Problem 4-15Lloyd Inc. has sales of $200,000, a net income of $15,000, and the following balance sheet:ASSETSCashReceivablesInventoriesTotal Current assetsNet fixed assetsTotal assetsAMOUNT LIABILITIES & EQUITY$10,000 Accounts Payables50,000 Notes Payable to bank150,000 Total current liabilities$210,000 Long-term debt90,000 Common Equity$300,000 Total Liabilities and EquityAMOUNT$30,00020,000$50,00050,000200,000$300,000The new owner thinks that inventories are excessive and can be lowered to the point where the current ratio is equal to the industry average, 2.53, without affecting sales or net income. Ifinventories are sold and not replaced (thus reducing the current ratio to 2.53), if the funds generated are used to reduce common equity (stock can be repurchased at book value), and if noother changes occur, by how much will the ROE change? What will be the firm's new quick ratio?Problem 4-1Baxley Brothers has a DSO of 23 days, and its annual sales are $3,650,000. What is its accounts receivable balance? Assume that it uses a 365-day year.Upload this assignment in a *.pdf format

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Problem 4-1 Baxley Brothers has a DSO of 23 days, and its annual sales are $3,650,000. What is its accounts receivable balance? Assume that uses a 365-day year. Upload this assignment in a ".pdf format

Problem 4-1 Baxley Brothers has a DSO of 23 days, and its annual sales are $3,650,000. What is its accounts receivable balance? Assume that uses a 365-day year. Upload this assignment in a ".pdf format

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question 4: Belmont Industries Balance Sheet, As at 31-Dec-01 Assets Liabilities & Equity Cash $ 100,000 Current Liabilities Receivables Long Term Debt Inventory Total Debt Plant Common Equity $ 600,000 Total Assets Total Claims Current Ratio 2.5 Average Collection Period 54 days Total Debt to Total Assets 40% Total Asset Turnover 2 Inventory Turnover 5
Question 24 Muscarella Inc. has the following balance sheet and income statement data: Cash $ 14,000 Accounts payable $ 42,000 Receivables 70,000 Other current liabilities 28,000 Inventories 210,000 Total CL $ 70,000 Total CA $294,000 Long-term debt 70,000 Net fixed assets 126,000 Common equity 280,000 Total assets $420,000 Total liab. and equity $420,000 Sales $280,000 Net income $ 21,000 The new CFO thinks that inventories are excessive and could be lowered sufficiently to cause the current ratio to equal the industry average, 2.70, without affecting either sales or net income. Assuming that inventories are sold off and not replaced to get the current ratio to the target level, and that the funds generated are used to buy back common stock at book value, by how much would the ROE change? a. 4.28% b. 5.21% c. 4.73% d. 4.50% e. 4.96%
The most recent financial statements for Crosby, Incorporated, appear below. Sales for 2022 are projected to grow by 20 percent. Interest expense will remain constant, the tax rate and the dividend payout rate also will remain constant. Costs, other expenses, current assets, fixed assets, and accounts payable increase spontaneously with sales. Sales Costs Other expenses Earnings before interest and taxes Interest expense Taxable income Taxes (24%) CROSBY, INCORPORATED 2021 Income Statement Net income Dividends Addition to retained earnings Current assets Cash Accounts receivable Inventory $31,335 69,745 $ 20,640 43,580 91,960 $747,000 582,000 18,000 FA $147,000 14,000 $ 133,000 31,920 $ 101,080 CROSBY, INCORPORATED Balance Sheet as of December 31, 2021 Assets Seved Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Total $ 54,800 14,000 $ 68,800 MA000
Problem 4 (Total current assets) Pildesure Company reported the following current assets at year-end: Cash P 5,000,000 Accounts receivable 2,000,000 Inventory, including goods received on consignment P200,000 800,000 Bond investment at fair value through other comprehensive income 1,000,000 Prepaid expenses, including a deposit of P50,000 on inventory to be delivered, in 18 months 150,000 Total current assets P 8,950,000 Cash in general checking account P 3,500,000 Cash…
K. Jackson Corporation Assets Cash Accounts receivable Inventory Net fixed assets Total assets Liabilities and owners' equity. Accounts payable ST Notes payable Long-term debt Owners' Equity Total liabilities and owner's equity Balance Sheet $250,000 450.000 500,000 2.100,000 $3,300.000 $100.000 450.000 1,050,000 1,700.000 $3,300,000 Income Statement Sales (all credit) Cost of goods sold Operating expense Interest expense Income taxes Net income $8,000,000 (4.000.000) (2,900,000) (150,000) (380,000) $570,000 Based on the information for K. Jackson Corporation, the current and acid-test ratios are, respectively. OA2.37 and 1.39. OB2 37 and 1.27 OC2 18 and 1.39 OD.2 18 and 1.27 OE None of the above.
Blue Water Prime Fish Balance sheet: $ 41,200 $ 20,800 Cash Accounts receivable (net) Inventory Property & equipment (net) 39,000 31,600 98,eee 143,000 41,200 403,400 84, 200 $ 405,400 $ 98,eee 66,400 Other assets 307,000 $ 804,000 $ 52,000 60,400 Total assets Current liabilities Long-term debt (interest rate: 10%) Capital stock ($10 par value) Additional paid-in capital Retained carnings 149,400 29, 200 62,400 $ 405,400 514,000 106, 200 71,400 $ 804,000 Total liabilities and stockholders' equity Income statement: Sales revenue (1/3 on credit) Cost of goods sold Оperating exхрenses Net income $ 444,eee (240,000) (161,400) $ 42,600 $ B00, 000 (400, 200) (311,200) $ 88,600 Other data: Per share stock price at end of current year Average income tax rate Dividends declered and paid in current year 22.2 17 30% $ 33,200 $ 149,000 Both companies are in the fish catching and manufacturing business. Both have been in business approximately 10 years, and each has had steady growth. The…
еBook Problem Walk-Through Lloyd Inc. has sales of $700,000, a net income of $70,000, and the following balance sheet: Cash $147,630 Accounts payable $118,370 Receivables 231,420 Notes payable to bank 95,760 Inventories 678,300 Total current liabilities $214,130 Total current assets $1,057,350 Long-term debt 232,750 Net fixed assets 272,650 Common equity 883,120 Total assets $1,330,000 Total liabilities and equity $1,330,000 The new owner thinks that inventories are excessive and can be lowered to the point where the current ratio is equal to the industry average, 2x, without affecting sales or net income. If inventories are sold and not replaced (thus reducing the current ratio to 2x); if the funds generated are used to reduce common equity (stock can be repurchased at book value); and if no other changes occur, by how much will the ROE change? Do not round intermediate calculations. Round your answer to two decimal places. % What will be the firm's new quick ratio? Do not round…
CABOT CORPORATIONBalance SheetDecember 31 Assets Liabilities and Equity Cash $ 10,000 Accounts payable $ 19,500 Short-term investments 8,000 Accrued wages payable 3,400 Accounts receivable, net 33,600 Income taxes payable 2,900 Merchandise inventory 42,150 Long-term note payable, secured by mortgage on plant assets 66,400 Prepaid expenses 2,800 Common stock 83,000 Plant assets, net 147,300 Retained earnings 68,650 Total assets $ 243,850 Total liabilities and equity $ 243,850 Required:Compute the following: (1) current ratio, (2) acid-test ratio, (3) days' sales uncollected, (4) inventory turnover, (5) days' sales in inventory, (6) debt-to-equity ratio, (7) times interest earned, (8) profit margin ratio, (9) total asset turnover, (10) return on total assets, and (11) return on common stockholders' equity. (Do not round intermediate calculations.)
Accounts payable $466,000Notes payable $250,000Current liabilities $716,000Long-term debt $1,166,000Common equity $4,883,000Total liabilities and equity $6,765,000 a. What percentage of the firm's assets does the firm finance using debt (liabilities)? b. If Campbell were to purchase a new warehouse for $1.1 million and finance it entirely with long-term debt, what would be the firm's new debt ratio? Question content area bottom Part 1 a. What percentage of the firm's assets does the firm finance using debt (liabilities)? The fraction of the firm's assets that the firm finances using debt is 27.827.8%. (Round to one decimal place.) Part 2 b. If Campbell were to purchase a new warehouse for $1.1 million and finance it entirely with long-term debt, what would be the firm's new debt ratio? The new debt ratio will be enter your response here%. (Round to one decimal place.)
Using the following balance sheet, calculate net working capital: Cash Marketable Securities Accounts receivable Inventory Current assets Net fixed assets Total assets Select one: O A. $60.00 O B. $40.00 O C. $10.00 O D. $90.00 $10 Accounts payable 30 Accruals 50 Notes payable 40 Current liabilities $130 Long-term debt 100 Common equity Retained earnings $230 Total liab. & equity $20 20 50 $90 0 30 50 $230
Problem #1 The following balance sheet and income statement data is given: 31-Dec Yr 2021 Yr 2020 Cash $4,300 $3,700 Accounts receivable (net) 22,000 23,400 Inventories 10,000 7,000 Plant assets (net) 75,000 86,000 Total assets 111,300 120,100 Accounts payable 12,370 11,100 Bonds payable 70,000 70,000 Total liabilities 82,370 81,100 Common stock, $10 par 65,000 59,000 Paid-in capital 10,000 10,000 Retained earnings 24,300 20,600 Total stockholders’ equity 99,300 89,600 Net credit sales 100,000 Cost of goods sold 60,350 Gross profit 39,650 Net income 14,000 REQUIRED: Compute the following ratios for 2021. NOTE: Copy and paste the information below into the answer box first and then show your calculation steps for this problem to receive credits. (1) Accounts receivable turnover=____________________ (2) Inventory turnover=__________________ (3) Accounts payable…
Question 1 The following information represent Mooncake Corporation Details Sales Cash Inventory Current liabilities Asset turnover Current ratio Debt to asset ratio Receivables turnover Calculate the following items: a. Accounts receivables b. Fixed asset c. Long Term Debt d. Debt to Asset Ratio RM 3,549,000 179,000 911,000 788,000 1.40 2.95 times 40% 7 times