### Marni Company Financial Statements#### Balance Sheet**As of December 31****Assets**- Cash: $50,000- Accounts Receivable: $100,000- Inventory: $200,000- Net Plant and Equipment: $650,000**Total Assets**: $1,000,000**Liabilities and Stockholders' Equity**- Accounts Payable: $100,000- Accrued Expenses: $90,000- Long-term Debt: $250,000- Common Stock: $100,000- Paid-in Capital: $50,000- Retained Earnings: $410,000**Total Liabilities and Stockholders' Equity**: $1,000,000#### Income Statement**For the Year Ended December 31**- **Sales (all on credit)**: $2,000,000- **Cost of Goods Sold**: $1,750,000**Gross Profit**: $250,000- **Sales and Administrative Expenses**: $30,000- **Fixed Lease Expense**: $10,000 ### Marni Company Income Statement**For the Year Ended December 31**This income statement provides a summarized account of Marni Company's financial performance for the year ending on December 31.| **Item** | **Amount** ||----------|------------|| **Sales (all on credit)** | $2,000,000 || **Cost of goods sold** | 1,750,000 || **Gross profit** | $250,000 || **Sales and administrative expenses** | 30,000 || **Fixed lease expenses** | 10,000 || **Depreciation** | 60,000 || **Operating profit** | $150,000 || **Interest expense** | 25,000 || **Profit before taxes** | $125,000 || **Taxes (40%)** | 50,000 || **Net income** | $75,000 |### Explanation:- **Sales (all on credit):** The total revenue generated from sales made on credit, which amounts to $2,000,000.- **Cost of Goods Sold (COGS):** The direct costs incurred in producing the goods sold by the company, amounting to $1,750,000.- **Gross Profit:** Sales minus the cost of goods sold, equating to $250,000.- **Sales and Administrative Expenses:** Expenses related to the selling of products and the administration of the company, which total $30,000.- **Fixed Lease Expenses:** The cost of leasing fixed assets, such as buildings or machinery, totaling $10,000.- **Depreciation:** The reduction in value of the company's assets over time, amounting to $60,000.- **Operating Profit:** This is calculated by subtracting the sales and administrative expenses, fixed lease expenses, and depreciation from the gross profit, resulting in $150,000.- **Interest Expense:** The cost incurred from borrowing or debt, which amounts to $25,000.- **Profit Before Taxes:** The profit available before the deduction of taxes, calculated as $125,000.- **Taxes (40%):** The amount of tax charged at a 40% rate, which totals $50,000.- **Net Income:** The final profit after all expenses, including taxes, have been deducted, amounting to $75,000.### Additional Information:**Total Liabilities and Stockholders' Equity

average collection period formula: average collection period = ( 360 x account receivables) / net…

MARNI COMPANY Balance Sheet As of December 31 ASSETS 2$ 100,000 200,000 650,000 $1,000,000 50,000 Cash Accounts receivable Inventory Net plant and equipment Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable Accrued expenses Long-term debt $ 100,000 90,000 250,000 100,000 50,000 410,000 Common stock Paid-in capital Retained earnings Total liabilities and stockholders' equity $1,000,000 MARNI COMPANY Income Statement For the year ended December 31 Sales (all on credit) Cost of goods sold Gross profit Sales and administrative expenses $2,000,000 1,750,000 $250,000 30,000 r:... 1.

MARNI COMPANY Balance Sheet As of December 31 ASSETS 2$ 100,000 200,000 650,000 $1,000,000 50,000 Cash Accounts receivable Inventory Net plant and equipment Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable Accrued expenses Long-term debt $ 100,000 90,000 250,000 100,000 50,000 410,000 Common stock Paid-in capital Retained earnings Total liabilities and stockholders' equity $1,000,000 MARNI COMPANY Income Statement For the year ended December 31 Sales (all on credit) Cost of goods sold Gross profit Sales and administrative expenses $2,000,000 1,750,000 $250,000 30,000 r:... 1.

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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Projected Spontaneous Liabilities Smiley Corporation's current sales and partial balance sheet are shown below. This year Sales $ 10,000 Balance Sheet: Liabilities Accounts payable $ 1,500 Notes payable $ 3,000 Accruals $ 1,600 Total current liabilities $ 6,100 Long-term bonds $ 2,000 Total liabilities $ 8,100 Common stock $ 2,000 Retained earnings $ 3,000 Total common equity $ 5,000 Total liabilities & equity $ 13,100 Sales are expected to grow by 12% next year. Assuming no change in operations from this year to next year, what are the projected spontaneous liabilities? Do not round intermediate calculations. Round your answer to the nearest dollar. Answer is not 6832.
Projected Spontaneous Liabilities Smiley Corporation's current sales and partial balance sheet are shown below. This year Sales $ 10,000 Balance Sheet: Liabilities Accounts payable $ 1,000 Notes payable $ 2,500 Accruals $ 1,600 Total current liabilities $ 5,100 Long-term bonds $ 2,000 Total liabilities $ 7,100 Common stock $ 1,000 Retained earnings $ 2,000 Total common equity $ 3,000 Total liabilities & equity $ 10,100 Sales are expected to grow by 10% next year. Assuming no change in operations from this year to next year, what are the projected spontaneous liabilities? Do not round intermediate calculations. Round your answer to the nearest dollar. $
Accounts Payable Notes Payable Long Term Debt Common Stock Retained Earnings Total Liabilities & Equity $ 275,000 $ 315,000 $ 495,000 $ 925,000 $2,450,000 $4,460,000 Pre-Tax Cost of Debt: Intermediate Debt: 4.5% Long Term Debt: 6.5% Tax Rate: 21% Return on Equity: 11% Dividends per share: $0.20 Earnings per share: $0.90 C/S market price: $55 C/S outstanding: 80000 shares This company uses intermediate debt, long-term debt and common equity to finance its operations. With the information presented above: a. Calculate the firm's debt ratio (book value and market value based) b. Calculate the firm's WACC c. Calculate the new firm's WACC if the firm issued 150,000 new common stock at a flotation cost of $1.20 per share. The new issuance generates $4.5 million.
Tom Hanks Company had the following account activity Increase in income taxes payable $100,000 Increase in bonds payable 240,000 Sale of investments 130,000 Issuance of common stock 120,000 Payment of cash dividends 70,000 Purchased treasury stock 25,000 Net cash provided by financing activities is:
The McLaughlin Corporation declared a 6 percent stock dividend. Construct a pro forma balance sheet showing the effect of this action. The stock was selling for $37.50 per share, and a condensed version of McLaughlin's balance sheet as of December 31, 2008, before the dividend, follows ($ millions):
Knowledge Check 01 Total Assets for a company are $700,000: Accounts Payable is $75,000, Bonds Payable is $225,000; Common Stock is $300,000 and Retained Earnings is $100,000. The common-size percent for Accounts Payable is 0933% 0933.3% - 10.7% - 100.7%
Denna Company's working capital accounts at the beginning of the year follow: Cash $ 50,000 Marketable securities $ 30,000 Accounts receivable, net Inventory Prepaid expenses Accounts payable $ 10,000 $ 150,000 $ 30,000 $ 20,000 During the year, Denna Company completed the following transactions: Notes due within one year Accrued liabilities x. Paid a cash dividend previously declared, $12,000. a. Issued additional shares of common stock for cash, $100,000. b. Sold inventory costing $50,000 for $80,000, on account. c. Wrote off uncollectible accounts in the amount of $10,000, reducing the accounts receivable balance accordingly. d. Declared a cash dividend, $15,000. e. Paid accounts payable, $50,000. f. Borrowed cash on a short-term note with the bank, $35,000. g. Sold inventory costing $15,000 for $10,000 cash. h. Purchased inventory on account, $60,000. i. Paid off all short-term notes due, $30,000. j. Purchased equipment for cash, $15,000. k. Sold marketable securities costing…
Brock Company's financial information is listed below. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit. Assets Cash and short-term investments $35,766 Accounts receivable (net) 32,541 Inventory 34,460 Property, plant, and equipment 215,693 Total assets $318,460 Liabilities and Stockholders' Equity Current liabilities $67,513 Long-term liabilities 90,221 Common stock, $10 par 61,070 Retained earnings 96,656 Total liabilities and stockholders' equity $318,460 Income Statement Sales $99,202 Cost of goods sold 44,641 Gross margin $54,561 Operating expenses 28,479 $26,082 Net income
Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated Balance Sheet Assets Cash Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped) Total assets Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity Joel de Paris, Incorporated Income Statement $ 386,000 978,000 1,192,000 Total liabilities and stockholders' equity $ 2,556,000 Sales Operating expenses Net operating income. Interest and taxes: Interest expense Tax expense Net income Beginning Balance. $ 112,000 197,000 $ 130,000 346,000 563,000 871,000 400,000 246,000 $ 2,556,000 $ 3,860,000 3,242,400 617,600 309,000 $ 308,600 $ Ending Balance $ 139,000 477,000 486,000 848,000 431,000 253,000 2,634,000 $ 341,000 978,000 1,315,000 $ 2,634,000 The company paid dividends of $185,600 last year. The "Investment in Buisson, S.A.," on the balance sheet represents an investment in the stock of another company. The…
MEGAFRAME COMPUTER COMPANY Balance Sheet As of December 31 ASSETS Cash $ 50,000 Accounts receivable 70,000 Inventory 110,000 Net plant and equipment 220,000 Total assets $ 450,000 LIABILITIES AND STOCKHOLDERS’ EQUITY Accounts payable $ 70,000 Accrued expenses 50,000 Long-term debt 130,000 Common stock 70,000 Paid-in capital 40,000 Retained earnings 90,000 Total liabilities and stockholders’ equity $ 450,000 MEGAFRAME COMPUTER COMPANY Income Statement For the year ended December 31 Sales (all on credit) $ 875,000 Cost of goods sold 600,000 Gross profit $ 275,000 Sales and administrative expenses 30,000 Depreciation 55,000 Operating profit $ 190,000 Interest expense 25,000 Profit before taxes $ 165,000 Taxes (30%) 49,500 Net income $ 115,500 Refer to the tables above. What is Megaframe Computer's total asset turnover?
Vertical Analysis of Balance Sheet Balance sheet data for Kwan Company on December 31, the end of two recent fiscal years, follow: Current Year Previous Year Current assets $355,300 $211,680 Property, plant, and equipment 543,400 509,600 Intangible assets 146,300 62,720 Current liabilities 188,100 94,080 Long-term liabilities 428,450 321,440 Common stock 104,500 109,760 Retained earnings 323,950 258,720 Prepare a comparative balance sheet for both years, stating each asset as a percent of total assets and each liability and stockholders' equity item as a percent of the total liabilities and stockholders' equity. If required, round percentages to one decimal place. Kwan Company Comparative Balance Sheet For the Years Ended December 31 Current Current year year Amount Percent Previous Previous year year Amount Percent Current assets $355,300 $211,680 % Property, plant, and equipment 543,400 509,600 % Intangible assets % 146,300 62,720 % % %
Selected financial data for Wilmington Corporation is presented below. WILMINGTON CORPORATION Balance Sheet As of December 31 Year 7 Year 6 Current Assets Cash and cash equivalents $ 634,527 $ 335,597 Marketable securities 166,106 187,064 Accounts receivable (net) 284,226 318,010 Inventories 466,942 430,249 Prepaid expenses 60,906 28,060 Other current assets 83,053 85,029 Total Current Assets 1,695,760 1,384,009 Property, plant and equipment 1,384,217 625,421 Long-term investment 568,003 425,000 Total Assets $3,647,980 $2,434,430 Current Liabilities Short-term borrowings $ 306,376 $ 170,419 Current portion of long-term debt 155,000 168,000 Accounts payable 279,522 314,883 Accrued liabilities 301,024 183,681 Income taxes payable 107,509 196,802 Total Current Liabilities 1,149,431…

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