Total Current Asset Current Ratio Effect on Net Income
a
Cash is acquired through issuance of additional common stock
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b
Merchandise is sold for cash
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c
Federal income tax due for the previous year is paid
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d
A fixed asset is sold for less than book value
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e
A fixed asset is sold for more than book value
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f
Merchandise is sold on credit
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g
Payment is made to trade creditors for previous purchases
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h
A cash dividend is declared and paid
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I
Cash is obtained through short- term bank loans
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J
Short- term notes receivable are sold at a discount
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k
Marketable securities are sold below cost
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L
Advances are made to employees
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m
Current operating expenses are paid
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n
Short- term promissory notes are issued to trade creditors in exchange for past due accounts payable
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o
10- year notes are issued to pay off accounts payable
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p
A fully depreciated asset is retired
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4 DEBT RATIO- Bartley Barstools has an equity multiplier of 2.4, and its assets are financed with some combination of long-term debt and common equity. What is its equity ratio? What is its debt ratio?
6 MARKET/BOOK RATIO- Jaster Jets has $10 billion in total assets. Its balance sheet shows $1 billion in current liabilities, $3 billion in long-term debt and $6 billion in common equity. It has 800 million shares of common stock outstanding, and its stock price is $32 per share. What is Jaster
Total Current Asset Current Ratio Effect on Net Income
| a | Cash is acquired through issuance of additional common stock | ____ | ____ | ____ | |||||
| b | Merchandise is sold for cash | ____ | ____ | ____ | |||||
| c | Federal income tax due for the previous year is paid | ____ | ____ | ____ | |||||
| d | A fixed asset is sold for less than book value | ____ | ____ | ____ | |||||
| e | A fixed asset is sold for more than book value | ____ | ____ | ____ | |||||
| f | Merchandise is sold on credit | ____ | ____ | ____ | |||||
| g | Payment is made to trade creditors for previous purchases | ____ | ____ | ____ | |||||
| h | A cash dividend is declared and paid | ____ | ____ | ____ | |||||
| I | Cash is obtained through short- term bank loans | ____ | ____ | ____ | |||||
| J | Short- term notes receivable are sold at a discount | ____ | ____ | ____ | |||||
| k | Marketable securities are sold below cost | ____ | ____ | ____ | |||||
| L | Advances are made to employees | ____ | ____ | ____ | |||||
| m | Current operating expenses are paid | ____ | ____ | ____ | |||||
| n | Short- term promissory notes are issued to trade creditors in exchange for past due accounts payable | ____ | ____ | ____ | |||||
| o | 10- year notes are issued to pay off accounts payable | ____ | ____ | ____ | |||||
| p | A fully depreciated asset is retired | ____ | ____ | ____ | |||||
4 DEBT RATIO- Bartley Barstools has an equity multiplier of 2.4, and its assets are financed with some combination of long-term debt and common equity. What is its equity ratio? What is its debt ratio?
6 MARKET/BOOK RATIO- Jaster Jets has $10 billion in total assets. Its balance sheet shows $1 billion in current liabilities, $3 billion in long-term debt and $6 billion in common equity. It has 800 million shares of common stock outstanding, and its stock price is $32 per share. What is Jaster
Related questions
I need help with this assignment and with filling in the blanks
ABC CORP
BALANCE SHEET
December 31, 2010
Cash $ 50
Marketable Securities 0
Accounts Receivables 1,000
Inventory 70
Fixed Assets ( net ) 2,000
Total Assets = 3,120
=====
Accounts Payable $ 1,170
Notes Payable 0
Retained earnings ?
Common Stock 1,400
Total of Both Liabilities & Equity =====
For the year ended 12/31/10 ABC CORP generated Sales of $6,000 and Net Income of $60. The net profit margin this year is considered normal by ABC CORP. Cost of Goods Sold was $4,200 in 2010. Cost of Goods Sold consistently averages seventy per cent of Sales, and will continue to do so in the future. Depreciation Expense was $500 in 2010. No Depreciation Expense was, or ever will, be included in Cost of Goods Sold. Fixed Operating Costs, excluding Depreciation Expense, were equal to $1,200 for 2010. These Fixed Operating Costs included all utilities, all insurance, all rent, all property taxes, and all labor charges. Fixed Operating Costs (other than depreciation expense) are paid for immediately, as they are incurred. Fixed Operating Costs were spread evenly throughout the year 2010. With regard to the size and timing of these costs, it is anticipated that the experience of 2010 will be repeated in 2011. Therefore, we anticipate cash payments associated with Fixed Operating Costs to equal $100 per month in 2011. Because of losses in recent years at ABC Corp and the loss carry forward provisions of the tax code there were no income taxes paid in 2010, and it is anticipated in 2011 that no income tax payments will be made.
Interest paid in 2010 was $40 and dividends paid in that same year were $60 Interest payments are made monthly and dividends are paid at the end of every quarter. The next dividend payment is scheduled for March 2011. The dividend payout ratio in 2010 is considered normal for ABC CORP. The annual interest rate for bank borrowing is six percent per year (one-half of one per cent per month). Interest paid in the current month is based on the previous monthâs balance in Notes Payable.
The target cash balance for the end of any current month is equal to ten percent of next monthâs sales.
Target ending inventory at the end of any current month is equal to twenty percent of estimated cost of goods sold for the next month. All purchases of inventory are paid for in the month following purchase. The entire balance of Accounts Payable, at any given point in time, represents the purchase of inventory which has not yet been paid for. One-half of all sales are collected in the month of sale, the remainder in the following Month. The sales forecast for the first four months of 2011 is
January $ 500
February 400
March 1,600
April 1,000
Sales for October, November and December of the year 2010 were $1,000 $1,000 and $2,000, respectively.
It is the policy of the company to repay bank borrowing as soon as possible; If money is not needed for this purpose, then investments of marketable securities are made. Marketable Securities should be liquidated to satisfy any subsequent need for cash flow before any new bank borrowing is done. The annual yield on marketable securities is three per cent (one-quarter of one percent per month). Interest payments to the firm are based on the previous monthâs balance in Marketable Securities.
On the next two pages, you will find a partially completed Cash Budget. Some numbers are filled in for your convenience. For only the month of January 2011, you are to fill in missing amounts in this Cash Budget. When you answer to this requirement remember to write zero if you mean zero because a blank will not be interpreted as zero.
| The Cash Budget | |||
| Nov 10 | Dec 10 | Jan 11 | |
| Sales | 1,000 | 2,000 | 500 |
| Cost of goods sold | 700 | 1400 | 350 |
| Beginning Inventory | 140 | 280 | 70 |
| Ending Inventory | 280 | 70 | 56 |
| Purchases | 840 | 1,190 | 336 |
| Cash Collections: | X | X | |
| Collected in month of sale | X | X | |
| Collected month after sale | X | X | |
| Other Inflow: | X | X | |
| Interest Income Payments | X | X | 0 |
| TOTAL INFLOWS | X | X | |
| Nov 10 | Dec 10 | Jan 11 | |
| Outflows: | |||
| Payment for Purchases | X | X | |
| Interest Payments | X | X | 0 |
| Overhead Payments | X | X | 100 |
| Fixed Asset Additions | X | X | 0 |
| Dividend payments | X | X | 0 |
| Income Tax Payments | X | X | 0 |
| TOTAL OUTFLOWS | X | X | |
| Inflow - Outflow | X | X | |
| Beginning Cash | X | X | |
| Desired Cash | X | 50 | 40 |
| Cash Produced Over + or Under - Immediate Need | X | X | |
| Loan Required | X | X | |
| Loan Repaid | X | X | |
| Loan balance | X | 0 | |
| Securities Purchased | X | X | |
| Securities Sold | X | X | |
| Securities Balance | X | 0 | |
I just need help with the chart at the bottom. Here is all the information for the company.
Accounts receivable for 2015__$300____
Total current assets= cash and marketable securities + account rec + inventory
1,542=347+a/r+895
Accounts rec = $300
Accounts payable for 2014__$319_____
Total Current Liabilities = Accrued Wages and taxes + Accounts Payable + Notes Payable
997 = 257 + Accounts Payable + 421
Accounts Payable = $319
c. Gross plant and equipment for 2015_$3,159______
Net Plant and Equipment = Gross Plant and Equipment â Depreciation
2,872 = Gross Plant and Equipment â 287
Gross Plant and Equipment = $3,159
d. Long-term debt for 2014__$132_____
Total Debt = Long-term Debt + Current Liabilities
1,129 = Long-term Debt + 997
Long-term Debt = $132
e. Common stock and paid-in surplus (250 million shares) for 2014 $300
Total Equity = Preferred Stock + Common Stock and paid surplus + Retained Earnings
1,472 = 30 + Common Stock and paid surplus + 1,142
Common Stock and paid surplus = $300
f. Total FA for 2015 $3,393
Total FA = Net Plant and Equipment + Other long-term assets
Total FA = $2,872 + 521
Total FA = $3,393
g. Net sales for 2015_______
Net Sales â Cost of Goods Sold = Gross Profit
Net Sales â 987 = 1,396
Net Sales = $2,383
h. Less: Cost of goods sold for 2014_______
Net Sales â Cost of Goods Sold = Gross Profit
2,018 - Cost of Goods Sold = 1,189
Cost of Goods Sold = $829
i. Less: Interest for 2015_______
EBIT- Interest = EBT
1,086 â Interest = 949
Interest = $137
j. Less: Taxes for 2015_______
Net Income = EBT â Taxes
644 = 949 â Taxes
Taxes = $305
k. Earnings per share (EPS) for 2015_______
Earning per share for 2015 = Net Income available to Common Stockholders / No of Common Stocks
Earning per share =566 / 250
Earning per share = $2.27 per share
l. Dividends per share (DPS) for 2014_______
Dividend per share = Common stock Dividend/ No of Common Stocks
Dividend per share = 219/250
Dividend per share = $0.88 per share
m. Book value per share (BVPS) for 2015_______
Book value per share= total common stockholderâs equity/No of Common Stocks
Book value per share= 1,789/250
Book value per share= 7.16
n. Net income $664
o. Increase in accrued wages and taxes $309-$257= $52
p. Increase in inventory â(895-797)= $ -98
q. Net cash flow from operating activities 664+287+52+62-41-98=$926
r. Increase in other long-term assets â(521-487)= $-34
s. Net cash flow from investing activities -343-34=-377
t. Increase in notes payable 492-421= 71
u. Pay dividends 98+219= 317
v. Net cash flow from financing activities 71+147-317= -99
w. Plus: Net income for 2015 $664
x. Preferred stock $98
Worldwide Widget Manufacturing, Inc.
| Company | Industry | Comparison | |
| Current Ratio | 2.2 times | ||
| Quick Ratio | 1.1 times | ||
| Cash Ratio | 0.35 times | ||
| Inventory Turnover | 2 times or 1 time | ||
| Days' sales in inventory | 135 days or 335 days | ||
| Average payment period | 110 days | ||
| Sales to working capital | 3 times | ||
| total asset turnover | 0.6 times | ||
| debt to equity | 1.1 times | ||
| profit margin | 16.5% | ||
| gross profit margin | 48.13% | ||
| ROA | 8.78% | ||
| ROE | 19.45% | ||
| Dividend payout | 32% |
A. Use the information found in Worldwide Widget Manufacturingâs financial statements to calculate all of the listed financial ratios in the above table for your company. Then, for each ratio, provide a comparison of the companyâs result with the industry standards, indicating if your companyâs results are lower than, higher than, slower than, or faster than the industry standards.
B. Calculate your companyâs internal and sustainable growth rates.
