Here are the abbreviated financial statements for Planner's Peanuts: INCOME STATEMENT, 2019 $2,500 Sales 1,900 $ 600 Cost Net income BALANCE SHEET, YEAR-END 2019 2018 $ 853 Equity _ 1,647 2019 $1,000 2018 Assets $2,500 $3,600 Debt 2,600 Total $2,500 $3,600 Total $2,500 $3,600 a. If sales increase by 20% in 2020 and the company uses a strict percentage of sales planning model (meaning that all items on the income and balance sheet also increase by 20%), what must be the balancing item? b. What will be the value of this balancing item? Balancing item a. b. Value

Here are the abbreviated financial statements for Planner's Peanuts: INCOME STATEMENT, 2019 $2,500 Sales 1,900 $ 600 Cost Net income BALANCE SHEET, YEAR-END 2019 2018 $ 853 Equity _ 1,647 2019 $1,000 2018 Assets $2,500 $3,600 Debt 2,600 Total $2,500 $3,600 Total $2,500 $3,600 a. If sales increase by 20% in 2020 and the company uses a strict percentage of sales planning model (meaning that all items on the income and balance sheet also increase by 20%), what must be the balancing item? b. What will be the value of this balancing item? Balancing item a. b. Value

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Read the below information and answer the following questionsINFORMATIONExtract of the Statement of Comprehensive Income for the month ended 31 May 2022Sales 100 000Cost of sales 50 000Rent income 2 500Advertising 5 000Salaries and wages 15 000Rates and taxes 900Other operating expenses 20 000 Additional information1. Sales are expected to increase by 20% each month.2. Thirty percent (30%) of the sales is for cash and the balance is on credit. Collections from credit sales are asfollows:* 30% in the month of the sale, and these customers are entitled to a discount of 5%;* 65% in the month after the sale.The balance is usually written off as bad debts.3. Inventories are kept at a constant level. The business uses a fixed mark-up of 100% on cost. All purchases arefor cash.4. In terms of the lease agreement, the rental…
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Your company ended 2018 with cash of $8M. Cash increased year-end 2019 by 20%. Sales in 2019 were $30M. What is the Cash Turnover Ratio for 2019? 4.2 3.4 4.3 3.8 please explain your answer and give rught choices
Max Coco's December 31, 2020 financial information is presented below: ASSETS PHP LIABILITIES PHP Cash and cash equivalent Accounts Payable P 4,600,000 Accounts Receivable Loans Payable - due in 3 P4,000,000 2,000,000 Inventory months 300,000 700,000 Property Plant and Loans Payable - due in 13 1,000,000 8,000,000 Equipment months Max Coco sells its product at a 30% markup. In 2021, total sales amounted to P1,300,000. At the end of 2021, half of the beginning inventory and 4 of the inventory sold during the year remain unsold. What is the gross profit margin in 2021 if Max Coco's profit is P200,000? 15% 30% 16% 31%
Abbreviated financial statements for Archimedes Levers are shown in the table below. Assume sales and expenses increase by 13% in 2022 and all assets and liabilities increase correspondingly. Income Statement Sales Costs, including interest Net income $ 6,800 4,900 $ 1,900 2021 Balance Sheet, Year-End 2020 Net assets $ 5,916 $ 5,500 Total $ 5,916 $ 5,500 Debt Equity Total 2021 $ 2,516 3,400 $ 5,916 2020 $ 2,433 3,067 $ 5,500 a. If the payout ratio is set at 60% and no external debt or equity is to be issued, what is the maximum possible growth rate for Archimedes? b. If the payout ratio is set at 60% and the firm maintains a fixed debt ratio but issues no equity, what is the maximum possible growth rate for Archimedes? Note: For all requirements, do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. a. Maximum possible growth rate b. Maximum possible growth rate % %
Quick Ratio Calculate the quick ratio for Los Altos, Inc., for both years, using the financial statements displayed below. Round to nearest hundredth. 2020 2019 Quick Ratio Did the company’s ability to pay its current liabilities improve over the two years? yes or no? Los Altos, Inc. Income Statement For Years Ended December 31, 2020 and 2019 (in millions) 2020 2019 Net sales $13,000 $12,350 Cost of goods sold 6,600 6,240 Gross profit 6,400 6,110 Selling and administrative expenses 3,360 3,240 Income from operations 3,040 2,870 Interest expense 360 300 Income before income taxes 2,680 2,570 Income tax expense 504 480 Net income $2,176 $2,090 Los Altos, Inc. Balance Sheet December 31, 2020 and 2019 (in millions) 2020 2019 Assets Current assets Cash and cash equivalents $240 $480 Accounts receivable 1,080 960 Inventory 600 780 Other current assets 480 300 Total current assets 2,400…
Abbreviated financial statements for Archimedes Levers are shown in the table below. Assume sales and expenses increase by 14% in 2022 and all assets and liabilities increase correspondingly. Income Statement Sales Costs, including interest Net income Net assets Total $ 4,800 3,900 $ 900 Balance Sheet, Year-End 2021 2020 $ 3,936 $3,500 $ 3,936 $3,500 Debt Equity Total 2021 $ 1,536 2,400 $ 3,936 2020 $1,433 2,067 $3,500 a. If the payout ratio is set at 50% and no external debt or equity is to be issued, what is the maximum possible growth rate for Archimedes? b. If the payout ratio is set at 50% and the firm aintains a fixed debt ratio but issues no equity, what is the maximum possible growth rate for Archimedes? Note: For all requirements, do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.
Current Attempt in Progress Suppose McDonald's 2025 financial statements contain the following selected data (in millions). Current assets Total assets Current liabilities Total liabilities (a1) a. b. C. $3,330.0 Compute the following values. d. 30,230.0 3,000.0 15,719.6 Interest expense Income taxes Net income $480.0 1,938.0 4,542.0 Working capital. (Round to 1 decimal place in millions, e.g. 5,275.5.) Current ratio. (Round to 2 decimal places, e.g. 6.25:1.) Debt to assets ratio. (Round to O decimal places, e.g. 62%.) Times interest earned. (Round to 2 decimal places, e.g. 6.25.) $ millions :1 % times
Executive Summary of findings-assessment of which firm would be the better investment based on the above comparison. If answered within 45mins,it would be helpful!!!
The following data for the years ended December 31, 2019 and 2020 were presented to the management Zigzag Company: 2020 = Net sales: 1,363,000, Cost of Sales: 911,800, Gross Profit: 451,200; 2019 = Net Sales: 1,250,000, Cost of Sales: 776,000, Gross Profit: 474,000. The management requested you to determine the cause of the decline in gross profit on sales in spite of the favorable information given by the sales division that the quantity sold in 2020 was higher than in 2019 and that the production costs in 2020 were lower than that of 2019 by 6%. The increase (decrease) in net sales due to cost factor is A. (P135,800) B. 135,800 C. (P58,200) D. 58,200
Here are the abbreviated financial statements for Planner’s Peanuts: INCOME STATEMENT, 2022 Sales $ 5,000 Cost 3,900 Net income $ 1,100 BALANCE SHEET, YEAR-END 2021 2022 2021 2022 Assets $ 7,500 $ 12,100 Debt $ 833 $ 1,000 Equity 6,667 11,100 Total $ 7,500 $ 12,100 Total $ 7,500 $ 12,100 If sales increase by 10% in 2023 and the company uses a strict percentage of sales planning model (meaning that all items on the income and balance sheet also increase by 10%), what must be the balancing item? What will be the value of this balancing item?
Vijay

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