The balance sheet for Seuss Company at the end of the current fiscal year indicated the following:

Income before income tax was $1,500,000, and income taxes were $200,000 for the current year. Cash dividends paid on common stock during the current year totaled $150,000. The common stock sells for $75 per share at the end of the year.

Required:

Determine each of the following:

Round to one decimal place except earnings per share and dividends per share, which should be rounded to two decimal places.

Below are listed the balances for JET Ltd. at the end of the year, December 31, 2017. The accounts and activities are listed in random order. This is the company’s first year of operations.

Create both the income statement and the statement of cash flows in good form (meaning proper format, headings, subheadings, totals and subtotals).

Also – answer the additional questions that follow the spaces for your statements.

Name TWO items that appear on the multi-step income statements but not on the single-step income statement.

For each of the items below, indicate which section of the statement of cash flows it would belong in, and whether it is a cash inflow or outflow.

(Enter O+, O-, I+, I-, F+, or F-)

1. A firm’s annual revenues are $635,00 Its expenses for the year are $428,000, and it claims $129,000 in depreciation expenses. Due to recent (2018) tax law changes, use a flat 21% corporate tax rate to calculate taxes.
   1. Calculate Taxes owed
   2. Calculate after-tax income (aka AFIT Net Income)?
   3. Calculate after-tax cash flow. (AFIT Cash Flow)

Sales of Valentine's Day roses are expected to be down this year, but prices will still go up because the plants are producing fewer blooms.Vendors at Sirikorn flower market in Muang district said there is less interest in ordering fresh roses for Feb 14 this year.Young people seemed more interested in sending digital flowers to their loved ones.The owner of Doi Florist shop said supplies of roses were down because weather conditions had affected the harvest. The plants were bearing fewer flowers.This caused the price of a bouquet of roses to sharply increase.
A bouquet of small roses which previously sold for 200-300 baht would cost 300-400 baht this year, she said.Kapkaew Donnate, owner of Tuta Florist shop, said young people were traditionally the main customers for Valentine’s Day, but now they tended to send digital flowers and buy other gifts instead of fresh roses.She also confirmed that prices of roses had doubled because of the low supply, and blamed the unfavourable weather.
“Vendors here buy flowers from several gardens in Chiang Rai and Chiang Mai provinces. Our shop orders flowers from gardens in Thoeng district in Chiang Rai."Bouquets of roses, each with 25 blooms, are currently priced at 200 baht each. The retail price of single rose is 20 baht, but only grade B and C roses are available at the market.
"For Valentine’s Day, grade A roses are expected to be available at the market, but the price will be 40 baht a rose,’’ Ms Kapkaew said.
Use the supply and demand model, including diagrams, to explain the impact on the prices and quantities in the market of roses in Muang district of:Valentine’s Day,the weather, and young people ‘going digital

Cindy Medavoy will invest $6,250 a year for 22 years in a fund that will earn 15% annual interest. If the first payment into the fund occurs today, what amount will be in the fund in 22 years? If the first payment occurs at year-end, what amount will be in the fund in 22 years?

First payment today?

First payment at year-end

Uncollectible Accounts—Percentage of Sales and Percentage of Receivables

At the end of the current year, the accounts receivable account of Glenn's Nursery Supplies has a debit balance of $390,000. Credit sales are $2,780,000. Record the end-of-period adjusting entry on December 31, in general journal form, for the estimated uncollectible accounts. Assume the following independent conditions existed prior to the adjustment:

1. Allowance for Doubtful Accounts has a credit balance of $1,860.

a. The percentage of sales method is used and bad debt expense is estimated to be 1% of credit sales. If an amount box does not require an entry, leave it blank.

b. The percentage of receivables method is used and an analysis of the accounts produces an estimate of $30,330 in uncollectible accounts. If an amount box does not require an entry, leave it blank.

2. Allowance for Doubtful Accounts has a debit balance of $1,950.

a. The percentage of sales method is used and bad debt expense is estimated to be ¾ of 1% of credit sales. If an amount box does not require an entry, leave it blank.

b. The percentage of receivables method is used and an analysis of the accounts produces an estimate of $29,890 in uncollectible accounts. If an amount box does not require an entry, leave it blank.

The following data for 3M Corporation is for the last fiscal year ending in December of 2017

Ticker symbol: MMM

Price close at fiscal year end: $ 150.64

NAICS code: 322220

Dividend payout ratio: 39.58%

Dividend yield at fiscal year end: 2.722%

Dividends per share: $ 4.10

ROE: 41.28%

Common equity total: $ 12,048 million

Preferred stock total: 0

Long term debt total: $ 11,079 million

Interest expense: $ 180 million

P/E: 20.36

Tax rate: 29.05%

FCF/share for the next year: $ 3.935

Common shares outstanding for the next year: 609.33 million

The growth rate for free cash flow is 8.00%

Return of the S&P 500 at year end 2016 was 11.96%

U.S. 20 year treasury bond at year end was paying 2.67% (used for risk free rate)

Calculate:

1-The growth rate g

2-The cost of equity k (hint: use the CAPM formula for this)

3-The valuation of the stock using the DDM

4-Total capital

5-Weight of debt

6-Weight of equity

7-Cost of debt

8-The value of the WACC

9-The value per share using the corporate valuation model

10-Based on the DDM is the stock overvalued or undervalued and by how much

11-Based on the corporate valuation model is the stock overvalued or undervalued and by how much