Study Guide For Brigham/houston's Fundamentals Of Financial Management, 14th
14th Edition
ISBN: 9781305403895
Author: Eugene F. Brigham, Joel F. Houston
Publisher: Cengage Learning
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Question
Chapter 3, Problem 16P
a.
Summary Introduction
To prepare: The statement of
Financial Statements: A part of annual report that is attributed to the financials of the company for an accounting period is called financial statements. These include income statement, statement of
Statement of Stockholders’ Equity: Statement of stockholders’ equity reports the opening and closing balance of stockholder’s equity with the changes incurred during the accounting period.
b.
Summary Introduction
To identify: The amount reinvested in the firm over the years.
Retained Earnings: The companies retain some portion of their net income to support the business operations, expansion plans and other long term assets. That remaining portion of a company’s net incomes is called retained earnings.
c.
Summary Introduction
To identify: The maximum amount of check that could be written and cleared.
d.
Summary Introduction
To determine: The amount needs to be paid to creditors within the next year.
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What would the net income/loss be for the year using the following information? Please explain your calculations used to get your numbers.
Jan. 1, 2017 total assets $150,000
Dec.31, 2017 total assets $175,000
Jan. 1, 2017 total liabilities $35,000
Dec. 31, 2017 total liabilities $145,000
Dividends declared for year $25,000
Dividends paid out for the year $37,500
No Par Common Stock Sold during year $10,000
General Accounting Question
Additional information:
• Weighted-average ordinary shares in 2017 were $60,000
QUESTIONS
Based on the financial data above, do the following:
a. Calculate the financial ratio of VENUS TRADING COMPANY in 2017 below:
• Current ratio
• Account receivable turnover
• Inventory turnover
• Asset turnover
• Return on assets
• Return on ordinary shareholders equity
• Earnings per share
• Debts to total assets ratio
Provide an interpretation for each of the financial ratio calculations above.
b. Based on the calculation results in point a, provide an analysis of performance
finance VENUS TRADING COMPANY in 2017.
Chapter 3 Solutions
Study Guide For Brigham/houston's Fundamentals Of Financial Management, 14th
Ch. 3 - What four financial statements are contained in...Ch. 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 Little Books Inc. recently...Ch. 3 - INCOME STATEMENT Pearson Brothers recently...Ch. 3 - STATEMENT OF STOCKHOLDERS' EQUITY In its most...Ch. 3 - Prob. 5PCh. 3 - Prob. 6PCh. 3 - EVA Britton Industries has operating income for...Ch. 3 - PERSONAL TAXES Joe and Jane Keller are a married...Ch. 3 - Prob. 9PCh. 3 - Prob. 10PCh. 3 - EVA For 2015, Everyday Electronics reported 22 5...Ch. 3 - STATEMENT OF CASH FLOWS W.C. Cycling had 55,000 in...Ch. 3 - STATEMENT OF CASH FLOWS You have just been hired...Ch. 3 - Prob. 14PCh. 3 - INCOME STATEMENT Hermann Industries is forecasting...Ch. 3 - Prob. 16PCh. 3 - Prob. 17PCh. 3 - Prob. 18PCh. 3 - FINANCIAL STATEMENTS, CASH FLOW, AND TAXES Laiho...Ch. 3 - Prob. 20IC
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