A corporation's year-end 2015 balance sheet lists cash of $36,400, accounts receivable of $98,700, inventory of...

A corporation's year-end 2015 balance sheet lists cash of $36,400, accounts receivable of $98,700, inventory of $156,900, fixed assets of $853,000, current liabilities of $218,000, and long-term debt of $465,000. What is the amount of the corporation’s total stockholders' equity at year-end 2015? A. less than $465,000 but more than $440,000
B. less than $490,000 but more than $465,000
C. less than $515,000 but more than $490,000
D. less than $540,000 but more than $515,000
E. more than $540,000

Which of the following is a source of cash? A. The firm buys fixed assets. B. The firm increases inventories.
C. The firm decreases its accrued wages and taxes.
D. The firm issues bonds and other long-term liabilities.
E. Both B and C are sources of cash.

If operating profit was $892,600, interest expense was $96,400, taxes were $219,700, depreciation was $285,000, and cost of goods sold was $798,300, what was net income if sales were $2,365,400?
A. less than $535,000 but more than $490,000
B. less than $580,000 but more than $535,000
C. less than $625,000 but more than $580,000
D. less than $670,000 but more than $625,000
E. more than $670,000

The 2015 income statement for Bertha’s Baskets, Inc.'s lists the following income and expenses: Cost of goods sold (COGS) = $825,000, operating and administrative expense = $175,000, depreciation = $135,000 and earnings before taxes and interest (EBIT) = $580,000. What is the amount of 2015 sales revenue for Bertha’s Baskets, Inc.? A. $1,715,000
B. $1,600,000
C. $1,405,000
D. $1,235,000
E. less than $1,235,000

Solutions

Expert Solution

1) A. less than $465,000 but more than $440,000

total stockholders' equity at year-end 2015 :

Total Assets= total liabilities + total stockholder's equity

[$36,400 + $98,700 + $156,900+ $853,000] = [$218,000+$465,000] + total stockholder's equity

1145000 =683000 + total stockholder's equity

total stockholder's equity = $462000

2) D. The firm issues bonds and other long-term liabilities. , acquisition of new debt will bring cash into business. Other examples of buying of fixed assets , increasing inventories ,decreasing its accrued wages and taxes are use of cash

3) B. less than $580,000 but more than $535,000

sale	2,365,400
less: cost of goods sold	798,300
gross margin	1567100
less: Depreciation	285,000
less: operating expense	389500
operating profit	892,600
less:interest expense	96,400
Earning before tax	796200
less:taxes	219,700
Net income	576500

4) A. $1,715,000

sales	$1715000
less:Cost of goods sold	825,000
Gross profit	$890000
less:depreciation	135000
less:operating and administrative expense	175,000
Earnings before taxes and interest (EBIT)	580,000

jeff jeffy answered 8 months ago

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