MGAB02H3 Study Guide - Final Guide: Current Liability, Stock Split, Amortization Schedule

124 views10 pages

turquoisegnu128

16 Oct 2018

School

Department

Course

Professor

For unlimited access to Study Guides, a Grade+ subscription is required.

Document Summary

The financial statements of alexis inc. appear below: The following additional data were provided: during the year the company sold some equipment for ,000 cash. Prepare in proper format a cash flow statement for alexis inc. , using the indirect method. 2011 fall b06 final exam review questions page 1. During 2010, their first year of operations, atlantic corporation engaged in the following selected transactions: Issued 20,000 common stock at per share. Reacquired 1,500 shares of common stock for per share. The board of directors declared and paid a 10% common stock dividend. The market price of the common shares was per share. The board of directors declared and paid a cash dividend of sh. 20 per share. Required : (a) prepare the journal entries to record the above transactions (b) prepare the shareholders" equity section of the balance sheet at december 31, 2010. 2011 fall b06 final exam review questions page 2.

Related Questions

Super stuck on this, please help me with this problem. Thankyou. Presented below are the financial statements of KurtzelCompany. KURTZEL COMPANY Comparative Balance Sheets December 31Assets 2014 2013 Cash $ 35,000 $ 20,000 Accounts receivable 20,00014,000 Inventory 28,000 20,000 Property, plant, and equipment60,000 78,000 Accumulated depreciation (32,000) (24,000) Total $111,000 $108,000 Liabilities and Stockholdersâ Equity Accountspayable $19,000 $15,000 Income taxes payable 7,000 8,000 Bondspayable 17,000 33,000 Common stock 18,000 14,000 Retained earnings50,000 38,000 Total $111,000 $108,000 KURTZEL COMPANY IncomeStatement For the Year Ended December 31, 2014 Sales revenue$242,000 Cost of goods sold 175,000 Gross Profit 67,000 Sellingexpenses $18,000 Administrative expenses 6,000 24,000 Income fromoperations 43,000 Interest expense 3,000 Income before income taxes40,000 Income tax expense 8,000 Net income $ 32,000 Additionaldata: 1. Depreciation expense was $17,500. 2. Dividends declaredand paid were $20,000. 3. During the year equipment was sold for$8,500 cash. This equipment cost $18,000 originally and hadaccumulated depreciation of $9,500 at the time of sale. Directions:(a) Prepare a statement of cash flows using the indirect method.(b) Compute these cash-based measures: (1) Current cash debtcoverage. (2) Cash debt coverage. (3) Free cash flow.

violetbuffalo160

5) MC Qu. 67 Swinger Corporations comparative ...

Swinger Corporation's comparative balance sheet appears below:

	Ending Balance	Beginning Balance
Assets:
Current assets:
Cash and cash equivalents	$47,000	$31,000
Accounts receivable	23,000	22,000
Inventory	66,000	64,000
Total current assets	136,000	117,000
Property, plant, and equipment	356,000	338,000
Less accumulated depreciation	184,000	161,000
Net property, plant, and equipment	172,000	177,000
Total assets	$308,000	$294,000
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$17,000	$16,000
Accrued liabilities	43,000	44,000
Income taxes payable	63,000	61,000
Total current liabilities	123,000	121,000
Bonds payable	83,000	80,000
Total liabilities	206,000	201,000
Stockholders' equity:
Common stock	27,000	24,000
Retained earnings	75,000	69,000
Total stockholders' equity	102,000	93,000
Total liabilities and stockholders' equity	$308,000	$294,000

The company did not dispose of any property, plant, and equipment during the year. Its net income for the year was $10,000. The net cash provided by operating activities is:

A)$36,000

B)$32,000

C)$28,000

D)$34,000

periwinklebeetle160

Write an assessment of the company's financial performance,using ratios to support your conclusion. What can you concludeabout the company's liquidity, solvency, and profitability? Be sureto include the ratios calculation to support your conclusion.

Use the financial statements provided below to calculate thefollowing financial ratios:

	2012	2011
1. Current Ratio	10.915	6.715
2. Quick Ratio	11.307	7.524
3. Long-Term Debt-to-Equity Ratio	2.785	3.834
4. Debt-to-Equity Ratio	2.785	3.834
5. Long-Term Debt Ratio	2.866	3.988
6. Accounts Receivable Turnover Ratio (Assume that60% of Sales are Credit	25.491	8.908
7. Inventory Turnover Ratio (Assume 2011 beginninginventory was -0-.)	-0.715	-0.450
8. Asset Turnover Ratio	0.163	0.076
9. Gross Profit Percentage	0.731	0.806
10. Net Profit Margin Percentage	0.375	0.311
11. Return on Assets	0.061	0.024
12. Return on Equity	0.237	0.118

Get Your Motor Runnin'

Compartive Balance Sheets

	2012	2011
Assets
Current Assets
Cash	$198,456	$147,333
Accounts Receivable	4,000	5,000
Allowance for Uncollectible Accounts	(250)	80
Supplies	200	250
Inventory	35,000	32,000
Total current assets	237,406	184,663
Property, Plant, and Equipment
Equipment	60,000	15,000
Accumulated Depreciation - Equipment	(14,000)	(1,000)
Vehicles	35,000	35,000
Accumulated Depreciation - Vehicles	(4,800)	(2,400)
Building	684,375	684,375
Accumulated Depreciation - Building	(25,000)	(12,500)
Land	46,875	46,875
Land Improvements	23,750	23,750
Accumulated Depreciation - Land Improvements	(2,539)	(663)
Total PP&E	803,661	788,437
Total Assets	$1,041,067	$973,100

Liabilities and Stockholders' Equity
Current Liabilities
Accounts Payable	$20,000	$24,000
Wages Payable	1,000	500
Warranties Payable	750	500
Notes Payable	0	2,500
Total current liabilities	21,750	27,500
Long-term Liabilities
Bonds Payable	750,000	450,000
Mortgage Payable	0	300,000
Total long-term liabilities	750,00	750,000
Total liabilities	771,750	777,500
Stockholder's Equity
Common Stock	125,000	125,000
Paid-in capital in excess of par - common	25,000	25,000
Preferred Stock	40,000	20,000
Paid-in capital in excess of par - preferred	25,000	15,000
Less: Treasury Stock	(3,000)	(3,000)
Paid-in capital - treasury stock	500	500
Retained Earnings	56,817	13,100
Total stockholders' equity	269,317	195,600
Total liabilities and stockholders' equity	$1,041,067	$973,100

Get Your Motor Runnin'

Comparative Income Statements

	2012	2011
Service Revenue	$93,693	$50,230
Sales	76,250	24,000
Cost of Goods Sold	(45,750)	(14,400)
Gross Margin	$124,193	$59,830

Operating Expenses:
Advertising Expense	$7,500	$5,000
Bad Debt Expense	330	0
Depreciation Expense - Equipment	13,000	5,667
Depreciation Expense - Vehicles	2,400	2,400
Depreciation Expense - Building	12,500	12,500
Depreciation Expense - Land Improvements	1,876	663
Wages Expense	22,870	10,500
Total Expenses	60,476	36,730
Net Income	$63,717	$23,100

aquamarinecod596

MGAB02H3 Study Guide - Final Guide: Current Liability, Stock Split, Amortization Schedule

Document Summary

Get access

Related Documents

MGAB02H3 Study Guide - Final Guide: Profit Margin, Retained Earnings, Effective Interest Rate

MGAB02H3 Lecture Notes - Lecture 5: Current Liability, Dividend, Gross Profit

MGAB02H3 Lecture Notes - Lecture 11: Operating Cash Flow

Related Questions