Corporate Finance Plus MyLab Finance with Pearson eText -- Access Card Package (4th Edition) (Berk, DeMarzo & Harford, The Corporate Finance Series)
4th Edition
ISBN: 9780134408897
Author: Jonathan Berk, Peter DeMarzo
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 2, Problem 32P
See Table 2.5 showing financial statement data and stock price data for Mydeco Corp.
- a. Compare Mydeco’s accounts payable days in 2012 and 2016.
- b. Did this change in accounts payable days improve or worsen Mydeco’s cash position in 2016?
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Consider the following financial statements (in millions of $). In 2016, the company did not pay any dividends. If this is the case, what was the retained earnings at the end of year 2015?
A) $ 1000 B) $ 974C) $ 842D) $ 868E) OTHER
Refer to the information below for CakePops Inc.
a. Calculate the profit or loss for 2023.
b. What caused common shares to change during 2023? Show your calculations.
c. What caused the change in notes payable during 2023?
d. Do share dividends affect the statement of cash flows? Explain your answer.
CakePops Inc.
Comparative Balance Sheet Information
Cash
Accounts receivable (net)
Machinery (net)
Franchise (net)
Accounts payable
Notes payable, long-term
Common shares
Retained earnings*
*$10 of share dividends were declared and distributed during 2023.
Page 1180
December 31
2023
2022
$ 25
$
5
15
20
300
262
20
0
65
52
70
30
160
90
65
115
Analyzing the ability to pay liabilities
Big Beautiful Photo Shop has asked you to determine whether the company’s ability to pay current liabilities and total liabilities improved or deteriorated during 2018. To answer this question, you gather the following data:
Compute the following ratios for 2018 and 2017, and evaluate the company’s ability to Pay its current Liabilities and total liabilities:
a. Current ratio
b. Cash ratio
c. Acid-test ratio
d. Debt ratio
e. Debt to equity ratio
Chapter 2 Solutions
Corporate Finance Plus MyLab Finance with Pearson eText -- Access Card Package (4th Edition) (Berk, DeMarzo & Harford, The Corporate Finance Series)
Ch. 2.1 - Prob. 1CCCh. 2.1 - Prob. 2CCCh. 2.2 - Prob. 1CCCh. 2.2 - Prob. 2CCCh. 2.2 - Prob. 3CCCh. 2.3 - What it is the difference between a firms gross...Ch. 2.3 - What is the diluted earnings per share?Ch. 2.4 - Prob. 1CCCh. 2.4 - Prob. 2CCCh. 2.5 - Prob. 1CC
Ch. 2.5 - Prob. 2CCCh. 2.6 - Why is EBITDA used to assess a firms ability to...Ch. 2.6 - Prob. 2CCCh. 2.6 - Prob. 3CCCh. 2.6 - Prob. 4CCCh. 2.7 - Describe the transactions Enron used to increase...Ch. 2.7 - Prob. 2CCCh. 2 - Prob. 1PCh. 2 - Prob. 2PCh. 2 - Consider the following potential events that might...Ch. 2 - What was the change m Global Conglomerates book...Ch. 2 - Find online the annual 10-K report for Costco...Ch. 2 - In early 2012, General Electric (GE) had a book...Ch. 2 - In early-2015, Abercrombie Fitch (ANF) had a book...Ch. 2 - Prob. 10PCh. 2 - Suppose that in 2016, Global launches an...Ch. 2 - Find online the annual 10-K report for Costco...Ch. 2 - Prob. 13PCh. 2 - Prob. 14PCh. 2 - See Table 2.5 showing financial statement data and...Ch. 2 - See Table 2.5 showing financial statement data and...Ch. 2 - Suppose a firms tax rate is 35%. a. What effect...Ch. 2 - Prob. 18PCh. 2 - Prob. 19PCh. 2 - See Table 2.5 showing financial statement data and...Ch. 2 - See Table 2.5 showing financial statement data and...Ch. 2 - Prob. 22PCh. 2 - Can a firm with positive net income run out of...Ch. 2 - Suppose your firm receives a 5 million order on...Ch. 2 - Nokela Industries purchases a 40 million...Ch. 2 - See Table 2.5 showing financial statement data and...Ch. 2 - Find online the annual 10-K report for Costco...Ch. 2 - Prob. 28PCh. 2 - For fiscal year end 2015, Wal-Mart Stores, Inc....Ch. 2 - Prob. 30PCh. 2 - See Table 2.5 showing financial statement data and...Ch. 2 - See Table 2.5 showing financial statement data and...Ch. 2 - See Table 2.5 showing financial statement data and...Ch. 2 - See Table 2.5 showing financial statement data and...Ch. 2 - Use the data in Problem 8 to determine the change,...Ch. 2 - You are analyzing the leverage of two firms and...Ch. 2 - Prob. 37PCh. 2 - Prob. 38PCh. 2 - Prob. 39PCh. 2 - Prob. 40PCh. 2 - Prob. 41PCh. 2 - Prob. 42PCh. 2 - Consider a retailing firm with a net profit margin...Ch. 2 - Prob. 44PCh. 2 - Prob. 45P
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Similar questions
- Balance Sheet: Assets Current Assets 3/31/2019 12/31/2018 9/30/2018 6/30/2018 Cash and cash equivalents Net receivables Inventory 293 300 255 232 401 362 385 460 374 342 437 306 Other current assets 60 43 53 45 Total Current Assets 1,128 1,047 1,130 1,043 Long-term investments 128 97 200 Property, plant, and equipment 979 991 995 1,052 Goodwill 744 748 736 742 Other assets 777 831 902 797 Total Assets 3,756 3,714 3,763 3,834 Liabilities Current Liabilities Accounts payable 876 1,467 922 980 Short/current long-term debt 410 2 173 288 Other current liabilities Total Current Liabilities 1,286 1,469 1,095 1,268 Long-term debt 2,381 2,124 474 475 Other liabilities 435 574 559 551 Total Liabilities 4,102 4,167 2,128 2,294 Total Shareholder's Equity - 346 - 453 1,635 1,540 Total Liabilities and Shareholder's Equity 3,756 3,714 3,763 3,834arrow_forwardFind in the Selected Financial Data or calculate, the following data: Dividends per share declared in 2017. Capital expenditures in 2016. Year total equity grew by the greatest amount over the previous year. Change in total debt from 2013 to 2017.arrow_forwardCalculate following ratios If you are not able to calculate with the given the information shown, indicate what is missing. After calculating each ratio indicate whether the trend from 2017 to 2018 is good or bad and why. Year 2018 Year 2017 Net Profit Margin Total Asset turnover Debt to Tangible Net Worth Ratio Operating Cash Flow / Total Debtarrow_forward
- Calculate following ratios If you are not able to calculate with the given the information shown, indicate what is missing. After calculating each ratio indicate whether the trend from 2017 to 2018 is good or bad and why. Year 2018 Year 2017 Return on Assets Sales to Fixed Assets Return on Investment Return on Total Equity Return on Common Equity Gross Profit Marginarrow_forwardSome balance sheet information is shown below: (all values in millions of dollars). a. What change in the book value of the company's equity took place at the end of 2018? b. Is the company's market-to-book ratio meaningful? Is its book debt-equity ratio meaningful? Explain. a. What change in the book value of the company's equity took place at the end of 2018? The book value of equity ▼ increased or decreased by $_____ billion from the end of the previous year, and was ▼ positive or negative. (Select from the drop-down menus and round to three decimal places.)arrow_forwardUsing the Value Line Investment Survey report in Exhibit 11.5, find the following information for Apple. What was the amount of revenues (i.e., sales) generated by the company in 2017? What were the latest annual dividends per share and dividend yield? What is the earnings per share (EPS) projection for 2019? How many shares of common stock were outstanding? What were the book value per share and EPS in 2017? How much long-term debt did the company have in the third quarter of 2018?arrow_forward
- Using the table is there any relationship between the CFPS, EPS and DPS? Using the table is there any correlation between dividends and cash flow? Using the table is there any correlation between dividends and earnings? YEARS DIVIDENDS PER SHARE EARNINGS PER SHARES DIVIDENDS PAYOUT RATIO CASH FLOW PER SHARE CASH FLOW PAYOUT RATIO 2011 0.000 0.54 0.00 0.271 0.00 2012 0.000 0.46 0.00 0.491 0.00 2013 0.003 0.49 0.01 0.434 0.01 2014 0.000 0.33 0.00 1.298 0.00 2015 0.088 0.15 0.60 2.311 0.04 2016 0.051 0.05 0.98 2.966 0.02 2017 0.050 0.08 6.77 1.136 0.04 2018 0.000 0.84 0.00 -0.701 0.00 2019 0.098 1.09 0.09 -0.722 -0.14 2020 0.190 0.49 0.39 -0.427 -0.44arrow_forwardfind. a) quick ratio in 2011 b) if dividends paid in 2010 were &60, the 2009 retained earnings balance was $ c) cash flow from opereation in 2011 was $ d) the company spent $ ... on fixed assets in 2011arrow_forwardBased on this analysis how would I assess the financial stability and operational efficiency of this company? Ratio and Ratio Formula (in thousands) 2015 2014 2013 Current Industry Average Liquidity Current Ratio =Current Asset / Current Liability 9,900/6,300 1.57 1.61 1.62 1.63 Acid Test Ratio or Quick Ratio = (Cash + Marketable securities + Accounts receivable)/Current liabilities (400+300+3,200)/6,300 0.62 0.64 0.63 0.68 Solvency Times Interest Earned =Earnings before interest & taxes/interest expense, gross (7,060+900)/900 8.84 8.55 8.5 8.45 Profitability Profit margin on sales = net income/sales 7,060/30,500 14% 13.20% 12.10% 13.00% Productivity Asset turnover = sales/avg total assets 30,500/6,000+5,400)/2) 1.85 1.84 1.83 1.84 Inventory turnover = COGS/avg inv 17,600/ (6,000+5,400)/2) 3.09 3.17 3.21 3.18arrow_forward
- See Table 2.5 LOADING... showing financial statement data and stock price data for Mydeco Corp. Suppose Mydeco's costs and expenses had been the same fraction of revenues in 2016-2019 as they were in 2015. What would Mydeco's EPS have been each year in this case? Calculate the new EPS for 2016-2019 below: (Round dollar amounts and number of shares to one decimal place. Round percentage amount and the EPS to two decimal places.)arrow_forwardPlease do not reject.Question is complete.Please answer both parts thxarrow_forwardCash flow identity. Use the data from the following financial statements in the popup window,. The company paid interest expense of $17,100 for 2017 and had an overall tax rate of 40% for 2017. Verify the cash flow identity: cash flow from assets = cash flow to creditors + cash flow to owners The cash flow from assets is $ (Round to the nearest dollar.)arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
PFIN (with PFIN Online, 1 term (6 months) Printed...FinanceISBN:9781337117005Author:Randall Billingsley, Lawrence J. Gitman, Michael D. JoehnkPublisher:Cengage Learning
Pfin (with Mindtap, 1 Term Printed Access Card) (...FinanceISBN:9780357033609Author:Randall Billingsley, Lawrence J. Gitman, Michael D. JoehnkPublisher:Cengage Learning
PFIN (with PFIN Online, 1 term (6 months) Printed...
Finance
ISBN:9781337117005
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Cengage Learning
Pfin (with Mindtap, 1 Term Printed Access Card) (...
Finance
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Cengage Learning
The KEY to Understanding Financial Statements; Author: Accounting Stuff;https://www.youtube.com/watch?v=_F6a0ddbjtI;License: Standard Youtube License