Week 2 HW Assignment
| WEEK 2 HOMEWORK ASSIGNMENT- 240 | ||||||||
| Problem 3-5 | ||||||||
| Part a. Earnings per share | ||||||||
| Net profit before taxes | ||||||||
| Less: Taxes at 40% | ||||||||
| Net profit after taxes | ||||||||
| Less: Preferred dividends | ||||||||
| Earnings available to common stockholders | ||||||||
| Earnings per share = | ||||||||
| Part b. Amount to retained earnings: | ||||||||
| Earnings available to common stockholders | ||||||||
| Less: Common stock dividend | ||||||||
| Amount to retained earnings | ||||||||
| Problem 3-13 | ||||||||
| Item | 2012 | 2013 | 2014 | 2015 | ||||
| Total current assets | 16,950 | 21,900 | 22,500 | 27,000 | ||||
| Total current liabilities | 9,000 | 12,600 | 12,600 | 17,400 | ||||
| Inventory | 6,000 | 6,900 | 6,900 | 7,200 | ||||
| Part a. | ||||||||
| Ratio | 2012 | 2013 | 2014 | 2015 | ||||
| Current Ratio | ||||||||
| Quick Ratio | ||||||||
| Part b. | ||||||||
| Part c. | ||||||||
| Problem P4-3: | ||||||||
| Part a. | ||||||||
| Cost of grinder | ||||||||
| Depreciation % | ||||||||
| Depreciation | ||||||||
| Part b. | ||||||||
| Pre-tax income | ||||||||
| Less: Depreciation | ||||||||
| Net taxable income | ||||||||
| Original tax liability on $430,000 = | ||||||||
| Net tax liability on $414,000 = | ||||||||
| Tax savings = | ||||||||
| Problem P4-5: | ||||||||
| Item | Change | I/O | Item | Change | I/O | |||
| Cash | 100 | Accts. Rec. | -700 | |||||
| Accounts payable | -1000 | Net profits | 600 | |||||
| Notes payable | 500 | Depreciation | 100 | |||||
| Long-term debt | -2000 | Repurchase stk | 600 | |||||
| Inventory | 200 | Cash dividends | 800 | |||||
| Fixed assets | 400 | Sale of stock | 1000 | |||||
| Problem 4-7: | ||||||||
| April | May | June | July | August | ||||
| Sales | $65,000 | $60,000 | $70,000 | $100,000 | $100,000 | |||
| Cash sales (50%) | ||||||||
| Collections: | ||||||||
| 1 month ago (25%) | ||||||||
| 2 months ago (25%) | ||||||||
| Total Cash Receipts | ||||||||
| Problem P4-12 | ||||||||
| Pro Forma | Pro Forma | |||||||
| Cash | Income | Balance | ||||||
| Transaction | Budget | Statement | Sheet | |||||
| Cash sale | ||||||||
| Credit sale | ||||||||
| Accounts receivable collected | ||||||||
| Asset, 5-year life, purchased | ||||||||
| Depreciation is taken | ||||||||
| Amortization of goodwill taken | ||||||||
| Sale of Common Stock | ||||||||
| Retirement of outstanding bonds | ||||||||
| Fire insurance paid for 3 years |
