Financing Deficit
Garlington Technologies Inc.'s 2016 financial statements are shown below:
Balance Sheet as of December 31, 2016
| Cash | $ 180,000 | Accounts payable | $ 360,000 | |
| Receivables | 360,000 | Notes payable | 156,000 | |
| Inventories | 720,000 | Line of credit | 0 | |
| Total current assets | $1,260,000 | Accruals | 180,000 | |
| Fixed assets | 1,440,000 | Total current liabilities | $ 696,000 | |
| Common stock | 1,800,000 | |||
| Retained earnings | 204,000 | |||
| Total assets | $2,700,000 | Total liabilities and equity | $2,700,000 |
Income Statement for December 31, 2016
| Sales | $3,600,000 |
| Operating costs | 3,279,720 |
| EBIT | $ 320,280 |
| Interest | 18,280 |
| Pre-tax earnings | $ 302,000 |
| Taxes (40%) | 120,800 |
| Net income | 181,200 |
| Dividends | $ 108,000 |
Suppose that in 2017 sales increase by 5% over 2016 sales and that 2017 dividends will increase to $136,000. Forecast the financial statements using the forecasted financial statement method. Assume the firm operated at full capacity in 2016. Use an interest rate of 14%, and assume that any new debt will be added at the end of the year (so forecast the interest expense based on the debt balance at the beginning of the year). Cash does not earn any interest income. Assume that the all new-debt will be in the form of a line of credit. Round your answers to the nearest dollar. Do not round intermediate calculations.
| Garlington Technologies Inc. Pro Forma Income Statement December 31, 2017 |
|||
| Sales | $ | ||
| Operating costs | $ | ||
| EBIT | $ | ||
| Interest | $ | ||
| Pre-tax earnings | $ | ||
| Taxes (40%) | $ | ||
| Net income | $ | ||
| Dividends: | $ | ||
| Addition to RE: | $ | ||
| Garlington Technologies Inc. Pro Forma Balance Statement December 31, 2017 |
|||
| Cash | $ | ||
| Receivables | $ | ||
| Inventories | $ | ||
| Total current assets | $ | ||
| Fixed assets | $ | ||
| Total assets | $ | ||
| Accounts payable | $ | ||
| Notes payable | $ | ||
| Accruals | $ | ||
| Total current liabilities | $ | ||
| Common stock | $ | ||
| Retained earnings | $ | ||
| Total liabilities and equity | $ | ||
In: Finance
Financing Deficit
Garlington Technologies Inc.'s 2016 financial statements are shown below:
Balance Sheet as of December 31, 2016
| Cash | $ 180,000 | Accounts payable | $ 360,000 | |
| Receivables | 360,000 | Notes payable | 156,000 | |
| Inventories | 720,000 | Line of credit | 0 | |
| Total current assets | $1,260,000 | Accruals | 180,000 | |
| Fixed assets | 1,440,000 | Total current liabilities | $ 696,000 | |
| Common stock | 1,800,000 | |||
| Retained earnings | 204,000 | |||
| Total assets | $2,700,000 | Total liabilities and equity | $2,700,000 |
Income Statement for December 31, 2016
| Sales | $3,600,000 |
| Operating costs | 3,279,720 |
| EBIT | $ 320,280 |
| Interest | 18,280 |
| Pre-tax earnings | $ 302,000 |
| Taxes (40%) | 120,800 |
| Net income | 181,200 |
| Dividends | $ 108,000 |
Suppose that in 2017 sales increase by 15% over 2016 sales and that 2017 dividends will increase to $186,000. Forecast the financial statements using the forecasted financial statement method. Assume the firm operated at full capacity in 2016. Use an interest rate of 9%, and assume that any new debt will be added at the end of the year (so forecast the interest expense based on the debt balance at the beginning of the year). Cash does not earn any interest income. Assume that the all new-debt will be in the form of a line of credit. Round your answers to the nearest dollar. Do not round intermediate calculations.
| Garlington Technologies Inc. Pro Forma Income Statement December 31, 2017 |
|||
| Sales | $ | ||
| Operating costs | $ | ||
| EBIT | $ | ||
| Interest | $ | ||
| Pre-tax earnings | $ | ||
| Taxes (40%) | $ | ||
| Net income | $ | ||
| Dividends: | $ | ||
| Addition to RE: | $ | ||
| Garlington Technologies Inc. Pro Forma Balance Statement December 31, 2017 |
|||
| Cash | $ | ||
| Receivables | $ | ||
| Inventories | $ | ||
| Total current assets | $ | ||
| Fixed assets | $ | ||
| Total assets | $ | ||
| Accounts payable | $ | ||
| Notes payable | $ | ||
| Accruals | $ | ||
| Total current liabilities | $ | ||
| Common stock | $ | ||
| Retained earnings | $ | ||
| Total liabilities and equity | |||
In: Finance
Problem 12-09 Financing Deficit Garlington Technologies Inc.'s 2016 financial statements are shown below: Balance Sheet as of December 31, 2016 Cash $ 180,000 Accounts payable $ 360,000 Receivables 360,000 Notes payable 156,000 Inventories 720,000 Line of credit 0 Total current assets $1,260,000 Accruals 180,000 Fixed assets 1,440,000 Total current liabilities $ 696,000 Common stock 1,800,000 Retained earnings 204,000 Total assets $2,700,000 Total liabilities and equity $2,700,000 Income Statement for December 31, 2016 Sales $3,600,000 Operating costs 3,279,720 EBIT $ 320,280 Interest 18,280 Pre-tax earnings $ 302,000 Taxes (40%) 120,800 Net income 181,200 Dividends $ 108,000 Suppose that in 2017 sales increase by 20% over 2016 sales and that 2017 dividends will increase to $192,000. Forecast the financial statements using the forecasted financial statement method. Assume the firm operated at full capacity in 2016. Use an interest rate of 14%, and assume that any new debt will be added at the end of the year (so forecast the interest expense based on the debt balance at the beginning of the year). Cash does not earn any interest income. Assume that the all new-debt will be in the form of a line of credit. Round your answers to the nearest dollar. Do not round intermediate calculations. Garlington Technologies Inc. Pro Forma Income Statement December 31, 2017 Sales $ Operating costs $ EBIT $ Interest $ Pre-tax earnings $ Taxes (40%) $ Net income $ Dividends: $ Addition to RE: $ Garlington Technologies Inc. Pro Forma Balance Statement December 31, 2017 Cash $ Receivables $ Inventories $ Total current assets $ Fixed assets $ Total assets $ Accounts payable $ Notes payable $ Accruals $ Total current liabilities $ Common stock $ Retained earnings $ Total liabilities and equity.
In: Finance
Financing Deficit Garlington Technologies Inc.'s 2016 financial statements are shown below: Balance Sheet as of December 31, 2016 Cash $ 180,000 Accounts payable $ 360,000 Receivables 360,000 Notes payable 156,000 Inventories 720,000 Line of credit 0 Total current assets $1,260,000 Accruals 180,000 Fixed assets 1,440,000 Total current liabilities $ 696,000 Common stock 1,800,000 Retained earnings 204,000 Total assets $2,700,000 Total liabilities and equity $2,700,000 Income Statement for December 31, 2016 Sales $3,600,000 Operating costs 3,279,720 EBIT $ 320,280 Interest 18,280 Pre-tax earnings $ 302,000 Taxes (40%) 120,800 Net income 181,200 Dividends $ 108,000 Suppose that in 2017 sales increase by 10% over 2016 sales and that 2017 dividends will increase to $192,000. Forecast the financial statements using the forecasted financial statement method. Assume the firm operated at full capacity in 2016. Use an interest rate of 11%, and assume that any new debt will be added at the end of the year (so forecast the interest expense based on the debt balance at the beginning of the year). Cash does not earn any interest income. Assume that the all new-debt will be in the form of a line of credit. Round your answers to the nearest dollar. Do not round intermediate calculations. Garlington Technologies Inc. Pro Forma Income Statement December 31, 2017 Sales $ Operating costs $ EBIT $ Interest $ Pre-tax earnings $ Taxes (40%) $ Net income $ Dividends: $ Addition to RE: $ Garlington Technologies Inc. Pro Forma Balance Statement December 31, 2017 Cash $ Receivables $ Inventories $ Total current assets $ Fixed assets $ Total assets $ Accounts payable $ Notes payable $ Accruals $ Total current liabilities $ Common stock $ Retained earnings $ Total liabilities and equity
In: Finance
Financing Deficit Garlington Technologies Inc.'s 2016 financial statements are shown below: Balance Sheet as of December 31, 2016 Cash $ 180,000 Accounts payable $ 360,000 Receivables 360,000 Notes payable 156,000 Inventories 720,000 Line of credit 0 Total current assets $1,260,000 Accruals 180,000 Fixed assets 1,440,000 Total current liabilities $ 696,000 Common stock 1,800,000 Retained earnings 204,000 Total assets $2,700,000 Total liabilities and equity $2,700,000 Income Statement for December 31, 2016 Sales $3,600,000 Operating costs 3,279,720 EBIT $ 320,280 Interest 18,280 Pre-tax earnings $ 302,000 Taxes (40%) 120,800 Net income 181,200 Dividends $ 108,000 Suppose that in 2017 sales increase by 10% over 2016 sales and that 2017 dividends will increase to $170,000. Forecast the financial statements using the forecasted financial statement method. Assume the firm operated at full capacity in 2016. Use an interest rate of 10%, and assume that any new debt will be added at the end of the year (so forecast the interest expense based on the debt balance at the beginning of the year). Cash does not earn any interest income. Assume that the all new-debt will be in the form of a line of credit. Round your answers to the nearest dollar. Do not round intermediate calculations. Garlington Technologies Inc. Pro Forma Income Statement December 31, 2017 Sales $ Operating costs $ EBIT $ Interest $ Pre-tax earnings $ Taxes (40%) $ Net income $ Dividends: $ Addition to RE: $ Garlington Technologies Inc. Pro Forma Balance Statement December 31, 2017 Cash $ Receivables $ Inventories $ Total current assets $ Fixed assets $ Total assets $ Accounts payable $ Notes payable $ Accruals $ Total current liabilities $ Common stock $ Retained earnings $ Total liabilities and equity $
In: Finance
Problem 12-09
Financing Deficit
Garlington Technologies Inc.'s 2016 financial statements are shown below:
Balance Sheet as of December 31, 2016
| Cash | $ 180,000 | Accounts payable | $ 360,000 | |
| Receivables | 360,000 | Notes payable | 156,000 | |
| Inventories | 720,000 | Line of credit | 0 | |
| Total current assets | $1,260,000 | Accruals | 180,000 | |
| Fixed assets | 1,440,000 | Total current liabilities | $ 696,000 | |
| Common stock | 1,800,000 | |||
| Retained earnings | 204,000 | |||
| Total assets | $2,700,000 | Total liabilities and equity | $2,700,000 |
Income Statement for December 31, 2016
| Sales | $3,600,000 |
| Operating costs | 3,279,720 |
| EBIT | $ 320,280 |
| Interest | 18,280 |
| Pre-tax earnings | $ 302,000 |
| Taxes (40%) | 120,800 |
| Net income | 181,200 |
| Dividends | $ 108,000 |
Suppose that in 2017 sales increase by 5% over 2016 sales and that 2017 dividends will increase to $118,000. Forecast the financial statements using the forecasted financial statement method. Assume the firm operated at full capacity in 2016. Use an interest rate of 14%, and assume that any new debt will be added at the end of the year (so forecast the interest expense based on the debt balance at the beginning of the year). Cash does not earn any interest income. Assume that the all new-debt will be in the form of a line of credit. Round your answers to the nearest dollar. Do not round intermediate calculations.
| Garlington Technologies Inc. Pro Forma Income Statement December 31, 2017 |
|||
| Sales | $ | ||
| Operating costs | $ | ||
| EBIT | $ | ||
| Interest | $ | ||
| Pre-tax earnings | $ | ||
| Taxes (40%) | $ | ||
| Net income | $ | ||
| Dividends: | $ | ||
| Addition to RE: | $ | ||
| Garlington Technologies Inc. Pro Forma Balance Statement December 31, 2017 |
|||
| Cash | $ | ||
| Receivables | $ | ||
| Inventories | $ | ||
| Total current assets | $ | ||
| Fixed assets | $ | ||
| Total assets | $ | ||
| Accounts payable | $ | ||
| Notes payable | $ | ||
| Accruals | $ | ||
| Total current liabilities | $ | ||
| Common stock | $ | ||
| Retained earnings | $ | ||
| Total liabilities and equity | $ | ||
In: Finance
|
Financing Deficit Garlington Technologies Inc.'s 2016 financial statements are shown below: Balance Sheet as of December 31, 2016
Income Statement for December 31, 2016
Suppose that in 2017 sales increase by 5% over 2016 sales and that 2017 dividends will increase to $136,000. Forecast the financial statements using the forecasted financial statement method. Assume the firm operated at full capacity in 2016. Use an interest rate of 8%, and assume that any new debt will be added at the end of the year (so forecast the interest expense based on the debt balance at the beginning of the year). Cash does not earn any interest income. Assume that the all new-debt will be in the form of a line of credit. Round your answers to the nearest dollar. Do not round intermediate calculations.
|
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In: Finance
Financing Deficit
Garlington Technologies Inc.'s 2016 financial statements are shown below:
Balance Sheet as of December 31, 2016
| Cash | $ 180,000 | Accounts payable | $ 360,000 | |
| Receivables | 360,000 | Notes payable | 156,000 | |
| Inventories | 720,000 | Line of credit | 0 | |
| Total current assets | $1,260,000 | Accruals | 180,000 | |
| Fixed assets | 1,440,000 | Total current liabilities | $ 696,000 | |
| Common stock | 1,800,000 | |||
| Retained earnings | 204,000 | |||
| Total assets | $2,700,000 | Total liabilities and equity | $2,700,000 |
Income Statement for December 31, 2016
| Sales | $3,600,000 |
| Operating costs | 3,279,720 |
| EBIT | $ 320,280 |
| Interest | 18,280 |
| Pre-tax earnings | $ 302,000 |
| Taxes (40%) | 120,800 |
| Net income | 181,200 |
| Dividends | $ 108,000 |
Suppose that in 2017 sales increase by 20% over 2016 sales and that 2017 dividends will increase to $132,000. Forecast the financial statements using the forecasted financial statement method. Assume the firm operated at full capacity in 2016. Use an interest rate of 9%, and assume that any new debt will be added at the end of the year (so forecast the interest expense based on the debt balance at the beginning of the year). Cash does not earn any interest income. Assume that the all new-debt will be in the form of a line of credit. Round your answers to the nearest dollar. Do not round intermediate calculations.
| Garlington Technologies Inc. Pro Forma Income Statement December 31, 2017 |
|||
| Sales | $ | ||
| Operating costs | $ | ||
| EBIT | $ | ||
| Interest | $ | ||
| Pre-tax earnings | $ | ||
| Taxes (40%) | $ | ||
| Net income | $ | ||
| Dividends: | $ | ||
| Addition to RE: | $ | ||
| Garlington Technologies Inc. Pro Forma Balance Statement December 31, 2017 |
|||
| Cash | $ | ||
| Receivables | $ | ||
| Inventories | $ | ||
| Total current assets | $ | ||
| Fixed assets | $ | ||
| Total assets | $ | ||
| Accounts payable | $ | ||
| Notes payable | $ | ||
| Accruals | $ | ||
| Total current liabilities | $ | ||
| Common stock | $ | ||
| Retained earnings | $ | ||
| Total liabilities and equity | $ | ||
In: Finance
accounting question
The following information has been extracted from the financial records of Associate Ltd at 1 April 2004 and at 31 March 2017.
|
Associate Ltd 1 April 2004 |
Associate Ltd 31 March 2017 |
|
|
$ |
$ |
|
|
Sales |
1 800 000 |
|
|
Less cost of goods sold |
1 200 000 |
|
|
Gross profit |
600 000 |
|
|
Less expenses |
328 400 |
|
|
Profit before tax |
271 600 |
|
|
Plus rental income |
26 000 |
|
|
Less income tax expense |
71 880 |
|
|
Profit after tax |
225 720 |
|
|
Retained earnings- opening balance |
230 500 |
|
|
Less dividends declared |
100 000 |
|
|
Balance sheet balances: |
||
|
Share capital |
450 000 |
450 000 |
|
Retained earnings – closing balance |
220 000 |
356 220 |
|
Asset revaluation surplus |
70 000 |
82 000 |
|
Accounts payable |
85 600 |
158 000 |
|
Dividends payable |
- |
40 000 |
|
Other liabilities |
474 400 |
876 220 |
|
Total equity and liabilities |
$1 300 000 |
$2 100 000 |
|
Accounts receivable |
130 000 |
205 000 |
|
Inventory |
90 000 |
107 000 |
|
Other assets |
80 000 |
90 000 |
|
Property, plant and equipment |
1 000 000 |
1 698 000 |
|
Total assets |
$1 300 000 |
$2 100 000 |
Additional information provided:
(i) Investor Ltd acquired 20% the equity in Associate Ltd on 1 April 2004 for $350 000 cash.
(ii) Each financial year Investor Ltd has been paying Associate Ltd an office rental fee of $26 000.
(iii) Investor Ltd records dividend income from Associate Ltd when it is declared by Associate Ltd.
(iv) During March 2016 Associate Ltd made an upward sale to Investor Ltd of $32 000 and recognised a profit of $10 560. This purchase of inventory remained in Investor Ltd’s inventory as at 31 March 2016.
.
(v) During March 2017 Associate Ltd made an upward sale to Investor Ltd of $40 000 and
recognised a profit of $13 200. Investor Ltd did not sell this purchase of inventory until
14 May 2017.
(vi) During March 2016 Investor Ltd made a downward sale to Associate Ltd of $8 000 and
recognised a profit of $2 400. This purchase remained in Associate Ltd’s inventory as at 31
March 2016.
(vii) During March 2017 Investor Ltd made a downward sale to Associate Ltd of $5 000 and
recognised a profit of $2 000. Associate Ltd sold this inventory before the 2017 financial year
end.
(viii) The tax rate is 28%.
Required:
(a) State the amount at which the asset Investment in Associate will be measured at in the
general ledger of Investor Ltd as at 31 March 2017.
(b) Prepare the notional journal entry, as at 31 March 2017, to account for the asset
Investment in Associate using the equity method as required by
NZ IAS 28 Investments in
Associates
. Show all workings in the notional journal entry.
Complete a ‘quick estimate’ in the
space provided.
(c) Determine the amount at which the asset Investment in Associate will be measured at,
after being equity accounted for, in the financial statements as at 31 March 2017. Show
workings.
|
(a) Investment in Associate general ledger amount: |
$ |
|
(b) The equity method notional journal entry as at 31 March 2017: All workings must be shown clearly on each line of your notional journal entry. If necessary round up or down to the nearest whole dollar. |
||
|
$ |
$ |
|
|
Workings for the ‘quick estimate’: |
|
(c) Investment in Associate after being equity accounted for: |
$ |
|
All workings must be shown: |
|
In: Accounting
It have a lot of error. please see it and solve it for me. run it please. Thank you a lot.
#define MAXWORDLENGTH 20
#include <stdlib.h>
#include <stdio.h>
#include <string.h>
#include "getline.inc"
struct entry {
char name[81];
};
struct entry part;
struct tnode {
char *name;
int record_number;
struct tnode *left;
struct tnode *right;
};
void lookup(struct tnode *root,char *s);
void treeprint2(struct tnode *root,char *searchkey);
int c;
int n;
FILE *stream;
struct tnode *root, *tree(struct tnode *, char *, int),*dtree(struct tnode *, char *);
void main()
{
char searchkey[81];
char name[MAXWORDLENGTH];
int i=0;
root=NULL;
stream = fopen("data.bin","r+b");
for (;;) {
//printf("enter a name or 'exit' to quit.... ");
//getline(name,81);
//scanf(" %[^\n]",name);
n=fread(&part,sizeof(part),1,stream);
if(!n) break;
//if (stricmp(name,"exit")==0) break;
//root=tree(root,name,i++);
root = tree(root,part.name,i++);
}
treeprint(root);
for(;;){
printf("\n\n\t enter the name to delete or exit");
scanf(" %[^\n]",searchkey);
if(stricmp(searchkey,"exit")==0) break;
root=dtree(root,searchkey);
treeprint(root);
}
for(;;){
printf("\n\n\t enter the name to lookup or exit");
scanf(" %[^\n]",searchkey);
if(stricmp(searchkey,"exit")==0) break;
lookup(root,searchkey);
}
fclose(stream);
}//main
struct tnode *tree(struct tnode *p,char *w,int w2)
{
struct tnode *talloc();
char *strsave(char *);
int cond;
if (p== NULL) {
p=talloc();
p->name=strsave(w);
p->record_number=w2;
p->left=p->right=NULL;
} else if ((cond=stricmp(w,p->name)) ==0)
//printf("\7 duplicate entry !!!!!! \n");
p->right=tree(p->right,w,w2);
else if (cond<0)
p->left=tree(p->left,w,w2);
else
p->right=tree(p->right,w,w2);
return(p);
}// tree
treeprint(struct tnode *root)
{
if (root) {
treeprint(root->left);
printf("\n\n %s %d",root->name,root->record_number);
treeprint(root->right);
}//if
}// treeprint
struct tnode *talloc()
{
return((struct tnode *) malloc(sizeof(struct tnode)));
}
char *strsave(char *s)
{
char *p;
if ((p=malloc(strlen(s)+1)) != NULL)
strcpy(p,s);
return(p);
}
struct tnode *dtree(struct tnode *root,char *searchkey)
{struct tnode *p,*p2;
if (root){
if (stricmp(root->name,searchkey)==0) {
if (root->left == root->right) {free(root);return(NULL);}
else if (root->left==NULL) {p=root->right;free(root);return(p);}
else if (root->right==NULL) {p=root->left;free(root);return(p);}
else {
p2=root->right;
p=root->right;
while(p->left) p=p->left;
p->left=root->left;
free(root);
return(p2);
}
}
if (stricmp(root->name,searchkey) < 0) root->right=dtree(root->right,searchkey);
else root->left=dtree(root->left,searchkey);
return(root);
}
else {printf("\n\n\t\a %s not found !!!\n\n",searchkey);return(NULL);}
}//treedel
void lookup(struct tnode *p,char *s)
{
if(!p)
{printf("\n\a %s not found",s);return;}
else if (strncmpi(s,p->name,strlen(s))==0)
{
fseek(stream,p->record_number *sizeof(part),0);
fread(&part,sizeof(part),1,stream);
printf("\n %s %d",part.name,p->record_number);
puts("\n (y) or (n)????");
fflush(stdin);
c = getchar();
fflush(stdin);
if(c!='y')
//lookup(p->right,s);
treeprint2(p->right,s);
}//else
else if (strncmpi(s,p->name,strlen(s))<0)
lookup(p->left,s);
else lookup(p->right,s);
}//lookup
void treeprint2(struct tnode *root,char *searchkey)
{
if (root) {
treeprint2(root->left,searchkey);
if (strncmpi(searchkey,root->name,strlen(searchkey))==0) printf("\n\n %s %d",root->name,root->record_number);
treeprint2(root->right,searchkey);
}//if
}// treeprint
It have a lot of error. please see it and solve it for me. Thank you a lot.
In: Computer Science