Question
In: Accounting
Assume the following asset and liability values represent the average values over the year. Also, assume...
Assume the following asset and liability values represent the average values over the year. Also, assume all sales are on credit.
Account
Cash $125,000
Accounts Receivable $175,000
Inventory $125,000
Property, Plant & Equipment $200,000
Current Liabilities $325,000
Long-term Liabilities $275,000
Stockholders’ Equity $25,000
Total Sales Revenue $800,000
Total Expense $600,000 (includes $250,000 COGS)
Outstanding Shares 100,000
Price per Share $50/shr
How is Vertical Analysis calculated and what does it communicate?
What is the company’s AR Turnover?
Inventory Turnover?
Days in Inventory?
What is the company’s profit margin?
What is the company’s Return on Assets?
Return on EQ?
What is another way to calculate ROE?
What is the stock’s P/E ratio?
What is the company’s Debt Ratio?
Solutions
Expert Solution
Assume the following asset and liability values represent the average values over the year. Also, assume all sales are on credit.
Account
Cash $125,000
ekkarill92 answered 1 year agoRelated Solutions
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Olds Company declares Chapter 7 bankruptcy. The following are the asset and liability book values at...
Olds Company declares
Chapter 7 bankruptcy. The following are the asset and liability
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Cash
$
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Accounts
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68,000
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78,000
(worth
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Accounts
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188,000
Taxes payable to
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Note payable
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186,000
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Olds Company declares Chapter 7 bankruptcy. The following are the asset and liability book values at...
Olds Company declares Chapter 7 bankruptcy. The following are
the asset and liability book values at that time. Administrative
expenses are estimated to be $20,000:
Cash
$
32,000
Accounts receivable
68,000
(worth $36,000)
Inventory
78,000
(worth $64,000)
Land (secures note A)
208,000
(worth $168,000)
Building (secures bonds)
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(worth $336,000)
Equipment
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Accounts payable
188,000
Taxes payable to government
28,000
Note payable A
186,000
Note payable B
258,000
Bonds payable
308,000
The holders of note payable B want...
Olds Company declares Chapter 7 bankruptcy. The following are the asset and liability book values at...
Olds Company declares Chapter 7 bankruptcy. The following are
the asset and liability book values at that time. Administrative
expenses are estimated to be $20,000:
Cash
$
32,000
Accounts receivable
68,000
(worth $36,000)
Inventory
78,000
(worth $64,000)
Land (secures note A)
208,000
(worth $168,000)
Building (secures bonds)
408,000
(worth $336,000)
Equipment
128,000
(worth unknown)
Accounts payable
188,000
Taxes payable to government
28,000
Note payable A
186,000
Note payable B
258,000
Bonds payable
308,000
The holders of note payable B want...
Asset Type Asset Amount Liability Liability Amount Reserves Checkable Deposits Loans Bank Capital Assume the government...
Asset Type
Asset Amount
Liability
Liability Amount
Reserves
Checkable Deposits
Loans
Bank Capital
Assume the government of Smithville uses measures of monetary
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bank of Smithville imposes a required reserve ratio of 20 percent.
For additional information, refer to the figures below:
Bank Deposits held at the central bank = $400 million
Currency and coin held by the public = $500 million
Currency and coin in bank vaults = $200...
1. A bank has an average asset duration of 4 years and an average liability duration...
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Banque Langenberg reports an average asset duration of 7 years and an average liability duration of...
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Initially
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Average
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Average
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Total
assets
Total
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Initial
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Interest
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0
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The changes in the current asset and liability accounts for the
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Depreciation expense
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Gain on disposal of equipment
26,900
Net income
577,400
The changes in the current asset and liability accounts for the
year are as follows:
Increase (Decrease)
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Inventory
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Prepaid insurance
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Accounts payable
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Income taxes payable
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Dividends payable
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A.
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