Income Statement (2016)Credit SalesCost of Goods Sold (800)Taxable IncomeTaxes (34%)Net IncomeBalance Sheet (2016)CashAccounts Receivable1,000160 Accounts Payable440 Short-Term Debt600 Long-Term Debt1.800 Common Stock300100800800Retained Eamings 1.0003.000InventoryFixed AssetsTotal3.000 TotalDividend (33.33%)Retained EarningsMain assumplionsSales 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 independentof sales.Each current asset and accounts payable are fractions of sales in the balance sheet All otheritems 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 (commonstock).What is the new cash conversion cycle in year 2017? (Let 1 xr = 360 davs)1 months3 months5 months7 months

Income Statement (2016) Particulars Amount Credit Sales 1000 Cost of Goods Sold (800)…

Income Statement (2016) Credit Sales Cost of Goods Sold (800) Taxable Income Taxes (34%) Balance Sheet (2016) 1.000 Cash 160 Accounts Payable Accounts Receivable 440 Short-Term Debt 600 Long-Term Debt 1.800 Common Siock 100 800 Inventory Fixed Assets 800 Net Income Retained Eamings 1.000 Total 3.000 Total 3.000 Dividend (33.33%) Retained Eamings Main assumplions Sales are expected to increase by 25% in 2017. "Cost of goods sold is a fraction of sales in the income statement. All other tems 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) What is the new. casb. conversion cycle in year 2017? (Let 1 yr = 360 days)

Income Statement (2016) Credit Sales Cost of Goods Sold (800) Taxable Income Taxes (34%) Balance Sheet (2016) 1.000 Cash 160 Accounts Payable Accounts Receivable 440 Short-Term Debt 600 Long-Term Debt 1.800 Common Siock 100 800 Inventory Fixed Assets 800 Net Income Retained Eamings 1.000 Total 3.000 Total 3.000 Dividend (33.33%) Retained Eamings Main assumplions Sales are expected to increase by 25% in 2017. "Cost of goods sold is a fraction of sales in the income statement. All other tems 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) What is the new. casb. conversion cycle in year 2017? (Let 1 yr = 360 days)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: The following data are from Kellogg's 10-K report dated December 29, 2018 ($ millions). Revenue…

A: To calculate the required ratios, let's first define the terms:EBITA (Earnings Before Interest,…

Q: Calculate the following ratios: return on equity, return on assets (levered), return on sales…

A: Ratio analysis helps business to know the financial position of it using the interpretation of the…

Q: 31.) What 32.) What 33.) What 34.) What 35.) What 36.) What is Sebring’s After-Tax Operating Income…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Non-current liabilities: 10% loan notes Current liabilities: Bank overdraft Trade payables Taxation…

A: Ratio Analysis - The ratio is the technique used by the prospective investor or an individual or…

Q: Calculate the following ratios from the income statement and balance sheet all are required…

A: Equity Turnover: This metric measures how well a firm uses its shareholders' equity to create…

Q: Use the following information for Ingersoll, Inc., (assume the tax rate is 35 percent): 2015 2014…

A: Working Note#1:Computation of operating cash flow:Snapshot of cell reference:Snapshot of…

Q: The ratios for Coke and Dr. Pepper for 2012 are shown above. Which ratio shows COKE as NOT similar…

A: The debt-to-equity ratio serves as a crucial metric for evaluating a company's financial leverage,…

Q: Ratios For Amazon.com, Inc. (AMZN)…

A: Ratio analysis includes the computation of ratios using elements of financial statements by keeping…

Q: From the balance sheet prepare a proforma income statement where revenues can increase by 2% and the…

A: A projected income statement is a statement in which the future income statements are projected by…

Q: I cant seem to calculate debt to asset ratio

A: Debt to asset ratio is a part of ratio analysis, it is a leverage ratio that measures the portion of…

Q: The following condensed information is reported by World of Stamp Collectibles. Income Statement…

A: RATIO ANALYSISRatio analysis is the process of determining and interpreting numerical relationships…

Q: Cash Accounts receivable (net) Inventories Total current assets Noncurrent assets Current…

A: Financial Ratios: The relationship between two financial matters or items that reflect the solvency,…

Q: What is the average tax rate for 2018 please explain briefly. I prefer with an excel spreadsheet…

A: Companies, entities and individuals are required to pay taxes.For companies taxes are computed on…

Q: You have been presented with the following selected information from the financial statements of one…

A: Accounting ratios are financial ratios through which a company can analyze its performance in terms…

Q: What are the firm's current ratios for 2018 and 2019? Income Statements ($ in millions) Balance…

A: Current ratio provides information as to what is the percentage of current assets over current…

Q: INCOME STATEMENT 2020 revenues (all A/R) 1000 COGS 400 gross profit operating expenses 600 200 EBIT…

A: We will only answer the first three subparts for the remaining subparts kindly resubmit the question…

Q: Find debt-to-equity, times interest earned, and return on financial leverage for both companies for…

A: Ratio analysis helps in the analysis of the financial position of an entity. It is measure by using…

Q: Selected financial data (in thousands) of two competitors, NEW Ltd and OLD Ltd, for 2021 are…

A: Ratio analysis is considered as the key aspect to measure the performance of the company. It is the…

Q: Compute and Interpret Ratios Selected balance sheet and income statement information from Illinois…

A: a. Return on Net Operating Assets (RNOA) = Net operating profit after taxAverage net operating…

Question

Income Statement (2016)
Credit Sales
Cost of Goods Sold (800)
Taxable Income
Taxes (34%)
Net Income
Balance Sheet (2016)
Cash
Accounts Receivable
1,000
160 Accounts Payable
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
Total
3.000 Total
Dividend (33.33%)
Retained Earnings
Main assumplions
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).
What is the new cash conversion cycle in year 2017? (Let 1 xr = 360 davs)
1 months
3 months
5 months
7 months

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

1 Condensed financial statements for Games Galore are summarized below: 2 3 Balance Sheet 4 Cash 5 Accounts Receivable, Net 6 Inventory 7 Prepaid Insurance 8 Total Current Assets 9 Property and Equipment, Net 10 Total Assets 11 12 Current Liabilities 13 Long-term Liabilities 14 Total Liabilities 15 Contributed Capital 16 Retained Earnings 17 Total Stockholders' Equity 18 Total Liabilities and Stockholders' Equity 19 20 Income Statement 21 Net Sales (all on account) 22 Cost of Goods Sold 23 Gross Profit 24 Operating Expenses 25 Income from Operations 26 Interest Expense 27 Income before Income Tax Expense 28 Income Tax Expense 29 Net Income 30 READY Attempt(s) Sheet1 $ $ $ $ B $ 2016 185,000 $ 80,000 104,000 11,900 380,900 514,500 895,400 $ 85,300 284,000 369,300 299,000 227,100 526,100 895,400 $ $ 3,031,000 1,949,000 1,082,000 891,400 $ 190,600 14,500 176,100 47,000 129,100 4 C 2015 143,000 59,000 134,000 5,880 341,880 407,000 748,880 96,800 224,000 320,800 299,000 129,080 428,080…
Additional information: 2018 current ratio: 1.4:1 debt to total assets: 61.1% Question: find working capital for 2018 Additional information: 2017 current ratio 1.5:1 working capital: 214,500 Question find debt to total assets for 2017
Help calculating the following ratios: return on equity current ratio quick ratio debt-to-equity times interest earned
Suppose the 2022 financial statements of 3M Company report net sales of $23.1 billion. Accounts receivable (net) are $3.2 billion at the beginning of the year and $3.25 billion at the end of the year. Compute 3M’s accounts receivable turnover. - Accounts Recievable turnover ratio=? (times) Compute 3M’s average collection period for accounts receivable in days - Average collection period =? (days)
Q4. Comparative financial statement data of Field, Inc., follow: FIELD, INC. Comparative Income Statement Years Ended December 31, 2016 and 2015 VERTICAL HORIZONTAL Increase (Decrease) Amount Percent Net sales (all sales on credit) Cost of goods sold Gross profit Operating expenses Income from operations Interest expense Income before income tax Income tax expense Net income Current assets: Cash Current receivables Inventories Prepaid expenses Total current assets Property, plant, and equipment, net Total assets Total current liabilities Long-term liabilities Total liabilities Capital Total liabilities and equity 2016 $ 500,000 250,000 $ 250,000 140,000 $ 110,000 10,000 $ 100,000 30,000 $ 70,000 2015 $ 400,000 150,000 $ 250,000 100,000 $ 150,000 2016 20,000 $ 130,000 50,000 $ 80,000 FIELD, INC. Comparative Balance Sheet December 31, 2016 and 2015 HORIZONTAL VERTICAL 2015 2016 2015 Percent Percent $ 88,000 121,000 158,000 Increase (Decrease) 2016 2015 Amount Percent Percent Percent $…
Find the below: Cash ratio Inventory turnover EPS Total asset turnover Debt ratio Debt-to-equity ratio Times interest earned ROI Net profit margin ROE Market price/Book value P/E BALANCE SHEET ASSETS LIABILITIES & STOCKHOLDERS EQUITY Cash $ 1,500 Accounts payable $12,500 Marketable securities 2,500 Notes payable 12,500 Accounts receivable 15,000 Total current liabilities $25,000 Inventory 33,000 Long-term debt 22,000 Total current assets…
Some recent financial statements for Smolira Golf Corporation follow. Assets Current assets Cash Accounts receivable Inventory Total Fixed assets Net plant and equipment Total assets Sales Cost of goods sold Depreciation Taxable income Taxes (22%) Earnings before interest and taxes Interest paid Net income Dividends Retained earnings 2020 $35,585 $38,940 28,846 43,112 18,401 3,970 SMOLIRA GOLF CORPORATION 2021 Income Statement a. Price-earnings ratio b. Dividends per share c. Market-to-book ratio d. PEG ratio SMOLIRA GOLF CORPORATION 2020 and 2021 Balance Sheets 2021 Liabilities and Owners' Equity Current liabilities $57,956 $110,898 $ 465,585 $ 27,000 37,022 Accounts payable Notes payable Other $ 521,433 Total $ 523,541 $ 632,331 Total liabilities and owners' equity Long-term debt times Owners' equity Common stock and paid-in surplus Accumulated retained earnings times times Total $ 512,454 363,528 45,963 $102,963 20,883 $ 82,080 18,058 $ 64,022 Smolira Golf Corporation has 52,000…
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%) INCOME STATEMENTS 2014 2015 BALANCE SHEETS Assets Cash 2014 2015 Net sales $ 4,760 $ 5,000 S 60 50 COGS (excl. depr.) 3,560 3,800 ST Investments 40 . Depreciation 170 200 Accounts receivable 380 500 480 500 Inventories 820 1,000 Other operating expenses EBIT S 550 S 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 $ 3,000 $ 3,550 Taxes (40%) 180 152 NI before pref. div. $ 270 228 Preferred div. 8 8 S 190 $ 200 Net income $ 262 220 280 300 130 280 Other Data $ 600 S 780 Common dividends $48 $50 1,000 1,200 Addition to RE $214 $170 $ 1,600 $ 1,980 Tax rate 40% 40% 100 100 Shares of common stock 50 50 500 500 Earnings per share $5.24 $4.40 800 970 Dividends per share $0.96 $1.00 $ 1,300 S…
Compute the following ratios and measurement for 2020 a. cash flow from operations to current liabilities b. inventory turnover c. rate of gross profit on sales
Using the financial statements in the image, calculate the following ratios for both the FY 2017 and FY 2018: Current Ratio Quick Ratio Total Asset Turnover Average Collection Total Debt to Total Assets Times Interest Earned Net Profit Margin Return on Assets Return on Equity Modified Du Point Equation for FY 2018 PE Ratio Market to Book Ratio
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%)
The following data concern Tech Corporation for the 2022 financial year. Credit sales during the year $2 400 000 Accounts receivable 30 June 2022 410 000 Allowance for bad debts 30 June 2022 55 000 Bad debt expense for the year 70 000 What amount will Tech Corporation show on its year-end balance sheet for the net realisable value of its accounts receivable? a. 410 000 b. $285 000 c. $340 000 d. $ 355 000