The financial condition of two companies is expressed in the following accounting equation:AssetsAllen $ 11,000 =White $ 12,724 =Common Stock +$ 1,870$ 7,424Liabilities +$ 7,590 +$ 3,200 +Requireda. Based on this information alone, can White pay a $2,200 dividend?b-1. Reconstruct the accounting equation for each company using percentages instead of dollar values.b-2. Which company is more financially stable?c. Assume Allen incurs a $3,700 operating loss. The remaining assets are sold for the value shown on the books, and the cashproceeds are distributed to the creditors and investors. How much money will be paid to creditors and how much will be paid toinvestors?Req Ad. Assume White incurs a $3,700 operating loss. The remaining assets are sold for the value shown on the books, and the cashproceeds are distributed to the creditors and investors. How much money will be paid to creditors and how much will be paid toinvestors?Req B1Complete this question by entering your answers in the tabs below.++Req B2Req CRetained Earnings$ 1,540$ 2,100< Req AReq DBased on this information alone, can White pay a $2,200 dividend?Can White pay a $2,200 dividend?Req B1>

Generally dividends are paid out of accumulated profits earned by a company.Accumulated profits…

Answered: The financial condition of two…

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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Balancing the Expanded Accounting Equation Using the expanded accounting equation, calculate and enter the answers for each question. You will need to use the answers you calculate for beginning and ending equity to answer the rest of the questions. Assets Liabilities Beginning of Year: $29,000 $15,000 End of Year: $64,000 $28,000 6) If the company issues common stock of $42,300 and pay dividends of $2,100, how much is net income (loss)? Net Income (Loss):
Examine the following selected financial information for Best Value Corporation and Modern Stores, Inc., as of the end of their fiscal years ending in 2018: Data table (In millions) Best Value Corporation Modern Stores, Inc. 1. Total assets. . . . . . . . . . . . . . . . . . . . . . . . . . $15,256 $203,110 2. Total common stockholders' equity. . . . . $3,075 $71,460 3. Operating income. . . . . . . . . . . . . . . . . . . . $1,350 $26,820 4. Interest expense. . . . . . . . . . . . . . . . . . . . . . $88 $2,020 5. Leverage ratio. . . . . . . . . . . . . . . . . . . . . . . . 6. Total debt. . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. Debt ratio. . . . . . . . . . . . . . . . . . . . . . . . . . . . 8. Times interest earned. . . . . . . . . . . . . . . . . Requirements…
A transaction has been recorded in the T-accounts of Horowitz Corporation as follows: Debit Cash 25,000 A. + B. + C. D. Credit Assets = Liabilities Multiple Choice Which of the following reflects how this event affects the company's financial statements? Balance Sheet O Option C Option D Option B Option A Common Stock + N/A N/A Debit Credit 25,000 N/A Stockholders' Equity N/A + Revenue N/A N/A N/A Income Statement Expense = Net Income Statement of Cash Flows +FA +FA +0A -IA N/A N/A N/A + N/A N/A
The financial condition of two companies is expressed in the following accounting equation: Common Stock + Retained Earnings $ 2,464 + $ 7,410 + Allen White Assets $ 11,200 = $ 13,920 Required a. Based on this information alone, can White pay a $3,200 dividend? b-1. Reconstruct the accounting equation for each company using percentages instead of dollar values. b-2. Which company is more financially stable? Liabilities + $ 8,624 $ 3,510 + + c. Assume Allen incurs a $3,900 operating loss. The remaining assets are sold for the value shown on the books, and the cash proceeds are distributed to the creditors and investors. How much money will be paid to creditors and how much will be paid to investors? Req A d. Assume White incurs a $3,900 operating loss. The remaining assets are sold for the value shown on the books, and the cash proceeds are distributed to the creditors and investors. How much money will be paid creditors and how much will be paid to investors? Complete this question by…
Sheridan Company provides you with the following condensed balance sheet information: Current assets Equity investments Equipment (net) Intangibles Total assets Current and long-term liabilities Stockholders' equity Common stock ($5 par) Paid-in capital in excess of par Retained earnings Total liabilities and stockholders' equity (1) (2) (3) (4) Liabilities and Stockholders' Equity (5) Assets Total assets For each of the following transactions, indicate the dollar impact (if any) on the following five items: (1) total assets, (2) common stock, (3) paid-in capital in excess of par, (4) retained earnings, and (5) stockholders' equity. (Each situation is independent.) a. Sheridan declares and pays a $0.50 per share cash dividend. Common stock Paid-in capital in excess of par Retained earnings $20,200 Total stockholders' equity 120,300 154,200 decrease no effect no effect decrease decrease < $41,300 < 59,400 248,300 55,000 $404,000 $109,300 294,700 $404,000 $ LA tA LA LA
1. During 2021, Target Corporation had: Revenue of $623,000 Cost of Goods Sold of $250,000 Operating expenses of $68,000 Interest expense of $4,000 Depreciation Expense of $13,000 During the year Target Corporation paid: 50% of net income in dividends 21% in corporate taxes a. Prepare a multi-step income statement on Sheet 1 of your spreadsheet. Include the dividend and additions to Retained Earnings below the income statement. b. Calculate Target's Operating Cash Flow beneath the Income Statement. 2. The following data refers to the 2021 year-end account balances for Target. However, the Retained Earnings balance is as of 12/31/2020. The accounts are listed in alphabetical order. $ Accounts Payable 25,000 Accounts Receivable 16,000 Accumulated Depreciation 175,000 Cash 44,000 Common Stock 120,000 Fixed Assets (gross) 390,000…
ssume the following relationships for the Caulder Corp.: Sales/Total assets 1.2\times Return on assets (ROA ) 5.0% Return on equity (ROE) 15.0% Calculate Caulder's profit margin and debt-to-capital ratio assuming the firm uses only debt and common equity, so total assets equal total invested capital. Do not round intermediate calculations. Round your answers to two decimal places.
a. a. Analyze each transaction above by showing its effects on the accounting equation-specifically, identify the accounts and amounts (including + or -) for each transaction. b. C. Required information [The following information applies to the questions displayed below.] C. a. On March 22, purchased 880 shares of RPI Company stock at $24 per share. Duke's stock investment results in it having an insignificant influence over RPI. b. On July 1, received a $3 per share cash dividend on the RPI stock purchased in part a. c. On October 8, sold 440 shares of RPI stock for $34 per share. Assets = = = = = = Liabilities + + + + + + Equity
1. A company has the following balance sheet information: cash of $127,536, current assets of $350,647, current liabilities of $289,615, long-term debt of $345,000 and total assets of $1,304,165. It also has sales of $1,600,400. a. What is the company's owner's equity balance? b. What is the company's cash and current ratios? c. What is the company's total asset turnover? d. If the profit margin is 25%, what is the company's net income? e. If you were to create a common size balance sheet, what would the cash line be? What would the long-term debt line be? What is the company's ROE? f.
Assume the following data for Cable Corporation and Multi-Media Incorporated. Multi-Media Incorporated Cable Corporation $ 39,800 352,000 409,000 $ 190,000 2,170,000 966,000 234,000 545,000 175,000 421,000 Net income Sales Total assets Total debt Stockholders' equity a. 1. Compute return on stockholders' equity for both firms. Note: Input your answers as a percent rounded to 2 decimal places. Cable Corporation Multi-Media, Incorporated 2. Which firm has the higher return? Return on Stockholders' Equity % %
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Please show working for each question 1. In its most recent financial statements, Nessler Inc. reported $50 million of net income and $550 million of retained earnings. The previous retained earnings were $512 million. How much in dividends were paid to shareholders during the year? Assume that all dividends declared were actually paid. Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest dollar, if necessary. 2. Byron Books Inc. recently reported $6 million of net income. Its EBIT was $12.6 million, and its tax rate was 40%. What was its interest expense? (Hint: Write out the headings for an income statement, and then fill in the known values. Then divide $6 million of net income by (1 - T) = 0.6 to find the pretax income. The difference between EBIT and taxable income must be interest expense. Use this same procedure to complete similar problems.) Write out your answer completely. For example, 25 million should…

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