Solve these accounting question The balance sheet for Parker Inc. at the end of the first year of operations indicates thefollowing:2009Total current assets$600,000Total investments85,000Total property, plant, and equipment900,000Current portion of long-term debt250,000Total long-term liabilities350,000Common stock, $10 par600,000Paid-in capital in excess of par common stock 60,000Retained earnings325,000What is the long-term debt to total assets ratio for 2009 (rounded to one decimal place)?a. 37.9%.b. 40.0%.c. 22.1%.d. 41.7%.

Step 1: Define Long-Term DebtLong-term debt refers to a company's liabilities that are due in the…

Answered: The balance sheet for Parker Inc. at…

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...

See similar textbooks

Similar questions

Question 30. The balance sheets at the end of each of the first two years of operations indicate the following:2007 2006Total current assets $250,000 $225,000Total investments 50,000 25,000Total fixed assets 450,000 300,000Total current liabilities 100,000 37,500Total long-term liabilities 200,000 112,500Preferred 9% stock, $100 par 50,000 50,000Common stock, $10 par 250,000 250,000Paid-in capital in excess of par-common stock 25,000 25,000Retained earnings 125,000 125,000If net income is $50,000 and interest expense is $20,000 for 2007, what are the earnings per share on common stock for 2007?a. $1.82b. $2.00c. $2.80d. $1.20Problems:31. On August 1, Clayton Co. issued $1,300,000 of 20-year, 9% bonds, dated August 1, for $1,225,000. Interest is payable semiannually on February 1 and August 1. Present the entries to record the following transactions for the current year (a) Issuance of the bonds.(b) Accrual of interest and amortization of bond discount for the year, on December 31,…
The following data are taken from the financial statements: Current Year Preceding Year 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:(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(f) Dividend yield. The current market price per share of common stock is $25. Round your answers to one decimal place except earnings per share, which should be rounded to the nearest cent. a. Return on total…
Kalinga Company reported the following adjusted account balances at year-end: Share capital 15,000,000 Share premium 5,000,000 Treasury shares, at cost 2,000,000 Actuarial loss on defined benefit plan 1,000,000 Retained earnings unappropriated 6,000,000 Retained earning appropriated 3,000,000 Revaluation surplus 4,000,000 Cumulative translation adjustment- credit 1,500,000 REQUIRED: What amount sjould be reported as shareholder's equity at year-end? a. 31,500,000 b. 32,500,000 c. 28,500,000 d. 25,500,000
The balance sheet for Fanning Corporation follows: Current assets $ 247,000 Long-term assets (net) 752,000 Total assets $ 999,000 Current liabilities $ 144,000 Long-term liabilities 452,000 Total liabilities 596,000 Common stock and retained earnings 403,000 Total liabilities and stockholders’ equity $ 999,000 RequiredCompute the following. (Round "Ratios" to 1 decimal place.) Working capital Current ratio Debt-to-assets ratio Debt-to-equity ratio
On January 1, 2022, Palk Corporation and Spraz Corporation had condensed balance sheets as follows: Palk Spraz Current assets $ 99,000 $ 28,000 Noncurrent assets 125,000 56,000 Total assets 224,000 84,000 Current liabilities 42,000 14,000 Long-term debt 70,000 0 Stockholders' equity 112,000 70,000 Total liabilities and stockholders' equity $ 224,000 $ 84,000 On January 2, 2022, Palk borrowed the entire $84,000 it needed to acquire 80% of the outstanding common shares of Spraz. Shares of Spraz are not actively traded on the market. The loan was to be paid in ten equal annual principal payments, plus interest, beginning December 31, 2022. The excess consideration transferred over the underlying book value of the acquired net assets was allocated 60% to inventory and 40% to goodwill. What is the amount attributable to consolidated noncurrent assets at January 2, 2022?
What is the retained earnings balance ending December 31, 2021?
Excel Activity: Calculating the WACC Here is the condensed 2021 balance sheet for Skye Computer Company (in thousands of dollars): Current assets Net fixed assets Total assets Accounts payable and accruals Short-term debt Long-term debt Preferred stock (10,000 shares) Common stock (50,000 shares) Retained earnings Total common equity Total liabilities and equity 2021 $1,750 3,250 $5,000 Skye's earnings per share last year were $3.50. The common stock sells for $45.00, last year's dividend (Do) was $2.60, and a flotation cost of 11% would be required to sell new common stock. Security analysts are projecting that the common dividend will grow at an annual rate of 8%. Skye's preferred stock pays a dividend of $3.60 per share, and its preferred stock sells for $30.00 per share. The firm's before-tax cost of debt is 12%, and its marginal tax rate is 25%. The firm's currently outstanding 12% annual coupon rate, long-term debt sells at par value. The market risk premium is 6%, the risk-free…
Financial Accounting
1. James Company showed the following balances in its balance sheet as at year-end: P450,000 P1,150,000 P300,000 P900,000 120,000 shares Current Assets Non-current Assets Current Liabilities Non-current Liabilities Weighted average of outstanding shares According to the appraisal, 60% of the non-current assets can be replaced at 150% of their reported book value while the remaining balance of the non-current assets has replacement value of 65%. Reported balance of other items approximates their replacement value. How much is the replacement value of James Company at year-end? a.) P299,000 b.) P584,000 c.) P1,035,000 d.) P1,334,000 e.) P1,784,000
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.…
Select information from BUI Balance Sheets as of December 31 Current Assets Net Plant and Equipment Total Assets Accounts Payable Notes Payable Accruals Long-Term Bonds Total Common Equity Total Liabilities & Equity Income Statement Earnings before interest and taxes Depreciation and Amortization Interest Taxes 40% Net Income Other Information WACC Number of shares outstanding Price per share What was 2014 EVA? $0 $197,600 $140,000 $57,600 2013 1,200,000 900,000 2,800,000 2,700,000 4,000,000 3,600,000 2014 200,000 216,000 280,000 108,000 120,000 252,000 1,040,000 864,000 2,360,000 2,160,000 4,000,000 3,600,000 2014 1,200,000.0 140,000.0 104,000.0 438,400.0 657,600.0 2014 18.00% 80,000 $22.13
Vertical Analysis of Balance Sheet Balance sheet data for Hanes Company on December 31, the end of the fiscal year, are shown below. 20Y2 20Y1 Current assets 346,560 203,000 Property, plant, and equipment 595,650 527,800 Intangible assets 140,790 81,200 Current liabilities 238,260 129,920 Long-term liabilities 433,200 341,040 Common stock 119,130 113,680 Retained earnings 292,410 227,360 Prepare a comparative balance sheet for 20Y2 and 20Y1, 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. Hanes Company Comparative Balance Sheet December 31, 20Y2 and 20Y1 20Y2 Amount 20Y2 Percent 20Y1 Amount 20Y1 Percent Assets Current assets $346,560 % $203,000 % Property, plant, and equipment 595,650 % 527,800 % Intangible assets 140,790 % 81,200 % Total…

SEE MORE QUESTIONS

Recommended textbooks for you

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

SEE MORE TEXTBOOKS