Ratio of Liabilities to Stockholders' Equity and Times Interest Earned
The following data were taken from the financial statements of Hunter Inc. for December 31 of two recent years:
| Current Year | Previous Year | |||
| Accounts payable | $604,000 | $290,000 | ||
| Current maturities of serial bonds payable | 530,000 | 530,000 | ||
| Serial bonds payable, 10% | 2,370,000 | 2,900,000 | ||
| Common stock, $1 par value | 90,000 | 110,000 | ||
| Paid-in capital in excess of par | 960,000 | 970,000 | ||
| Retained earnings | 3,330,000 | 2,640,000 | ||
The income before income tax was $1,044,000 and $913,500 for the current and previous years, respectively.
a. Determine the ratio of liabilities to stockholders' equity at the end of each year. Round to one decimal place.
| Current year | |
| Previous year |
b. Determine the times interest earned ratio for both years. Round to one decimal place.
| Current year | |
| Previous year |
c. The ratio of liabilities to stockholders' equity has and the times interest earned ratio has ___ from the previous year. These results are the combined result of a ___ income before income taxes and interest expense in the current year compared to the previous year.
In: Accounting
Ratio of Liabilities to Stockholders' Equity and Times Interest Earned
The following data were taken from the financial statements of Hunter Inc. for December 31 of two recent years:
| Current Year | Previous Year | |||
| Accounts payable | $628,000 | $193,000 | ||
| Current maturities of serial bonds payable | 410,000 | 410,000 | ||
| Serial bonds payable, 10% | 1,710,000 | 2,120,000 | ||
| Common stock, $1 par value | 90,000 | 120,000 | ||
| Paid-in capital in excess of par | 1,010,000 | 1,010,000 | ||
| Retained earnings | 3,480,000 | 2,760,000 | ||
The income before income tax was $572,400 and $500,900 for the current and previous years, respectively.
a. Determine the ratio of liabilities to stockholders' equity at the end of each year. Round to one decimal place.
| Current year | |
| Previous year |
b. Determine the times interest earned ratio for both years. Round to one decimal place.
| Current year | |
| Previous year |
In: Accounting
What would be the account balance in the Cash account after the following transactions. Assume a zero beginning Cash balance.
|
Owner invested cash in the business |
$100,000 |
|
Purchase supplies with cash. |
$20,000 |
|
Received a bill for one month of rent owed to landlord |
$2,200 |
|
Paid wages earned in the month in cash |
$800 |
|
Billed a customer for services performed |
$1,250 |
| A. |
$124,250 |
|
| B. |
$80,400 |
|
| C. |
$77,800 |
|
| D. |
$79,200 |
|
| E. |
$80,000 |
What would the account balance in Accounts Receivable after the following transactions, assuming a zero beginning balance?
Performed services and left a bill with the customer $4,200
Performed services and collected immediately $3,500
Performed services and billed customer $2.200
Performed services on account $6,000
Received partial payment on account. $1,500
| A. |
$17,400 |
|
| B. |
$10,900 |
|
| C. |
$14,400 |
|
| D. |
$4,500 |
|
| E. |
$11,400 |
A partial trial balance of Ledger accounts at year-end had the following balances. If all the accounts have normal balances, what are the total debits on the Trial Balance?
|
Cash |
30,000 |
|
Account receivable |
32,000 |
|
Supplies |
5,000 |
|
Accounts payable |
20,000 |
|
Fees Earned |
65,000 |
|
Rent expense |
15,000 |
|
Insurance expense |
4,800 |
|
Common Stock |
5,000 |
|
Retained Earnings |
14,800 |
|
Dividends paid |
18,000 |
| A. |
$45,200 |
|
| B. |
$67,000 |
|
| C. |
$68,800 |
|
| D. |
$104,800 |
The following information is available for three competing toy companies. Which company earned the highest return on assets?
|
Company 1 |
Company 2 |
Company 3 |
|
|
Assets |
90,500 |
64,000 |
32,500 |
|
Liabilities |
11.765 |
46,720 |
26,650 |
|
Average Assets |
100,000 |
40,000 |
50,000 |
|
Net income |
20,000 |
3,800 |
650 |
A.
Company 1
B.
Company 2
C.
Company 3
D.
Cannot be calculated from the data provided.
In: Accounting
Let X be a random variable representing the number of years of
education an individual has, and let Y be a random variable
representing an individual’s annual income. Suppose that the latest
research in economics has concluded that:
Y = 6X +U
(1)
is the correct model for the relationship between X and Y , where U
is another random variable that is independent of X. Suppose Var(X)
= 2 and Var(Y ) = 172.
a. Find Var(U).
b. Find Cov(X, Y ) and corr(X, Y ).
c. The variance in Y (income) comes from variance in X (education) and U (other factors unobserved to us). What fraction of the variance in income is explained by variance in education?
d. How does the fraction you found in (c) compare to corr(Y, X)?
In: Math
Ohunta University in Austria, one of the best universities on the continent presently measures its performance by comparing its actual costs against its budgeted costs for the year. Given the university’s international status, it is currently facing stiff competition from both public and privately-owned universities in Austria. At one of its executive meetings, a member in the finance department has suggested that Ohunta needs to consider additional performance measures such as those indicated by the Balanced Scorecard.
In: Accounting
Please do not copy from other post or the copy from the web
Creating Sunburst: Legal and Organizational Considerations
Ravi, who has a degree from State University in mechanical engineering, was previously employed by a start-up firm in New York City. He worked long hours for little pay, but when the business sold, his stock options paid off. As a result, he now has some time and $100,000 to invest in Sunburst. More importantly, Ravi has the knowledge and know-how to setup and manage production. Tanya, a friend you met through your alumni association, has a degree in marketing and has a few years of experience working in marketing roles. The three of you agree to form the start-up team for Sunburst.
The team estimates that it will take approximately two years to develop Sunburst into a marketable product, but that once the product is on the market, there is excellent growth potential. You know that you will need additional investors and expertise to get the business off the ground. You need to develop a plan for a business form that will be attractive to potential investors and partners, and will address their concerns.
Finance and politics are not your strong suits, and you aren't very interested in the day-to-day business operations of Sunburst—you'd rather spend most of your time inventing new products. The start-up team believes that the business will need someone with finance skills. You also need a visionary CEO. Ideally, this person should have connections and experience in the solar industry. You have asked Elon Helios, a forward-thinking figure in the solar energy field, who is known for being a rainmaker. Helios has expressed some interest, but it will take significant incentives to get him on board.
Although Tanya has little money to invest, she has excellent networking skills, and she has found a potential investor, Carmen Santiago, who thinks that the product may have potential. Santiago does not want to be involved in running the business.
Ravi has identified a good candidate with finance experience. This individual does not want to invest in the company, but he would expect a good salary and benefits.
The team has created a tentative business plan, which has two target stages: The first stage involves local (geographical region) manufacturing with a focus on local solar energy providers; the second stage will begin five years from start-up, at which point the business will expand nationally (or possibly internationally) targeting the market of all potential solar energy customers. The potential investors and participants want to know what legal form the business will take before they agree to participate.
What are the different legal forms of business that you might consider? You remember that there are at least six factors that will influence your choice:
creation and maintenance
continuity
ownership and control
personal liability
compensation and division of profits
taxation
What is your proposed choice for the legal form of business? Include your reasoning based on the preceding six factors and any other relevant factors.
In: Accounting
A random sample of the ACT scores of 300 students at Big State
University provided a sample mean score of 21.8 with a sample
standard deviation of 5.632. Find the 95% confidence interval for
the mean score of all Big State students who had taken the
ACT.?
(a) (21.2, 22.4) (b) (21.0, 22.6) (c) (20.9, 22.7) (d) (20.3, 23.3)
(e) (21.3, 22.3)
In: Statistics and Probability
The GPAs of all students enrolled at a large university have an approximately normal distribution with a mean of 3.02 and a standard deviation of 0.29 . Find the probability that the mean GPA of a random sample of 20 students selected from this university is 2.87 or lower. Round your answer to four decimal places. P ( x ¯ ≤ 2.87 ) =
PLEASE SHOW WORK
In: Statistics and Probability
A university recruiter claims that 60% of its basketball and football players graduate in 4 years a reporter contacts an SRS of players from the past 20 yrs and finds that only 46 out of 88 had graduated in 4 yrs is there sufficient evidence to write an article disputing the university claim? Give statistical justification for your conclusion
In: Statistics and Probability
What is the difference between the physician assistant and the medical assistant? List three types of technologists and technician who provide diagnostic testing. What types of services are provided by physical, occupational, and respiratory therapists? What professionals provide care in emergency situations? What services are provided by dentists, optometrists, chiropractors, podiatrists, and dietitians/nutritionists? What activities are performed by the health information manager? List three activities performed by billing and coding specialists. Define health administration. Differentiate among a general practitioner, a nurse practitioner, and a physician assistant. What accounts for the difference in their compensation? Do you believe the use of assistants and aides impacts the quality of care? Differentiate among the MBA, MPH, and MHA. What accounts for the differences in these degrees? Should clinical and non-clinical professionals be cross trained? Would this improve either the level of patient care of the efficiency of the business?
In: Nursing