Questions
Instant Brake Inc.’s comparative balance sheet information at December 31, 2020 and 2019, and its income...

Instant Brake Inc.’s comparative balance sheet information at December 31, 2020 and 2019, and its income statement for the year ended December 31, 2020, are as follows:

Instant Brake Inc.
Income Statement
December 31, 2020
Sales $ 879,000
Cost of goods sold 571,000
Gross profit $ 308,000
Operating expenses $ 132,670
Depreciation expense 41,230 173,900
Operating Profit 134,100
Loss on sale of equipment 12,110
Investment income 19,020
Profit before taxes 141,010
Income taxes 17,000
Profit $ 124,010
Instant Brake Inc.
Balance Sheet Information
December 31
2020 2019 Net Change
Cash $ 43,000 $ 23,960 $ 19,040
Cash equivalents 24,780 8,600 16,180
Accounts receivable 87,320 32,440 54,880
Inventory 113,240 78,520 34,720
Investment 0 24,780 24,780 )
Land 75,800 75,800 0
Building and equipment 420,530 439,550 (19,020 )
Accumulated depreciation 113,050 91,960 21,090
Accounts payable 11,900 36,800 (24,900 )
Dividends payable 1,800 1,100 700
Bonds payable 19,000 0 19,000
Preferred shares 80,600 80,600 0
Common shares 405,080 405,080 0
Retained earnings 133,240 68,110 65,130


During 2020, the following transactions occurred:

  1. Purchased equipment for $20,700 cash.
  2. Sold the investment on January 1, 2020, for $43,800, resulting in investment income of $19,020.
  3. Sold equipment for $7,470 cash that had originally cost $39,720 and had $20,140 of accumulated depreciation.
  4. Issued $19,000 of bonds payable at face value.

Required:
1.
How much cash was paid in dividends?




2. Prepare a statement of cash flows for Instant Brake for the year ended December 31, 2020, using the indirect method. (List any deduction in cash and cash outflows as negative amounts.)

In: Accounting

The financial statements of the Precious Company appear below: PRECIOUS COMPANY Comparative Balance Sheet December 31,...

The financial statements of the Precious Company appear below:

PRECIOUS COMPANY

Comparative Balance Sheet December 31,

_________________________________________________________________________

Assets

    2020

    2019

Cash .............................................................................................

$ 25,000

$ 40,000

Debt investments ..........................................................................

20,000

60,000

Accounts receivable (net) ..............................................................

50,000

30,000

Inventory .......................................................................................

140,000

170,000

Property, plant and equipment (net) ..............................................

  170,000

  200,000

Total assets .............................................................................

$405,000

$500,000

Liabilities and stockholders' equity

Accounts payable ..........................................................................

$ 25,000

$ 30,000

Short-term notes payable ..............................................................

40,000

90,000

Bonds payable ..............................................................................

75,000

160,000

Common shares ............................................................................

160,000

145,000

Retained earnings .........................................................................

    105,000

    75,000

Total liabilities and shareholders' equity ...................................

$405,000

$500,000

PRECIOUS COMPANY

Income Statement

For the Year Ended December 31, 2020

Net sales (all on credit) .................................................................

$360,000

Cost of goods sold ........................................................................

  184,000

Gross profit ...................................................................................

176,000

Expenses

Interest expense ......................................................................

$11,000

Selling expenses .....................................................................

30,000

Administrative expenses ..........................................................

  20,000

Total expenses ..................................................................

    61,000

Income before income taxes .........................................................

115,000

Income tax expense ......................................................................

    35,000

Net income ....................................................................................

$ 80,000

Additional information:

  1. Cash dividends of $50,000 were declared and paid on common stock in 2020.
  2. Weighted-average number of shares of common stock outstanding during 2020 was 50,000 shares.
  3. Market price of common stock on December 31, 2020, was $16 per share.
  4. Net cash provided by operating activities for 2020 was $70,000.

Required

Using the financial statements and additional information above, compute the following ratios for the Precious Company for 2020. Show all formulas and computations.

  1. Current ratio .
  2. Return on common stockholders' equity .
  3. Price-earnings ratio .
  4. Inventory turnover .
  5. Accounts receivable turnover .
  6. Times interest earned .
  7. Profit margin .
  8. Days in inventory .
  9. Payout ratio .
  10. Return on assets .

The end of the assignment

In: Accounting

A manufacturing area needs to forecast workhours. This is a slightly different project. The data for...

A manufacturing area needs to forecast workhours. This is a slightly different project. The data for several months is supplied below. Beside each of the actual numbers in black, the forecast is provided in red. The goal is to calculate three stats on the data: MAD, MAPE, and the tracking signal. Be careful since the data is listed beginning with the most recent. Please round to two decimal places. For MAPE, please convert to a percentage before rounding. Do not enter the percent sign.

Jul 2020: 1693, 1591 Jun 2020: 1408, 1281 May 2020: 1945, 2237 Apr 2020: 1197, 1125 Mar 2020: 1985, 2084 Feb 2020: 1584, 1378
Jan 2020: 1117, 1050 Dec 2019: 1660, 1743 Nov 2019: 1113, 968 Oct 2019: 1127, 958 Sep 2019: 1075, 1204 Aug 2019: 1253, 1103
Jul 2019: 1633, 1437 Jun 2019: 1552, 1443 May 2019: 1689, 1486 Apr 2019: 1775, 1988 Mar 2019: 1523, 1355 Feb 2019: 1634, 1879
Jan 2019: 1675, 1910 Dec 2018: 1488, 1637 Nov 2018: 1399, 1581 Oct 2018: 1071, 975 Sep 2018: 1721, 1807 Aug 2018: 1389, 1195
Jul 2018: 1656, 1457 Jun 2018: 1342, 1409 May 2018: 1022, 910 Apr 2018: 1599, 1391 Mar 2018: 1558, 1636 Feb 2018: 1440, 1310
Jan 2018: 1903, 2169 Dec 2017: 1637, 1833 Nov 2017: 1052, 999 Oct 2017: 1092, 1256 Sep 2017: 1955, 1740 Aug 2017: 1623, 1866
Jul 2017: 1682, 1917
Please enter MAD here--->
Please enter MAPE % here--->
Please enter the tracking signal here--->

In: Operations Management

Even though both mammals, squid, and earthworms have closed circulatory systems, the systems themselves are quite...

Even though both mammals, squid, and earthworms have closed circulatory systems, the systems themselves are quite different; this supports the concept of UNITY and DIVERSITY. Describe the unity and diversity across these three types of closed circulatory systems.

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This was a financial innovation that has allowed banks to reduce risk in the issue of long term mortgage loans by repacking the loans and selling them as securities.

This was a financial innovation that has allowed banks to reduce risk in the issue of long term mortgage loans by repacking the loans and selling them as securities.



Diversification.


Short selling


Mortgage Backed Securities


ARM loans.

In: Economics

Short description of your assigned challenge Describe the innovation you researched to address the challenge The...

  1. Short description of your assigned challenge
  2. Describe the innovation you researched to address the challenge
  3. The result (what did it prove?)
  4. How/Why it impacts or supports the challenge

the challenge is "make Solar energy economical"

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Identify a new product that is based on an innovation in technology, and draw up a...

Identify a new product that is based on an innovation in technology, and draw up a strategic technical plan for its development. Be sure to discuss the risk factors at each stage, and indicate how you would deal with each.?

In: Operations Management

What is the “division of labor” and what example does Smith use to illustrate this idea?...

  1. What is the “division of labor” and what example does Smith use to illustrate this idea? What limits the division of labor? Can you describe the process of technological innovation and its social consequences according to Marx?

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1. a.How do you perceive the practice of corporate entrepreneurship in SAMHOUD company above ? Please...

1. a.How do you perceive the practice of corporate entrepreneurship in SAMHOUD company above ? Please explain in detail

b. How does this company encourage innovation among the employees?Please explain in detail

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propose a solution to fix a current problem and a longer-term course of action to prevent...

propose a solution to fix a current problem and a longer-term course of action to prevent a long term problem in Nucor, innovation, And change the case. If there are no recognized issues, focus on the positives that make the organization work well.

In: Operations Management