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Case 1:
(a)
To determine whether the investors have to be informed of the increase in price of raw materials as in item 1.
(b)
To determine the way item 2 has to be presented in the financial statements.
Case 2:
(a)
To organize: To organize the accounts in general order to be represented in classified
(b)
To determine the affected accounts in the balance sheet.
Case 3:
(a)
To compute: To compute the ratios of D Company.
(b)
(1)
Evaluate the loans of D Company due in 1 year: The liquidity of D Company is too good that it will be able to pay a loan up to $25,575 billion due in a year.
(2)
Evaluate the loans of D Company due in 5 years: The repayment of loans of D Company in 5 years includes additional contractual obligations of $13,119 and $8,211.
Case 4:
(a)
Particulars |
Current year ($) |
Prior year ($) |
Current assets |
31,327 |
24,625 |
Total assets |
54,505 |
40,159 |
Current liabilities |
28,089 |
22,980 |
Total liabilities |
43,764 |
30,413 |
(1) Cash provided by operations |
6,842 |
5,475 |
(2) Capital expenditures |
4,893 |
3,444 |
(3) Dividends paid |
0 |
0 |
Net loss/Net income |
(241) |
274 |
Sales |
88,988 |
74,452 |
(b)
To discuss: To discuss the potential implications of change in cash provided by the operations of the company.
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Chapter 5 Solutions
Intermediate Accounting: IFRS Edition
- Anderson Technologies has 40,000,000 shares outstanding with a current market PPS of $30.25. If the firm has total assets of $750M, total liabilities of $250M, and net income of $480M, it would have a P/E of _ and a Market-to-Book ratio of _. Accurate Answerarrow_forwardAnderson Technologies has 40,000,000 shares outstanding with a current market PPS of $30.25. If the firm has total assets of $750M, total liabilities of $250M, and net income of $480M, it would have a P/E of _ and a Market-to-Book ratio of _. Question 5arrow_forwardKindly help me with accounting questionsarrow_forward
- What is the dollar amount of interest accounting questionarrow_forwardIn the current year, Palmer Industries incurred $180,000 in actual manufacturing overhead cost. The Manufacturing Overhead account showed that overhead was overapplied in the amount of $9,000 for the year. If the predetermined overhead rate was $10.00 per direct labor-hour, how many hours were worked during the year? ANSWER?arrow_forwardWhat is the cost of goods manufactured for 2023 ??arrow_forward
- At the beginning of the year, manufacturing overhead for the year was estimated to be $315,840. At the end of the year, actual direct labor-hours for the year were 25,800 hours, the actual manufacturing overhead for the year was $308,700, and manufacturing overhead for the year was overapplied by $14,500. If the predetermined overhead rate is based on direct labor-hours, then what must have been the estimated direct labor-hours at the beginning of the year used in the predetermined overhead rate?arrow_forwardAt the beginning of the year, manufacturing overhead for the year was estimated to be $800,000. At the end of the year, actual labor hours for the year were 40,000 hours, the actual manufacturing overhead for the year was $775,000, and the manufacturing overhead for the year was overapplied by $25,000. If the predetermined overhead rate is based on direct labor hours, then the estimated labor hours at the beginning of the year used in the predetermined overhead rate must have been ___ Hours.arrow_forwardMason Corporation issued its own $15,000, 120-day, non-interest-bearing note to a bank. The only payment Mason will ever make to the bank will be for $15,000 at the maturity date of the loan, as the bank discounts the note at 8%. The proceeds to Mason are: Ans.arrow_forward
- The future earnings, dividends, and common stock price of Square Technologies Inc. are expected to grow at a rate of 5% per year. The company’s common stock is currently selling for $30 per share and its last dividend was $4. What is the company’s cost of common equity? If the firm’s beta is 1.25, the risk-free rate is 6%, and the market rate of return is 14%, what will be the cost of common equity using the CAPM approach? If you have equal confidence in the inputs used for the two approaches, what is your estimate of the company’s cost of common equity? Berger Paints Corporation has a target capital structure of 35% debt and 65% common equity. Its before tax cost of debt is 9% and the marginal tax rate is 30%. The company’s stock is currently selling at $23 per share and the last dividend was $3. If dividends are expected to grow at a constant rate of 5%, what is the company’s cost of common equity and WACC?arrow_forwardGale Corporation owns 15% of the common stock of Troy Enterprises and uses the fair-value method to account for this investment. Troy reported net income of $140,000 for 2022 and paid dividends of $80,000 on November 1, 2022. How much income should Gale recognize on this investment in 2022? Nonearrow_forwardPlease help me with part Barrow_forward
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