. The "Investment in Buisson, S.A.," on the balance sheet represents an investment in the stock of another company. The…
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Complete the following balance sheet based on the information provided ASSETS LIABILITIES & SHAREHOLDERS' EQUITY %$4 Question 2 Accounts payable Cash $63,000 Common stock Accounts receivable %$4 Retained earnings %24 Inventory %24 Plant and equipment, net $56,000 Total liabilities and s135,000 $135,000 Total assets shareholders' equity The values of selected ratios are as follows: Quick ratio 1.40 Average collection period Debt ratio 38 days 0.38 (Asset) Turnover ratio [Answer: Cash = 37,386, AR = 34,434, Inventory = 7,180, AP = 51,300, RE = 20,700] 2.45 %3D %3D %3D %3D
CYCLONE, INC. Statement of Stockholders' Equity Year ended Dec. 31, 2021 Common Stock Total Stockholders' Retained Earnings Equity Beginning balance Issuances of stock Add: Net income Less: Dividends 2$ 13,000 $ 6,000 $ 19,000 4,000 4,000 Ending balance 2$ 15,000 $ 7,000 $ 22,000