Fundamentals of Financial Management, Concise Edition (MindTap Course List)
9th Edition
ISBN: 9781305635937
Author: Eugene F. Brigham, Joel F. Houston
Publisher: Cengage Learning
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Textbook Question
Chapter 3, Problem 16P
FINANCIAL STATEMENTS The Davidson Corporation's
Davidson Corporation: Balance Sheet as of December 31, 2016 (Millions of Dollars)
Davidson Corporation: Income Statement for Year Ending December 31, 2016 (Millions of Dollare)
| Sales | $6.250 |
| Operating costs excluding |
5.230 |
| EBITDA | $1.000 |
| Depreciation & amortization | 2.20 |
| EBIT | $ 800 |
| Interest | 180 |
| EBT | $ 620 |
| Taxes (40%) | 248 |
| Net income | $ 372 |
| Common dividends paid | $ 146 |
| Earnings per share | $ 3,72 |
- a. Construct the statement of
stockholders equity for December 31, 2016. No common stock was issued during 2016. - b. How much money has been reinvested in the firm over the years?
- c. At the present time, how large a check could be written without it bouncing?
- d. How much money must be paid to current creditors within the next year?
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Financial information for Powell Panther Corporation is shown below:
Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars)
2018
Sales
$
1,625.0
$
2017
1,300.0
Operating costs excluding depreciation and amortization
1,300.0
1,105.0
EBITDA
$
325.0
$
195.0
Depreciation and amortization
39.0
31.0
Earnings before interest and taxes (EBIT)
$
286.0
$
164.0
Interest
36.0
29.0
Earnings before taxes (EBT)
$
250.0
$
135.0
Taxes (40%)
100.0
54.0
Net income
$
150.0
$
81.0
Common dividends
$
135.0
$
65.0
Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Dollars)
2018
Assets
Cash and equivalents
$
23.0
$
2017
18.0
Accounts receivable
164.0
143.0
Inventories
343.0
312.0
Total current assets
$
530.0
$
473.0
Net plant and equipment
390.0
312.0
Total assets
$
920.0
$
785.0
Liabilities and Equity…
INCOME STATEMENT OF QUICK BURGER CORPORATION, 2022
(Figures in $ millions)
Net sales
Costs
Depreciation
Earnings before interest and taxes (EBIT)
Interest expense
Pretax income
Federal taxes (@ 21%)
Net income
$ 27,576
17,578
1,411
$ 8,587
526
8,061
1,693
$ 6,368
BALANCE SHEET OF QUICK BURGER CORPORATION, 2022
(Figures in $ millions)
Assets
Current assets
Cash and marketable securities
2022
2021
Liabilities and Shareholders' Equity
Current liabilities
$ 2,345
$ 2,345
Debt due for repayment
Receivables
Inventories
Other current assets
1,384
131
1,098
1,344
126
Accounts payable
Total current liabilities
625
Total current assets
$ 4,958
$ 4,440
Fixed assets
Property, plant, and equipment
$ 24,686
2,813
2,992
2,662
Long-term debt
$ 22,844 Other long-term liabilities
Total liabilities
3,108 Total shareholders' equity
$ 35,449
$ 33,054 Total liabilities and shareholders' equity
2022
2021
$3,412
$ 3,412
$ 394
3,152
$ 3,546
$ 13,642
3,066
$ 20,120
15,329
$ 35,449
$ 12,143
2,966
$ 18,655
14,399…
Financial information for Powell Panther Corporation is shown below:
Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars)
2018
2017
Sales
$
1,800.0
$
1,500.0
Operating costs excluding depreciation and amortization
1,395.0
1,275.0
EBITDA
$
405.0
$
225.0
Depreciation and amortization
43.0
39.0
Earnings before interest and taxes (EBIT)
$
362.0
$
186.0
Interest
40.0
33.0
Earnings before taxes (EBT)
$
322.0
$
153.0
Taxes (40%)
128.8
61.2
Net income
$
193.2
$
91.8
Common dividends
$
174.0
$
73.0
Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Dollars)
2018
2017
Assets
Cash and equivalents
$
23.0
$
18.0
Accounts receivable
248.0
225.0
Inventories
396.0
360.0
Total current assets
$
667.0
$
603.0
Net plant and equipment
429.0
390.0
Total assets
$
1,096.0
$
993.0
Liabilities and Equity
Accounts…
Chapter 3 Solutions
Fundamentals of Financial Management, Concise Edition (MindTap Course List)
Ch. 3 - Prob. 1QCh. 3 - Who are some of the basic users of financial...Ch. 3 - If a typical firm reports 20 million of retained...Ch. 3 - Explain the following statement: Although the...Ch. 3 - Prob. 5QCh. 3 - Prob. 6QCh. 3 - Prob. 7QCh. 3 - Prob. 8QCh. 3 - How are managements actions incorporated in EVA...Ch. 3 - Explain the following statement: Our tax rates are...
Ch. 3 - Prob. 11QCh. 3 - How does the deductibility of interest and...Ch. 3 - BALANCE SHEET The assets of Dallas Associates...Ch. 3 - INCOME STATEMENT Byron Books Inc recently reported...Ch. 3 - INCOME STATEMENT Patterson Brothers recently...Ch. 3 - STATEMENT OF STOCKHOLDERS EQUITY In its most...Ch. 3 - MVA Harper Industries has 900 million of common...Ch. 3 - Prob. 6PCh. 3 - EVA Barton Industries has operating income for the...Ch. 3 - PERSONAL TAXES Susan and Stan Britton are a...Ch. 3 - BALANCE SHEET Which of the following actions are...Ch. 3 - STATEMENT OF STOCKHOLDERS EQUITY Electronics World...Ch. 3 - EVA For 2016, Gourmet Kitchen Products reported 22...Ch. 3 - Prob. 12PCh. 3 - Prob. 13PCh. 3 - FREE CASH FLOW Arlington Corporations financial...Ch. 3 - INCOME STATEMENT Edmonds Industries is...Ch. 3 - FINANCIAL STATEMENTS The Davidson Corporation's...Ch. 3 - Prob. 17PCh. 3 - Prob. 18PCh. 3 - FINANCIAL STATEMENTS, CASH FLOW, AND TAXES Laiho...Ch. 3 - Prob. 20ICCh. 3 - Prob. 1DQCh. 3 - Prob. 2DQCh. 3 - Prob. 3DQCh. 3 - Prob. 4DQCh. 3 - Prob. 5DQ
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