Question

In: Finance

   BALANCE SHEET ASSETS LIABILITY AND EQUITY CASH 23    ACCOUNTS PAYABLE 1,245 CASH EQUIVALENTS 435...

   BALANCE SHEET

ASSETS LIABILITY AND EQUITY

CASH 23    ACCOUNTS PAYABLE 1,245
CASH EQUIVALENTS 435 ACCRUED EXPENSES 1,549
ACCOUNTS RECEIVABLE 1,827 DEFFERED TAX LIABILITY 712
INVENTORY 2,876
PROPERTY,PLANT, EQUIP 3,567 LONG-TERM DEBT 3,678
TOTAL ASSESTS 8,728 PREFFERED STOCK 432
COMMON EQUITY 1,112
LIABILITIES AND EQUITY $8,728

INCOME STATEMENT

REVENUES 7,493
OPERATING EXPENSES 6,321
INTEREST EXPENSE 221
INCOME BEFORE TAX 951
INCOME TAX 295
NET INCOME 656
PREFFERED DIVIDENDS 26
NET INCOME AVAILABLE TO COMMON 630

Reformulate the following balance sheet and income statement for a manufacturing concern. Amounts are in millions. The firm bears a 36 percent statutory tax rate.

Solutions

Expert Solution

?Reformulation of Balance Sheet means classification of assets and liabilites according to their longetvity and on thier utility- operational or financial

Reformulated Balance Sheet

?Operating Assets

Property?, Plant, Equipment $3567
Inventories $2876
Account Recievables $1827

??Operating Liabilites

Deffered Tax Liability $712
Accounts Payable $1245
Accrued Expenses $1549

?Net Operating Assets: $4764?

Financial Obligation Long Term Debt $3678 Preferred Stock $432 ?Total Financial Obligation $4110 ?Financial Assets Cash Equivalents $435 Cash $23 ?Net FInancial Obligation $3652 ?Equity $1112 ?Reformulated Income Statement Revenues $7,493 Cost of Sales - Gross Margin $7,493 Operating Expense ($6,321) Operating Income from Sales $1,172 Tax on Operating Income @ 36% (421.92) Tax Benefits on Net Interest Expense @ 36% 57.46 Operating Income after Tax 807.54 Net Financial Expense Interest Expense 221 Preferred Dividends 26 Income to Equity Shareholders ?560.54

jeff jeffy answered 2 years ago
Next > < Previous

Related Solutions

Balance Sheet (in $ millions) Assets Liabilities and Stockholders' Equity Cash  ......................................    $ 7 Accounts payable ............$20 Accounts...
Balance Sheet (in $ millions) Assets Liabilities and Stockholders' Equity Cash  ......................................    $ 7 Accounts payable ............$20 Accounts receivable ............    25 Accrued wages .................7 Inventory  ..............................         28 Accrued taxes .................. 13 Current assets ...................    $80 Current liabilities .......... $40 Fixed assets .........................       25 Notes payable ..................15 Common stock .................20   Retained earnings ............ 30 Total Assets ...........................$105 Total liabilities and stockholders’ equity .......$105 If the firm’s sales for last year were $100 million, and the balance sheet at year-end is similar in percentage of sales to that of...
A firm has the following balance sheet: Assets Liabilities and Equity Cash $ 5,000 Accounts payable...
A firm has the following balance sheet: Assets Liabilities and Equity Cash $ 5,000 Accounts payable $ 5,000 Accounts receivable 153,000 Long-term debt 109,000 Inventory 89,000 Common stock ($8 par; 32,000 4,000 shares outstanding) Plant and equipment 190,000 Additional paid-in capital 148,000 Retained earnings 143,000 $437,000 $437,000 Construct a new balance sheet showing the impact of a four-for-one split. If the current market price of the stock is $55, what is the price after the split? Round the par value...
A firm has the following balance sheet: Assets Liabilities and Equity Cash $ 5,000 Accounts payable...
A firm has the following balance sheet: Assets Liabilities and Equity Cash $ 5,000 Accounts payable $ 5,000 Accounts receivable 158,000 Long-term debt 111,000 Inventory 72,500 Common stock ($9 par; 31,500 3,500 shares outstanding) Plant and equipment 210,000 Additional paid-in capital 150,000 Retained earnings 148,000 $445,500 $445,500 A. Construct a new balance sheet showing the impact of a three-for-one split. If the current market price of the stock is $56, what is the price after the split? Round the par...
ABC Corp. Balance Sheet As of December 31, 2018 Assets Liability Cash $6,000 Accounts Payable $3,000...
ABC Corp. Balance Sheet As of December 31, 2018 Assets Liability Cash $6,000 Accounts Payable $3,000 Accounts Receivable $4,000 Stockholders' Equity Common Stock $3,000 Retained Earnings $4,000 Total Liability and Stockholders' Equity Total Assets $10,000 $10,000 1. On January 1st, 2019, ABC Corp bought an equipment for $2,000. The equipment has a useful life of 5 years and has a salvage value of $500. The company uses double-declining depreciation method. 2. On March 1 st, 2019, ABC Corp received $2,400...
ABC Corp. Balance Sheet As of December 31, 2018 Assets Liability Cash $6,000 Accounts Payable $3,000...
ABC Corp. Balance Sheet As of December 31, 2018 Assets Liability Cash $6,000 Accounts Payable $3,000 Accounts Receivable $4,000 Stockholders' Equity Common Stock $3,000 Retained Earnings $4,000 Total Liability and Stockholders' Equity Total Assets $10,000 $10,000 On January 1st, 2019, ABC Corp bought an equipment for $2,000. The equipment has a useful life of 5 years and has a salvage value of $500. On May 1st, 2018, ABC Corp received $1,200 cash for services to be performed in the future....
CABOT CORPORATION Balance Sheet December 31 Assets Liabilities and Equity Cash $ 12,000 Accounts payable $...
CABOT CORPORATION Balance Sheet December 31 Assets Liabilities and Equity Cash $ 12,000 Accounts payable $ 16,500 Short-term investments 9,600 Accrued wages payable 3,800 Accounts receivable, net 32,800 Income taxes payable 3,900 Merchandise inventory 38,150 Long-term note payable, secured by mortgage on plant assets 70,400 Prepaid expenses 2,550 Common stock 89,000 Plant assets, net 150,300 Retained earnings 61,800 Total assets $ 245,400 Total liabilities and equity $ 245,400 Required: Compute the following: (1) current ratio, (2) acid-test ratio, (3) days'...
VITALSTATISTIX, INC. 2017 Balance Sheet Items Assets Liabilities and Owners’ Equity Cash $200 Accounts Payable $200     ...
VITALSTATISTIX, INC. 2017 Balance Sheet Items Assets Liabilities and Owners’ Equity Cash $200 Accounts Payable $200      Accounts Receivable 400 Notes Payable 100 Inventory 650 Long-Term Debt 1,050 Net Plant and Equipment 2,400 Common Stock 500       Paid-in Surplus 1,500                                                                   Retained Earnings 300 VITALSTATISTIX, INC. 2017 Income Statement Sales $2,700 Cost of Goods Sold 800 Depreciation     100 Earnings Before Interest and Taxes $1,800 Interest Paid      150 Taxable Income $1,650 Taxes     550 Net Income $1,100 13. Vitalstatistix, Inc. has 500 shares of common...
Balance Sheet As of December 31,2016 Assets Cash and equivalents 295,500 Accounts receivable 875,000 Inventory 437,500...
Balance Sheet As of December 31,2016 Assets Cash and equivalents 295,500 Accounts receivable 875,000 Inventory 437,500 Total Current Assets 1,608,000 Plant and equipment 475,000 Accumulated depreciation (234,550) Net Fixed Assets 240,450 Total Assets 1,848,450 Liabilities and Owner’s Equity Accounts payable 306,250 Short-term notes payable 88,185 Other current liabilities 18,200 Total Current Liabilities 412,635 Long-term debt 495,800 Total Liabilities 908,435 Common Stock 700,000 Retained earnings 240,015 Total Shareholder’s Equity 940,015 Total Liabilities and Owner’s Equity 1,848,450ZHIAO-WAY Inc. Income Statement For the...
Balance Sheet For LMN Corporation Year ended: 2019 2018 Assets Cash and equivalents $320 $295 Accounts...
Balance Sheet For LMN Corporation Year ended: 2019 2018 Assets Cash and equivalents $320 $295 Accounts receivable 750 660 Inventories 560 480      Total current assets 1,630 1,435 Gross fixed assets 3,275 2,700 Accumulated depreciation (1,200) (900)      Net fixed assets 2,075 1,800 Total assets $3,705 $3,235 Liabilities and shareholders’ equity Accounts payable $390 $370 Notes payable 250 240 Accrued taxes and expenses 180 140      Total current liabilities 820 750 Long-term debt 1,200 1,108      Total long-term debt 1,200 1,108 Common stock 505...
Balance Sheet For the Year Ended December 31 Assets Current assets: Cash $7,170 Accounts payable 7,500...
Balance Sheet For the Year Ended December 31 Assets Current assets: Cash $7,170 Accounts payable 7,500 Supplies 2,590 Prepaid insurance 800 Land 24,000 Total current assets $42,060 Property, plant, and equipment: Building $43,700 Equipment 29,250 Total property, plant, and equipment 72,950 Total assets $131,510 Liabilities Current liabilities: Accounts receivable $10,000 Accum. depr.-building 12,525 Accum. depr.-equipment 7,340 Net income 11,500 Total liabilities $41,365 Owner's Equity Wages payable $1,500 Mark Brock, capital 88,645 Total owner's equity 90,145 Total liabilities and owner's equity...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT