Questions
Procedure Reaction 1: Dissolving the Copper 1. Obtain a clean, dry, glass centrifuge tube. 2. Place...

Procedure Reaction 1: Dissolving the Copper 1. Obtain a clean, dry, glass centrifuge tube. 2. Place a piece of copper wire in a weighing paper, determine the mass of the wire and place it in the centrifuge tube. The copper wire should weigh less than 0.0200 grams. 3. In a fume hood, add seven drops of concentrated nitric acid to the reaction tube so that the copper metal dissolves completely. Describe your observations in the lab report. (Caution, Concentrated nitric acid and nitrogen dioxide are very corrosive. Either will turn your skin yellow on contact. Do not leave any spills on the lab bench or in the fume hood.) 4. When the copper has dissolved, add seven drops of distilled water to the tube. Reaction 2: Preparation of Copper(II) Hydroxide 1. Add 15 drops of 3.0 M aqueous sodium hydroxide to the tube. Make sure that the reactants are well mixed. Shake the tube carefully or gently flick the bottom of the tube with your finger. Remember that the contents of the tube may still be corrosive. 2. Add a second 15 drops of NaOH(aq), mix well, and record your observations. If you have two layers at this point it means that you have not mixed the solution well enough. 3. Centrifuge the reaction mixture. 4. The liquid at the top of the centrifuged mixture is called the supernatant while the solid is called a precipitate. Before separating the supernatant from the precipitate it is necessary to ensure that all of the copper(II) hydroxide has been precipitated. The supernatant should be clear and colorless indicating the absence of any Cu+2 ions in the solution. It should also be basic due to an excess of OH- ions. Using a clean glass stirring rod, transfer a drop of the supernatant onto a piece of red litmus paper. If the litmus paper turns blue then the solution is basic and enough NaOH has been added. If the paper does not turn blue, add more NaOH, mix well, recentrifuge, and repeat the litmus paper test until the paper does turn blue. 5. An efficient separation of supernatants and precipitates is key to obtaining a good final yield of copper. The supernatant liquid can be separated from the precipitate by expelling the air from the bulb of a Pasteur pipet, inserting the tip of the pipet into the supernatant, then gently sucking the supernatant into the pipet. If you expel air or liquid into the precipitate with the pipet, you will stir up the precipitate and will have to repeat the centrifugation step. Remove as much liquid as possible and discard it in the waste container provided on the instructor’s cart. It is better to leave a small amount of supernatant liquid than to remove some of the copper(II) hydroxide precipitate. Reaction 3: Formation of Copper(II) Oxide 1. Set up a hot water bath by placing a beaker of water on a hotplate, placing an iron ring around the beaker, and heating the water to boiling. 2. Place the centrifuge tube containing the copper(II) hydroxide into the boiling water. Carefully hold the tube with a test tube clamp so that it doesn’t get water into it. Record your observations. Reaction 4: Formation of Copper(II) Sulfate 1. Add 20 drops of 3.0 M H2SO4 to the solid in the centrifuge tube. Stir carefully to ensure that the copper(II) oxide dissolves completely. Complete dissolution of the mixture will require thorough mixing and possibly heating of the solution. 2. Obtain the mass of a small, clean, glass test tube as accurately as possible. 3. Transfer the liquid from the centrifuge tube into the test tube. Rinse the centrifuge carefully with 1.0 mL of distilled water and transfer the rinse into the test tube containing your sample. 4. Record your observations on the data sheet. Reaction 5: Formation of Copper Metal 1. Add a small quantity of zinc powder to the sample solution. Continue adding zinc in small quantities until the solution loses the blue copper(II) color. Any excess zinc added will need to be removed so don’t add it too quickly or in large quantities. When the solution has turned colorless, add several drops of 3.0 M H2SO4 to the tube to dissolve any left over zinc. You can tell that the zinc has dissolved when addition of sulfuric acid does not generate bubbles. 2. Allow the copper metal to sink to the bottom of the tube and carefully remove the supernatant liquid using a Pasteur pipet. 3. Wash the red-brown copper metal in the tube with 1.0 mL of water. Allow the copper metal to settle to the bottom and remove the excess water. Repeat this rinsing process two more times. 4. Describe your observations on the data sheet. Drying the copper metal 1. After removing as much of the third rinse water as possible you are ready to dry the metal. This must be done carefully in a cool Bunsen Burner flame. If the tube is heated too quickly there is a risk of ejecting the contents of the tube as the water boils. Also, if the flame is too hot you may convert the copper metal back into black copper(II) oxide. The objective is to drive the water from the tube as steam. Make sure that as water condenses on the walls of the tube that you continue to heat until all of the water if gone from the tube. 2. Once all of the water is removed from the tube, cool the tube and its contents then determine the mass of copper by weighing the tube and subtracting the tube + copper weight from the weight of the empty tube (Reaction 4 step 2). If the mass of copper is higher than the original mass of the copper wire it either contains water or zinc or has been converted to copper(II) oxide. Excess water can be removed by reheating the tube and reweighing to constant mass. Excess zinc requires addition of sulfuric acid followed by re-rinsing with water and re-drying. Chemistry 1215 Experiment 9 Lab Report Name ______________________________ Data Sheet Mass of copper wire _______________ Mass of clean, dry test tube _______________ Mass of test tube plus copper _______________ Mass of final copper sample _______________ Percent recovery of copper. Show all calculations. Observations 1. Describe your observations for Reaction 1 including colors, gases formed, etc. 2. Describe your observations for Reaction 2 including colors, gases formed, etc. 3. Describe your observations for Reaction 3 including colors, gases formed, etc. Estimate the temperature of the decomposition of Copper(II) hydroxide. 4. Describe your observations for Reaction 4 including colors, gases formed, etc. 5. Describe your observations for Reaction 5 including colors, gases formed, etc. Write a brief discussion of your results including a statement of the final percent recovery of copper and a discussion of reasons why the recovery differs from 100%. Chemistry 1215, Experiment #9; Copper and its compounds, Pre-lab Name ____________________________________ 1. Write a balanced chemical equation including phase labels for the reaction between aqueous copper (II) nitrate and aqueous sodium hydroxide. 2. Nitrogen monoxide (NO) and nitrogen dioxide (NO2) are toxic, corrosive gases that significantly lower blood pressure when inhaled. How are these gases produced in today’s experiment? What should you do to protect yourself against their toxicity? 3. Iron reacts with oxygen from the atmosphere to produce iron (III) oxide, also known as rust (Fe2O3). What chemical species is oxidized in this reaction? What is the reducing agent? Jaffrey Zagnut couldn’t find any nitric acid so he tried to dissolve his copper sample in hydrochloric acid instead. Unfortunately his copper wouldn’t dissolve in HCl. Why will copper dissolve in nitric acid but not in hydrochloric acid (after all, HCl is a stronger acid than HNO3). Chemistry 1215, Experiment #9; Copper and its compounds, Post-lab Name ____________________________________ 1. Copper (II) hydroxide is converted into copper (II) oxide by heating the test tube containing Cu(OH)2 in a hot water bath. Is it necessary to use distilled water in this water bath? Why or why not? 2. Copper metal doesn’t “rust” in the presence of oxygen at room temperature. However, it will react with O2 at elevated temperatures. Write a balanced chemical equation describing the formation of copper (II) oxide when copper metal is heated in air. 3. When zinc is dissolved in sulfuric acid a gas is produced. What is the chemical identity of this gas? How is it produced? 4. Jaffrey Zagnut started with a 0.032 g sample of copper which he took through the series of reactions described in this experiment. At the end of the experiment he obtained 0.038 g of a black product. What was his percent yield? What is the most likely source of the error in his experiment? (Hint: consider question 2 above)

In: Chemistry

Brandlin Company of Anaheim, California, sells parts to a foreign customer on December 1, 2015, with...

Brandlin Company of Anaheim, California, sells parts to a foreign customer on December 1, 2015, with payment of 29,000 korunas to be received on March 1, 2016. Brandlin enters into a forward contract on December 1, 2015, to sell 29,000 korunas on March 1, 2016. Relevant exchange rates for the koruna on various dates are as follows:

  Date Spot Rate Forward Rate
(to March 1, 2016)
  December 1, 2015 $ 4.00     $ 4.075       
  December 31, 2015 4.10     4.200       
  March 1, 2016 4.25     N/A       

Brandlin’s incremental borrowing rate is 12 percent. The present value factor for two months at an annual interest rate of 12 percent (1 percent per month) is 0.9803. Brandlin must close its books and prepare financial statements at December 31.

a-1

Assuming that Brandlin designates the forward contract as a cash flow hedge of a foreign currency receivable and recognizes any premium or discount using the straight-line method, prepare journal entries for these transactions in U.S. dollars. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to 2 decimal places.)

a-2.

What is the impact on 2015 net income? (Do not round intermediate calculations.)

a-3.

What is the impact on 2016 net income? (Do not round intermediate calculations.)

a-4.

What is the impact on net income over the two accounting periods? (Do not round intermediate calculations.)

b-1.

Assuming that Brandlin designates the forward contract as a fair value hedge of a foreign currency receivable, prepare journal entries for these transactions in U.S. dollars. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to 2 decimal places.)

b-2.

What is the impact on 2015 net income? (Do not round intermediate calculations. Round your final answers to 2 decimal places.)

b-3.

What is the impact on 2016 net income? (Do not round intermediate calculations. Round your final answers to 2 decimal places.)

b-4.

What is the impact on net income over the two accounting periods? (Do not round intermediate calculations.)


This is how the question is in the textbook. The forward rate in March isn't needed to solve this.  

In: Finance

Back in Boston, Steve has been busy creating and managing his new company, Teton Mountaineering (TM),...

Back in Boston, Steve has been busy creating and managing his new company, Teton Mountaineering (TM), which is based out of a small town in Wyoming. In the process of doing so, TM has acquired various types of assets. Below is a list of assets acquired during 2016: Exhibit 10-8 (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Round intermediate calculations and final answer to the nearest whole dollar amount.)

Asset Cost Date Placed in Service Office furniture $ 10,000 02/03/2016

Machinery 560,000 07/22/2016

Used delivery truck* 15,000 08/17/2016

* Not considered a luxury automobile, thus not subject to the luxury automobile limitations. During 2016, TM had huge success (and had no §179 limitations) and Steve acquired more assets the next year to increase its production capacity.

These are the assets acquired during 2017: Date Placed Asset Cost in

Service Computers & info. system $ 40,000 03/31/2017

Luxury auto† 80,000 05/26/2017

Assembly equipment 475,000 08/15/2017

Storage building 400,000 11/13/2017

†Used 100% for business purposes.

TM generated taxable income in 2017 of $732,500 for purposes of computing the §179 expense.

a. Compute the maximum 2016 depreciation deductions including §179 expense (ignoring bonus depreciation).

b. Compute the maximum 2017 depreciation deductions including §179 expense (ignoring bonus depreciation).

c. Compute the maximum 2017 depreciation deductions including §179 expense, but now assume that Steve would like to take bonus depreciation on the 2017 assets.

d. Ignoring part c, now assume that during 2017, Steve decides to buy a competitor’s assets for a purchase price of $350,000.

Compute the maximum 2017 cost recovery including §179 expense (ignoring bonus depreciation). Steve purchased the following assets for the lump-sum purchase price. Date Placed Asset Cost in Service Inventory $ 20,000 09/15/2017

Office furniture 30,000 09/15/2017

Machinery 50,000 09/15/2017

Patent 98,000 09/15/2017

Goodwill 2,000 09/15/2017

Building 130,000 09/15/2017

Land 20,000 09/15/2017

In: Accounting

Oz Company was started when it issued bonds with a $170,000 face value on January 1,...

Oz Company was started when it issued bonds with a $170,000 face value on January 1, 2016. The bonds were issued for cash at 99. Oz uses the straight-line method of amortization. They had a 20-year term to maturity and an 5 percent annual interest rate. Interest was payable on December 31 of each year. Oz Company immediately purchased land with the proceeds (cash received) from the bond issue. Oz leased the land for $10,625 cash per year. On January 1, 2019, the company sold the land for $169,300 cash. Immediately after the sale of the land, Oz redeemed the bonds at 100. Assume that no other accounting events occurred during 2019.


Required

Prepare an income statement, statement of changes in equity, balance sheet, and statement of cash flows for the 2016, 2017, 2018, and 2019 accounting periods. Assume that the company closes its books on December 31 of each year. Prepare the statements using a vertical statements format. (Hint: Record each year’s transactions in T-accounts prior to preparing the financial statements.) (Amounts to be deducted should be indicated with minus sign.)

OZ COMPANY

Income Statements

For the Year Ended December 31

2016

2017

2018

2019

Lease revenue

$10,625

$10,625

$10,625

$0

Interest expense

Operating income

$10,625

$10,625

$10,625

Non-Operating income/expense

Loss on bond redemption

Gain on sale of land

Net income(loss)

$10,625

$10,625

$10,625

$0

OZ COMPANY

Statement of Changes in Stockholders’ Equity

For the Year Ended December 31

2016

2017

2018

2019

Common stock

Net income(loss)

Total stockholders’ equity

OZ COMPANY

Balance Sheets

As of December 31

2016

2017

2018

2019

Assets

Total Assets

Liabilities

Total Liabilities

Stockholders’ equity

Total liabilities and stockholders’ equity

OZ COMPANY

Statements of Cash Flows

For the Year Ended December 31

2016

2017

2018

2019

Cash flows from operating activities:

Net cash flow from operating activities:

Cash flow from investing activities:

Net cash flow from investing activities

Cash flow from financing acttivities

Net cash flow from financing activities

Net change in cash

Ending cash balance

In: Accounting

Departmental Income Statement Elgin Flooring Company sells floor coverings through two departments, carpeting and hard covering...

Departmental Income Statement
Elgin Flooring Company sells floor coverings through two departments, carpeting and hard covering (tile and linoleum). Operating information for 2016 appears below.

Carpeting Department Hard Covering Department
Inventory, January 1, 2016 $71,000 $37,000
Inventory, December 31, 2016 39,000 19,000
Net sales 780,000 480,000
Purchases 484,000 362,000
Purchases returns 28,000 8,000
Purchases discounts 16,000 4,000
Transporation in 18,000 14,000
Traceable departmental expenses 96,000 44,000

Common operating expenses of the firm were $120,000.

a. Prepare a departmental income statement showing departmental contribution to common expenses and net income of the firm. Assume an overall effective income tax rate of 35%. Elgin uses a periodic inventory system.

Do not use negative signs with any of your answers below.

Elgin Flooring Company
Departmental Income Statement
For the Year Ended December 31, 2016
Carpeting Department Hard Covering Department Total
Net sales Answer Answer Answer
Cost of goods sold:
Inventory, January 1, 2016 Answer Answer Answer
Purchases Answer Answer Answer
Purchases returns Answer Answer Answer
Purchases discounts Answer Answer Answer
Transportation in Answer Answer Answer
Cost of goods available for sale Answer Answer Answer
Inventory, December 31, 2016 Answer Answer Answer
Cost of goods sold Answer Answer Answer
Gross Profit Answer Answer Answer
Traceable department expenses Answer Answer Answer
Contribution to common expenses Answer Answer Answer
Common expenses Answer
Income before tax Answer
Income tax expense Answer
Net income Answer

b. Calculate the gross profit percentage for each department.

Round to the nearest whole percentage.

Carpeting department

Answer%

Hard Covering department

Answer%

c. If the common expenses were allocated 70% to the carpeting department and 30% to the hard covering department, what would the net income be for each department?

Do not use negative signs with any of your answers below.

Carpeting Department Hard Covering Department Total
Contribution to common expenses Answer Answer Answer
Common expenses Answer Answer Answer
Income before tax Answer Answer Answer
Income tax expense Answer Answer Answer
Net income Answer

In: Accounting

For 2016, Clapton Company reported a decline in net income. At the end of the year,...

For 2016, Clapton Company reported a decline in net income. At the end of the year, S. Hand, the president, is presented with the following condensed comparative income statement:

Clapton Company

Comparative Income Statement

For the Years Ended December 31, 2016 and 2015

1

2016

2015

2

Sales

$7,425,600.00

$6,720,000.00

3

Cost of goods sold

2,688,000.00

2,240,000.00

4

Gross profit

$4,737,600.00

$4,480,000.00

5

Selling expenses

$1,096,200.00

$870,000.00

6

Administrative expenses

636,300.00

505,000.00

7

Total operating expenses

$1,732,500.00

$1,375,000.00

8

Income from operations

$3,005,100.00

$3,105,000.00

9

Other income

144,300.00

130,000.00

10

Income before income tax

$3,149,400.00

$3,235,000.00

11

Income tax expense

75,400.00

65,000.00

12

Net income

$3,074,000.00

$3,170,000.00

Required:
1. Prepare a comparative income statement with horizontal analysis for the two-year period, using 2015 as the base year. Use the minus sign to indicate an amount or percent decrease. If required, round percentages to one decimal place.
2. To the extent the data permit, comment on the significant relationships revealed by the horizontal analysis.

Income Statement

Prepare a comparative income statement with horizontal analysis for the two-year period, using 2015 as the base year. Use the minus sign to indicate an amount or percent decrease. If required, round percentages to one decimal place.

Clapton Company

Comparative Income Statement

For the Years Ended December 31, 2016 and 2015

1

Increase (Decrease)

Increase (Decrease)

2

2016

2015

Amount

Percent

3

Sales

$7,425,600.00

$6,720,000.00

4

Cost of goods sold

2,688,000.00

2,240,000.00

5

Gross profit

$4,737,600.00

$4,480,000.00

6

Selling expenses

$1,096,200.00

$870,000.00

7

Administrative expenses

636,300.00

505,000.00

8

Total operating expenses

$1,732,500.00

$1,375,000.00

9

Income from operations

$3,005,100.00

$3,105,000.00

10

Other income

144,300.00

130,000.00

11

Income before income tax

$3,149,400.00

$3,235,000.00

12

Income tax expense

75,400.00

65,000.00

13

Net income

$3,074,000.00

$3,170,000.00

Final Question

To the extent the data permit, comment on the significant relationships revealed by the horizontal analysis.

Net income has from 2015 to 2016. Sales have ; however, the cost of goods sold has by a percentage, causing the gross profit to at a slower pace than sales.

In: Accounting

Back in Boston, Steve has been busy creating and managing his new company, Teton Mountaineering (TM),...

Back in Boston, Steve has been busy creating and managing his new company, Teton Mountaineering (TM), which is based out of a small town in Wyoming. In the process of doing so, TM has acquired various types of assets. Below is a list of assets acquired during 2016: Exhibit 10-8 (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Round intermediate calculations and final answer to the nearest whole dollar amount.)

Asset Cost Date Placed in Service
Office furniture $ 10,000 02/03/2016
Machinery 560,000 07/22/2016
Used delivery truck* 15,000 08/17/2016

* Not considered a luxury automobile, thus not subject to the luxury automobile limitations.

During 2016, TM had huge success (and had no §179 limitations) and Steve acquired more assets the next year to increase its production capacity. These are the assets acquired during 2017:

Date Placed
Asset Cost in Service
Computers & info. system $ 40,000 03/31/2017
Luxury auto 80,000 05/26/2017
Assembly equipment 475,000 08/15/2017
Storage building 400,000 11/13/2017

Used 100% for business purposes.

TM generated taxable income in 2017 of $732,500 for purposes of computing the §179 expense.

a. Compute the maximum 2016 depreciation deductions including §179 expense (ignoring bonus depreciation).

b. Compute the maximum 2017 depreciation deductions including §179 expense (ignoring bonus depreciation).

c. Compute the maximum 2017 depreciation deductions including §179 expense, but now assume that Steve would like to take bonus depreciation on the 2017 assets.

d. Ignoring part c, now assume that during 2017, Steve decides to buy a competitor’s assets for a purchase price of $350,000. Compute the maximum 2017 cost recovery including §179 expense (ignoring bonus depreciation). Steve purchased the following assets for the lump-sum purchase price.

Date Placed
Asset Cost in Service
Inventory $ 20,000 09/15/2017
Office furniture 30,000 09/15/2017
Machinery 50,000 09/15/2017
Patent 98,000 09/15/2017
Goodwill 2,000 09/15/2017
Building 130,000 09/15/2017
Land 20,000 09/15/2017


In: Accounting

Departmental Income Statement Elgin Flooring Company sells floor coverings through two departments, carpeting and hard covering...

Departmental Income Statement
Elgin Flooring Company sells floor coverings through two departments, carpeting and hard covering (tile and linoleum). Operating information for 2016 appears below.

Carpeting Department Hard Covering Department
Inventory, January 1, 2016 $71,000 $37,000
Inventory, December 31, 2016 39,000 19,000
Net sales 780,000 480,000
Purchases 484,000 362,000
Purchases returns 28,000 8,000
Purchases discounts 16,000 4,000
Transporation in 18,000 14,000
Traceable departmental expenses 96,000 44,000

Common operating expenses of the firm were $120,000.

a. Prepare a departmental income statement showing departmental contribution to common expenses and net income of the firm. Assume an overall effective income tax rate of 35%. Elgin uses a periodic inventory system.

Do not use negative signs with any of your answers below.

Elgin Flooring Company
Departmental Income Statement
For the Year Ended December 31, 2016
Carpeting Department Hard Covering Department Total
Net sales Answer Answer Answer
Cost of goods sold:
Inventory, January 1, 2016 Answer Answer Answer
Purchases Answer Answer Answer
Purchases returns Answer Answer Answer
Purchases discounts Answer Answer Answer
Transportation in Answer Answer Answer
Cost of goods available for sale Answer Answer Answer
Inventory, December 31, 2016 Answer Answer Answer
Cost of goods sold Answer Answer Answer
Gross Profit Answer Answer Answer
Traceable department expenses Answer Answer Answer
Contribution to common expenses Answer Answer Answer
Common expenses Answer
Income before tax Answer
Income tax expense Answer
Net income Answer

b. Calculate the gross profit percentage for each department.

Round to the nearest whole percentage.

Carpeting department

Answer%

Hard Covering department

Answer%

c. If the common expenses were allocated 70% to the carpeting department and 30% to the hard covering department, what would the net income be for each department?

Do not use negative signs with any of your answers below.

Carpeting Department Hard Covering Department Total
Contribution to common expenses Answer Answer Answer
Common expenses Answer Answer Answer
Income before tax Answer Answer Answer
Income tax expense Answer Answer Answer
Net income Answer Answer Answer

In: Accounting

Brandlin Company of Anaheim, California, sells parts to a foreign customer on December 1, 2015, with...

Brandlin Company of Anaheim, California, sells parts to a foreign customer on December 1, 2015, with payment of 27,000 korunas to be received on March 1, 2016. Brandlin enters into a forward contract on December 1, 2015, to sell 27,000 korunas on March 1, 2016. Relevant exchange rates for the koruna on various dates are as follows:


  Date Spot Rate Forward Rate
(to March 1, 2016)
  December 1, 2015 $ 3.80     $ 3.875       
  December 31, 2015 3.90     4.000       
  March 1, 2016 4.05     N/A       


Brandlin’s incremental borrowing rate is 12 percent. The present value factor for two months at an annual interest rate of 12 percent (1 percent per month) is 0.9803. Brandlin must close its books and prepare financial statements at December 31.


a-1.

Assuming that Brandlin designates the forward contract as a cash flow hedge of a foreign currency receivable and recognizes any premium or discount using the straight-line method, prepare journal entries for these transactions in U.S. dollars. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to 2 decimal places.)

     

a-2.

What is the impact on 2015 net income? (Do not round intermediate calculations.)

    

a-3.

What is the impact on 2016 net income? (Do not round intermediate calculations.)


        

a-4.

What is the impact on net income over the two accounting periods? (Do not round intermediate calculations.)

        

b-1.

Assuming that Brandlin designates the forward contract as a fair value hedge of a foreign currency receivable, prepare journal entries for these transactions in U.S. dollars. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to 2 decimal places.)

       

b-2.

What is the impact on 2015 net income? (Do not round intermediate calculations. Round your final answers to 2 decimal places.)


    

b-3.

What is the impact on 2016 net income? (Do not round intermediate calculations. Round your final answers to 2 decimal places.)

      

b-4.

What is the impact on net income over the two accounting periods? (Do not round intermediate calculations.)


        

In: Accounting

Joshua & White Technologies: December 31 Balance Sheets (Thousands of Dollars) Assets 2016 2015 Cash and...

Joshua & White Technologies: December 31 Balance Sheets
(Thousands of Dollars)
Assets 2016 2015
Cash and cash equivalents $21,000 $20,000
Short-term investments 3,759 3,240
Accounts Receivable 52,500 48,000
Inventories 84,000 56,000
  Total current assets $161,259 $127,240
  Net fixed assets 218,400 200,000
Total assets $379,659 $327,240
Liabilities and equity
Accounts payable $33,600 $32,000
Accruals 12,600 12,000
Notes payable 19,929 6,480
  Total current liabilities $66,129 $50,480
Long-term debt 67,662 58,320
  Total liabilities $133,791 $108,800
Common stock 183,793 178,440
Retained Earnings 62,075 40,000
  Total common equity $245,868 $218,440
Total liabilities and equity $379,659 $327,240
Joshua & White Technologies December 31 Income Statements
(Thousands of Dollars)
2016 2015
Sales $420,000 $400,000
COGS except excluding depr. and amort. 300,000 298,000
Depreciation and Amortization 19,660 18,000
Other operating expenses 27,600 22,000
  EBIT $72,740 $62,000
Interest Expense 5,740 4,460
  EBT $67,000 $57,540
Taxes (40%) 26,800 23,016
  Net Income $40,200 $34,524
Common dividends $18,125 $17,262
Addition to retained earnings $22,075 $17,262
Other Data 2016 2015
Year-end Stock Price $90.00 $96.00
# of shares (Thousands) 4,052 4,000
Lease payment (Thousands of Dollars) $20,000 $20,000
Sinking fund payment (Thousands of Dollars) $5,000 $5,000
f.  Perform a percent change analysis.  What does this tell you about the change in profitability
     and asset utilization?
Percent Change Balance Sheets Base
Assets 2016 2015
Cash and cash equivalents
Short-term investments
Accounts Receivable
Inventories
  Total current assets
  Net fixed assets
Total assets
Base
Liabilities and equity 2016 2015
Accounts payable
Accruals
Notes payable
  Total current liabilities
Long-term debt
  Total liabilities
Common stock
Retained Earnings
  Total common equity
Total liabilities and equity
Base
Percent Change Income Statements 2016 2015
Sales
COGS except excluding depr. and amort.
Depreciation and Amortization
Other operating expenses
  EBIT
Interest Expense
  EBT
Taxes (40%)
  Net Income

In: Finance