Complete the following problems: Problem 2-11 Problem 2-15 Problem 2-25
Management
lems
Master 11/2011-kT
Problem 2-11 - Refer to problems at the end of the chapter for details and instruction Use template to complete the problem:
Stein Books, Inc. Books Sold Price of Books Cost of Books Selling expense Depreciation Expense Borrowings Interest on Borrowings Tax Rate 1,400 $195 $150 $12,000 $15,000 $100,000 10% 30% Sales Cost of goods sold Gross profit S & A expenses Depreciation expense Operating Profit Interest expense Earnings before taxes Taxes Earnings after taxes Solution: Stein Books, Inc. Income Statement For the Year Ended Dec. 31, 2010
Problem 2-15 - Refer to problems at the end of the chapter for details and instruction Use template to complete the problem:
Information Accumulated Depreciation Retained Earnings Cash Bonds Payable Accounts Receivable Plant and Equipment - Original Cost Accounts Payable Allowance for bad debt Common Stock, $1 par, 150,000 shs. outstanding Inventory Prefered Stock, $50 par, 1,000 shs. Outstanding Marketable securities Investments Notes Payable Capital paid in excess of par (common stock) $300,000 $96,000 $10,000 $136,000 $48,000 $680,000 $35,000 $6,000 $100,000 $66,000 $50,000 $20,000 $20,000 $33,000 $88,000 Solution:
Solution: Assets Current Asssets: Cash Marketable Securities Accounts Receivable Less: Allowance for bad debt Inventory Total Current Assets Other Assets: Investments Fixed Assets: Plant & Equipment Less: Accumulated Dep. Net Plant & Equipment Total Assets
Liabilities and Stockholders' Equity Current Liabilities: Accounts Payable Notes Payable Total current liabilities Long-term Liabilities: Bonds Payable Total Liailities Stockholders' Equity Preffered Stock, $50 par, 1,000 outstanding Common Stock, $1 par, 150,000 outstanding Capital paid in excess of par (common stock) Retained earnings Total Stockholders' Equity Total Liabilities and stockholders' Equity
Problem 2-25 - Refer to problems at the end of the chapter for details and instruction Use template to complete the problem:
Amigo Software, Inc. Total Assets Current Liabilities Long-term Liabilities Preffered Stock Obligation # of common stock outstanding Earnings available to common P/E Ratio Solution: a) Total Assets Current Liabilities Long-term Liabilities Stockholders' Equity Preffered Stock Obligation Net Worth assigned to common # of common outstanding Book Value per share c) b) $800,000 $150,000 $120,000 $65,000 30,000 $48,000 20
Earnings avilable to common # of common outstanding Earnings per share P/E Ratio Price of share Market to book value per share
Problem 3-21 - Refer to problems at the end of the chapter for details and instruction Use template to complete the problem:
Jim Short's Company Year 2010 Sales Cash Accounts Receivable Inventory Net P & E Total Assets Solution: a) Accounts Receivable Turnover $4,000,000 $100,000 $800,000 $400,000 $500,000 $1,800,000 b)
Inventory Turnover
c)
Short's Company Year 2011 Sales Cash Accounts Receivable Inventory Net P & E Total Assets Accounts Receivable Turnover $5,000,000 $100,000 $900,000 $975,000 $500,000 $2,475,000
Inventory Turnover
Problem 3-22 - Refer to problems at the end of the chapter for details and instruction Use template to complete the problem:
Bryan Corporation Balance Sheet December 201x Assets Current Asssets: Cash Accounts Receivable Inventory Plant & Equipment Total Assets $50,000 $280,000 $240,000 $380,000 Accounts Payable Accrued Taxes Bonds Payable (long-term) Common Stock Paid in Capital Retained earnings $950,000 Total Liabilities and stockholders' Equity Sales $3,040,000 Solution: a) Current Ratio c) Debt to total Assets Sales on Credit $220,000 $80,000 $118,000 $100,000 $150,000 $282,000 $950,000 75% Liabilities and Stockholders' Equity
b) Quick Ratio
d) Asset turnover
s and instructions:
Problem 3-28 - Refer to problems at the end of the chapter for details and instruction Use template to complete the problem:
Quantum Moving Company Industry Data on Year 2008 2009 2010 Net Income $350,000 $375,000 $375,000 Total Assets Net Inc./Tot. Assets $2,800,000 $3,200,000 $3,750,000 11.5% 8.4% 5.5% a) Year 2008 2009 2010 Solution:
Quantum Moving Company Industry Data on Year 2008 2009 Debt $1,624,000 $1,730,000 $1,900,000 Total Assets Debt/Tot. Assets $2,800,000 $3,200,000 $3,750,000 54.1% 42.0% 33.4% b) Year 2008 2009 2010
Quantum Ratio
Industry Ratio
Quantum Ratio
Industry Ratio
As an industry analyst comparing the firm to the industry, are you likely to praise or criticize the firm in terms of:
As an industry analyst comparing the firm to the industry, are you likely to praise or criticize the firm in terms of: