If a company receives $12,600 from a stockholder, the effect on the accounting equation would be:Multiple ChoiceAssets decrease $12,600 and equity decreases $12,600.Assets increase $12,600 and liabilities decrease $12,60.Assets increase $12,600 and liabilities increase $12,600,Liabilities increase $12,600 and equity decreases $12,600.Assets increase $12,600 and equity increases $12,600.< Prev2 of 10Next >Type here to search

Cash received from stockholder =$12,600

Answered: If a company receives $12,600 from a…

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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Firm L had net assets at the end of the year of $415,000. The only items affecting stockholders' equity during the year were net income of $76,000 and dividends of $46,000. Required: Calculate Firm L's average stockholders' equity and return on equity (ROE). Choose Addend: Choose Numerator: + 1 Average Stockholders' Equity 1 Choose Addend: /Choose Denominator: Return on Equity 11 = Average Stockholders' Equity Average stockholders' Equity Return on Equity Return on Equity Check my work
A company has net income for the year of $20mm. It also pays $5mm in dividends and buys back $2mm of its stock. What changes on the balance sheet and by how much (how is it accounted for)?
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A company reports the following year-end data: Sales of $100,000; Earnings per share of $5; Market price per (common) share of $50; and Annual cash dividends per share of $2. Compute the (a) dividend yield and (b) price-earnings ratio. Complete this question by entering your answers in the tabs below. Price Earnings Ratio Compute the dividend yield. Dividend Yield Choose Numerator: Dividend Yield Price Earnings Ratio Dividend Yield Choose Denominator: A company reports the following year-end data: Sales of $100,000; Earnings per share of $5; Market price per (common) share of $50; and Annual cash dividends per share of $2. Compute the (a) dividend yield and (b) price-earnings ratio. Complete this question by entering your answers in the tabs below. Compute the price-earnings ratio. Choose Numerator: Price-Earnings Ratio / Choose Denominator: Dividend yield Price Earnings Ratio >
Calculate the Rate of Return on Assets (ROA) for 2011. Disaggregate ROA into the profit margin for ROA and total assets turnover components. Calculate the Rate of Return on Common Stockholders’ Equity (ROCE) for 2011. Disaggregate ROCE into the profit margin for ROCE, total assets turnover and capital structure leverage components.
6. From the following data, calculate (a) Gross profit ratio (b) Net profit ratio (c) Return on capital employed. Sales returns RO 300,000 RO 70,000 RO 40,000 RO 40,000 Reserve and Surplus RO 25,000 Sales Opening stock Direct expenses Net profit Closing stock Purchases Share Capital Long term Loans RO 10,000 RO 25,000 RO 140,000 RO 100,000 RO 50,000
ssume the following relationships for the Caulder Corp.: Sales/Total assets 1.2\times Return on assets (ROA ) 5.0% Return on equity (ROE) 15.0% Calculate Caulder's profit margin and debt-to-capital ratio assuming the firm uses only debt and common equity, so total assets equal total invested capital. Do not round intermediate calculations. Round your answers to two decimal places.
Neumann Company computed earnings per share as follows. Net incomeCommon shares outstanding at year-endNet incomeCommon shares outstanding at year-end Neumann has a simple capital structure. What possible errors might the company have made in the computation? Explain.
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Interpret the results: • Return on equity • Return on assets • Gross profit margin • Operating profit margin • Net profit margin
A) Dividend coverage = 1.22 b) Interest coverage = 7.75 C) P/E ratio = 1 D) gross profit margin = 92.25% E) return on assets = 16.9% f) Current ratio = 1.41 g) Quick ratio = 0.23 h) Earnings per share = 0.037 3. Analyzing and interpreting ratios 4. Based on your analysis and interpretation, prepare a detailed and effective report to management on the company's performance for 2022.
Compute the following profitability ratios of the company for the most recent two years, show all values in the computations: 1.Asset Turnover 2.Profit margin ratio(Net Income/Net Sales) 3.Return on total assets (Net Income/Average Total Assets) 4.Return on stockholders’ equity 5.Basic Earnings per share (EPS) Based on the results above, what conclusions can you make about the company’s overall profitability and efficient use of assets?

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