Jon Fulkerson, a credit analyst at the True Credit bank, has received a credit applicationfrom Seether, LLC, a private company. An abbreviated portion of the financial informationprovided by the company is shown below:Total assetsEBITNet working capitalBook value of equityAccumulated retainedearningsTotal liabilities$78,0009,4005,70033,00017,50072,000What is the Z-score for this company? (Do not round intermediate calculations andround your answer to 3 decimal places, e.g., 32.161.)Z-score

The measure of the risk of whether the company will become bankrupt or not can be found using the…

Answered: Jon Fulkerson, a credit analyst at the…

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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Karen’s Diner has provided the following financial information: cashand marketable securities = $250,000, accounts receivable =$1,350,000, inventory = $2,770,000, accrued wages and taxes=$455,000, accounts payable = $911,000, and notes payable =$550,000. Find the net working capital (Round to the nearest dollar amount)
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…
The following selected financial data is available for Sneasle Company: Cash $20,000 Accounts receivable 13,400 Equipment 10,650 Prepaid expenses 5,000 Accounts payable 12,300 Unearned revenue 7,500 Long-term notes payable 10,000 Common stock 18,000 Revenue 11,700 Sales tax payable 6,000 Interest expense 4,500 Depreciation expense 1,000 What is the amount of the company's current assets? Group of answer choices $33,400 $47,800 $49,050 $38,400
Below is a scrambled list of accounts of Jubli Berhad, a technology company (in RM mil). Construct the firm's income statement and balance sheet for year ended 31st December 2022. RM (in mil) Accounts payable Accounts receivable Accumulated depreciation Cash Cost of goods sold Common stock Depreciation expense Gross fixed assets income taxes Interest expense Long-term debt Marketable securities Prepaid expenses inventories Retained earnings Sales Selling, marketing & administrative expenses Short-term notes 4,400 2,500 4,200 3,300 17,000 13,800 1,500 24,500 15 1,000 10,000 12,400 3,200 1,500 8,000 30,000 10,000 7,000
MC.03.083.Algo Wu Systems has the following balance sheet. Assume that all current assets are used in operations. How much net operating working capital does the firm have? Cash Accounts receivable Inventory Current assets Net fixed assets Total assets O a. $400 b. $1,770 O c. $2,200 d. $470 e. $830 $ 70 Accounts payable 720 Accruals 510 $1,300 1,000 Notes payable Current liabilities Long-term debt Common equity Retained earnings $2,300 Total liab. & equity $ 250 220 430 Question 3 of 40 $ 900 640 260 500 $2,300
The accounts receivable of VERADIO COMPANY were stated at P1,467,000 in a balance sheet submitted to a banker for credit. Upon analysis, the asset was found to consist of the following items: Due from customers on open account P 1,125,000 Acknowledged claim for damages 22,500 Due from consignee at billed price – cost price being P22,500 30,000 Investment in and advances to affiliated company 150,000 Loans to officers and employees 13,500 Deposits with municipalities – bids for contracts 67,500 Unpaid capital stock subscriptions 60,000 Advances to creditors for merchandise purchased but not received 24,000 Cash advanced to salesmen for traveling expenses 4,500 Allowance for doubtful accounts ( 30,000) P1,467,000 The amount of P1,125,000 due from customers was the remaining balance after deducting accounts with credit balances of P6,000. During your examination, you noted that on December 31, the company assigned P300,000 of customers’ accounts to secure a 17%,…
[The following information applies to the questions displayed below.] On January 1, Year 1, the general ledger of a company includes the following account balances: Debit Credit Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts $ 25,600 47,200 $ 4,700 Inventory Land 20,500 51,000 17,500 Equipment Accumulated Depreciation Accounts Payable Notes Payable (6%, due April 1, Year 2) Common Stock 2,000 29,000 55,000 40,000 31,100 $161,800 Retained Earnings Totals $161,800 During January Year 1, the following transactions occur: 2 Sold gift cards totaling $9,000. The cards are redeemable for merchandise within one year of the purchase date. 6 Purchase additional inventory on account, $152,000. January January January 15 The comapany sales for the first half the onth total $140,000. All of these sales are on account. The cost of the units sold is $76,300. January 23 Receive $125,900 from customers on accounts receivable. January 25 Pay $95,000 to inventory suppliers on…
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…
Fill in the Balance Sheet. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Sales $6544 Total Assets Turnover Current Ratio Quick Ratio 0.36 Current Liabilities to Stockholders Equity Average Collection Period (Use End of Year 10 0.8 AR) Total Debt Ratio Cash Accounts Receivables Inventory Assets Total Current Asset Total Net Fixed Assets Total Assets 000 4.6 3.7 3 1422.61 Balance Sheet Liabilities & Equity Accounts Payable Total Current Liabilities Long-Term Debt Total Liabilities Total Shareholders Equity Total Liabilities and Equity 102.43 1035.66 1138.09 284.52
Your assistant has gone to lunch before completing his task, which was to calculate the P/E ratio for Bollymonster Toys Inc. All he has left you is the following financial information. What is Bollymonster's P/E? (Round to one decimal place.) Bollymonster Toys Inc.Selected Financial Information Debt $2000 Cash $200 #Shares Outstanding 200 Stock Price $13.00 EV-to-EBITDA 7 Depreciation Expense $70 Interest Expense $110 Income Taxes $100
Henry Josstick has just started his first accounting course and has prepared the following balance sheet and income statement for Omega Corp. 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 $ 39 Inventories $ 54 Less accumulated depreciation 124 Receivables 55 Total current assets Total current liabilities Long-term debt $ 370 Interest expense $ 29 Property, plant, and equipment 540 Total liabilities Net fixed assets Shareholders’ equity $ 106 Total assets Total liabilities and shareholders’ equity INCOME STATEMENT Net sales $ 740 Cost of goods sold 600 Selling, general, and administrative expenses 42 EBIT Debt due for repayment $ 29 Cash 19 Taxable income Taxes $ 19…

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