The Hopewell Pharmaceutical Company's balance sheet and income state- ment for last year are as follows: Balance Sheet (in Millions of Dollars) Assets Cash and marketable securities $1,100 Accounts receivable 1,300 Inventories* 800 200 Other current assets Total current assets Plant and equipment (net) Other assets Total assets $3,400 2,300 1,000 $6,700 Net sales Cost of sales Liabilities and Equity Accounts payable Accrued liabilities (salaries and benefits) Other current liabilities Earnings before taxes Taxes Earnings after taxes (net income) Total current liabilities Long-term debt and other liabilities Common stock Retained earnings Selling, general, and administrative expenses Other expenses Total expenses Total stockholders' equity Total liabilities and equity *Assume that average inventory over the year was $800 million that is, the same as ending inventory. Income Statement (in Millions of Dollars) $6,500 1,500 2,500 800 $ 900 $4,800 1,700 680 $1,020 300 700 $1,900 1,000 1,800 2,000 $3,800 $6,700

The Hopewell Pharmaceutical Company's balance sheet and income state- ment for last year are as follows: Balance Sheet (in Millions of Dollars) Assets Cash and marketable securities $1,100 Accounts receivable 1,300 Inventories* 800 200 Other current assets Total current assets Plant and equipment (net) Other assets Total assets $3,400 2,300 1,000 $6,700 Net sales Cost of sales Liabilities and Equity Accounts payable Accrued liabilities (salaries and benefits) Other current liabilities Earnings before taxes Taxes Earnings after taxes (net income) Total current liabilities Long-term debt and other liabilities Common stock Retained earnings Selling, general, and administrative expenses Other expenses Total expenses Total stockholders' equity Total liabilities and equity *Assume that average inventory over the year was $800 million that is, the same as ending inventory. Income Statement (in Millions of Dollars) $6,500 1,500 2,500 800 $ 900 $4,800 1,700 680 $1,020 300 700 $1,900 1,000 1,800 2,000 $3,800 $6,700

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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Long-Term Solvency Ratios Summary data from year-end financial statements of Palm Springs Company for the current year follow. Summary Income Statement Data Sales $10, 500, 600 Cost of goods sold 6, 050,000 Selling expenses 685,000 Administrative expenses 945,000 Interest expense 783, 500 Income tax expense 427,791 8,891,291 Net income $1,609,309 Summary Balance Sheet Data Cash $84, 700 Total liabilities $749,700 Noncash assets 885,500 Stockholders' equity 220, 500 Total assets $970, 200 Total liabilities and equity $970, 200 Round answers to one decimal place. a. Compute the ratio of times - interest - earned. Answer times b. Compute the debt-to-equity ratio. Answer
Horizontal Analysis of the Income Statement Income statement data for Winthrop Company for two recent years ended December 31, are as follows: Current Year Previous Year Sales $418,200 $340,000 Cost of goods sold 350,900 290,000 Gross profit $67,300 $50,000 Selling expenses $19,210 $17,000 Administrative expenses 16,940 14,000 Total operating expenses $36,150 $31,000 Income before income tax $31,150 $19,000 Income tax expenses 12,500 7,600 Net income $18,650 $11,400 a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. If required, round to one decimal place. Winthrop Company Comparative Income Statement For the Years Ended December 31 CurrentyearAmount PreviousyearAmount Increase(Decrease)Amount Increase(Decrease)Percent Sales $418,200 $340,000 $fill in the blank…
Assume a merchandising company had credit sales of $380,000, cost of goods sold of $187,000, and net income of $60,000. It provided the following excerpts from its balance sheet: This Year Last Year Current assets: Accounts receivable $ 40,000 $ 46,000 Inventory $ 53,000 $ 50,000 Prepaid expenses $ 13,000 $ 11,000 Current liabilities: Accounts payable $ 39,000 $ 44,000 Income taxes payable $ 13,000 $ 10,000 If the company purchases its merchandise inventory on account, then based solely on the information provided, the company’s cash paid for inventory purchases would be: Garrison 17e Rechecks 2020-10-02 Multiple Choice $189,000. $185,000. $195,000. $179,000.
Operating activities: Net earnings Non-cash items Add: Depreciation LAURENT COMPANY Statement of Cash Flows For the year 31 December 20X8 Changes to working ital: Add: Decrease in accounts receivable Less: Increase in accounts payable Less: Increase in inventory Investing activities: Decrease in long-term bank loan Purchase of long-term investment Financing activities: Sold long-term investment Paid cash dividend Net change in cash Opening cash Closing cash Chemisie ہے
Practice Problem Below are the balance sheet and income statement for Major, Inc. December 31 2007 2006Cash $ 29,700 $ 10,200 Accounts receivable (net) 53,400 20,300 Inventory 39,000 42,000 Long-term investments 0 15,000 Plant Assets, net of depreciation 180,900 125,000 Total Assets $303,000 $212,500Accounts payable $ 16,000 $ 26,500 Accrued liabilities 28,000 17,000 Long-term notes payable 40,000 50,000 Common stock 150,000 90,000 Retained earnings 69,000 29,000 Total Liabilities and Owner’s Equity $303,000 $212,500Year ended December 31, 2007Sales Revenue $340,000 Cost of Goods Sold (200,000) Operating Expenses (58,400) Depreciation Expense (10,600) Gain on sale of investments 4,000Net Income $ 75,000Additional information: A) In 2007, Major, Inc didn’t sell plant asset and didn’t purchase additional investment.B) In 2007, no shares were repurchased and no new debt was issued. 1. Prepare the Statement of Cash Flows…
Accounts Receivable and Inventory Ratios Bell Company had the following current assets at year-end: Cash $72,500 Short-term investments 123,500 Accounts receivable (net) 425,000 Inventory 500,000 Prepaid expenses 29,000 Current assets $1,150,000 The company had net sales for the year of $2,205,000 and cost of goods sold of $1,347,500.At the beginning of the year, Bell’s accounts receivable (net) were $352,000 and itsInventory was $429,000.a. What is the company’s accounts receivable turnover for the year? (Round to two decimal places.) Answer b. What is the company’s average collection period for the year? (Round to one decimal place.) Answer c. What is the company’s inventory turnover for the year? (Round to two decimal places.) Answer d. What is the company’s days’ sales in inventory for the year? (Round to one decimal place.) Answer
Below are extracts from the financial statements of Charlton Ltd: Statement of profit or loss for the year ended 31 December 2020 Revenue 214,550 Cost of sales (182,000) Gross profit 32,550 Investment income 4,760 Loss on disposal (40) (6,300) (3,500) Distribution costs Administrative expenses Profit from operations 27,470 Finance costs (2,800) Profit before tax 24,670 (2,100) 22,570 Income tax expense Profit for the period Statements of financial position 31 December 2020 31 December 2019 Assets Non-current assets Property, plant and equipment 15,920 5,950 Investments 17,500 17,500 33,420 23,450 31 December 2020 31 December 2019 Assets Non-current assets Property, plant and equipment 15,920 5,950 Investments 17,500 17,500 33,420 23,450 Current assets Inventories 7,000 13,650 Trade and other receivables 13,300 8,400 Cash and cash equivalents 2,870 1,120 23,170 23,170 Total assets 56,590 46,620 Equity and liabilities Capital and reserves Share capital 7,000 6,300 Share premium Retained…
Assume a company had net Income of $72,000 and provided the following excerpts from its balance sheet: This Year Last Year Current assets: $40,000 $53,000 $13,000 $46,000 $50,000 $11,000 Accounts receivable Inventory Prepaid expenses Current liabilities: $38,000 $18,000 $13,000 $44,000 $15,000 $10,000 Accounts payable Accrued liabilities Income taxes payable If the company did not sell any noncurrent assets during the period and the credits to its accumulated depreciation account were $21,000, then based solely on the informatlon provlded, the company's net cash provided by (used in) operating activities would be: Multiple Cholce $94,000. $52,000. $68,000. $92,000.

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