Red Road Company, a consulting company, reported total revenues of $100million, total expenses of $80 million, and net income of $20 million in themost recent year. If accounts receivable increased by $10 million, how muchcash did the company receive from customers?A. $90 million.B. $100 million.C. $110 million.

Cash received from customers is the amount of credit sales collected from customers during the…

Answered: Red Road Company, a consulting company,…

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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Bottling's December 31st balance sheet is given below: Cash 10 Accounts payable $ 15Accounts receivable 25 Notes payable 20 Inventory 40 Accrued wages and taxes 15 Net fixed assets 75 Long-term debt 30 Common equity 70 Total liabilities Total assets $150 and equity $150 Sales during the past year were $100, and they are expected to rise by 50 percent to $150 during next year. Also, during last year fixed assets were being utilized to only 85 percent of capacity (excess capacity). Assume that profit margin will remain constant at 5 percent and that the company will continue to pay out 60 percent of its earnings as dividends. To the nearest whole dollar, what amount of nonspontaneous, additional funds will be…
MTC company's sales was 1,830,000 with a net margin of 5%. Changes in the company's balance sheet accounts for the year appears below. Cash(13,000) Accounts receivable 16,000 Inventory 21,000 Prepaid expenses (8,000) Long term investments 30,000 Property, plant, and eauipment 60,000 Accumulated depreciation 36,000 Accounts payable (21,000) Acrued expenses 14,000 Income taxes payable 42,000 Bonds payable (50,000) Common stock 20,000 Retained earnings 65,000 The company did not dispose of any property, plant, and equipment, sell any long-term investment, issue any bonds payable, or repurchase any of its own common stock during the year. The company declared and paid a cash dividend. The beginning and ending cash balances were P20,000 and 7,000 respectively. Based on the above data: a) The company's cashflow from operating activities is..................... b) The company's cashflow from investing activities is........... c) The company's cashflow from financing activities…
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At last year’s end, total assets for Roberts Inc. were $1.2 million and accounts payable were $375,000. Sales, which last year were $2.5 million, are expected to increase by 25 percent this year. Total assets and accounts payable are proportional to sales, and that relationship will be maintained. Robert Inc. typically uses no current liabilities other than accounts payable. Common stock amounted to $425,000 last year, and retained earnings were $295,000. Roberts Inc. plans to sell new common stock in the amount of $75,000. The Firm’s profit margin on sales is 6 percent; and 60 percent of earnings will be retained. Set up Roberts Inc.’s last year balance sheet, to the extent possible, based on the information provided in this problem. Based on the balance sheet setup in Part a above, determine how much was Roberts Inc.’s long-term debt last year? Perform financial forecasting using percent of sales method (i.e., constant ratio method; do not use the AFN Equation) to determine how much…
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…
The following data relates to a bank, Tolland Union. The bank earned $3.530B of in interest revenue and paid $2.471B in interest expense last year. During the year, write offs and reserves for bad loans was a charge of $75M. This was partially offset by fees and points earned from loans and loan origination, increasing income of $24M. During that year, the bank generated net earnings of $860M. The bank has $24.9B of interest earning assets, AND total assets of $31.5B. The shareholders’ equity is $5.9B. What is the bank’s return on assets (ROA)?
The following cost data are available for Honesty Co. for its first month of operations: Job 201 Job 202 Job 203Direct materials 60,000 90,000 56,000Direct labor cost at 40 per hour 18,000 36,000 38,000Overhead is applied at the rate of 32 per direct labor hour. Job no. 201 and 202 were completed. Job no. 201 was sold, and job no. 203 remained incomplete at the end of the month. Honesty Co. incurred the following costs for the month: Direct material purchases, 300,000; Direct and indirect labor costs, 96,000; Factory overhead excluding indirect labor and indirect materials, 59,200; Indirect materials, 4,000.How much is the cost of goods manufactured for the month?
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Golden Cumulus Corp., a commodities trading company, reported interest expense of $19 million and taxes of $6 million. Interest payable increased by $3 million, and taxes payable decreased by $4 million over the period. How much cash did the company pay for interest and taxes? C . $16 million for interest and $10 million for taxes.
Question: During the year, the Senbet Discount Tire Company had gross sales of $1.08 million. The firm's cost of goods sold and selling expenses were $527,000 and $217,000, respectively. The firm also had notes payable of $820,000. These notes carried an interest rate of 5 percent. Depreciation was $132,000. The firm's tax rate was 40 percent. What was the firm's net income?

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