TAX 9873 Lecture Notes - Lecture 32: Defined Contribution Plan
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The following accounts (in no particular order) are for PerfectReb Corporation for the fiscal year ended December 31, 2015. (S/T =Short-Term; L/T = Long-Term)
REQUIRED:
A) Calculate Perfect Reb Corporationâs netincome or net loss for the 2015 fiscal year. You may solve this inany
manner that you wish, but it is highly recommended to prepare amultiple step income statement.
B) Using proper form, prepare Perfect RebCorporationâs balance sheet for 2015.
C) Using the information provided, solve forthe requested ratios and respond to the correspondingquestions.
Common Stock (13,000 shares outstanding) | $52,000 | Sales Discounts | $5,000 | |
Accrued Expenses (Payables) | 20,000 | Income Tax Expense (25% of IBIT) | ??? | |
Miscellaneous Operating Expenses | 50,000 | Cash | 142,000 | |
Accounts Receivable | 20,000 | Interest Expense | 4,000 | |
Buildings | 186,000 | Marketable Securities | 62,000 | |
Retained Earnings | ??? | Notes Payable (due in 5 years) | 12,000 | |
Wages Expense | 60,000 | Rent Expense | 11,000 | |
Inventory | 40,000 | Unearned Revenue | 19,000 | |
Accumulated Depreciation â Buildings | 48,000 | Allowance for Uncollectible Accounts | 15,000 | |
Accounts Payable | 41,000 | Sales | 433,000 | |
Gain on Sale of Equipment | 62,000 | Mortgage Payable ($12,000 S/T) | 144,000 | |
Land | 50,000 | Sales Returns & Allowances | 12,000 | |
Bad Debt Expense | 2,000 | Depreciation Expense | 11,000 | |
L/T Investments | 7,000 | Cost of Goods Sold | 109,000 | |
Notes Receivable ($2,000 S/T) | 13,000 | Interest Revenue | 3,000 |
A) NET INCOME (10 points) â SHOW ALL WORK ANDCALCULATIONS!!!!
B) CLASSIFIED BALANCE SHEET (15 points)
Perfect Reb Corporation Balance Sheet December 31,2015 | ||||||
ASSETS | LIABILITIES | |||||
Current Assets | Current Liabilities | |||||
Total Current Liabilities | ||||||
Total Current Assets | ||||||
Long-Term Assets | Long-Term Liabilities | |||||
Total Long-Term Assets | Total Long Term Liabilities | |||||
Fixed Assets | ||||||
Total Liabilities | ||||||
EQUITY | ||||||
Total Fixed Assets | ||||||
Total Equity | ||||||
TOTAL ASSETS | TOTAL LIABILITIES & EQUITY | |||||
C) RATIOS AND ANALYSIS (15 points):
Use the financial statements and additional information tocalculate the ratios. Round your answers to two decimalplaces. Be sure to label your answer correctly (example,%, times, days, etc.). IF AN ANSWER SHOULD BE EXPRESSED ASA PERCENTAGE, DO NOT LEAVE IT IN DECIMAL FORM!!!! (i.e. 0.5015 =50.15%!!!!)
Previous (December 31, 2014) year end balancesfor:
Accounts receivable, net of allowanceInventory
Stockholdersâ Equity
Market price per share for one share of common stock atDec 31, 2015 Dividend per share for one share of common stock forFYE Dec 31, 2015
$2,000 15,000 139,000
$94.50/share $1.25/share
No new shares of common stock were issued during 2015.The companyâs credit policy is net 15.
RATIO | CALCULATION | ANSWER |
1) Quick (Acid-Test) Ratio (2points) | ||
2) Dividend Yield (2points) | ||
3) Gross Profit Percentage (2points) | ||
4) Average Daysâ Sales Uncollected 2points) | ||
5) Inventory Turnover (2points) | ||
6) Price-Earnings Ratio (2points) |
7) Using the liquidity ratios (and generalaccepted norms for the current ratio and quick/acid-test ratio),comment on the companyâs financial position. (3points)
Overall Caloric Distribution (10 points)
Average kcals consumed ________________
Percent of goal for kcal _________________________ (kcals consumed divided by recommended kcal * 100)
Since carbohydrate and fat are largely used to meet kcal needs, it makes sense to look at our intake in terms of percent of total kcal rather than in absolute gram amounts.
Record the percent of kcals coming from carbohydrate and fat in your diet in the chart below. Do not confuse the percent of kcals with the percent of a goal.
To calculate, use the following formulas:
Determine number of kcals from each macronutrient consumed on an average day
kcals from CHO = grams of CHO consumed per avg. day X 4 kcals per g CHO
kcals from FAT = grams of FAT consumed per avg. day X 9 kcals per g FAT
Divide number of kcals from each macronutrient by total day kcals consumed
% of total daily kcals from CHO = kcals from CHO / total daily kcals
% of total daily kcals from FAT = kcals from FAT/ total daily kcals
(Ex. 200 grams of CHO consumed * 4 kcals per g CHO = 800 kcals of carbohydrate. 800 kcals of carbs / 2400 kcals total consumed = .33 * 100 = 33% or 33% of kcals came from carbohydrate)
| Macronutrient | Recommended percent of kcal | Percent of kcal from nutrient in your diet |
| Carbohydrate | 45 - 65 % of kcals | |
| Fat | 20-35% of kcals |
Did you consume the appropriate percent of kcal from carbohydrates, protein and fat? If not, how might you adjust your kcal to better meet the recommendations and what changes in your food intake could accomplish this?
Carbohydrate Intake - Further Analysis (6 points)
*note: if you are using myplate, ignore the recommendation of 130 grams for total carbohydrate on your printout.....that is a minimum not a recommended amount
3. Average grams of fiber consumed ______________________.
4. Percent of goal for fiber ________________________ (average fiber consumed divided by fiber recommended * 100)
5. Are you getting enough fiber (100% of goal for question 4)? If not, how might you fix this?
6. Take a look at your list of foods....are lots of your kcals coming from sugar? Only 10% or less of your total kcals should be coming from refined (added) sugar...how do you think you did? ______________________________________________
Fat Intake - Further Analysis (8 points)
7. Average grams of saturated fat consumer per day:_______________________
8. Percent of kcals from saturated fat per day: ______________________________ (Hint: average grams of sat. fat consumed times 9 kcals per gram divided by total kcals consumed)
9. Did you consume more that 10% of your kcals from saturated fat? If so, how might you reduce saturated fat?
(you do not need to be worried about consuming too little since there are no essential fatty acids that are saturated)
note: if you are using diet analysis plus to evaluate your diet, you can look at the spreadsheet report to see how much of a given nutrient is in each food that you ate.. For example, if your saturated fat were high, you could look at the spreadsheet report to see what foods contributed the most saturated fat to the diet. You can then think about reducing portion size or making substitutions
10. Average milligrams of cholesterol per day: ____________________________________. Are you consuming more than 300 milligrams of cholesterol? If so, how might you reduce this?
11. Are you consuming foods rich in omega-3 fatty acids? If so, what are they? If not, how might you increase your intake of omega-3 fatty acids?
Protein Intake - Further Analysis (6 points)
12. What is your protein RDA? (Multiply your body weight in kilograms by 0.8 g PRO/kg)
13. Are you consuming an appropriate amount of protein? (Recommendation is to consume a minimum of the RDA amount and a maximum of twice the RDA)
14. If you are not within the range indicated in question 13, indicate how you might adjust your diet.