Questions
Use Southwest Airlines’ 2016 financial statement information,below to answer the following:Calculate Southwest Airlines’return...
Use Southwest Airlines' 2016 financial statement information, below to answer the following:
Calculate Southwest Airlines’ return on assets (ROA) for the year ending December 31, 2016.
Disaggregate Southwest Airlines' ROA into profit margin (PM) and asset turnover (AT). Explain what each ratio measures.
| ($ millions) | |
| Total operating revenues | $20,425 |
| Net income | 2,244 |
| Total assets, beginning of year | 21,312 |
| Total assets, end of year | 23,286 |
| Equity, end of year | 8,441 |
In: Finance
Flex Fitness is a health and fitness club that operates gym facilities through out the United...
Flex Fitness is a health and fitness club that
operates gym facilities through out the United States.Flex Fitness
members pay their membership dues annually.Selected fiscal- year
information from the company's balance sheets
follows(thousands).
Selected Balance Sheet Data
2016
Defered membership Income( liability)
500,568
2017
453,881
During fiscal 2016, Flex Fitness collected$1,119,833 cash for
membership fees.Calculate the membership fee revenue that flex
fitness recognizied during the year.
In: Accounting
dex company manufactures a single product assume the following data for 2016: Fixed costs in total:...
In: Accounting
Bruce Lee corporation purchased a truck which cost $57540 and it has a 5 year useful...
Bruce Lee corporation purchased a truck which cost
$57540 and it has a 5 year useful life. The company
believes that the truck will have a salvage value of
$9000. The purchase was done on June 1, 2016. the
company uses double declining to depreciate its assets.
Part A
Required
1. Make a depreciation schedule based on straight
line method for the truck.
2. Journalize depreciation expense for 2016 and 2017
3. Give a balance sheet extract for long term asset
for 2018
In: Accounting
Question No. 1 Accounting Error Avalanche Inc. purchased a machine on January 1, 2016, for $...
Question No. 1 Accounting Error
Avalanche Inc. purchased a machine on January 1, 2016, for $ 1,100,000. At that time, it was estimated that the machine would have a 10-year life and no salvage value. On December 31, 2017, the controller found that the entry for depreciation expense had been omitted in 2016. The company uses the sum-of-the-years’- digits method for depreciating equipment.
Required:
- Indicate how this event should be treated in the financial statements.
- Prepare the journal entry that should be made for 2017 (ignore tax effects).
In: Accounting
The price index from 2016 to 2018 is : 200, 210, 220. Derive a forecast for...
- The price index from 2016 to 2018 is : 200, 210, 220. Derive a forecast for 2019 on the basis of adaptive expectations using 0.2, 0.3 and 0.5 as weights in 2016, 2017 and 2018 respectively.
- The optimal forecast for 2019 is 225 using all available information. What is the expected price index in 2019 based on rational expectations?
- The actual value in 2019 is 223. Based on this, Paul concluded that the expected value in (b) derived using rational expectations was wrong. Do you agree? Why?
In: Economics
The following information relates to the Shamrock Company. Date Ending Inventory (End-of-Year Prices) Price Index December...
The following information relates to the Shamrock Company.
|
Date |
Ending Inventory |
Price |
||||
|
December 31, 2013 |
$ 69,400 |
100 |
||||
|
December 31, 2014 |
102,080 |
116 |
||||
|
December 31, 2015 |
110,208 |
128 |
||||
|
December 31, 2016 |
123,816 |
132 |
||||
|
December 31, 2017 |
116,058 |
138 |
||||
Use the dollar-value LIFO method to compute the ending inventory
for Shamrock Company for 2013 through 2017.
|
Ending Inventory |
|||
|
2013 |
$ |
||
|
2014 |
$ |
||
|
2015 |
$ |
||
|
2016 |
$ |
||
|
2017 |
$ |
In: Accounting
The condensed financial statements of Murawski Company for the years 2016 and 2017 are presented below. (Amounts in thousands.)
The condensed financial statements of Murawski Company for the years 2016 and 2017 are presented below. (Amounts in thousands.)
Compute the following ratios for 2017 and 2016.
(a) Current ratio.
(b) Inventory turnover. (Inventory on 12/31/15 was $340.)
(c) Profit margin.
(d) Return on assets. (Assets on 12/31/15 were $1,900.)
(e) Return on common stockholders’ equity. (Stockholders’ equity on 12/31/15 was $900.)
(f) Debt to assets ratio.
(g) Times interest earned.
In: Finance
On 2/25/2016 JNJ issued a bond with coupon of 2.45%, face value of $2 Billion, with...
On 2/25/2016 JNJ issued a bond with coupon of 2.45%, face value of $2 Billion, with maturity set for 3/1/2026. (a) Based on JNJ’s 10-K for fiscal 2016 (12-month period ending on 1/1/2017), what was the amount raised by JNJ when the bonds were issued? (b) Were these bonds issued at a discount or premium? (c) How much was the discount or premium? (From here on by the term “JNJ’s bonds” I mean these bonds only.)
In: Accounting
Gathering and graphing data Go to the Federal Reserve Bank of St. Louis FRED database and...
Gathering and graphing data
Go to the Federal Reserve Bank of St. Louis FRED database and obtain annual data from
1970 to 2016 on “Constant GDP per Capita” for each of the G7 countries (Canada,
France, Germany, Italy, Japan, the United Kingdom, and the United States).
a. Move each country’s data on the same Excel spreadsheet and plot the series.
Which country had the highest GDP per capita in 1970? Which country had
the highest GDP per capita in 2016?
In: Economics