A company has total assets of $5,670,482, common stock of 2,181,111, retained ea

Question

A company has total assets of $5,670,482, common stock of 2,181,111, retained earnings of $1,128,473. What is the company's debt ratio? 58.37% 71.34% 42.03% 41.63% 38.46% Based on the data given below, which of the following statements are true? Analysis Base Case Period Period (A) $1,400 $(4,400) (B) (10,200) 1,200 (C) 9,000 --- (D) 0 $10,200 A percent change either cannot be computed or is not meaningful for cases B and C The percent change for case C is 100% A percent change either cannot be computed or is not meaningful for cases A, B and C A percent change either cannot be computed or is not meaningful for case C A percent change either cannot be computed or is not meaningful for cases A,B,C and D A company had a profit margin of 7%. If net income equaled $40,000 and average total assets equaled $338,000, how much were net sales? (Rounded to the nearest whole dollar.) $23,660 $571,429 $483 $2,800 $298,000 A company had a return on common stockholders' equity of 28%. Net income equaled $230,000 and average common stockholders' equity equaled $730,000. Compute the amount of the preferred dividends declared. $230,000 $25,600 $500,000 $204,400 $64,400 A company has sales of $2,498,422, a gross profit ratio of 21%, a days' sales in inventory ratio of 12.8, and total current assets of $543,600. What is the ending inventory for the year? $42,469 $-18,931 $114,156 $404,180 $69,217 A company has long-term notes payable of $179,625, taxes of $9,900, ending merchandise inventory of $454,290, interest expense of $14,450, net sales of $724,000 a gross profit ratio of 30%, a times interest earned ratio of 4.63, and total assets of $1,304,417. What is the company's earnings before interest and taxes? $192,850 $217,200 $46,911 $112,741 $66,904 Selected comparative income statement amounts for a company are shown below. Using 2009 as the base year for a horizontal analysis, compute the account with the most significant percentage change. 2009 2010 Sales $380,000 $500,000 General and Administrative Expenses $28,000 $30,800 Interest Expense $1,800 $1,800 Miscellaneous Expense $130 $140 Cannot be determined from the given data General and Administrative Expenses Miscellaneous Expense Interest Expense Sales A company had a return on common stockholders' equity of 24%. Net income equaled $680,000 and average common stockholders' equity equaled $2,500,000. Compute the amount of preferred dividends declared. $601,042 $1,280,000 $1,820,000 $80,000 $600,000 A company is preparing a common size balance sheet and wishes the base amount to be the total amount of assets. What are the 2009 and 2010 common-size percents (rounded) for cash? 2009 2010 Cash $21,800 $31,800 Total current assets 101,200 141,800 Property and equipment 112,900 202,300 Long-term investments 12,200 4,000 Intangible assets 16,100 48,000 Other long-term assets 11,200 13,200 Total assets 253,600 409,300 8% in 2009 and 7% in 2010 9% in 2009 and 8% in 2010 The percent cannot be computed for 2009 and 9% in 2010 19% in 2009 and 21 in 2010 22% in 2009 and 22% in 2010

Explanation / Answer

A company has total assets of $5,670,482, common stock of 2,181,111, retained earnings of $1,128,473. What is the company's debt ratio?

Total Eqyuity = 2181111+ 1128473=3309584

So Total Debt = TA-TE = 5670482-3309584=2360898

SO Debt Ratio = D/E = 2360898/3309584 = 71.34%

Based on the data given below, which of the following statements are true?

Analysis Base CasePeriod

(A) $1,400 $(4,400) (B) (10,200) 1,200 (C) 9,000 --- (D) 0 $10,200

A percent change either cannot be computed or is not meaningful for cases A,B,C and D

A company had a profit margin of 7%. If net income equaled $40,000 and average total assets equaled $338,000, how much were net sales?

(Rounded to the nearest whole dollar.)

Net Sales = (40000/7%) = $571,429

A company had a return on common stockholders' equity of 28%. Net income equaled $230,000 and average common stockholders' equity equaled $730,000. Compute the amount of the preferred dividends declared.

ROE = Net Inc for common stockholders/Common equity

SO Net Income for common stok = 28%*730000 = 204400

So Amt of Pref Div = Net Inc-Net Inc for common stock

= 230000-204400 = $25,600

A company has sales of $2,498,422, a gross profit ratio of 21%, a days' sales in inventory ratio of 12.8, and total current assets of $543,600. What is the ending inventory for the year?

ITR = 12.8 = Sale/Inv

So Inv = Sale/12.8 = 2498422/12.8 =195189

CA = INV + Cash = Inv+21%*2498422

So Inv = 21%*2498422 - CA = $-18,931

A company has long-term notes payable of $179,625, taxes of $9,900, ending merchandise inventory of $454,290, interest expense of $14,450, net sales of $724,000 a gross profit ratio of 30%, a times interest earned ratio of 4.63, and total assets of $1,304,417. What is the company's earnings before interest and taxes?

TIE = EBIT/Int chargs

So EBIT = TIE * INt charge = 4.63*14450 = 66904

Selected comparative income statement amounts for a company are shown below. Using 2009 as the base year for a horizontal analysis, compute the account with the most significant percentage change.

2009 2010

Sales $380,000 $500,000 =120000/380000 =31.58%

General and Administrative Expenses $28,000 $30,800=2800/28000= 10%

Interest Expense $1,800 $1,800 = 0

Miscellaneous Expense $130 $140 = 10/130 =7.69%

Ans: Sales

A company had a return on common stockholders' equity of 24%. Net income equaled $680,000 and average common stockholders' equity equaled $2,500,000. Compute the amount of preferred dividends declared.

ROE = Net Inc for common stockholders/Common equity

SO Net Income for common stok = 24%*2500000 =$600,000

So Amt of Pref Div = Net Inc-Net Inc for common stock

= $680,000-600000 = $80000

A company is preparing a common size balance sheet and wishes the base amount to be the total amount of assets. What are the 2009 and 2010 common-size percents (rounded) for cash?

2009 2010

Cash $21,800 (=21800/253600 =9%) $31,800 (=31800/409300 = 8%)

Total current assets 101,200 141,800

Property and equipment 112,900 202,300

Long-term investments 12,200 4,000

Intangible assets 16,100 48,000

Other long-term assets 11,200 13,200

Total assets 253,600 409,300

9% in 2009 and 8% in 2010

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