Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars)
| 2019 | 2018 | |||
| Sales | $ | 1,820.0 | $ | 1,400.0 |
| Operating costs excluding depreciation and amortization | 1,547.0 | 1,190.0 | ||
| EBITDA | $ | 273.0 | $ | 210.0 |
| Depreciation and amortization | 46.0 | 36.0 | ||
| Earnings before interest and taxes (EBIT) | $ | 227.0 | $ | 174.0 |
| Interest | 40.0 | 30.8 | ||
| Earnings before taxes (EBT) | $ | 187.0 | $ | 143.2 |
| Taxes (25%) | 74.8 | 57.3 | ||
| Net income | $ | 112.2 | $ | 85.9 |
| Common dividends | $ | 101.0 | $ | 68.7 |
Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Dollars)
| 2019 | 2018 | |||
| Assets | ||||
| Cash and equivalents | $ | 17.0 | $ | 14.0 |
| Accounts receivable | 273.0 | 210.0 | ||
| Inventories | 322.0 | 280.0 | ||
| Total current assets | $ | 612.0 | $ | 504.0 |
| Net plant and equipment | 455.0 | 364.0 | ||
| Total assets | $ | 1,067.0 | $ | 868.0 |
| Liabilities and Equity | ||||
| Accounts payable | $ | 123.0 | $ | 98.0 |
| Accruals | 67.0 | 56.0 | ||
| Notes payable | 36.4 | 28.0 | ||
| Total current liabilities | $ | 226.4 | $ | 182.0 |
| Long-term bonds | 364.0 | 280.0 | ||
| Total liabilities | $ | 590.4 | $ | 462.0 |
| Common stock | 439.6 | 380.2 | ||
| Retained earnings | 37.0 | 25.8 | ||
| Common equity | $ | 476.6 | $ | 406.0 |
| Total liabilities and equity | $ | 1,067.0 | $ | 868.0 |
Write out your answers completely. For example, 25 million should be entered as 25,000,000. Round your answers to the nearest dollar, if necessary. Negative values, if any, should be indicated by a minus sign.
What was net operating working capital for 2018 and 2019? Assume the firm has no excess cash.
2018: $
2019: $
What was the 2019 free cash flow?
$
How would you explain the large increase in 2019 dividends?
In: Finance
Tax Breaks for Education
In 2018, Margery and Philip Brown have three children attending college full-time and they claim all three as dependents. Philip also has education related expenses for himself. They paid for the following expenses:
1. Their daughter, Amy, is a Masters student in both Spring 2018 and Fall 2018 at Wake Forest where she received a scholarship for part of her tuition. Her parents paid a total of tuition of $10,000 and room & board of $6,000 (all paid in 2018). Amy purchased her own textbooks at a cost of $1,000.
2. Their son, Brad, is a freshman in Spring 2018 and a sophomore in Fall 2018 at Western Carolina. His parents paid a total of tuition and fees of $6,400 and room & board of $5,800 (all paid in 2018).
3. Their daughter, Elizabeth, started at UNC-CH as a freshman in Fall 2018. She receives a scholarship that covers her tuition but her parents paid required fees of $1,000. Her parents also paid room & board of $4,600 and textbooks for $1,400.
4. Philip is a self-employed lawyer. He completed continuing education courses that are required to meet the requirements of North Carolina State law and cost $3,000. (You can ignore any effects on self-employment tax.)
6. Philip is also paying off student loans from law school. He paid $3,200 of interest in 2018.
|
Other information related to their tax return: |
|
|
AGI before the effects of education related deductions |
130,000 |
|
state income tax payments |
6,900 |
|
real estate taxes |
3,500 |
|
home mortgage interest |
9,600 |
|
charitable contributions |
5,400 |
The following outlines the application of the tax formula to Assignment 6:
AGI before education deductions
Subtract: for AGI education related deductions
Professional education for a self-employed individual
Student loan interest deduction
AGI
Subtract: Itemized Deductions
Taxes, interest, and charitable
Taxable Income
Tax – calculate tax on taxable income using the tax rate schedule (write an Excel formula to do the calculation)
Subtract: Credits
American Opportunity Credit (AOC)
Lifetime Learning Credit (LL)
Be certain to consider any phase outs
Tax after Credits
In: Accounting
Fullerton, Inc. makes and sells a single snowboard model, the Titan. Fullerton’s CEO expects to sell 3,910 snowboards at an estimated retail price of $1,320 per board during 2018. In the fall of 2017, Fullerton gathered the following data to prepare budgets for 2018: Materials and Labor Requirements Wood 17 board feet (b.f.) per snowboard Fiberglass 15 yards per snowboard Direct labor 7 hours per snowboard CEO expects to sell 3,910 snowboards during 2018 at an estimated retail price of $ 1,320 per board. Further, the CEO expects 2018 beginning inventory of 700 snowboards and would like to end 2018 with 900 snowboards in stock. The inventoriable unit cost for beginning finished goods inventory on January 1, 2018 is $230.00. Data pertaining to the direct materials inventories are as follows: Beginning Inventory Ending Inventory Wood 2,100 b.f. 1,600 b.f. Fiberglass 1,100 yards 2,100 yards Variable manufacturing overhead is $20 per direct labor-hour. There are also $28,770 in fixed manufacturing overhead cots budgeted for 2018. Both variable and fixed overhead costs are allocated based on direct manufacturing labor-hours. Other data include the following: 2017 Unit Price 2018 Unit Price Wood $38.00 per b.f. $40.00 per b.f. Fiberglass $14 per yard $15 per yard Direct labor $34.00 per hour $35.00 per hour Assume Fullerton uses a FIFO inventory method for both direct materials and finished goods. Ignore work in process in your calculations.
1. What is the total direct manufacturing labor costs budget?
a.987,180
b. 882,980
c. 1,006,950
d.908,950
2. What are the total manufacturing overhead costs?
a. 102,970
b. 604,170
c.548,170
d. 110,970
3. What is the cost of target ending inventories of finished goods?
a. 1,116,900
b. 965,200
c. 978,300
d. 1,167,300
4. What is the budgeted cost of goods sold for 2018?
a. 4,369,470
b. 4,508,070
c. 4,319,070
d. 4,521,170
5. What are total finished good units to be produced?
a. 4110
b. 4,700
c. 3,900
d. 3,710
In: Accounting
Financial information for Powell Panther Corporation is shown below:
Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars)
| 2019 | 2018 | |||
| Sales | $ | 3,105.0 | $ | 2,700.0 |
| Operating costs excluding depreciation and amortization | 2,562.0 | 2,295.0 | ||
| EBITDA | $ | 543.0 | $ | 405.0 |
| Depreciation and amortization | 81.0 | 65.0 | ||
| Earnings before interest and taxes (EBIT) | $ | 462.0 | $ | 340.0 |
| Interest | 68.3 | 59.4 | ||
| Earnings before taxes (EBT) | $ | 393.7 | $ | 280.6 |
| Taxes (25%) | 157.5 | 112.2 | ||
| Net income | $ | 236.2 | $ | 168.4 |
| Common dividends | $ | 212.6 | $ | 134.7 |
Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Dollars)
| 2019 | 2018 | |||
| Assets | ||||
| Cash and equivalents | $ | 49.0 | $ | 38.0 |
| Accounts receivable | 405.0 | 324.0 | ||
| Inventories | 564.0 | 513.0 | ||
| Total current assets | $ | 1,018.0 | $ | 875.0 |
| Net plant and equipment | 810.0 | 648.0 | ||
| Total assets | $ | 1,828.0 | $ | 1,523.0 |
| Liabilities and Equity | ||||
| Accounts payable | $ | 324.0 | $ | 270.0 |
| Accruals | 238.0 | 216.0 | ||
| Notes payable | 62.1 | 54.0 | ||
| Total current liabilities | $ | 624.1 | $ | 540.0 |
| Long-term bonds | 621.0 | 540.0 | ||
| Total liabilities | $ | 1,245.1 | $ | 1,080.0 |
| Common stock | 508.7 | 392.4 | ||
| Retained earnings | 74.2 | 50.6 | ||
| Common equity | $ | 582.9 | $ | 443.0 |
| Total liabilities and equity | $ | 1,828.0 | $ | 1,523.0 |
Write out your answers completely. For example, 25 million should be entered as 25,000,000. Round your answers to the nearest dollar, if necessary. Negative values, if any, should be indicated by a minus sign.
What was net operating working capital for 2018 and 2019? Assume the firm has no excess cash.
2018: $
2019: $
What was the 2019 free cash flow?
$
How would you explain the large increase in 2019 dividends?
In: Finance
Financial information for Powell Panther Corporation is shown below:
Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars)
| 2019 | 2018 | |||
| Sales | $ | 3,480.0 | $ | 2,900.0 |
| Operating costs excluding depreciation and amortization | 2,871.0 | 2,465.0 | ||
| EBITDA | $ | 609.0 | $ | 435.0 |
| Depreciation and amortization | 109.0 | 84.0 | ||
| Earnings before interest and taxes (EBIT) | $ | 500.0 | $ | 351.0 |
| Interest | 76.6 | 63.8 | ||
| Earnings before taxes (EBT) | $ | 423.4 | $ | 287.2 |
| Taxes (25%) | 169.4 | 114.9 | ||
| Net income | $ | 254.0 | $ | 172.3 |
| Common dividends | $ | 228.6 | $ | 137.8 |
Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Dollars)
| 2019 | 2018 | |||
| Assets | ||||
| Cash and equivalents | $ | 40.0 | $ | 32.0 |
| Accounts receivable | 348.0 | 290.0 | ||
| Inventories | 798.0 | 638.0 | ||
| Total current assets | $ | 1,186.0 | $ | 960.0 |
| Net plant and equipment | 1,093.0 | 841.0 | ||
| Total assets | $ | 2,279.0 | $ | 1,801.0 |
| Liabilities and Equity | ||||
| Accounts payable | $ | 302.0 | $ | 232.0 |
| Accruals | 267.0 | 232.0 | ||
| Notes payable | 69.6 | 58.0 | ||
| Total current liabilities | $ | 638.6 | $ | 522.0 |
| Long-term bonds | 696.0 | 580.0 | ||
| Total liabilities | $ | 1,334.6 | $ | 1,102.0 |
| Common stock | 867.2 | 647.2 | ||
| Retained earnings | 77.2 | 51.8 | ||
| Common equity | $ | 944.4 | $ | 699.0 |
| Total liabilities and equity | $ | 2,279.0 | $ | 1,801.0 |
Write out your answers completely. For example, 25 million should be entered as 25,000,000. Round your answers to the nearest dollar, if necessary. Negative values, if any, should be indicated by a minus sign.
What was net operating working capital for 2018 and 2019? Assume the firm has no excess cash.
2018: $
2019: $
What was the 2019 free cash flow?
$
How would you explain the large increase in 2019 dividends?
-Select-IIIIIIIVV
In: Finance
Financial information for Powell Panther Corporation is shown below:
Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars)
| 2019 | 2018 | |||
| Sales | $ | 2,420.0 | $ | 2,200.0 |
| Operating costs excluding depreciation and amortization | 1,997.0 | 1,870.0 | ||
| EBITDA | $ | 423.0 | $ | 330.0 |
| Depreciation and amortization | 48.0 | 44.0 | ||
| Earnings before interest and taxes (EBIT) | $ | 375.0 | $ | 286.0 |
| Interest | 53.2 | 48.4 | ||
| Earnings before taxes (EBT) | $ | 321.8 | $ | 237.6 |
| Taxes (25%) | 128.7 | 95.0 | ||
| Net income | $ | 193.1 | $ | 142.6 |
| Common dividends | $ | 173.8 | $ | 114.1 |
Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Dollars)
| 2019 | 2018 | |||
| Assets | ||||
| Cash and equivalents | $ | 32.0 | $ | 29.0 |
| Accounts receivable | 354.0 | 308.0 | ||
| Inventories | 660.0 | 528.0 | ||
| Total current assets | $ | 1,046.0 | $ | 865.0 |
| Net plant and equipment | 484.0 | 440.0 | ||
| Total assets | $ | 1,530.0 | $ | 1,305.0 |
| Liabilities and Equity | ||||
| Accounts payable | $ | 177.0 | $ | 154.0 |
| Accruals | 193.0 | 154.0 | ||
| Notes payable | 48.4 | 44.0 | ||
| Total current liabilities | $ | 418.4 | $ | 352.0 |
| Long-term bonds | 484.0 | 440.0 | ||
| Total liabilities | $ | 902.4 | $ | 792.0 |
| Common stock | 565.5 | 470.2 | ||
| Retained earnings | 62.1 | 42.8 | ||
| Common equity | $ | 627.6 | $ | 513.0 |
| Total liabilities and equity | $ | 1,530.0 | $ | 1,305.0 |
Write out your answers completely. For example, 25 million should be entered as 25,000,000. Round your answers to the nearest dollar, if necessary. Negative values, if any, should be indicated by a minus sign.
What was net operating working capital for 2018 and 2019? Assume the firm has no excess cash.
2018: $
2019: $
What was the 2019 free cash flow?
$
How would you explain the large increase in 2019 dividends?
In: Finance
Financial information for Powell Panther Corporation is shown below:
Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars)
| 2019 | 2018 | |||
| Sales | $ | 1,440.0 | $ | 1,200.0 |
| Operating costs excluding depreciation and amortization | 1,116.0 | 1,020.0 | ||
| EBITDA | $ | 324.0 | $ | 180.0 |
| Depreciation and amortization | 42.0 | 32.0 | ||
| Earnings before interest and taxes (EBIT) | $ | 282.0 | $ | 148.0 |
| Interest | 31.7 | 26.4 | ||
| Earnings before taxes (EBT) | $ | 250.3 | $ | 121.6 |
| Taxes (25%) | 100.1 | 48.6 | ||
| Net income | $ | 150.2 | $ | 73.0 |
| Common dividends | $ | 135.2 | $ | 58.4 |
Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Dollars)
| 2019 | 2018 | |||
| Assets | ||||
| Cash and equivalents | $ | 15.0 | $ | 13.0 |
| Accounts receivable | 179.0 | 156.0 | ||
| Inventories | 251.0 | 228.0 | ||
| Total current assets | $ | 445.0 | $ | 397.0 |
| Net plant and equipment | 421.0 | 324.0 | ||
| Total assets | $ | 866.0 | $ | 721.0 |
| Liabilities and Equity | ||||
| Accounts payable | $ | 120.0 | $ | 96.0 |
| Accruals | 110.0 | 96.0 | ||
| Notes payable | 28.8 | 24.0 | ||
| Total current liabilities | $ | 258.8 | $ | 216.0 |
| Long-term bonds | 288.0 | 240.0 | ||
| Total liabilities | $ | 546.8 | $ | 456.0 |
| Common stock | 282.3 | 243.1 | ||
| Retained earnings | 36.9 | 21.9 | ||
| Common equity | $ | 319.2 | $ | 265.0 |
| Total liabilities and equity | $ | 866.0 | $ | 721.0 |
Write out your answers completely. For example, 25 million should be entered as 25,000,000. Round your answers to the nearest dollar, if necessary. Negative values, if any, should be indicated by a minus sign.
What was net operating working capital for 2018 and 2019? Assume the firm has no excess cash.
2018: $
2019: $
What was the 2019 free cash flow?
$
How would you explain the large increase in 2019 dividends?
-Select-IIIIIIIVV
In: Finance
|
Financial information for Powell Panther Corporation is shown below: Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars)
Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Dollars)
Write out your answers completely. For example, 25 million should be entered as 25,000,000. Round your answers to the nearest dollar, if necessary. Negative values, if any, should be indicated by a minus sign.
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In: Finance
| eBook
Financial information for Powell Panther Corporation is shown below: Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars)
Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Dollars)
Write out your answers completely. For example, 25 million should be entered as 25,000,000. Round your answers to the nearest dollar, if necessary. Negative values, if any, should be indicated by a minus sign.
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In: Finance
Financial information for Powell Panther Corporation is shown below:
Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars)
| 2019 | 2018 | |||
| Sales | $ | 3,240.0 | $ | 2,700.0 |
| Operating costs excluding depreciation and amortization | 2,430.0 | 2,295.0 | ||
| EBITDA | $ | 810.0 | $ | 405.0 |
| Depreciation and amortization | 71.0 | 62.0 | ||
| Earnings before interest and taxes (EBIT) | $ | 739.0 | $ | 343.0 |
| Interest | 71.3 | 59.4 | ||
| Earnings before taxes (EBT) | $ | 667.7 | $ | 283.6 |
| Taxes (25%) | 267.1 | 113.4 | ||
| Net income | $ | 400.6 | $ | 170.2 |
| Common dividends | $ | 360.5 | $ | 136.2 |
Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Dollars)
| 2019 | 2018 | |||
| Assets | ||||
| Cash and equivalents | $ | 40.0 | $ | 35.0 |
| Accounts receivable | 311.0 | 270.0 | ||
| Inventories | 776.0 | 621.0 | ||
| Total current assets | $ | 1,127.0 | $ | 926.0 |
| Net plant and equipment | 714.0 | 621.0 | ||
| Total assets | $ | 1,841.0 | $ | 1,547.0 |
| Liabilities and Equity | ||||
| Accounts payable | $ | 248.0 | $ | 216.0 |
| Accruals | 203.0 | 162.0 | ||
| Notes payable | 64.8 | 54.0 | ||
| Total current liabilities | $ | 515.8 | $ | 432.0 |
| Long-term bonds | 648.0 | 540.0 | ||
| Total liabilities | $ | 1,163.8 | $ | 972.0 |
| Common stock | 586.1 | 524.0 | ||
| Retained earnings | 91.1 | 51.0 | ||
| Common equity | $ | 677.2 | $ | 575.0 |
| Total liabilities and equity | $ | 1,841.0 | $ | 1,547.0 |
Write out your answers completely. For example, 25 million should be entered as 25,000,000. Round your answers to the nearest dollar, if necessary. Negative values, if any, should be indicated by a minus sign.
What was net operating working capital for 2018 and 2019? Assume the firm has no excess cash.
2018: $
2019: $
What was the 2019 free cash flow?
$
How would you explain the large increase in 2019 dividends?
-Select-IIIIIIIVV
In: Accounting