Get correct answer with accounting question Riverview Company's complete assets and liabilities are:Cash: $6,800 Inventory: $9,250 Equipment: $14,700 Building: $22,500Accounts Payable: $7,400 Notes Payable: $10,600 Mortgage Payable: $18,000Riverview's total equity is

Step 1: Definition of Total EquityTotal equity is the residual value of a company's assets after…

Answered: Riverview Company's complete assets and…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 11MCQ: Chasse Building Supply Inc. reported net cash provided by operating activities of $243,000, capital...

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ABC Company has the following financial data: Cash: $30,000Accounts Receivable: $50,000Inventory: $40,000Accounts Payable: $25,000Short-term Debt: $15,000Other Current Liabilities: $20,000Calculate the following: Current AssetsCurrent LiabilitiesCurrent Ratio
Lloyd Inc. has sales of $200,000, a net income of$15,000, and the following balance sheet: Cash $ 10,000 Accounts payable $ 30,000Receivables 50,000 Notes payable to bank 20,000Inventories 150,000 Total current liabilities $ 50,000Total current assets $ 210,000 Long-term debt 50,000Net fixed assets 90,000 Common equity 200,000Total assets $ 300,000 Total liabilities and equity $300,000The new owner thinks that inventories are excessive and can be lowered to the pointwhere the current ratio is equal to the industry average, 2.53, without affecting sales or netincome. If inventories are sold and not replaced (thus reducing the current ratio to 2.53), ifthe funds generated are used to reduce common equity (stock can be repurchased at bookvalue), and if no other changes occur,…
lloyd Inc. has sales of $450,000, a net income of $22, 500, and the following balance sheet: Cash $ 57, 510 Accounts payable $ 78,570 Receivables 128,790 Notes payable to bank 28, 350 Inventories 453,600 Total current liabilities $ 106,920 Total current assets $ 639,900 Long -term debt 134, 460 Net fixed assets 170, 100 Common equity 568, 620 Total assets $ 810,000 Total liabilities and equity $ 810, 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, 2.25\times, without affecting sales or net income. If inventories are sold and not replaced (thus reducing the current ratio to 2.25\times), 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. ROE will -Select - by percentage points. What will be the firm's…
loyd Inc. has sales of $650,000, a net income of $39,000, and the following balance sheet: Cash $ 119,600 Accounts payable $ 92,560 Receivables 132,080 Notes payable to bank 46,800 Inventories 436,800 Total current liabilities $ 139,360 Total current assets $ 688,480 Long-term debt 167,440 Net fixed assets 351,520 Common equity 733,200 Total assets $ 1,040,000 Total liabilities and equity $ 1,040,000 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, 2.25×, without affecting sales or net income. If inventories are sold and not replaced (thus reducing the current ratio to 2.25×), 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. ROE will by percentage points.…
XYZ Company had cash of $200,000, Accounts payable of $150,000, Plant & Equipment of $350,000, Inventory of $75,000 and other assets of $90,000. XYZ's liabilities consisted of long-term debt of $350,000, non-current portion of notes payable of $65,000, Accounts Payable of $ 135,000 and Accrued Expenses of $65,000. Calculate the working capital and the current ratio based upon this information.
Campbell Company has current assets of $10 million of which $3,000,000 are accounts receivable. Its current liabilities total $7 million of which $2,000,000 are accounts payable and $500,000 are wages payable. Campbell's net credit is: a. $2,500,000. O b. $1,000,000. Oc. $500,000. d. $3,000,000
Consider the following financial data for Terry Enterprises: Balance Sheet as of December 31, 2018 Cash $ 86,000 Accounts payable $ 15,500 Accts. receivable 91,500 Notes payable 93,500 Inventories 65,500 Accruals 19,500 Total current assets $ 243,000 Total current liabilities $ 128,500 Long-term debt 162,500 Net plant & equip. 419,500 Common equity 371,500 Total assets $ 662,500 Total liab. & equity $ 662,500 Statement of Earnings for 2018 Industry Average Ratios Net sales $ 642,500 Current ratio 2.2× Cost of goods sold 482,000 Quick ratio 1.7× Gross profit $ 160,500 Days sales outstanding 44 days Operating expenses 119,500 Inventory turnover 6.7× EBIT $ 41,000 Total asset turnover 0.6× Interest expense 14,500 Net profit margin 7.2% Pre-tax earnings $ 26,500…
Assume that the following balance sheets are stated at book value. Meat Company Current assets $ 21,600 Current liabilities $ 7,320 Net fixed assets 51,600 Long-term debt 16,420 Equity 49,460 Total $ 73,200 Total $ 73,200 Loaf, Incorporated Current assets $ 4,700 Current liabilities $ 1,800 Net fixed assets 8,300 Long-term debt 3,120 Equity 8,080 Total $ 13,000 Total $ 13,000 Suppose the fair market value of Loaf’s fixed assets is $11,500 versus the $8,300 book value shown. Meat pays $18,400 for Loaf and raises the needed funds through an issue of long-term debt. Construct the postmerger balance sheet under the purchase accounting method. Meat Company, post-merger Current assets Current liabilities Fixed assets Long-term debt Goodwill Equity Total Total
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Jordan 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 280,000 Total CL $ 70,000 Total CA $ 364,000 Long-term debt 140,000 Net fixed assets 126,000 Common equity 280,000 Total assets $ 490,000 Total liab. and equity $ 490,000 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, 2.15, 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? Do not round your intermediate calculations. a. 9.84 p.p. b. 2.34 p.p. c. 13.95 p.p. d. 31.58…
Baker 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 280,000 Total CL $70,000 Total CA $364,000 Long-term debt 140,000 Net fixed assets 126,000 Common equity 280,000 Total assets $490,000 Total liab. and equity $490,000 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, 2.15, 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? Do not round your intermediate calculations.

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Riverview Company's complete assets and liabilities are: Cash: $6,800 Inventory: $9,250 Equipment: $14,700 Building: $22,500 Accounts Payable: $7,400 Notes Payable: $10,600 Mortgage Payable: $18,000 Riverview's total equity is