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
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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.)
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In: Finance
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
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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. |
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Required |
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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.) |
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In: Accounting
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, 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), 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 (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 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 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