dTap-Cengage Learning-Google Chrome cure https://ng.cengage.com/static/nb/ui dep
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dTap-Cengage Learning-Google Chrome cure https://ng.cengage.com/static/nb/ui deploymentld 583284176876369521114660618eISBN-97813373 MINDTAP From Cengage 03: Assignment- Financial Statements, Cash Flow, and Taxes balance sheet provides a snapshot of the financial condition of a company. Investors and analysts use the information given on e belance sheet and other financial statements to make several interpretations regarding the company's financial condition and rformance ue Hamster Manufacturing Inc. is a hypothetical company. Suppose it has the following balance sheet items reported at the end of s first year of operation. For the second year, some parts are still incomplete. Use the information given to complete the balance heet Blue Hamster Manufacturing Inc. Balance Sheet for Year Ending December 31 (Millions of Dollars) Year 2 Year 1 Year 2 Year 1 Assets Current assets: Liabilities and equity Current labilities: Cash and equivalents Accounts receivable Inventories $6,457 Accounts payable s0 410 2,324 $o 2,953 8,662 2363 Accruals 6,930 Notes payable 2,187 $2,187 6,563 $8,750 Total current assets $19,687 $15,750 Total current iabilities Net fixed assets Long-term debt 8,203 Net plant and equipment $19,250 Total debt $10,937 Common equity Common stock Retained earnings Total common equity 21,328 17,063 9,187 $32,813 $26,250 $43,750 $35,000 Total assets 43,750$35,000 Total liabilities and equity Given the information in the preceding balance sheet-and assuming that Blue Hamster Manufacturing Inc. has 50 million shares of common stock outstanding-read each of the following statements, then identify the selection that best interprets the information conveyed by the balance sheet Statement #1:Rue Hameter's net rollertinn nf insat Type here to search upExplanation / Answer
a)
1) incorrect , Total inventories of raw material ,work in process and final goods increased from 6930 million to 8662 million between year 1 and year 2
2) incorrect , Blue hamster total current liabilities increased by 547 miilion ,while its use of long term debt increased by 1640 million.
3) correct , the per share book value is calculated by dividing the company total common equity by the number of oustanding shares of common stock
Note:- Book value per share = Total common equity /Number of common stock
= $32813 / 50
= $656.26
Assets Year 2 Year 1 Liabilities and equity Year 2 Year 1 Current Assets: Current liabilities : Cash and equivalents 8072 6457 Accounts payable 0 0 Accounts receivable 2953 2363 Accruals 410 0 Inventories 8662 6930 Notes payable 2324 2187 Total current assets 19687 15750 Total current liabilities 2734 2187 Net fixed assets : Long term debt 8203 6563 Net plant and equipment 24063 19250 Total debt 10937 8750 Common equity: Common stock 21328 17063 Retained earnings 11485 9187 Total common equity 32813 26250 Total assets 43750 35000 Total liabilities and equity 43750 35000Related Questions
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