Question

In: Finance

Following are two years of income statements and balance sheets for the Munich Exports Corporation. MUNICH...

Following are two years of income statements and balance sheets for the Munich Exports Corporation.

MUNICH EXPORTS CORPORATION

                       

             Balance Sheet                                        2012                 2013

             Cash                                                   $50,000           $50,000

Accounts Receivables                         200,000           300,000   

Inventories                                          450,000           570,000

            Total Current Assets                         700,000           920,000

Fixed Assets, Net                                300,000           380,000

            Total Assets                               $1,000,000       $1,300,000

Accounts Payable                               130,000          $180,000    

Accruals                                                50,000              70,000

Bank Loan                                            90,000              90,000

            Total Current Liabilities                   270,000           340,000

Long-Term Debt                                 400,000           550,000

Common Stock ($.05 par)                    50,000              50,000

Additional Paid-in-Capital                200,000           200,000

Retained Earnings                                 80,000           160,000

            Total Liab. & Equity                    $1,000,000       $1,300,000

            Income Statement                                              2012                2013       

Net Sales                                        $1,300,000       $1,600,000

Cost of Goods Sold                             780,000          960,000

            Gross Profit                                       520,000          640,000

Marketing                                           130,000          160,000     

General & Administrative                 150,000          150,000

Depreciation                                          40,000              55,000

            EBIT                                                 200,000           275,000

Interest                                                              45,000              55,000

            Earnings Before Taxes                     155,000           220,000

Income Taxes (40% rate)                      62,000             88,000

          Net Income                                         $93,000          $132,000

     48. Using the financial statements for Munich Exports above, calculate the cash build for Munich Exports in 2013.

            a. $1300

            b. $1500

            c. $1700

            d. $1600

           

49. Using the financial statements for Munich Exports shown above, calculate the cash burn (note, not the net cash burn) for Munich Exports in 2013.

            a. $1668

            b. $1455

            c. $1718

            d. $1598

           

A trade secret can potentially last ___________ if secrecy is maintained.

a.Forever                

b.Life of Author + 70 years unless a work for hire

c.20 years from the date of filing

d.15 years from the date of grant

                      e.   None of the above

Solutions

Expert Solution

48. Cash build for Munich corporation:( answer in thousands )

Net sales -( increase in accounts receivable)

=$1,60,000 - ($3,00,000 - $2,00,000)

=$1,500

the correct option is option b.

49. cash burn:

operating expenses : cost of goods sold + marketing + general administrative

=$9,60,000 + $1,60,000 + $1,50,000

=1,270,000

other cash expenses = interest and taxes = $55,000 + $88,000 = $143000

incraese in inventories: ( $5,70,000 - $4,50,000) = $120,000

changes in payables and accrued liabilities =(1,80,000 - $1,30,000) + ($70,000 - $50,000) = $70,000

capital expendiures : change in net fixed assets + depreciation

=( $3,80,000 - $3,50,000) + $55,000

=$1,35,000

the total cash burn is = $1270,000 + $143000 + $120000 - $70,000 + $1,35,000

=$1598

the correct option is option d.

3. the correct option is option a.

unlike patents and trademarks which can last from 20 to 100 years . a trade secret can last longer, that much longer until the person from whom a trade secret is kept independently discovers the hidden information.

jeff jeffy answered 2 years ago
Next > < Previous

Related Solutions

Which of the following is a difference between balance sheets and income statements? a. Balance sheets...
Which of the following is a difference between balance sheets and income statements? a. Balance sheets are also known as profit and loss statements, whereas income statements are also known as statements of financial position. b. Balance sheets are used to track a business's liquidity, efficiency, and profitability over time compared to other businesses in its industry, whereas income statements are quantitative plans through which managers decide how to allocate available money to best accomplish company goals. c. Balance sheets...
income statements and balance sheets follow for Microsoft Corporation. Refer to these financial statements to answer...
income statements and balance sheets follow for Microsoft Corporation. Refer to these financial statements to answer the requirements. (non-operating items are red-marked) MICROSOFT CORPORATION Income Statements For the years ended June 30, (in millions) 2016 2015 Revenue      Product $61,502 $75,956      Service 23,818 17,624 Total revenue 85,320 93,580 Cost of revenue      Product 17,880 21,410      Service and other 14,900 11,628 Total cost of revenue 32,780 33,038 Gross margin 52,540 60,542 Research and development 11,988 12,046 Sales and marketing...
CASE 3 (25 points) Income statements and balance sheets for Melia Corporation follow. Income Statements for...
CASE 3 (25 points) Income statements and balance sheets for Melia Corporation follow. Income Statements for Years 2015 and 2016 2015 2016 Net sales $438,000 $575,000 - Cost of goods sold -285,000 -380,000 Gross profit 153,000 195,000 -Administrative expenses -45,000 -65,000 -Marketing expenses -32,000 -39,000 -Research and development -20,000 -27,000 -Depreciation -14,000 -17,000 EBIT 42,000 47,000 -Interest expense -12,000 -20,000 income before taxes 30,000 27,000 -Income before taxes -9,000 -8,000 Net income $21,000 $19,000 Balance Sheets for Years Ended 2014,...
Comparative balance sheets and the income statements for Ellis Corporation are presented below: Comparative Balance Sheet...
Comparative balance sheets and the income statements for Ellis Corporation are presented below: Comparative Balance Sheet Ending Balance Beginning Balance Assets: Current assets: Cash and cash equivalents $ 45,900 $ 30,600 Accounts receivable 39,500 40,800 Inventory 73,700 62,400 Total current assets 159,100 133,800 Long-term investments 165,200 208,000 Property, plant, and equipment 294,700 163,500 Less accumulated depreciation 53,000 51,500 Total assets $ 566,000 $ 453,800 Liabilities and stockholders' equity: Current liabilities: Accounts payable $ 39,600 $ 43,200 Accrued liabilities 25,700 30,600...
Comparative balance sheets and the income statements for Ellis Corporation are presented below: Comparative Balance Sheet...
Comparative balance sheets and the income statements for Ellis Corporation are presented below: Comparative Balance Sheet Ending Balance Beginning Balance Assets: Current assets: Cash and cash equivalents $ 48,600 $ 33,000 Accounts receivable 39,900 43,200 Inventory 71,000 61,200 Total current assets 159,500 137,400 Long-term investments 168,500 220,000 Property, plant, and equipment 286,300 159,000 Less accumulated depreciation 53,000 52,500 Total assets $ 561,300 $ 463,900 Liabilities and stockholders' equity: Current liabilities: Accounts payable $ 38,500 $ 42,800 Accrued liabilities 25,000 31,800...
128. Comparative balance sheets and the income statements for Ellis Corporation are presented below: Comparative Balance...
128. Comparative balance sheets and the income statements for Ellis Corporation are presented below: Comparative Balance Sheet Ending Balance Beginning Balance Assets: Current assets: Cash and cash equivalents $ 45,900 $ 31,500 Accounts receivable 39,900 42,800 Inventory 71,000 62,400 Total current assets 156,800 136,700 Long-term investments 176,600 212,000 Property, plant, and equipment 286,300 162,000 Less accumulated depreciation 57,200 53,500 Total assets $ 562,500 $ 457,200 Liabilities and stockholders' equity: Current liabilities: Accounts payable $ 38,200 $ 42,800 Accrued liabilities 25,400...
Comparative balance sheets and the income statements for Ellis Corporation are presented below: Comparative Balance Sheet...
Comparative balance sheets and the income statements for Ellis Corporation are presented below: Comparative Balance Sheet Ending Balance Beginning Balance Assets: Current assets: Cash and cash equivalents $ 49,500 $ 30,600 Accounts receivable 39,100 43,600 Inventory 71,000 63,000 Total current assets 159,600 137,200 Long-term investments 176,600 208,000 Property, plant, and equipment 303,000 165,000 Less accumulated depreciation 57,200 51,000 Total assets $ 582,000 $ 459,200 Liabilities and stockholders' equity: Current liabilities: Accounts payable $ 38,200 $ 42,400 Accrued liabilities 25,400 30,600...
Comparing Income Statements and Balance Sheets of Competitors Following are selected income statement and balance sheet...
Comparing Income Statements and Balance Sheets of Competitors Following are selected income statement and balance sheet data from two retailers: Abercrombie & Fitch (clothing retailer in the high-end market) and TJX Companies (clothing retailer in the value-priced market). (a) Express each income statement amount as a percentage of sales. Round your answers to one decimal place (example: 0.2345 = 23.5%). Income Statement ($ millions) ANF TJX Sales $3,469 $21,942 Cost of goods sold 1,257 Answer% 16,040 Answer% Gross profit 2,212...
Comparing Income Statements and Balance Sheets of Competitors Following are selected income statement and balance sheet...
Comparing Income Statements and Balance Sheets of Competitors Following are selected income statement and balance sheet data from two retailers: Abercrombie & Fitch (clothing in the high-end market) and TJX Companies (clothing retailer in the value priced market), for the fiscal year ended January 30, 2016. (a) Express each income statement amount as a percentage of sales. Round your answers to one decimal place (ex: 0.2345 = 23.5%) Income Statement ($ thousands) ANF TJX Sales $3,518,680 $30,944,938 Cost of goods...
Analysis and Interpretation of Profitability Balance sheets and income statements for Target Corporation follow. Income Statement...
Analysis and Interpretation of Profitability Balance sheets and income statements for Target Corporation follow. Income Statement For Fiscal Years Ended ($ millions) 2008 2007 2006 Sales $ 61,471 $ 57,878 $ 51,271 Credit card revenues 1,896 1,612 1,349 Total revenues 63,367 59,490 52,620 Cost of sales 41,895 39,399 34,927 Selling, general and administrative expenses 13,704 12,819 11,185 Credit card expenses 837 707 776 Depreciation and amortization 1,659 1,496 1,409 Earnings before interest and income taxes 5,272 5,069 4,323 Net interest...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT