2. [Cash Conversion Cycle] Castillo Products Company improved its operations from a net loss in 2015 to a net profit in 2016. While the founders, Cindy and Rob Castillo, are happy about these developments, they are concerned with trying to understand how long the firm takes to complete its cash conversion cycle in 2016. Use the following financial statements to make your calculations. Balance sheet items should reflect the averages of the 2015 and 2016 accounts.
|
CASTILLO PRODUCTS COMPANY |
||||
|
INCOME STATEMENT |
2015 |
2016 |
||
|
Net sales |
$900,000 |
$1,500,000 |
||
|
Cost of goods sold |
540,000 |
900,000 |
||
|
Gross profit |
360,000 |
600,000 |
||
|
Marketing |
90,000 |
150,000 |
||
|
General and administrative |
250,000 |
250,000 |
||
|
Depreciation |
40,000 |
40,000 |
||
|
EBIT |
–20,000 |
160,000 |
||
|
Interest |
45,000 |
60,000 |
||
|
Earnings before taxes |
–65,000 |
100,000 |
||
|
Income taxes |
0 |
25,000 |
||
|
Net income (loss) |
–$65,000 |
$ 75,000 |
||
|
BALANCE SHEET |
2015 |
2016 |
||
|
Cash |
$ 50,000 |
$ 20,000 |
||
|
Accounts receivable |
200,000 |
280,000 |
||
|
Inventories |
400,000 |
500,000 |
||
|
Total current assets |
650,000 |
800,000 |
||
|
Gross fixed assets |
450,000 |
540,000 |
||
|
Accumulated depreciation |
–100,000 |
–140,000 |
||
|
Net fixed assets |
350,000 |
400,000 |
||
|
Total assets |
$1,000,000 |
$1,200,000 |
||
|
Accounts payable |
$ 130,000 |
$160,000 |
||
|
Accruals |
50,000 |
70,000 |
||
|
Bank loan |
90,000 |
100,000 |
||
|
Total current liabilities |
270,000 |
330,000 |
||
|
Long-term debt |
300,000 |
400,000 |
||
|
Common stock (0.05 par) |
150,000 |
150,000 |
||
|
Additional paid-in-capital |
200,000 |
200,000 |
||
|
Retained earnings |
80,000 |
120,000 |
||
|
Total liabilities and equity |
$1,000,000 |
$1,200,000 |
||
A. Calculate the inventory-to-sale conversion period for 2016.
B. Calculate the sale-to-cash conversion period for 2016.
C. Calculate the purchase-to-payment conversion period for 2016.
D. Determine the length of the Castillo Product’s cash conversion cycle for 2016.
In: Accounting
|
During 2016 and 2017, Agatha Corp. completed the following transactions relating to its bond issue. The corporation’s fiscal year is the calendar year. |
|
2016 |
|
Jan. 1 |
Issued $230,000 of 10-year, 6 percent bonds for $221,000. The annual cash payment for interest is due on December 31. |
|
Dec. 31 |
Recognized interest expense, including the straight-line amortization of the discount, and made the cash payment for interest. |
|
Dec. 31 |
Closed the interest expense account. |
|
2017 |
|
Dec. 31 |
Recognized interest expense, including the straight-line amortization of the discount, and made the cash payment for interest. |
|
Dec. 31 |
Closed the interest expense account. |
|
b. |
Prepare the general journal entries for the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) |
|
2016 |
|
|
Jan. 1 |
Issued $230,000 of 10-year, 6 percent bonds for $221,000. The annual cash payment for interest is due on December 31. |
|
Dec. 31 |
Recognized interest expense, including the straight-line amortization of the discount, and made the cash payment for interest. |
|
Dec. 31 |
Closed the interest expense account. |
|
2017 |
|
Dec. 31 |
Recognized interest expense, including the straight-line amortization of the discount, and made the cash payment for interest. |
||||||||||||||||||||
|
Dec. 31 |
Closed the interest expense account. |
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|
c. . |
Prepare the liabilities section of the balance sheet at December 31, 2016 and 2017. (Amounts to be deducted should be indicated with minus sign.)
|
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|
d. |
Determine the amount of interest expense that will be reported on the income statements for 2016 and 2017. |
||||||||
|
|||||||||
|
e. |
Determine the amount of interest that will be paid in cash to the bondholders in 2016 and 2017. |
|
In: Accounting
You have been hired as the new Chief Financial Officer for a large integrated health delivery organization and your first goal is to improve the management information reporting of key company performance indicators. You have decided this information would best be monitored and communicated using a dashboard which contains the following financial and operational metrics.
Key Metric Titles:
Select company data:
2017 Net Income = $2,458,000
2016 Net Income = $2,102,000
2017 Total Assets = $54,275,000
2016 Total Assets = $52,964,000
2017 Total Revenues = $36,416,000
2016 Total Revenues = $32,429,000
2017 Current Assets = $11,732,000
2016 Current Assets = $11,969,000
2017 Current Liabilities = $4,401,000
2016 Current Liabilities = $4,097,000
2017 Inpatient Profit = $8,345,000
2016 Inpatient Profit = $6,919,000
2017 Inpatient Days = 40,062
2016 Inpatient Days = 42,434
2017 Total Discharges = 8,576
2016 Total Discharges = 8,318
2017 # of Licensed Beds = 210
2016 # of Licensed Beds = 210
questions:
40 points
In: Finance
|
The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2015: |
| Plant Asset |
Accumulated Depreciation |
|||||
| Land | $ | 480,000 | $ | — | ||
| Land improvements | 245,000 | 58,000 | ||||
| Building | 2,150,000 | 363,000 | ||||
| Machinery and equipment | 1,184,000 | 418,000 | ||||
| Automobiles | 215,000 | 125,000 | ||||
| Transactions during 2016 were as follows: | |
| a. |
On January 2, 2016, machinery and equipment were purchased at a total invoice cost of $325,000, which included a $6,800 charge for freight. Installation costs of $40,000 were incurred. |
| b. |
On March 31, 2016, a machine purchased for $71,000 in 2012 was sold for $49,500. Depreciation recorded through the date of sale totaled $26,600. |
| c. |
On May 1, 2016, expenditures of $63,000 were made to repave parking lots at Pell’s plant location. The work was necessitated by damage caused by severe winter weather. |
| d. |
On November 1, 2016, Pell acquired a tract of land with an existing building in exchange for 10,000 shares of Pell's common stock that had a market price of $35 per share. Pell paid legal fees and title insurance totaling $36,000. Shortly after acquisition, the building was razed at a cost of $48,000 in anticipation of new building construction in 2017. |
| e. |
On December 31, 2016, Pell purchased a new automobile for $16,550 cash and trade-in of an old automobile purchased for $24,500 in 2012. Depreciation on the old automobile recorded through December 31, 2016, totaled $14,800. The fair value of the old automobile was $5,050. |
| Required: |
| 1. |
Prepare a schedule analyzing the changes in each of the plant assets during 2016. |
| 2. |
Prepare a schedule showing the gain or loss from each asset disposal that would be recognized in Pell’s income statement for the year ended December 31, 2016. |
In: Accounting
Match the account name with the correct financial statement and section that the account name can be found on (apologize for format congruence)
Advertising Expense
| Revenues |
| Sales Allowances |
|
Cost of Goods Sold Meals expense Interest income Travel Expenses Entertainment expenses Unrealized Gain on Sale Fees Earned Insurance Expense |
| Service Revenues |
| Interest Expense |
| Legal Expenses |
Options to choose from:
Balance Sheet - Current Asset
Balance Sheet - Non Current Asset
Balance Sheet - Current Liability
Balance Sheet - Non Current Liability
Balance Sheet - Equity
Income Statement - Revenue (part of the Gross Profit calculation)
Income Statement - Operating expenses
Income Statement - Other
Thanks
In: Accounting
The IUPAC-style name given below is not a correct name for a molecule. Draw the structure indicated by the name, and then provide the correct IUPAC name for that molecule. Please carefully type the IUPAC name of the molecule. If you do not use the absolute correct format, the answer will be marked incorrect. That means you need to use appropriate punctuation in the appropriate places, you need to list the substituents in the correct order, and you need to omit all spaces. The common names for the following complex substituents are accepted (isopropyl, isobutyl, sec-butyl, tert-butyl, isopentyl, tert-pentyl, and neopentyl). Incorrect name: 1-cyclobutyl-1-propylbutane
In: Chemistry
1.a Name the male crayfish appendages that are used to inseminate the female.
b. Name the small arthropod found in huge numbers at polar regions.
c. Name the endocrine gland that stimulates immune system cell production.
d. Name the sheet of muscle that inflates a mammalian lung.
e. Name the heart valve that prevents backflow to the left atrium.
f. Name the mammalian tissue that secretes mucous and lines the entire body wall.
g. Name the rat organ that has bacteria to digest cellulose in plant cell
In: Biology
Exercise 7: Name that Shape Write a program that determines the name of a shape from its number of sides. Read the number of sides from the user and then report the appropriate name as part of a meaningful message. Your program should support shapes with anywhere from 3 up to (and including) 10 sides. If a number of sides outside of this range is entered then your program should display an appropriate error message.
language use : python
In: Computer Science
Match the account name with the correct financial statement and section that the account name can be found on.
Balance Sheet - Current Asset
Balance Sheet - Non Current Asset
Balance Sheet - Current Liability
Balance Sheet - Non Current Liability
Balance Sheet - Equity
Income Statement - Revenue
Income Statement - Operating Expenses
Income Statement - Other
Questions:
Property Tax Expense
Furniture and Fixtures
Buildings
Service Revenues
Marketable Securities
Accounts Payable
Travel Expenses
Patents
Wages Payable
Supplies
Deferred Revenue - Long Term
Customer Deposits - Current Portion
Salary Expense
Wage Expense
Short Term Investments
Allowance for Doubtful Accounts
Sales
Sales Discounts
Repairs & Maintenance Expense
Advertising Expense
Unrealized Gain on Sale
Current Portion of Debt Payable
Additional Paid in Capital - Treasury Stock
Unrealized Loss on Sale
Payroll Tax Expense
Inventories
Treasury Stock
Salaries Payable
Vehicles
Legal Expenses
Loss On Sale
Sales Returns
Insurance Expense
Utilities Expense
Computers
Goodwill
Fees Earned
Accrued Liabilities - Short Term
Capital Stock
Premium on Bonds - Long Term
Additional Paid in Capital - Common Stock
Preferred Stock
Discount on Bonds - Long Term
Cash
Bonds Payable - Long Term Portion
Leasehold Improvements
Interest Expense
Sales Tax Payable
Warranties Payable - Short Term Portion
Accumulated Depreciation
Sales Allowances
Rent Expense
Depreciation Expense
Cost Of Goods Sold
Common Stock
Contributed Capital
Long Term Investments
Entertainment Expense
Land
Meals Expense
Unearned Revenue - Current Portion
Notes Payable - Long Term Portion
Intellectual Property
Retained Earnings
Unearned Revenue - Long term Portion
Accounts Receivable
Income Tax Payable
Gain On Sale
Interest Income
Revenues
In: Accounting
Name two of the richest channels of communication. Why are they the richest? Name two channels that are the least rich, and explain why.
In a separate paragraph, give an example from your own experience that illustrates the importance of choosing a "rich-enough" channel for communication.
In: Economics