Jill's Wigs Inc. had the following balance sheet last year: Cash Accounts receivable Inventory Net fixed assets Total assets O No; zero O Yes; $7,700 O Yes; $1,700 Yes; $700 800Accounts payable 450Accrued wages 950Notes payable 34,000Mortgage Common stock Retained earnings $36,200 Total liabilities & equity Jill has just invented a non-slip wig for men which she expects will cause sales to double from $10,000 to $20,000, increasing net income to $1,000. She feels that she can handle the increase without adding any fixed assets. (1) Will Jill need any outside capital if she pays no dividends? (2) If so, how much? No; there will be a $700 surplus. $ 350 150 2,000 26,500 3,200 4,000 $36,200

Jill's Wigs Inc. had the following balance sheet last year: Cash Accounts receivable Inventory Net fixed assets Total assets O No; zero O Yes; $7,700 O Yes; $1,700 Yes; $700 800Accounts payable 450Accrued wages 950Notes payable 34,000Mortgage Common stock Retained earnings $36,200 Total liabilities & equity Jill has just invented a non-slip wig for men which she expects will cause sales to double from $10,000 to $20,000, increasing net income to $1,000. She feels that she can handle the increase without adding any fixed assets. (1) Will Jill need any outside capital if she pays no dividends? (2) If so, how much? No; there will be a $700 surplus. $ 350 150 2,000 26,500 3,200 4,000 $36,200

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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Conn Man’s Shops, a national clothing chain, had sales of $400 million last year. The business has a steady net profit margin of 9 percent and a dividend payout ratio of 25 percent. The balance sheet for the end of last year is shown. Balance SheetEnd of Year(in $ millions) Assets Liabilities and Stockholders' Equity Cash $ 30 Accounts payable $ 71 Accounts receivable 45 Accrued expenses 50 Inventory 87 Other payables 63 Plant and equipment 118 Common stock 60 Retained earnings 36 Total assets $ 280 Total liabilities and stockholders' equity $ 280 The firm's marketing staff has told the president that in the coming year there will be a large increase in the demand for overcoats and wool slacks. A sales increase of 20 percent is forecast for the company. All balance sheet items are expected to maintain the same percent-of-sales relationships as last year,* except for common stock and retained earnings. No change is scheduled in the number…
The following information has been extracted from the financial statements of Muggie Pty. Ltd., a mug wholesaler. Accounts 2021 in thousands Interest expense $5 COGS $322 Accounts Receivable $320 Inventory $330 Bank Loan (5 years) $580 Accounts Payable $230 Property, Plant and Equipment $1,300 Sales $692 Selling Expenses $21 Administrative Expenses $18 Tax Expense $80 Required: Calculate net profit margin for the year 2021. Leave two (2) decimal places.
Angel Valdez is an owner and manager of Angel V's Inc., which began operations a few years prior. On December 31, AV's shows the following selected accounts and amounts for the fiscal year ended December 31. Account Debit Credit Account Debit Credit Cash $ 25,394 Common stock $ 79,500 Accounts receivable 24,010 Paid-in capital in excess of par-C.S. 485,475 Allowance for doubtful accounts 807 Retained earnings 229,941 Interest receivable 100 Cash Dividends 10,004 Inventory 48,004 Sales 2,297,999 Supplies 10,410 Sales discounts 13,276 Prepaid insurance 3,272 Sales returns & allowances 62,900 Prepaid rent 5,398 Interest revenue 2,203 Notes receivable 39,004 Gain on sale of plant asset 4,226 Investment in stock 25,994 Cost of goods sold 1,266,441 Land 144,994 Depreciation expense 44,720 Buildings 1,394,986 Amortization expense 4,175 Equipment 215,400 Salaries expense 569,992…
Suppose a local company has the following balance sheet accounts:Accounts BalancesLand $ 9,000Equipment ?Salaries Payable 4,300Notes Payable ?Supplies 2,100Cash 7,200Stockholders’ Equity 13,500Accounts Payable 1,700Prepaid Rent 3,200Calculate the missing amounts assuming the business has total assets of $37,500.
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The following information pertains to Diane Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit. Use this information to answer the question that follow. Assets Cash and short-term investments $30,000 Accounts receivable (net) 20,000 Merchandise inventory 15,000 Property, plant, and equipment 185,000 Total assets $250,000 Liabilities and Stockholders' Equity Current liabilities $45,000 Long-term liabilities 70,000 Stockholders' equity—common 135,000 Total liabilities and stockholders' equity $250,000 Income Statement Sales $ 85,000 Cost of merchandise sold 45,000 Gross profit $ 40,000 Operating expenses (15,000) Interest expense (5,000) Net income $ 20,000 Number of shares of common stock outstanding 6,000 Market price per share of common stock $20 Total dividends paid $9,000 Net cash flows from operating activities $30,000…
Conn Man's Shops, a national clothing chain, had sales of $340 million last year. The business has a steady net profit margin of 8 percent and a dividend payout ratio of 35 percent. The balance sheet for the end of last year is shown. Cash Accounts receivable Inventory Plant and equipment Total assets Assets Balance Sheet End of Year (in $ millions) $ 24 39 81 $145 $289 Required new funds Liabilities and Stockholders' Equity Accounts payable Accrued expenses Other payables Common stock Retained earnings Total liabilities and stockholders' equity $ 63 20 36 48 122 $289 The firm's marketing staff has told the president that in the coming year there will be a large increase in the demand for overcoats and wool slacks. A sales increase of 10 percent is forecast for the company. All balance sheet items are expected to maintain the same percent-of-sales relationships as last year,* except for common stock and retained earnings. No change is scheduled in the number of common stock shares…
During the current fiscal year, the L Corp. has added $6,000 to inventories. The net income is $10,000, but the cash has only risen by $4,000. The CEO comes to to you in a rage and demands that you clarify how the firm might have generated $10,000 as there is only $4,000 in the bank.
Vala
A company's total sales in a year were $2,710,000. The cost price of goods sold was $2,040,000. Given below are the overheads paid during the year. Item Wages Amount $198,500 Electricity and gas 15,300 Telephone 1,790 Rent of premises 41,090 Office expenses 17,030 At the end of the year, the company expanded by issuing new shares in the business. It planned to raise $2,450,000 through the issue of 70,00 shares. Calculate the price per share.
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Henry Josstick has just started his first accounting course and has prepared the following balance sheet and income statement for Omega Corporation. Unfortunately, although the data for the individual items are correct, he is very confused as to whether an item should go in the balance sheet or income statement and whether it is an asset or liability. BALANCE SHEET Payables $ 35 Inventories $ 50 Less accumulated depreciation 120 Receivables 35 Total current assets Total current liabilities Long-term debt $ 350 Interest expense $25 Property, plant, and equipment 520 Total liabilities Net fixed assets Shareholders' equity $90 Total assets Total liabilities and shareholders' equity INCOME STATEMENT Net sales $700 Cost of goods sold 580 Selling, general, and administrative expenses 38 EBIT Debt due for repayment $ 25 Cash 15 Taxable income Federal plus other taxes $ 15 Depreciation 12 Net income Prepare the balance sheet and income statement by rearranging the above items. Note: Be sure to…

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