**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 ### Marni Company Income Statement#### For the Year Ended December 31| Account | 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** |### AnalysisThe income statement above presents an overview of Marni Company's financial performance for the year ended December 31. 1. **Sales**: The company had total annual sales amounting to $2,000,000, all of which were on credit.2. **Cost of Goods Sold (COGS)**: The cost to produce these goods was $1,750,000, resulting in a gross profit of $250,000.3. **Expenses**: - **Sales and Administrative Expenses**: $30,000 - **Fixed Lease Expenses**: $10,000 - **Depreciation**: $60,0004. **Operating Profit**: This is calculated as gross profit minus the total of sales and administrative, fixed lease expenses, and depreciation. Therefore, the operating profit amounts to $150,000.5. **Interest Expense**: The company paid $25,000 in interest expenses.6. **Profit Before Taxes**: After deducting the interest expenses from the operating profit, the profit before taxes is $125,000.7. **Taxes**: With a tax rate of 40%, the taxes amount to $50,000.8. **Net Income**: After taxes, the net income for the year is $75,000.### Additional Analysis Question:**"What is Marni's total asset turnover?"**Total asset turnover is a financial ratio that measures the efficiency of a company's use of its assets to generate sales revenue. This ratio is calculated by dividing the net sales by

total asset turnover is the efficieny of the asset to generate revenue. formula: asset turnover =…

MARNI COMPANY Balance Sheet As of December 31 ASSETS 50,000 100,000 200,000 Cash Accounts receivable Inventory Net plant and equipment 650,000 $1,000,000 Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable Accrued expenses 100,000 90,000 250,000 100,000 50,000 410,000 Long-term debt 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) $2,000,000 Cost of goods sold Gross profit Sales and adminictrative 1,750,000 $250,000 evnen ces

MARNI COMPANY Balance Sheet As of December 31 ASSETS 50,000 100,000 200,000 Cash Accounts receivable Inventory Net plant and equipment 650,000 $1,000,000 Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable Accrued expenses 100,000 90,000 250,000 100,000 50,000 410,000 Long-term debt 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) $2,000,000 Cost of goods sold Gross profit Sales and adminictrative 1,750,000 $250,000 evnen ces

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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What is the total stockholders' equity based on the following account balances? Common Stock $375,000 Paid-In Capital in Excess of Par 90,000 Retained Eamings 190,000 15,000 Treasury Stock a. S655,000 b. 8640.000 C. S565 000 d. s670,000
An oil-drilling company must choose between two mutually exclusive extraction projects, and each requires an initial outlay at t = 0 of $12 million. Under Plan A, all the oil would be extracted in 1 year, producing a cash flow at t 1 of $14.4 million. Under Plan B, cash flows would be $2.1323 million per year for 20 years. The firm's WACC is 12.8%. a. Construct NPV profiles for Plans A and B. Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10.55. If an amount is zero, enter "0". Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to two decimal places. Discount Rate NPV Plan A NPV Plan B 0% $ million $ million 5 million million 10 million million 12 million I million 15 million 17 20 million million million million million Identify each project's IRR. Do not round intermediate calculations. Round your answers to two decimal places. Project A: % Project B: % Find the crossover…
Current assets $745,000 $820,000 Property, plant, and equipment 1,510,000 1,400,000 Current liabilities (non-interest-bearing) 160,000 140,000 Long-term liabilities, 12% 400,000 400,000 Preferred 10% stock 250,000 250,000 Common stock, $25 par 1,200,000 1,200,000 Retained earnings, beginning of year 230,000 160,000 Net income for year 110,000 155,000 Preferred dividends declared (25,000) (25,000) Common dividends declared (70,000) (60,000) Determine for the current year the (a) return on total assets, (b) return on stockholders' equity, (c) return on common stockholders' equity, (d) earnings per share on common stock, (e) price-earnings ratio on common stock, and (f) dividend yield. The current market price per share of common stock is $25. Round dollar values to two decimal places and other final answers to one decimal place. a. Return on total assets 7.1 b. Return on stockholders' equity 6.5 X % Return on common stockholders' equity X % d. Earnings per share on common stock 1.77 e.…
QUESTION I Below are the balances available for Delima Berhad as at 31 December 2015: Statement of Financial Position of Delima Berhad as 31 December 2015 RM 170,000,000 115,000,000 150,000,000 435,000,000 Non-current assets Current assets (except cash at hank) Cash at bank Issued share capital 100,000,000 ordinary shares Retained profits Non-current liability 50,000,000 5% redeemable preference shares Current liabilities Additional information: On 1 January 2016, the directors decided on the following matters 100,000,000 3. To redeem 5% redeemable preference shares at a premium of 10% 240,000,000 55,000,000 20,000,000 435,000,000 1. To issue bonus shares of one (1) ordinary shares for every ten (10) shares held to the existing shareholders. 2. To repurchase 2,000,000 ordinary shares at RM1.50 each for cancellation. (u 4 To issue 30,000,000 ordinary shares at RMI. The application were paid and fully subscribed Required: a) Prepare journal entries to record above transactions b) Prepare…
CYCLONE, INC. Statement of Stockholders' Equity Year ended Dec. 31, 2021 Common Stock Total Stockholders' Retained Earnings Equity Beginning balance Issuances of stock Add: Net income Less: Dividends 2$ 13,000 $ 6,000 $ 19,000 4,000 4,000 Ending balance 2$ 15,000 $ 7,000 $ 22,000
Kellman Company Year 2 Year 1 Total current assets $600,000 $560,000 Total investments 60,000 40,000 Total property, plant, and equipment 900,000 700,000 Total current liabilities 125,000 65,000 Total long-term liabilities 350,000 250,000 Preferred 9% stock, $100 par 100,000 100,000 Common stock, $10 par 600,000 600,000 Paid-in capital in excess of par-Common stock 75,000 75,000 Retained earnings 310,000 210,000 Using the balance sheets for Kellman Company, if net income is $150,000 and interest expense is $20,000 for Year 2, what is the return on total assets for the year? 8.4% 10.4% O 11.9% 10.5%
Pagle Corporation holds 80 percent of Standard Company's common shares. The companies report the following balance sheet data for December 31, 20X1: Assets Cash Accounts Receivable Inventory Buildings and Equipment Less: Accumulated Depreciation Investment in Standard Company Stock Total Assets Liabilities and Owners' Equity Accounts Payable Taxes Payable Preferred Stock ($10 par value) Common Stock: $10 par value $5 par value Retained Earnings Total Liabilities and Owners' Equity Pagle Corporation $ 53,000 85,000 126,000 700,000 (295,000) 160,000 $ 829,000 Basic earnings per share Diluted earnings per share $ 120,000 79,000 200,000 100,000 330,000 $ 829,000 Required: Compute basic and diluted EPS for the consolidated entity for 20X1. Note: Round your answers to 2 decimal places. Standard Company $ 43,000 65,000 76,000 330,000 (130,000) $ 384,000 $ 84,000 100,000 An 8 percent annual dividend is paid on the Pagle preferred stock and a 12 percent dividend is paid on the Standard…
Exercise 15-20 Presented below is information from the annual report of Emporia Plastics, Inc. Operating income $532,150 Bond interest expense 135,000 397,150 Income taxes 183,432 Net income $213,718 Bonds payable $1,000,000 Common stock 875,000 Retained earnings 375,000 (a) Compute the return on common stockholders’ equity and the rate of interest paid on bonds. (Assume balances for debt and equity accounts approximate averages for the year.) (Round answers to 1 decimal place, e.g. 16.8%.) Rate of return on common stock equity % Rate of interest paid on bonds payable % (b) Is Emporia Plastics, Inc. trading on the equity successfully? Yes or No
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 % % %
Godo
ine following intormation pertains tO Alpha Computing at the ena of 2021: Assets $957,500 $452,500 $270,000 $330,000 Liabilities Net Income Common Stock Alpha Computing's Retained Earnings account had a zero balance at the beginning of 2021. What amount of dividends did the company declare 2021? Multiple Choice $96,000 $97,000 $98,000 $95.000

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