Broussard Skateboard's sales are expected to increase by 15% from $8.0 million in 2016 to $9.20 million in 2017. Its assets totaled $5 million at the end of 2016. Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2016, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 4%. Assume that the company pays no dividends. Under these assumptions, what would be the additional funds needed for the coming year?
In: Finance
Second Chance Inc. purchased a lot with an old warehouse on the premises for $420,000 on
January 1, 2016. The company immediately demolished the building and cleared the site at a
cost of $150,000. Castle then commenced construction of a new warehouse for their own use on
March 1, 2016. The warehouse took 14 months to construct and was ready to be used on April
30, 2017. Expenditures for the construction were as follows:
March 1, 2016 deposit $400,000
May 30, 2016 $600,000
December 31, 2016 $800,000
February 1, 2017 $300,000
April 1, 2017 $400,000
The Company uses the specific interest method of computing capitalized interest and had the
following indebtedness during the period of construction:
Loan #1 borrowed $3,000,000 March 31, 2014 at a rate of 6%, due September 30, 2017
Loan #2 borrowed $2,000,000 January 31, 2016 to build the warehouse at a rate of 7%, due
January 31, 2026
When the warehouse is placed in service, it will be depreciated on a straight line basis over 30
years with zero assumed salvage value.
1) What was Castle’s reported interest expense after capitalization of interest for 2017
(rounded)?
A) $225,000.
B) $270,000.
C) $275,000.
D) $320,000.
2) What was the total cost in construction of the building (rounded)?
A) $2,500,000.
B) $2,600,000.
C) $2,700,000.
D) $3,100,000.
3) The company sold the land and the warehouse on April 30, 2029 for cash proceeds of
$2,000,000. What was the overall gain or (loss), rounded?
A) ($87,000).
B) $441,000.
C) $187,000.
D) ($128,000).
In: Accounting
Question 3
Prints Galore Ltd., a Canadian company, acquired 100% of
Sculptures Ltd. for FC 300,000 on January 1, 2014. Prints Galore’s
functional currency is the Canadian dollar and Sculpture’s
functional currency is the FC. Selected exchange rates are
presented below:
January 1, 2014 FC1 = $1.6993 CAD
December 31, 2015 FC1 = $1.7182 CAD
December 31, 2016 FC1 = $1.7233 CAD
Assume that the average rate for 2014, 2015, and 2016 is FC 1 =
$1.7201 CAD.
Required:
At the time of acquisition, the fair value of Sculpture’s net assets was FC 200,000. There has been no impairment of goodwill.
Calculate the amount of goodwill that should be presented on
Prints Galore’s December 31, 2016 consolidated statement of
financial position.
Calculate the amount of exchange gain/loss, if any, that should
be reported on Prints Galore’s 2016 consolidated statement of
income under other comprehensive income.
Assume that at the time of acquisition, the fair value of Sculpture’s net assets is FC 300,000. All of the net assets equaled their carrying value with the exception of some machinery which exceeded its carrying value by FC 100,000. The machinery has a remaining useful life of 5 years. Both Prints and Sculpture use straight-line amortization.
At the end of 2016, what amount, if any, of the acquisition differential should be added to the net book value of the equipment?
Calculate the amortization expense, if any, related to the acquisition differential that should be included in Prints’ consolidated statement of comprehensive income for 2016.
Calculate the ending balance of the cumulative exchange gain, cumulative OCI.
In: Finance
Presented here are summarized data from the balance sheets and income statements of Wiper, Inc.:
| WIPER, INC. | |||||||||
| Condensed Balance Sheets | |||||||||
| December 31, 2017, 2016, 2015 | |||||||||
| (in millions) | |||||||||
| 2017 | 2016 | 2015 | |||||||
| Current assets | $ | 707 | $ | 939 | $ | 793 | |||
| Other assets | 2,419 | 1,926 | 1,725 | ||||||
| Total assets | $ | 3,126 | $ | 2,865 | $ | 2,518 | |||
| Current liabilities | $ | 583 | $ | 836 | $ | 724 | |||
| Long-term liabilities | 1,530 | 997 | 870 | ||||||
| Stockholders’ equity | 1,013 | 1,032 | 924 | ||||||
| Total liabilities and stockholders' equity | $ | 3,126 | $ | 2,865 | $ | 2,518 | |||
| WIPER, INC | ||||||
| Selected Income Statement and Other Data | ||||||
| For the year Ended December 31, 2017 and 2016 | ||||||
| (in millions) | ||||||
| 2017 | 2016 | |||||
| Income statement data: | ||||||
| Sales | $ | 3,056 | $ | 2,919 | ||
| Operating income | 302 | 316 | ||||
| Interest expense | 90 | 71 | ||||
| Net income | 209 | 204 | ||||
| Other data: | ||||||
| Average number of common shares outstanding | 41.9 | 47.3 | ||||
| Total dividends paid | $ | 56.0 | $ | 52.9 | ||
e. If Wiper stock had a price/earnings ratio of 14 at the end of 2017 what was the market price of the stock
f.Calculate the cash dividend per share for 2017 and the dividend yield base on the market price calculated in part E
g.Calculate the dividend payout ratio for 2017
h.Assume acct receviable at Dec 31, 2017 totaled 315 million. Calculate the number of days in receivables at that date.
I.Calculate Wipers debt ratio at Dec 31,2017 and 2016
J. Calculate the times interest earned ratio of 2017 and 2016
In: Accounting
I need answer of Question 6?
Below is the unadjusted trial balance for Walton Anvils as of December 31, 2016, and the data for the adjustments.
| Walton Anvils | ||
| Unadjusted Trial Balance | ||
| December 31, 2016 | ||
| Balance | ||
| Account Title | Debt | Credit |
| Cash | $ 16,900.00 | |
| Accounts Receivable | 17,500 | |
| Prepaid Rent | 2,500 | |
| Office Supplies | 1,900 | |
| Equipment | 23,000 | |
| Accumulated Depreciation - Equipment | $ 7,000.00 | |
| Accounts Payable | 6,200.00 | |
| Salaries Payable | ||
| Unearned Revenue | 5,600.00 | |
| Common Stock | 28,000.00 | |
| Retained Earnings | 1,600.00 | |
| Dividends | 4,500 | |
| Service Revenue | 20,800.00 | |
| Salaries Expense | 2,900 | |
| Rent Expense | ||
| Depreciation Expense - Equipment | ||
| Supplies Expense | ||
| Total |
$ 69,200.00 |
$ 69,200.00 |
Adjustment Data
| a. Unearned revenue still unearned at December 31, 2016 | $1,800 |
| b. Prepaid rent still in force at December 31, 2016 | $2,300 |
| c. Office supplies used | $1,400 |
| d. Depreciation | $380 |
|
e. Accrued Salaries Expense at December 31, 2016 |
$210 |
|
Question no. 6
| Date | Accounts and explanation | Debit | Credit | |
In: Accounting
Below is the unadjusted trial balance for Walton Anvils as of December 31, 2016, and the data for the adjustments. There is also an Excel Template for this problem that you may download and use (or you may use your own).
| Walton Anvils | ||
| Unadjusted Trial Balance | ||
| December 31, 2016 | ||
| Balance | ||
| Account Title | Debt | Credit |
| Cash | $ 16,900.00 | |
| Accounts Receivable | 17,500 | |
| Prepaid Rent | 2,500 | |
| Office Supplies | 1,900 | |
| Equipment | 23,000 | |
| Accumulated Depreciation - Equipment | $ 7,000.00 | |
| Accounts Payable | 6,200.00 | |
| Salaries Payable | ||
| Unearned Revenue | 5,600.00 | |
| Common Stock | 28,000.00 | |
| Retained Earnings | 1,600.00 | |
| Dividends | 4,500 | |
| Service Revenue | 20,800.00 | |
| Salaries Expense | 2,900 | |
| Rent Expense | ||
| Depreciation Expense - Equipment | ||
| Supplies Expense | ||
| Total |
$ 69,200.00 |
$ 69,200.00 |
Adjustment Data
| a. Unearned revenue still unearned at December 31, 2016 | $1,800 |
| b. Prepaid rent still in force at December 31, 2016 | $2,300 |
| c. Office supplies used | $1,400 |
| d. Depreciation | $380 |
| e. Accrued Salaries Expense at December 31, 2016 | $210 |
Requirements
Open T-accounts using the balances in the unadjusted trial balance.
Complete the worksheet for the year ended December 31, 2016.
Prepare the adjusting entries and post to the T-accounts.
Prepare the adjusted trial balance.
Prepare the income statement, the statement of retained earnings, and the classified balance sheet in report form.
Prepare the closing entries and post to the T-accounts.
Prepare a post-closing trial balance.
Calculate the current ratio for the company.
In: Accounting
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In: Accounting
Bethesda Mining Company reports the following balance sheet information for 2015 and 2016.
| BETHESDA MINING COMPANY Balance Sheets as of December 31, 2015 and 2016 |
|||||||||||||||||
| 2015 | 2016 | 2015 | 2016 | ||||||||||||||
| Assets | Liabilities and Owners’ Equity | ||||||||||||||||
| Current assets | Current liabilities | ||||||||||||||||
| Cash | $ | 72,718 | $ | 91,489 | Accounts payable | $ | 185,422 | $ | 193,111 | ||||||||
| Accounts receivable | 66,781 | 87,139 | Notes payable | 80,520 | 132,088 | ||||||||||||
| Inventory | 113,146 | 177,607 | Total | $ | 265,942 | $ | 325,199 | ||||||||||
| Total | $ | 252,645 | $ | 356,235 | Long-term debt | $ | 228,000 | $ | 164,750 | ||||||||
| Owners’ equity | |||||||||||||||||
| Common stock and paid-in surplus | $ | 227,000 | $ | 227,000 | |||||||||||||
| Fixed assets | Accumulated retained earnings | 190,750 | 229,414 | ||||||||||||||
| Net plant and equipment | $ | 659,047 | $ | 590,128 | Total | $ | 417,750 | $ | 456,414 | ||||||||
| Total assets | $ | 911,692 | $ | 946,363 | Total liabilities and owners’ equity | $ | 911,692 | $ | 946,363 | ||||||||
Based on the balance sheets given for Bethesda Mining, calculate the following financial ratios for each year:
c. Cash ratio. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
| Cash ratio | ||
| 2015 | times | |
| 2016 | times | |
d. Debt−equity ratio and equity multiplier. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
| Debt−equity ratio | Equity multiplier | ||||||
| 2015 | times | times | |||||
| 2016 | times | times | |||||
e. Total debt ratio. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
In: Finance
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Requirements: *Sidenote please do not handwrite reponse for it is not easy to read everyone's Handwriting. 1.Prepare Dazzling Motors, Inc.'s, income statement for the year ended December? 31,2016. Use the? single-step format, with all revenues listed together and all expenses together. |
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2. Prepare Dazzling?'s balance sheet at December? 31, 2016. |
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3. Prepare Dazzling?'s statement of cash flows for the year ended Dec 31, 2016. Format cash flows from operating activities by using the indirect method. On January? 1, 2016?, Dazzling issued its common stock for $ 440,000. Early in? January, Dazzling made the following cash? payments: a. $ 180, 000 for equipment b. $ 203, 000 for inventory ?(seven cars at $ 29, 000 ?each) c. $ 17,000 for 2016 rent on a store building In? February, Dazzling purchased two cars for inventory on account. Cost of this inventory was $ 80,000 ?($ 40,000 ?each). Before? year-end, Dazzling paid $ 48,000 of this debt. The company uses the? first-in, first-out? (FIFO) method to account for inventory. During 2016?, Dazzling sold 8 autos for a total of $ 488,000. Before? year-end, it had collected 50?% of this amount. The business employs five people. The combined annual payroll is $ 125,000?, of which Dazzling owes $ 2,000 at? year-end. At the end of the? year, Dazzling paid income tax of $ 12,600. Late in 2016?, Dazzling declared and paid cash dividends of $ 29,000. For? equipment, Dazzling uses the? straight-line depreciation? method, over five? years, with zero residual value. |
In: Accounting
Deferred Tax Calculations (Appendix)
Wyhowski Inc. reported income from operations, before taxes, for 2015-2017 as follows:
| 2015 | $244,000 |
| 2016 | 279,000 |
| 2017 | 327,000 |
When calculating income, Wyhowski deducted depreciation on plant equipment. The equipment was purchased January 1, 2015, at a cost of $101,000. The equipment is expected to last three years and have a(n) $8,000 salvage value. Wyhowski uses straight-line depreciation for book purposes. For tax purposes, depreciation on the equipment is $58,000 in 2015, $23,000 in 2016, and $12,000 in 2017. Wyhowski's tax rate is 35%.
Required:
Enter all amounts as positive numbers.
1. How much did Wyhowski pay in income tax each year? If required, round all calculations to the nearest dollar.
| Year | Taxes Paid |
| 2015 | $fill in the blank 1 |
| 2016 | $fill in the blank 2 |
| 2017 | $fill in the blank 3 |
2. How much income tax expense did Wyhowski record each year?
| Year | Income Tax Expense |
| 2015 | $fill in the blank 4 |
| 2016 | $fill in the blank 5 |
| 2017 | $fill in the blank 6 |
3. What is the balance in the Deferred Income Tax account at the end of 2015, 2016, and 2017? If your answer is zero, enter "0". If required, round all calculations to the nearest dollar.
| Year | Balance | Debit or Credit |
| 2015 | $fill in the blank 7 | Credit |
| 2016 | $fill in the blank 9 | Credit |
| 2017 | $fill in the blank 11 | No balance |
In: Accounting