Questions
The comparative financial statements of Blige Inc. are as follows. The market price of Blige Inc....

The comparative financial statements of Blige Inc. are as follows. The market price of Blige Inc. common stock was $53 on December 31, 2016.

Blige Inc.
Comparative Retained Earnings Statement
For the Years Ended December 31, 2016 and 2015
    2016     2015
Retained earnings, January 1 $2,840,700 $2,412,700
Add net income for year 624,800 494,200
Total $3,465,500 $2,906,900
Deduct dividends
On preferred stock $8,400 $8,400
On common stock 57,800 57,800
Total $66,200 $66,200
Retained earnings, December 31 $3,399,300 $2,840,700


Blige Inc.
Comparative Income Statement
For the Years Ended December 31, 2016 and 2015
    2016     2015
Sales $4,236,830 $3,897,900
Sales returns and allowances 21,080 13,700
Sales $4,215,750 $3,884,200
Cost of goods sold 1,451,240 1,335,140
Gross profit $2,764,510 $2,549,060
Selling expenses $968,550 $1,171,230
Administrative expenses 825,060 687,870
Total operating expenses 1,793,610 1,859,100
Income from operations $970,900 $689,960
Other income 51,100 44,040
$1,022,000 $734,000
Other expense (interest) 312,000 172,000
Income before income tax $710,000 $562,000
Income tax expense 85,200 67,800
Net income $624,800 $494,200


Blige Inc.
Comparative Balance Sheet
December 31, 2016 and 2015
    Dec. 31, 2016     Dec. 31, 2015
Assets
Current assets
Cash $830,490 $550,180
Temporary investments 1,256,960 911,720
Accounts receivable (net) 788,400 744,600
Inventories 584,000 452,600
Prepaid expenses 157,117 110,040
Total current assets $3,616,967 $2,769,140
Long-term investments 1,139,563 -578,139
Property, plant, and equipment (net) 5,070,000 4,563,000
Total assets $9,826,530 $6,754,001
Liabilities
Current liabilities $1,247,230 $483,301
Long-term liabilities
Mortgage note payable, 8%, due 2021 $1,750,000 $0
Bonds payable, 8%, due 2017 2,150,000 2,150,000
Total long-term liabilities $3,900,000 $2,150,000
Total liabilities $5,147,230 $2,633,301
Stockholders' Equity
Preferred $0.7 stock, $50 par $600,000 $600,000
Common stock, $10 par 680,000 680,000
Retained earnings 3,399,300 2,840,700
Total stockholders' equity $4,679,300 $4,120,700
Total liabilities and stockholders' equity $9,826,530 $6,754,001

Required:

Determine the following measures for 2016, rounding to one decimal place, except for dollar amounts, which should be rounded to the nearest cent. Use the rounded answer of the requirement for subsequent requirement, if required. Assume 365 days a year.

1. Working capital $
2. Current ratio
3. Quick ratio
4. Accounts receivable turnover
5. Number of days' sales in receivables days
6. Inventory turnover
7. Number of days' sales in inventory days
8. Ratio of fixed assets to long-term liabilities
9. Ratio of liabilities to stockholders' equity
10. Number of times interest charges are earned
11. Number of times preferred dividends are earned
12. Ratio of sales to assets
13. Rate earned on total assets %
14. Rate earned on stockholders' equity %
15. Rate earned on common stockholders' equity %
16. Earnings per share on common stock $
17. Price-earnings ratio
18. Dividends per share of common stock $
19. Dividend yield %

In: Accounting

QUESTION 11 Use this selection for the next set of questions related to Harborside, Inc., a...

QUESTION 11
Use this selection for the next set of questions related to Harborside, Inc., a marina:
Cash Net Income
A. - NE
B. - -
C. NE -
D. NE NE
E. No Transaction
.On August 1, Harborside, Inc. prepaid $5,600 of rent.


QUESTION 12
Use this selection for the next set of questions related to Harborside, Inc., a marina:
Cash Net Income
A. - NE
B. - -
C. NE -
D. NE NE
E. No Transaction

On August 28, Harborside, Inc. paid for supplies purchased on an earlier date.


QUESTION 13
Use this selection for the next set of questions related to Harborside, Inc., a marina:
Cash Net Income
A. - NE
B. - -
C. NE -
D. NE NE
E. No Transaction

On August 30, Harborside, Inc. received a bill for Blackberry service from August 2 through August 20. Harborside, Inc. will pay the bill in September.

QUESTION 14
Use this selection for the next set of questions related to Harborside, Inc., a marina:
Cash Net Income
A. - NE
B. - -
C. NE -
D. NE NE
E. No Transaction

On August 30, Harborside, Inc. paid a dividend .


QUESTION 15
Use this selection for the next set of questions related to Harborside, Inc., a marina:
Cash Net Income
A. - NE
B. - -
C. NE -
D. NE NE
E. No Transaction

On August 30, Harborside, Inc. used the rent prepaid on August 1th.


QUESTION 16
Muller Companytook out a note payable in the amount of $4,000 and it had an interest rate of 8% on August 1, 2016. The note carried an 8 month term. The amount of cash flow from operating activities on the 2016 statement of cash flows would be:
1. $320
2. $53.33
3. $240
4. $0


QUESTION 17
Raymond Company borrowed $8,000 on April 1, 2016 from the Meramec Bank. The note issued by Raymond carried a one year term and a 7% annual interest rate. Raymond earned cash revenue of $850 in 2016 and $700 in 2017. Assume no other transactions. The amount of net income on the 2017 income statement would be:
1. $140
2. $560
3. $700
4. $290


QUESTION 18
Raymond Company borrowed $8,000 on April 1, 2016 from the Meramec Bank. The note carried a one year term and a 7% annual interest rate. Raymond earned cash revenue of $850 in 2016 and $700 in 2017. Assume no other transactions. The amount of cash flow from operating activities that would appear on the 2017 statement of cash flows would be:
1. 850
2. 700
3. 140
4. 560


QUESTION 19
Mune Company recorded journal entries for the payment of $50,000 of dividends, the $32,000 increase in accounts receivable for services rendered, and the purchase of equipment for $21,000. What net effect do these entries have on owners’ equity? 1. Decrease of $71,000.
2. Decrease of $39,000.
3. Decrease of $18,000.
4. Increase of $11,000.
5. None of the aboe



QUESTION 20
Tate Company purchased equipment on November 1, 2016 and gave a 3-month, 9% note with a face value of $20,000. The December 31, 2016 adjusting entry is:
1. debit Interest Expense and credit Interest Payable, $1,800.
2. debit Interest Expense and credit Interest Payable, $450.
3. debit Interest Expense and credit Cash, $300.
4. debit Interest Expense and credit Interest Payable, $300.
5. None of the above.

In: Accounting

Forecasting with the Parsimonious Method and Estimating Share Value Using the DCF Model Following are the...

Forecasting with the Parsimonious Method and Estimating Share Value Using the DCF Model
Following are the income statement and balance sheet for Cisco Sytems for the year ended July 30, 2016.

Cisco Sytems
Consolidated Statements of Income
Years Ended December ($ millions) July 30,
2016		 July 25,
2015
Revenue
Product $37,254 $37,750
Service 11,993 11,411
Total revenue 49,247 49,161
Cost of sales
Product 14,161 15,377
Service 4,126 4,103
Total cost of sales 18,287 19,480
Gross margin 30,960 29,681
Operating expenses
Research and development 6,296 6,207
Sales and marketing 9,619 9,821
General and administrative 1,814 2,040
Amortization of purchased intangible assets 303 359
Restructuring and other charges 268 484
Total operating expenses 18,300 18,911
Operating income 12,660 10,770
Interest income 1,005 769
Interest expense (676) (566)
Other income (loss), net (69) 228
Interest and other income (loss), net 260 431
Income before provision for income taxes 12,920 11,201
Provision for income taxes 2,181 2,220
Net income $10,739 $8,981
Cisco Sytems Inc.
Consolidated Balance Sheets
In millions, except par value July 30, 2016 July 25, 2015
Assets
Current assets
Cash and cash equivalents $7,631 $6,877
Investments 58,125 53,539
Accounts receivable, net of allowance for doubtful accounts of $249 at July 30, 2016 and $302 at July 25, 2015 5,847 5,344
Inventories 1,217 1,627
Financing receivables, net 4,272 4,491
Other current assets 1,627 1,490
Total current assets 78,719 73,368
Property and equipment, net 3,506 3,332
Financing receivables, net 4,158 3,858
Goodwill 26,625 24,469
Purchased intangible assets, net 2,501 2,376
Deferred tax assets 4,299 4,454
Other assets 1,844 1,516
Total assets $121,652 $113,373
Liabilities
Current liabilities
Short-term debt $4,160 $3,897
Accounts payable 1,056 1,104
Income taxes payable 517 62
Accrued compensation 2,951 3,049
Deferred revenue 10,155 9,824
Other current liabilities 6,072 5,476
Total current liabilities 24,911 23,412
Long-term debt 24,483 21,457
Income taxes payable 925 1,876
Deferred revenue 6,317 5,359
Other long-term liabilities 1,431 1,562
Total liabilities 58,067 53,666
Cisco shareholders' equity
Preferred stock, no par value: 5 shaes authorized; none issued and outstanding		 -- --
Common stock and additional paid-in capital, $0.001 par value: 20,000 shares authorized; 5,029 and 5,085 shares issued and outstanding at July 30, 2016 and July 25, 2015, respectively 44,516 43,592
Retained earnings 19,396 16,045
Accumulated other comprehensive income (loss) (326) 61
Total Cisco shareholders' equity 63,586 59,698
Noncontrolling interests (1) 9
Total equity 63,585 59,707
Total liabilities and equity $121,652 $113,373



(a) Compute net operating assets (NOA) for 2016.
NOA = $Answer



(b) Compute net operating profit after tax (NOPAT) for 2016, assuming a federal and state statutory tax rate of 37%.(Round your answer to the nearest whole number.)
2016 NOPAT = $Answer

In: Finance

Nineteen Measures of Solvency and Profitability The comparative financial statements of Blige Inc. are as follows....

Nineteen Measures of Solvency and Profitability

The comparative financial statements of Blige Inc. are as follows. The market price of Blige Inc. common stock was $65 on December 31, 2016.

Blige Inc.
Comparative Retained Earnings Statement
For the Years Ended December 31, 2016 and 2015
    2016     2015
Retained earnings, January 1 $4,800,300 $4,081,000
Add net income for year 1,036,000 835,900
Total $5,836,300 $4,916,900
Deduct dividends
On preferred stock $14,000 $14,000
On common stock 102,600 102,600
Total $116,600 $116,600
Retained earnings, December 31 $5,719,700 $4,800,300


Blige Inc.
Comparative Income Statement
For the Years Ended December 31, 2016 and 2015
    2016     2015
Sales $6,514,445 $5,993,300
Sales returns and allowances 32,410 21,070
Sales $6,482,035 $5,972,230
Cost of goods sold 2,105,320 1,936,890
Gross profit $4,376,715 $4,035,340
Selling expenses $1,562,480 $1,854,600
Administrative expenses 1,331,005 1,089,210
Total operating expenses 2,893,485 2,943,810
Income from operations $1,483,230 $1,091,530
Other income 78,070 69,670
$1,561,300 $1,161,200
Other expense (interest) 384,000 211,200
Income before income tax $1,177,300 $950,000
Income tax expense 141,300 114,100
Net income $1,036,000 $835,900


Blige Inc.
Comparative Balance Sheet
December 31, 2016 and 2015
    Dec. 31, 2016     Dec. 31, 2015
Assets
Current assets
Cash $864,400 $1,038,390
Temporary investments 1,308,270 1,720,760
Accounts receivable (net) 1,131,500 1,065,800
Inventories 846,800 657,000
Prepaid expenses 163,534 207,680
Total current assets $4,314,504 $4,689,630
Long-term investments 3,592,956 1,132,496
Property, plant, and equipment (net) 6,240,000 5,616,000
Total assets $14,147,460 $11,438,126
Liabilities
Current liabilities $1,487,760 $1,857,826
Long-term liabilities
Mortgage note payable, 8%, due 2021 $2,160,000 $0
Bonds payable, 8%, due 2017 2,640,000 2,640,000
Total long-term liabilities $4,800,000 $2,640,000
Total liabilities $6,287,760 $4,497,826
Stockholders' Equity
Preferred $0.7 stock, $50 par $1,000,000 $1,000,000
Common stock, $10 par 1,140,000 1,140,000
Retained earnings 5,719,700 4,800,300
Total stockholders' equity $7,859,700 $6,940,300
Total liabilities and stockholders' equity $14,147,460 $11,438,126

Required:

Determine the following measures for 2016, rounding to one decimal place, except for dollar amounts, which should be rounded to the nearest cent. Use the rounded answer of the requirement for subsequent requirement, if required. Assume 365 days a year.

1. Working capital $
2. Current ratio
3. Quick ratio
4. Accounts receivable turnover
5. Number of days' sales in receivables days
6. Inventory turnover
7. Number of days' sales in inventory days
8. Ratio of fixed assets to long-term liabilities
9. Ratio of liabilities to stockholders' equity
10. Number of times interest charges are earned
11. Number of times preferred dividends are earned
12. Ratio of sales to assets
13. Rate earned on total assets %
14. Rate earned on stockholders' equity %
15. Rate earned on common stockholders' equity %
16. Earnings per share on common stock $
17. Price-earnings ratio
18. Dividends per share of common stock $
19. Dividend yield %

In: Accounting

Nineteen Measures of Solvency and Profitability The comparative financial statements of Blige Inc. are as follows....

Nineteen Measures of Solvency and Profitability

The comparative financial statements of Blige Inc. are as follows. The market price of Blige Inc. common stock was $67 on December 31, 2016.

Blige Inc.
Comparative Retained Earnings Statement
For the Years Ended December 31, 2016 and 2015
    2016     2015
Retained earnings, January 1 $1,928,600 $1,628,300
Add net income for year 456,000 333,500
Total $2,384,600 $1,961,800
Deduct dividends
On preferred stock $5,600 $5,600
On common stock 27,600 27,600
Total $33,200 $33,200
Retained earnings, December 31 $2,351,400 $1,928,600
Blige Inc.
Comparative Income Statement
For the Years Ended December 31, 2016 and 2015
    2016     2015
Sales $2,461,400 $2,264,500
Sales returns and allowances 12,250 7,960
Sales $2,449,150 $2,256,540
Cost of goods sold 950,460 874,420
Gross profit $1,498,690 $1,382,120
Selling expenses $461,380 $594,180
Administrative expenses 393,020 348,960
Total operating expenses 854,400 943,140
Income from operations $644,290 $438,980
Other income 33,910 28,020
$678,200 $467,000
Other expense (interest) 160,000 88,000
Income before income tax $518,200 $379,000
Income tax expense 62,200 45,500
Net income $456,000 $333,500
Blige Inc.
Comparative Balance Sheet
December 31, 2016 and 2015
    Dec. 31, 2016     Dec. 31, 2015
Assets
Current assets
Cash $310,850 $506,270
Temporary investments 470,480 838,970
Accounts receivable (net) 459,900 430,700
Inventories 350,400 262,800
Prepaid expenses 58,818 101,250
Total current assets $1,650,448 $2,139,990
Long-term investments 1,730,072 919,490
Property, plant, and equipment (net) 2,400,000 2,160,000
Total assets $5,780,520 $5,219,480
Liabilities
Current liabilities $569,120 $1,330,880
Long-term liabilities
Mortgage note payable, 8%, due 2021 $900,000 $0
Bonds payable, 8%, due 2017 1,100,000 1,100,000
Total long-term liabilities $2,000,000 $1,100,000
Total liabilities $2,569,120 $2,430,880
Stockholders' Equity
Preferred $0.7 stock, $50 par $400,000 $400,000
Common stock, $10 par 460,000 460,000
Retained earnings 2,351,400 1,928,600
Total stockholders' equity $3,211,400 $2,788,600
Total liabilities and stockholders' equity $5,780,520 $5,219,480

Required:

Determine the following measures for 2016, rounding to one decimal place, except for dollar amounts, which should be rounded to the nearest cent. Use the rounded answer of the requirement for subsequent requirement, if required. Assume 365 days a year.

1. Working capital $
2. Current ratio
3. Quick ratio
4. Accounts receivable turnover
5. Number of days' sales in receivables days
6. Inventory turnover
7. Number of days' sales in inventory days
8. Ratio of fixed assets to long-term liabilities
9. Ratio of liabilities to stockholders' equity
10. Number of times interest charges are earned
11. Number of times preferred dividends are earned
12. Ratio of sales to assets
13. Rate earned on total assets %
14. Rate earned on stockholders' equity %
15. Rate earned on common stockholders' equity %
16. Earnings per share on common stock $
17. Price-earnings ratio
18. Dividends per share of common stock $
19. Dividend yield %

In: Accounting

Assume Southern Coper Corporation (SCCO) acquired mining equipment for $100,000 cash on January 1,2016. The equipment...

Assume Southern Coper Corporation (SCCO) acquired mining equipment for $100,000 cash on January 1,2016. The equipment had an expected useful life of four years and zero salvage value. SCCO calculates depreciation using the SL method over the remaining expected useful life in all cases. On dec.31, 2016 after recognizing deprecation for the year,  SCCO learns that new equipment now offered on market makes the purchased equipment partially obsolete.     The market value of the equipment on Dec.31, 2016, reflecting this obsolescence, is $60,000. The expected useful life does not change. On Dec,31, 2017, the market value of the equipment is $48,0000. SCCO sells the equipment on Jan. 1, 2019 for 26,000

Required:

Assume for this part that SCCO accounts for the equipment using Historical cost adjusted for depreciation and impairment losses. Using the analytical framework discussed, indicate the effects of the following events on BS and IS.


Acquisition of the equipment foe cash on Jan.1,2016.


Depreciation for 2016


Impairment loss for 2016


Depreciation 2017


Depreciation 2018


Sale of equipment on January 1,2019.

Assume that SCCO accounts for the equipment using current fair market values adjusted for depreciation and impairment losses (with changes in fair values recognized in net income). Using the analytical framework discussed, indicate the effects of the following events on BS and IS


1. Acquisition of the equipment foe cash on Jan.1,2016.

            2. Depreciation for 2016

            3. Impairment loss for 2016

            4. Depreciation 2017

            5. Recognition of unrealized holding gain or loss for 2017

            6. Depreciation 2018

            7. Recognition of unrealized holding gain or loss for 2018

            8. Sale of equipment on January 1, 2019.

C.  After the equipment is sold, why is retained earning on Jan. 1, 2019, equal to negative   

      $74,000 in both cases despite having shown a different pattern of expenses, gains,

      and losses over time?




Question Number 2

Effect of Valuation Method for Monetary Asset on Balance Sheet and Income

Statement.

Assume Walmart acquires a tract of land on Jan.1, 2016, for $100,000 cash. On Dec. 31,  2016, the current market value of the land is $150,000. On Dec. 31,2017, the current market value of land is 120,000 The firm sells the land on Dec.31, 2018, for $180,000 cash.

Assume that Walmart has accounted for the value of the land at acquisition cost and sells land on Dec. 31, 2018, for a two year note receivable with present value of $180,000 instead of for cash, the note bears interest at 8% and requires cash payments of $100,939 on Dec. 31, 2019 and 2010. Interest rates for notes of this risk level increase to 10% on Dec.31, 2019, resulting in a market value for the note date of $ 91,762.

Required

Ignore income taxes. Indicate the effect on BS and IS of the preceding information for 2018, 2019, and 2020 under each of the following valuation methods.

Valuation of the note at the present value of future cash flows using the historical market interest rate of 8% (Approach 1):

Valuation of the note at the present value of future cash flows, adjusting the note to fair  


value upon changes in market interest rates and including unrealized gains and losses in      net income (Approach 2).

Why is retained earning on Dec.31, 2020, equal to $101,878 in both cases despite the reporting of different amounts of net income each year?


In: Accounting

The comparative financial statements of Blige Inc. are as follows. The market price of Blige Inc....

The comparative financial statements of Blige Inc. are as follows. The market price of Blige Inc. common stock was $57 on December 31, 2016.

Blige Inc.
Comparative Retained Earnings Statement
For the Years Ended December 31, 2016 and 2015
    2016     2015
Retained earnings, January 1 $1,944,750 $1,648,550
Add net income for year 432,000 337,700
Total $2,376,750 $1,986,250
Deduct dividends
On preferred stock $7,000 $7,000
On common stock 34,500 34,500
Total $41,500 $41,500
Retained earnings, December 31 $2,335,250 $1,944,750


Blige Inc.
Comparative Income Statement
For the Years Ended December 31, 2016 and 2015
    2016     2015
Sales $2,852,430 $2,624,200
Sales returns and allowances 14,190 9,220
Sales $2,838,240 $2,614,980
Cost of goods sold 1,131,500 1,040,980
Gross profit $1,706,740 $1,574,000
Selling expenses $559,000 $693,620
Administrative expenses 476,190 407,370
Total operating expenses 1,035,190 1,100,990
Income from operations $671,550 $473,010
Other income 35,350 30,190
$706,900 $503,200
Other expense (interest) 216,000 119,200
Income before income tax $490,900 $384,000
Income tax expense 58,900 46,300
Net income $432,000 $337,700


Blige Inc.
Comparative Balance Sheet
December 31, 2016 and 2015
    Dec. 31, 2016     Dec. 31, 2015
Assets
Current assets
Cash $643,710 $436,530
Temporary investments 974,260 723,400
Accounts receivable (net) 540,200 511,000
Inventories 408,800 321,200
Prepaid expenses 121,788 87,310
Total current assets $2,688,758 $2,079,440
Long-term investments 511,267 -166,647
Property, plant, and equipment (net) 3,510,000 3,159,000
Total assets $6,710,025 $5,071,793
Liabilities
Current liabilities $814,775 $777,043
Long-term liabilities
Mortgage note payable, 8%, due 2021 $1,210,000 $0
Bonds payable, 8%, due 2017 1,490,000 1,490,000
Total long-term liabilities $2,700,000 $1,490,000
Total liabilities $3,514,775 $2,267,043
Stockholders' Equity
Preferred $0.7 stock, $40 par $400,000 $400,000
Common stock, $10 par 460,000 460,000
Retained earnings 2,335,250 1,944,750
Total stockholders' equity $3,195,250 $2,804,750
Total liabilities and stockholders' equity $6,710,025 $5,071,793

Required:

Determine the following measures for 2016, rounding to one decimal place, except for dollar amounts, which should be rounded to the nearest cent. Use the rounded answer of the requirement for subsequent requirement, if required. Assume 365 days a year.

1. Working capital $
2. Current ratio
3. Quick ratio
4. Accounts receivable turnover
5. Number of days' sales in receivables days
6. Inventory turnover
7. Number of days' sales in inventory days
8. Ratio of fixed assets to long-term liabilities
9. Ratio of liabilities to stockholders' equity
10. Number of times interest charges are earned
11. Number of times preferred dividends are earned
12. Ratio of sales to assets
13. Rate earned on total assets %
14. Rate earned on stockholders' equity %
15. Rate earned on common stockholders' equity %
16. Earnings per share on common stock $
17. Price-earnings ratio
18. Dividends per share of common stock $
19. Dividend yield %

In: Accounting

Problem 11-10 Skysong Corporation, a manufacturer of steel products, began operations on October 1, 2016. The...

Problem 11-10

Skysong Corporation, a manufacturer of steel products, began operations on October 1, 2016. The accounting department of Skysong has started the fixed-asset and depreciation schedule presented below. You have been asked to assist in completing this schedule. In addition to ascertaining that the data already on the schedule are correct, you have obtained the following information from the company’s records and personnel.

1. Depreciation is computed from the first of the month of acquisition to the first of the month of disposition.
2. Land A and Building A were acquired from a predecessor corporation. Skysong paid $844,000 for the land and building together. At the time of acquisition, the land had an appraised value of $86,100, and the building had an appraised value of $774,900.
3. Land B was acquired on October 2, 2016, in exchange for 2,600 newly issued shares of Skysong’s common stock. At the date of acquisition, the stock had a par value of $5 per share and a fair value of $28 per share. During October 2016, Skysong paid $15,300 to demolish an existing building on this land so it could construct a new building.
4. Construction of Building B on the newly acquired land began on October 1, 2017. By September 30, 2018, Skysong had paid $307,000 of the estimated total construction costs of $428,900. It is estimated that the building will be completed and occupied by July 2019.
5. Certain equipment was donated to the corporation by a local university. An independent appraisal of the equipment when donated placed the fair value at $38,900 and the salvage value at $2,700.
6. Machinery A’s total cost of $181,800 includes installation expense of $540 and normal repairs and maintenance of $14,400. Salvage value is estimated at $6,500. Machinery A was sold on February 1, 2018.
7. On October 1, 2017, Machinery B was acquired with a down payment of $5,280 and the remaining payments to be made in 11 annual installments of $5,540 each beginning October 1, 2017. The prevailing interest rate was 8%. The following data were abstracted from present value tables (rounded).

Present value
of $1.00 at 8%

Present value
of an ordinary annuity
of $1.00 at 8%
10 years 0.463 10 years 6.710
11 years 0.429 11 years 7.139
15 years 0.315 15 years 8.559

Complete the schedule below. (Round answers to 0 decimal places, e.g. 45,892.)

SKYSONG CORPORATION

Fixed-Asset and Depreciation Schedule

For Fiscal Years Ended September 30, 2017, and September 30, 2018

Depreciation

Year Ended

Expense

September 30
Assets Acquistion Date Cost Salvage Salavage Deprectiaion Method Estimated Life in Years 2017 2018
Land A October 1, 2016 1.________ N/A N/A N/A N/A N/A
Building A October 1, 2016 2.________ $43,400 Straight-line 3.________ $14,616

4._______
Land B October 2, 2016 5.________ N/A N/A N/A N/A N/A
Building B Under Construction $307,000 to date _ Straight-line 30 __ 6.______
Donated Equipment October 2, 2016 7._______ 2,700 150 % declining-balance 10 8.________ 9,_______
Machinery A October 2, 2016 10.______ 6,500 Sum-of-the-years'-digits 8 11._______ 12.______
Machinery B October 1, 2017 13.______ __ Straight-line 20 ___ 14.______

In: Accounting

Nineteen Measures of Solvency and Profitability The comparative financial statements of Blige Inc. are as follows....

Nineteen Measures of Solvency and Profitability

The comparative financial statements of Blige Inc. are as follows. The market price of Blige Inc. common stock was $59 on December 31, 2016.

Blige Inc.
Comparative Retained Earnings Statement
For the Years Ended December 31, 2016 and 2015
    2016     2015
Retained earnings, January 1 $3,875,800 $3,256,400
Add net income for year 876,000 667,000
Total $4,751,800 $3,923,400
Deduct dividends
On preferred stock $11,200 $11,200
On common stock 36,400 36,400
Total $47,600 $47,600
Retained earnings, December 31 $4,704,200 $3,875,800


Blige Inc.
Comparative Income Statement
For the Years Ended December 31, 2016 and 2015
    2016     2015
Sales $5,054,850 $4,650,500
Sales returns and allowances 25,150 16,350
Sales $5,029,700 $4,634,150
Cost of goods sold 2,014,070 1,852,940
Gross profit $3,015,630 $2,781,210
Selling expenses $937,180 $1,188,630
Administrative expenses 798,330 698,080
Total operating expenses 1,735,510 1,886,710
Income from operations $1,280,120 $894,500
Other income 67,380 57,100
$1,347,500 $951,600
Other expense (interest) 352,000 193,600
Income before income tax $995,500 $758,000
Income tax expense 119,500 91,000
Net income $876,000 $667,000


Blige Inc.
Comparative Balance Sheet
December 31, 2016 and 2015
    Dec. 31, 2016     Dec. 31, 2015
Assets
Current assets
Cash $942,540 $905,050
Temporary investments 1,426,550 1,499,790
Accounts receivable (net) 978,200 919,800
Inventories 730,000 569,400
Prepaid expenses 178,328 181,010
Total current assets $4,255,618 $4,075,050
Long-term investments 2,211,362 716,096
Property, plant, and equipment (net) 5,720,000 5,148,000
Total assets $12,186,980 $9,939,146
Liabilities
Current liabilities $1,372,780 $1,933,346
Long-term liabilities
Mortgage note payable, 8%, due 2021 $1,980,000 $0
Bonds payable, 8%, due 2017 2,420,000 2,420,000
Total long-term liabilities $4,400,000 $2,420,000
Total liabilities $5,772,780 $4,353,346
Stockholders' Equity
Preferred $0.7 stock, $50 par $800,000 $800,000
Common stock, $10 par 910,000 910,000
Retained earnings 4,704,200 3,875,800
Total stockholders' equity $6,414,200 $5,585,800
Total liabilities and stockholders' equity $12,186,980 $9,939,146

Required:

Determine the following measures for 2016, rounding to one decimal place, except for dollar amounts, which should be rounded to the nearest cent. Use the rounded answer of the requirement for subsequent requirement, if required. Assume 365 days a year.

1. Working capital $
2. Current ratio
3. Quick ratio
4. Accounts receivable turnover
5. Number of days' sales in receivables days
6. Inventory turnover
7. Number of days' sales in inventory days
8. Ratio of fixed assets to long-term liabilities
9. Ratio of liabilities to stockholders' equity
10. Number of times interest charges are earned
11. Number of times preferred dividends are earned
12. Ratio of sales to assets
13. Rate earned on total assets %
14. Rate earned on stockholders' equity %
15. Rate earned on common stockholders' equity %
16. Earnings per share on common stock $
17. Price-earnings ratio
18. Dividends per share of common stock $
19. Dividend yield %

In: Accounting

Nineteen Measures of Solvency and Profitability The comparative financial statements of Blige Inc. are as follows....

Nineteen Measures of Solvency and Profitability

The comparative financial statements of Blige Inc. are as follows. The market price of Blige Inc. common stock was $63 on December 31, 2016.

Blige Inc.
Comparative Retained Earnings Statement
For the Years Ended December 31, 2016 and 2015
    2016     2015
Retained earnings, January 1 $913,750 $770,650
Add net income for year 207,200 157,800
Total $1,120,950 $928,450
Deduct dividends
On preferred stock $6,300 $6,300
On common stock 8,400 8,400
Total $14,700 $14,700
Retained earnings, December 31 $1,106,250 $913,750
Blige Inc.
Comparative Income Statement
For the Years Ended December 31, 2016 and 2015
    2016     2015
Sales $1,276,550 $1,174,400
Sales returns and allowances 6,350 4,130
Sales $1,270,200 $1,170,270
Cost of goods sold 429,970 395,570
Gross profit $840,230 $774,700
Selling expenses $295,980 $358,370
Administrative expenses 252,130 210,470
Total operating expenses 548,110 568,840
Income from operations $292,120 $205,860
Other income 15,380 13,140
$307,500 $219,000
Other expense (interest) 72,000 40,000
Income before income tax $235,500 $179,000
Income tax expense 28,300 21,200
Net income $207,200 $157,800
Blige Inc.
Comparative Balance Sheet
December 31, 2016 and 2015
    Dec. 31, 2016     Dec. 31, 2015
Assets
Current assets
Cash $211,200 $210,220
Temporary investments 319,650 348,360
Accounts receivable (net) 219,000 204,400
Inventories 160,600 116,800
Prepaid expenses 39,950 42,040
Total current assets $950,400 $921,820
Long-term investments 572,850 273,523
Property, plant, and equipment (net) 1,170,000 1,053,000
Total assets $2,693,250 $2,248,343
Liabilities
Current liabilities $297,000 $444,593
Long-term liabilities
Mortgage note payable, 8%, due 2021 $400,000 $0
Bonds payable, 8%, due 2017 500,000 500,000
Total long-term liabilities $900,000 $500,000
Total liabilities $1,197,000 $944,593
Stockholders' Equity
Preferred $0.7 stock, $20 par $180,000 $180,000
Common stock, $10 par 210,000 210,000
Retained earnings 1,106,250 913,750
Total stockholders' equity $1,496,250 $1,303,750
Total liabilities and stockholders' equity $2,693,250 $2,248,343

Required:

Determine the following measures for 2016, rounding to one decimal place, except for dollar amounts, which should be rounded to the nearest cent. Use the rounded answer of the requirement for subsequent requirement, if required. Assume 365 days a year.

1. Working capital $
2. Current ratio
3. Quick ratio
4. Accounts receivable turnover
5. Number of days' sales in receivables days
6. Inventory turnover
7. Number of days' sales in inventory days
8. Ratio of fixed assets to long-term liabilities
9. Ratio of liabilities to stockholders' equity
10. Number of times interest charges are earned
11. Number of times preferred dividends are earned
12. Ratio of sales to assets
13. Rate earned on total assets %
14. Rate earned on stockholders' equity %
15. Rate earned on common stockholders' equity %
16. Earnings per share on common stock $
17. Price-earnings ratio
18. Dividends per share of common stock $
19. Dividend yield %

In: Accounting