Homework 3 - Solutions

Preview File Edit View Go Tools Window Help V mgt120h-j17.pdf Page 5 of 10 C b. 7 C. d. a. b. 14 16 C. d. 0 8. Assume you are a common shareholder evaluating the financial statements of your company. In general, you would prefer to see what types of values for each of the following financial ratios? Number of days' sales in accounts receivable High High Low Low U ● CC ✩ V Search ((. Ơ High Low Inventory turnover High Low Sat Apr 15 2:53 PM

A company provides services to customers on account for $2,100. Indicate the amount of increases and decreases in the accounting equation. Assets Liabilities Stockholders' Equity + 4) 44 F10 F7 20 F3 F5 F2 F1 & # 3 4 5 6 7 8 Q W E R T Y K S D F G C V alt alt command option ption command .. .. * co

Exercise 4-19A (Algo) Using common size statements and ratios to make comparisons LO 4-8 The following information is available for the Memphis and Billings companies: Memphis $ 1,212,000 800,000 336,000 1,440,000 380,000 Sales Cost of goods sold Operating expenses Total assets Stockholders' equity Required: a. Prepare a common size income statement for each company. b. Compute the return on assets and return on equity for each company. c. Which company is more profitable from the stockholders' perspective? d. One company is a high-end retailer, and the other operates a discount store. Which is the discounter? Complete this question by entering your answers in the tabs below. Billings $ 1,150,640 878,000 229,320 1,330,000 380,000 Required A Required B Required C Required D Prepare a common size income statement for each company. Note: Round percentage answers to 1 decimal place. MEMPHIS COMPANY AND BILLINGS COMPANY Common Size Income Statements Memphis % $ 0 0 0.0 Billings 0.0 $…

Calculate the equity multiplier (total assets / total equity) for the firm below. Make sure you do NOT convert your answer and keep 2 decimals for your final answer.....for examples, if you calculate 6,000/400 = 15, you should enter 15 into BB to be marked correct.  Sales $5,000 COGS $1,200 Depreciation $800 Interest $500 Net Income $200 Total Assets 5000 Total Equity 1400

b Preview File Edit View Go Tools Window Help mgt120h-a17.pdf Page 4 of 10 a. Leveraging with debt is always a better idea. b. Their earnings per share may decrease. c. The price of the shares will automatically decrease. Dividends must be paid on a periodic basis. d. 11. Corporations generally issue stock dividends in order to a. Increase the market price per share. b. Exceed shareholders' dividend expectations. c. Increase the marketability of the shares. d. Decrease the amount of capital in the corporation. Debenture Valuation Cost-Volume-Profit Analysis 90 The Effect Of Prepaid Taxes On Assets And Liabili... 10. Shareholders of a company may be reluctant to finance expansion through issuing more equity because O D CC 7 V Search (Cª Ơ Sat Apr 15 3:05 PM 9. Two sisters operate a bed and breakfast on the coast of BC reservations they are required to pay cash in advance equal to one-half of the te stay. How should the sisters account for the cash received as reservations are made? of…

question 1 a) (img 60) find: 1. gross profit margin 2. stock turn over 3. net profit margin 4. return on capital employment 5. current ratio 1b)The following figures are from a similar company. C services Limited for the year ended 31 December 2010 Gross profit margin                                                     25% Stock turnover ratio                                                    9 Net profit Margin                                                          10% Return on Capital employed                                            12.5% Current Ratio                                                                  1:1 Quick Ratio                                                                  0.5:1 Compare your results in a, ABB Engineering with those of b, CD Engineering Services Limited. As a result of your comparison which company do you think is more successful during the year. Give reasons for your answers.    6. quick ratio

213erform the 3 step DuPont Return on Equity (ROE) analysis for Brady Corp. using cell references. (25 pts) Write a brief analysis (50-100 words) of what you learn from the DuPont analysis on your Excel worksheet. Balance Sheet ($000) Ratios Calculation Assets Liabilities and Equity Liquidity Cash 2$ Accounts payable Notes payable 1,500 12,500 Current Marketable securities $ $ $ 2,500 12,500 Quick Accounts receivable 15,000 Total current liabilities $ 25,000 Inventory 33,000 Long-term debt 22,000 Asset Management Total current assets 2$ 52,000 Total liabilities 47,000 Average collection period Fixed assets (net) 35,000 Common stock (par value) 2$ 5,000 Inventory turnover Total assets $ Fixed-asset turnover Contributed capital in excess of par Retained earnings 87,000 18,000 17,000 Total asset turnover Total stockholders' equity 40,000 Total liabilities and stockholders' equity 87,000 Financial Leverage Debt Income Statement ($000) Other Info Debt-to-equity Times interest earned Sales…

Hi there, could you please check if my answers were correct? Testbank Exercise 136 Indicate the effect of each of the following transactions on total stockholders' equity by placing an "X" in the appropriate column.         Increase   Decrease   No Effect 1.   Treasury stock is resold at more than cost.    X         2.   Operating loss for the period.        X     3.   Retirement of bonds payable at more than book value.        X     4.   Declaration of a stock dividend.        x     5.   Acquisition of machinery for common stock.            X 6.   Conversion of bonds payable into common stock.            X 7.   Not declaring a dividend on cumulative preferred stock.            x 8.   Declaration of cash dividend.        X     9.   Payment of cash dividend.            X

tol Processing ng Help Save & Exit Submit Saved Practice Problems i Check my work Eaton Electronic Company's treasurer uses both the capital asset pricing model and the dividend valuation model to compute the cost of common equity (also referred to as the required rate of return for common equity). Assume: Rf = 7% Km 10% = 1.6 D1 = $ 0.70 $ 19 8% %3D PO = nt a. Compute Ki (required rate of return on common equity based on the capital asset pricing model). (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) ences Ki b. Compute Ke (required rate of return on common equity based on the dividend valuation model). (Do not round intermediate calculations, Input vour answer as a percent rounded to 2 decimal places.) < Prev 10 of 10 Next Mc Graw Hill 149 MacBook Air

Assume that you are a consultant to a company, and you have been provided with the following data: D1 = $0.67; P0 = $30.00; and g = 8.00% (constant). What is the cost of equity from retained earnings? 10.41% 8.80% 9.82% 10.23% 10.54%

Stempsnsm Xan Isnoitibst mont 19tti tempat b woH Task 2: A financial market participant is woried about how short-term market fluctuations over the next 3 months might impact his equity position in ABC Corporation. The individual is concerned about short-term downside price movements, he wants to remain invested in ABC shares (i.e., maintain the upside potential) because he remains positive about the company's long-term performance. Recommend and describe the appropriate derivatives strategy that will keep the market participant invested in ABC shares while protecting against a short-term price decline. ton bluorie meve ne mont eniens ceol and sqmos constant is to inlogwaiverit mort eldiveni ed of 1910 nl notatia pe tot elqmsxe ns ritiw evods srit nislqx3 insoitinpieni oot on pirotesto ed S noitesuo A. Protective Put B. Collar C. Zero-Cost Collar D. Covered Call E. Forward Rate Agreement Based on your choice, give a short description of the appropriate strategy: (hightlight the correct…

Services Proctor or Question 3 Use the following information to solve for the unknown amount. Be sure to round your final answer to the nearest whole amount. Company MSK As of 12/31/20 Assets 34,320 Liabilities 25,453 As of 12/31/21 Assets 45,344 Liabilities 15.721 During 2021 Issued Stocks 1,400 Net Income (loss) X Dividends 400 19.800 3p

QUESTION # 1 a) In an accounting conference, discussion turned to the possibility of preparing financial statements from a few key accounts together with financial or cost ratios. The assistant controller of a participating firm provided the following data: Pretax income $ 2100000/-. Pre tax Income rate on sales 20%, Gross Profit rate 45%, Rate of marketing expense to sales 25%, 5% Bond Payable represent 37.5 % of the total liabilities of $ 1000000/-. Required: - An Income statement for the year based on the above information. b) If amongst the cost of goods sold in the above question 40% is Direct material and remaining is FOH and Direct Material. FOH is 75% of Direct labour. In the coming year it is expected that material would increase by 20% and amongst total FOH 40% is fixed. If margin rate is 40% and the ratio between Variable FOH and Direct Labour remains same find out the new selling price.

i will 10 upvotes urgent. Stockholders that do not get benefits even if company's earnings grow are classified as. A. preferred stockholders B. common stockholders C. hybrid stockholders D. debt holders

Calculate the equity multiplier (total assets / total equity) for the firm below. Keep to 2 decimal places and do not convert it. ....for examples, if you calculate 6,000/400 = 15, you should enter 15 into BB to be marked correct.  Sales $5,000 COGS $1,200 Depreciation $800 Interest $500 Net Income $200 Total Assets 6000 Total Equity 1300

Item16     Time Remaining 1 hour 22 minutes 19 seconds 01:22:19     Item 16   Time Remaining 1 hour 22 minutes 19 seconds 01:22:19 A financial manager's goal of maximizing current or short-term earnings may not be appropriate because: Multiple Choice   it considers the timing of the benefits.   increased earnings may be accompanied by acceptably higher levels of risk.   share ownership is widely dispersed.   earnings are subjective; they can be defined in various ways such as accounting or economic earnings.

Personal hotspot.. Used 72.4 MB Prepare the required financial statements for Metro Company Assume you are an analyst evaluating Metro Company. The following data are available in your financial analysis (unless otherwise indicated, all data are as of December 31, 2015): - 50 points Retained earnings, 12/31/2014 Gross profit margin ratio Day's sales in inventory Acid-test ratio Non current assets Day's sales in receivables Shareholder's equity to total debt Sales (all on credit) Common stock $15 par value; 10,000 shares issued and outstanding; issued at $21 per share. $98,000 25% 45 days 2.5 times $280,000 18 days 4 to 1 $920,000 Using these data, construct the December 31, 2015 balance sheet for your analysis. Operating expenses (excluding taxes and cost of goods sold for 2015) are $180,000. The tax rate is 40%. Assume a 360-day year in ratio computations. Current assets consist of cash, accounts receivable, and inventories. Your answer -> 41 •.. Honor Code | bart.. Lite…

The President of Paroy, has asked you to gather some statistics about his Company’s solvency. You have compiled the following data: Net Income Income Tax Rate P 900 000 34% Total Liabilities Total Stockholders 2 048 000 Interest Expense 100 000 Equity 4 352 000 REQUIRED: Using these data, calculate: 1.)Times interest earned ratio           2.)Debt ratio           3.)Equity ratio

What is Horizontal Analysis? How does it differ from Vertical Analysis? Do you believe one type of analysis is more useful than the other? (2) Perform horizontal analysis on the figures below using dollar amounts and percentages. Round percent answers to one decimal place. (3) Think of the different users of financial statements and discuss who would be interested in this information (and why).    20Y8 20Y7 Fees Earned $680,000 $850,000 Operating Expenses 541,875 637,500 Net Income $138,125 $212,500

If you can please help in excel for this part be I have attached part A as it is a camuliative question part A i have correct but I need help with part B  b. Calculate the present value of each of the anticipated dividends at a discount rate of 22 percent. (Do not round intermediate calculations. Round the final answers to 3 decimal places.)     PV ofdividends   D1 $      D2      D3           Total $

D68iWUmoFzSg/formResponse?pli=1 B) Net Loss. C) Investment on Stocks. D) None of the above. 10. The income statement's primary purpose is to show the of a business. A) Financial position. B) Financial performance. O C) Cash position. O D) Expenses. O E) None of the above. Page 3 of 8 Clear form Back Next Neverlsubmit pásswords chough Gdogle Forms. eof Lebanese Inter atlonal University. Report Abuse OO O C O

Q1. Risk and Return Big Rock is listed on the local stock exchange and its stock has had mixed performance over the last few months. The company's directors are interested in seeing how Big Rock's performance compares to other companies in the sector. Value End Value End Value End of Year 1 $1,268 Company Initial Investment of Year 2 of Year 3 Big Rock Building Inc. $1,000 $1,334 $1,105 Required: Calculate the arithmetic mean and the geometric mean over the three-year period for the investments made.

CELCOM Stay Safe Stay... 88 12:18 Laz Tutorial 6 - Qs Brief (1) QUESTION 7 P18.3A Р18.ЗА (LO 3) Jergan Corporation are presented here. Perform ratio analysis, and discuss changes in financial position and operating results. Jergan Corporation Balance Sheets December 31 Condensed balance sheet and income statement data for 2020 2019 2018 Cash $ 30,000 $ 20,000 $ 18,000 Accounts receivable (net) 50,000 45,000 48,000 Other current assets 90,000 95,000 64,000 Investments 55,000 70,000 45,000 Plant and equipment (net) 500,000 370,000 358,000 $725,000 $600,000 $533,000 Current liabilities $ 85,000 $ 80,000 $ 70,000 Long-term debt Common stock, $10 par 145,000 85,000 50,000 320,000 310,000 300,000 Retained earnings 175,000 125,000 113,000 $725,000 $600,000 $533,000 Jergan Corporation Income Statements For the Years Ended December 31 2020 2019 Sales revenue $740,000 $600,000 Less: Sales returns and allowances 40,000 30,000 Net sales 700,000 570,000 Cost of goods sold Gross profit 425,000…

Estimating EPS from Statement of Equity Below is an excerpt from the Consolidated Statement of Equity for Conglomerate Y for the fis year ended Year 10 (millions). Fiscal Year Ended December 27, Year 10 Preferred Stock Conglomerate Y and Subsidiaries Consolidated Statement of Equityt Repurchased Preferred Stock Balance, beginning of year Redemptions Balance, end of year Common Stock Balance, beginning of year Repurchased common stock Balance, end of year Capital in Excess of Par Value Balance, beginning of year Stock-based compensation expense Stock option exercises, RSUS, PSUs and Yunits converted Withholding tax on RSUS and PSUs converted Other Balance, end of year Retained Earnings Balance, beginning of year Net income attributable to Conglomerate Y Cash dividends declared-common Cash dividends declared-preferred Cash dividends declared-RSUS and PSUs Balance, end of year Shares Amount 0.8 $41 (0.6) (0.1) (0.7) 1,529 (66) 1,463 (171) (10) $(181) $25 $25 $4,095 297 (200) (91) 14…