The following financial statements apply to Adams Company: ADAMS COMPANY Income Statements for the Years Ending December 31 Year 2 Year 1 $ 220,800 $180,400 Revenues Expenses Cost of goods sold Selling expenses General and administrative expenses Interest expense Income tax expense Total expenses Net income Assets Current assets Cash Marketable securities Accounts receivable Inventories 124,600 20, 200 Prepaid expenses Total current assets Plant and equipment (net) Intangibles Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities Accounts payable Other Total current liabilities Bonds payable Total liabilities 10,000 2,100 20,400 177,300 $ 43,500 102, 100 18,200 ADAMS COMPANY Balance Sheets As of December 31 Stockholders' equity Common stock (49,000 shares) Retained earnings Total stockholders equity Total liabilities and stockholders' equity 9,000 2,100 17,600 149,000 $ 31,400 Year 2 $ 5,100 1,800 36,000 101,200 4,800 148,900 107,000 20,600 $ 276,500 $38,200 16,500 54,700 65,500 120,200 113,500 42,800 156,300 $ 276,500 Year 1 $ 7,000 1,800 31,100 95,800 3,800 139,500 107,000 0 $ 246,500 $ 35,200 16,300 51,500 66,500 118,000 113,500 15,000 128,500 $ 246,500

The following financial statements apply to Adams Company: ADAMS COMPANY Income Statements for the Years Ending December 31 Year 2 Year 1 $ 220,800 $180,400 Revenues Expenses Cost of goods sold Selling expenses General and administrative expenses Interest expense Income tax expense Total expenses Net income Assets Current assets Cash Marketable securities Accounts receivable Inventories 124,600 20, 200 Prepaid expenses Total current assets Plant and equipment (net) Intangibles Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities Accounts payable Other Total current liabilities Bonds payable Total liabilities 10,000 2,100 20,400 177,300 $ 43,500 102, 100 18,200 ADAMS COMPANY Balance Sheets As of December 31 Stockholders' equity Common stock (49,000 shares) Retained earnings Total stockholders equity Total liabilities and stockholders' equity 9,000 2,100 17,600 149,000 $ 31,400 Year 2 $ 5,100 1,800 36,000 101,200 4,800 148,900 107,000 20,600 $ 276,500 $38,200 16,500 54,700 65,500 120,200 113,500 42,800 156,300 $ 276,500 Year 1 $ 7,000 1,800 31,100 95,800 3,800 139,500 107,000 0 $ 246,500 $ 35,200 16,300 51,500 66,500 118,000 113,500 15,000 128,500 $ 246,500

Name: The following financial statements apply to Adams Company:ADAMS COMPA
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Description: The following financial statements apply to Adams Company:ADAMS COMPANYIncome Statements for the Years Ending December 31Year 1$180,400RevenuesExpensesCost of goods soldSelling expensesGeneral and administrativeexpensesInterest expenseIncome tax exp

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31 of the prior year were inventory, $51,900; total assets, $249,400; common stock, $81,000; and retained earnings, $36,386.) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 448,600 Cost of goods sold 297,950 Gross profit 150,650 98,700 4,200 47,750 19,236 $ 28,514 Operating expenses Interest expense Income before taxes Income tax expense Net income CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity $ 18,000 8,400 30,400 Income taxes payable 34,150 Long-term note payable, secured by mortgage on plant assets Common stock 2,750 150,300 Retained earnings $244,000 Total liabilities and equity Accounts payable Accrued wages payable $ 18,500 4,000 3,200 72,400…
MOSS COMPANY Income Statement For Year Ended December 31, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income MOSS COMPANY Selected Balance Sheet Information 2021 At December 31 Current assets Cash Accounts receivable Inventory Current liabilities Accounts payable Income taxes payable $ 86,150 26,500 61,500 Cash flows from operating activities: 33,400 2,200 2020 $530,000 337,600 192,400 123,500 39,000 Changes in current operating assets and liabilities 29,900 9,900 $ 20,000 $ 28,300 35,000 54,400 Use the information above to calculate cash flows from operating activities using the indirect method. Note: Amounts to be deducted should be indicated by a minus sign. 27,200 2,500 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash $ 39,000
Here are simplified financial statements for Watervan Corporation: INCOME STATEMENT (Figures in $ millions) Net sales $ 887.00 Cost of goods sold 747.00 Depreciation 37.00 Earnings before interest and taxes (EBIT) $ 103.00 Interest expense 18.00 Income before tax $ 85.00 Taxes 17.85 Net income $ 67.15 BALANCE SHEET (Figures in $ millions) End of Year Start of Year Assets Current assets $ 375 $ 324 Long-term assets 270 228 Total assets $ 645 $ 552 Liabilities and shareholders’ equity Current liabilities $ 200 $ 163 Long-term debt 114 127 Shareholders’ equity 331 262 Total liabilities and shareholders’ equity $ 645 $ 552 The company’s cost of capital is 8.5%. Required: What is the company’s return on capital? (Use start-of-year rather than average capital.) Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. P.S - Answer is not 17.26%.
Compute the debt ratio from the data shown below: Balance Sheet (Millions of $) Assets Cash and securities Accounts receivable Inventories Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Notes payable Accruals Total current liabilities Long-term bonds Total debt Common stock Retained earnings Total common equity Total liabilities and equity Income Statement (Millions of $) Net sales Operating costs except depreciation Depreciation Earnings bef interest and taxes (EBIT) 2007 $1,290 9,890 13,760 $24,940 $18,060 $43.000 $8,170 6,020 4.730 $18,920 $8,815 $27.735 $5,805 2.460 $15.265 $43,000 2007 $51.600 48,246 903 $2,451 K
Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable. Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity Current Year $ 30,800 89,600 110,000 10,400 281,000 $ 521,800 Interest expense Income tax expense Total costs and expenses Net income Earnings per share 1 Year Ago $ 128,800 $ 75,750 99,000 95,500 162,000 135,500 162,000 106,650 $ 521,800 $ 443,400 Current Year $ 36,000 63,000 83,600 9,300 251,500 $ 443,400 $ 421,850 221,650 12,100 9,400 The company's income statements for the Current Year and 1 Year Ago, follow. For Year Ended December 31 Sales Cost of goods sold Other operating expenses $ 715,000 665,000 $ 50,000 $3.09 2 Years Ago $ 38,400 49,500 53,500 4,300 235,000 $ 380,700 For both the Current Year and 1 Year Ago, compute the following ratios: $ 51,000 80, 200 162,000 87,500…
The following data were taken from the balance sheet of Albertini Company at the end of two recent fiscal years: Current Year Previous Year Current assets: Cash $418,000 $345,600 Marketable securities 484,000 388,800 Accounts and notes receivable (net) 198,000 129,600 Inventories 290,400 87,800 Prepaid expenses 149,600 56,200 Total current assets $1,540,000 $1,008,000 Current liabilities: Accounts and notes payable (short-term) $319,000 $336,000 Accrued liabilities 231,000 144,000 Total current liabilities $550,000 $480,000 a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place. Current Year Previous Year 1. Working capital 2. Current ratio 3. Quick ratio b. The liquidity of Albertini has from the preceding year to the current year. The working capital, current ratio, and quick ratio have all Most of these changes are the result of an in current assets relative to current liabilities.
Consider the following company’s balance sheet and income statement Return on assets. Return on equity.
Selected financial data for Wilmington Corporation is presented below. WILMINGTON CORPORATION Balance Sheet As of December 31 Year 7 Year 6 Current Assets Cash and cash equivalents $ 634,527 $ 335,597 Marketable securities 166,106 187,064 Accounts receivable (net) 284,226 318,010 Inventories 466,942 430,249 Prepaid expenses 60,906 28,060 Other current assets 83,053 85,029 Total Current Assets 1,695,760 1,384,009 Property, plant and equipment 1,384,217 625,421 Long-term investment 568,003 425,000 Total Assets $3,647,980 $2,434,430 Current Liabilities Short-term borrowings $ 306,376 $ 170,419 Current portion of long-term debt 155,000 168,000 Accounts payable 279,522 314,883 Accrued liabilities 301,024 183,681 Income taxes payable 107,509 196,802 Total Current Liabilities 1,149,431…
Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31 of the prior year were inventory, $46,900; total assets, $179,400; common stock, $88,000; and retained earnings, $31,286.) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Income Statement Cost of goods sold Gross profit For Current Year Ended December 31 Sales Operating expenses Interest expense Income before taxes Income tax expense Net income $ 18,000 9,000 33,800 Req 1 and 2 Reg 3 Req 4 Compute the debt-to-equity ratio. Numerator: $ 455,600 298,150 157,450 98,500 4,000 54,950 22,136 $ 32,814 30,150 3,050 154,300 Retained earnings $ 248,300 Total liabilities and equity 1 CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity Accounts payable Accrued wages payable Income taxes payable Complete this question by…
Uramilaben
Selected financial data for Wilmington Corporation is presented below. WILMINGTON CORPORATION Balance Sheet As of December 31 Year 7 Year 6 Current Assets Cash and cash equivalents $ 634,527 $ 335,597 Marketable securities 166,106 187,064 Accounts receivable (net) 284,226 318,010 Inventories 466,942 430,249 Prepaid expenses 60,906 28,060 Other current assets 83,053 85,029 Total Current Assets 1,695,760 1,384,009 Property, plant and equipment 1,384,217 625,421 Long-term investment 568,003 425,000 Total Assets $3,647,980 $2,434,430 Current Liabilities Short-term borrowings $ 306,376 $ 170,419 Current portion of long-term debt 155,000 168,000 Accounts payable 279,522 314,883 Accrued liabilities 301,024 183,681 Income taxes payable 107,509 196,802 Total Current Liabilities 1,149,431…
23

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