Questions
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

An electric eel develops a potential difference of 500 V, driving a current of 0.90 A for a 1.0 ms pulse.

An electric eel develops a potential difference of 500 V, driving a current of 0.90 A for a 1.0 ms pulse.
A.Find the power of this pulse.
B. Find the total energy of this pulse.
C.Find the total charge that flows during the pulse.

In: Physics

When light of wavelength 400 nm is incident on a metal surface, the stopping potential of...

When light of wavelength 400 nm is incident on a metal surface, the stopping
potential of the photoelectrons is 0.600 V.
a. What is the work function of the metal?
b. What is the threshold frequency?
c. What is the maximum kinetic energy of the electron?

In: Physics

A proton (H+) is released at rest at a location where the electric potential is measured...

A proton (H+) is released at rest at a location where the electric potential is measured to be 3000 V.

The energy gained by the proton = _________ J BLANK-1 = __________ eV BLANK-2

The speed gained by the proton due to this potential is ______ m/s?

In: Physics

When 210 nm light falls on a metal, the current through a photoelectric circuit is brought...

When 210 nm light falls on a metal, the current through a photoelectric circuit is brought to zero at a stopping voltage of 1.54 V . What is the work function of the metal? Express your answer using three significant figures.

In: Physics

Prove or disprove: two consecutive rotations about two different axis are commutative. That is, is RuRv...

Prove or disprove: two consecutive rotations about two different axis are commutative. That is, is RuRv = RvRu? (Hint: For simplicity, you can assume that the axis u is the x-axis and v is the y-axis without loss of gnerality).

In: Advanced Math