Oriole Service Shop started the year with total assets of $326000 and total liabilities of $241000. During the year, the business recorded $629000 in revenues, $427000 in expenses, and owner drawings of $59400.

The net income reported by Oriole Service Shop for the year was

1. 142,600
2. 227,600
3. 241,000
4. 202,000

Bramble Consulting started the year with total assets of $60500 and total liabilities of $15600. During the year, the business recorded $47900 in consulting revenues and $29300 in expenses. Bramble made an additional investment of $8900 and withdrew cash of $14900 during the year. Owner’s equity changed by what amount from the beginning of the year to the end of the year?

a. 2500

b. 12,600

c. 15,100

d. 44,900

At the beginning of the current year, Trenton Company's total assets were 258,000 and its total liabilities were 180,000 during the year the company reported total revenues of 103,000, total expenses of 81,000 and dividends of 10,000. There were no other changes in equity during the year and total assets at the end of the year were 270,000. Trenton Company's debt ratio at the end of the current year is. A 50.0%. B 1.50%. C 66.7% D 33.3% E 69.8%

The Sooner Equipment Company has total assets of $100 million. Of this total, $45 million was financed with common equity and $55 million with debt (both long and short-term). Its average accounts receivable balance is $24 million, and this represents an 80-day average collection period. Sooner believes it can reduce its average collection period from 80 to 65 days without affecting sales or the dollar amount of net income after taxes (currently $4.5 million). What will be the effect of this action on Sooner’s return on investment and its return on stockholders’ equity if the funds received by reducing the average collection period are used to buy back its common stock at book value? What impact will this action have on Sooner’s debt ratio? Round your answers to two decimal places.

Old debt ratio:  %

New debt ratio:  %

Old return on assets:  %

New return on assets:  %

Old return on common equity:  %

New return on common equity:  %

Henderson company had a beginning-of-the-year total assets of 300,000 and total liablities of 180,000.

A) if during the year total assets increased by 15,000 and total liabilities increased by 40,000, what is the end-of-year total stockholders equity

B) if during the year total assets increased by 60,000 and total liabilities decreased by 5,000 what is the end-of-year total stockholders equity

C) if during the year the total liabilties increased by 40,000 and total stock holders equity increased by 35000 what are the end-of-year total assets

1. A market has six competitors in it, with the following total sales amounts:

1. Calculate the four firm concentration ratio for this industry.

2. Calculate the Herfindahl index for this market.

3. Based on your calculation in (b), would you classify this market as moderately or highly oligopolistic? Why?

The total benefit to society from a firm’s pollution abatement is TB = A-0.01A^2. The total cost of abatement to the firm is TC=A. How much would society prefer the firm to abate? If the firm receives no benefits from its pollution abatement, how much will it choose to abate? Discuss how environmental shirking could be alleviated.

Oriole Company is owned by Rachel Oriole. The company had total assets of $885,000 and total liabilities of $500,000 at the beginning of the year. Answer each of the following independent questions:

(a) During the year, total assets increased by $121,000 and total liabilities decreased by $77,000. What is the amount of owner's equity at the end of the year?

(b) Total liabilities decreased by $87,000 during the year. The company incurred a loss of $60,000. R. Oriole made an additional investment of $103,000 and made no withdrawals. What is the amount of total assets at the end of the year?

(c) Total assets increased by $57,800, and total liabilities decreased by $60,000. There were no additional owner's investments, and R. Oriole withdrew $45,000. What is the amount of profit or loss for the year?

The expected total return on a share of stock minus the total expected dividend yield equals the total expected capital gains yield.

True or False