author name Bridges to the Doctorate Cohort V UC Santa Cruz experiment 2016 questions

Questions

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

Nineteen Measures of The ability of a firm to pay its debts as they come due.Solvency...

Nineteen Measures of The ability of a firm to pay its debts as they come due.Solvency and The ability of a firm to earn income.Profitability

The comparative financial statements of Blige Inc. are as follows. The market price of Blige Inc. common stock was $71 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			$2,474,150	$2,101,950
Add net income for year			570,000	430,500
Total			$3,044,150	$2,532,450
Deduct dividends
	On preferred stock		$7,000	$7,000
	On common stock		51,300	51,300
		Total	$58,300	$58,300
Retained earnings, December 31			$2,985,850	$2,474,150

Blige Inc.
Comparative Income Statement
*For the Years Ended December 31, 2016* and 2015**
	*2016*	2015
Sales	$3,288,585	$3,025,500
Sales returns and allowances	16,360	10,630
Sales	$3,272,225	$3,014,870
Cost of goods sold	1,165,080	1,071,870
Gross profit	$2,107,145	$1,943,000
Selling expenses	$690,680	$861,540
Administrative expenses	588,355	505,990
Total operating expenses	1,279,035	1,367,530
Income from operations	$828,110	$575,470
Other income	43,590	36,730
	$871,700	$612,200
Other expense (interest)	224,000	123,200
Income before income tax	$647,700	$489,000
Income tax expense	77,700	58,500
Net income	$570,000	$430,500

Blige Inc.
Comparative Balance Sheet
*December 31, 2016* and 2015**
			Dec. 31, 2016	Dec. 31, 2015
Assets
Current assets
	Cash		$638,430	$599,200
	Temporary investments		966,270	992,970
	Accounts receivable (net)		613,200	576,700
	Inventories		467,200	365,000
	Prepaid expenses		120,775	119,840
		Total current assets	$2,805,875	$2,653,710
Long-term investments			1,820,240	1,046,746
Property, plant, and equipment (net)			3,080,000	2,772,000
Total assets			$7,706,115	$6,472,456
Liabilities
Current liabilities			$850,265	$1,388,306
Long-term liabilities
	Mortgage note payable, 8%, due 2021		$1,260,000	$0
	Bonds payable, 8%, due 2017		1,540,000	1,540,000
		Total long-term liabilities	$2,800,000	$1,540,000
Total liabilities			$3,650,265	$2,928,306
Stockholders' Equity
Preferred $0.7 stock, $50 par			$500,000	$500,000
Common stock, $10 par			570,000	570,000
Retained earnings			2,985,850	2,474,150
	Total stockholders' equity		$4,055,850	$3,544,150
Total liabilities and stockholders' equity			$7,706,115	$6,472,456

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.

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

The marketing manager has recently completed a sales forecast. She believes the company’s sales will increase...

The marketing manager has recently completed a sales forecast. She believes the company’s sales will increase by 1 percent each month over the previous month’s sales from December 2015 through March 2016. Then sales are expected to remain constant for several months. Helping Hand’s projected balance sheet as of December 31, 2015 is as follows: Cash $ 60,000 Accounts receivable 172,530 Marketable securities 10,000 Inventory 39,784 Buildings and equipment (net of accumulated depreciation) 600,000 Total assets $ 882,314 Accounts payable $ 111,940 Sales commissions payable 4,040 Bond interest payable 8,000 Property taxes payable 0 Bonds payable (4%; due in 2020) 600,000 Common stock 100,000 Retained earnings 58,334 Total liabilities and stockholders' equity $ 882,314 The following information has been accumulated to assist with preparing the master budget for the first quarter of 2016: 1) Projected sales for November 2015 are $200,000. Credit sales are typically 90% of total sales.

5).Helping Hand’s credit experience indicates that 13% of credit sales are collected during the month of sale, 75% in the month following the sale, and 10% in the second month following the sale. Experience shows the remaining credit sales are uncollectible. 2 Helping Hand’s board of directors has indicated an intention to declare and pay dividends of $150,000 on the last day of each quarter. 6) The interest on any short-term borrowing will be paid when the loan is repaid. Interest on Helping Hand’s bonds is paid semiannually on February 28 and August 31 for the preceding sixmonth period. 7) Property taxes are paid quarterly on March 31, June 30, September 30, and December 31 for the preceding three-month period. Required: Build a model to forecast Helping Hand Corp’s cash balance at March 31, 2016. Your model must contain the following master budget schedules. Round all amounts to the nearest dollar. Your model should allow you to change any of the assumptions provided above and easily recalculate the ending cash balance at March 31, 2016. The assumptions may be on a separate worksheet but all of the schedules below must be on one worksheet. 1) Sales budget: 2015 2016 November December January February March 1st Quarter Total sales Cash sales Sales on account 2) Cash receipts budget: 2016 January February March 1st Quarter Cash sales Cash collections from credit sales made during current month Cash collections from credit sales made during preceding month Cash collections from credit sales made during 2nd preceding month Total cash receipts 3) Purchases budget: 2015 2016 December January February March 1st Quarter Budgeted cost of goods sold Add: Desired ending inventory Total goods needed Less: Expected beginning inventory Purchases 4) Cash disbursements budget: 2016 January February March 1st Quarter Inventory purchases: Cash payments for purchases during the current month Cash payments for purchases during the preceding month Total cash payments for inventory purchases Other expenses: Sales salaries Advertising and promotion Administrative salaries Interest on bonds Property taxes Sales commissions Total cash payments for other expenses Total cash disbursements

In: Accounting

In an momentum experiment involving the collision of two metal balls.... one at rest and the...

In an momentum experiment involving the collision of two metal balls.... one at rest and the other that has an initial velocity moving in a projectile path, how would you determine the maximum height of the ball that is hit? Also, how do you find the velocity of the projectile (initially moving) ball just after the collision? Thanks!

In: Physics