Answered: Construct a Balance Sheet for JR's…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 11MCQ: Chasse Building Supply Inc. reported net cash provided by operating activities of $243,000, capital...

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Chasse Building Supply Inc. reported net cash provided by operating activities of $243,000, capital expenditures of $112,900, cash dividends of $35,800, and average maturities of long-term debt over the next 5 years of $122,300. What is Chasses free cash flow and cash flow adequacy ratio? a. $94,300 and 0.77, respectively c. $130,100 and 1.06, respectively b. $94,300 and 0.82, respectively d. $165,900 and 1.36, respectively
Upton Computers makes bulk purchases of small computers, stocks them in conveniently located warehouses, ships them to its chain of retail stores, and has a staff to advise customers and help them set up their new computers. Uptons balance sheet as of December 31, 2019, is shown here (millions of dollars): Sales for 2019 were 350 million, and net income for the year was 10.5 million, so the firms profit margin was 3.0%. Upton paid dividends of 4.2 million to common stockholders, so its payout ratio was 40%. Its tax rate was 25%, and it operated at full capacity. Assume that all assets/sales ratios, (spontaneous liabilities)/sales ratios, the profit margin, and the payout ratio remain constant in 2020. a. If sales are projected to increase by 70 million, or 20%, during 2020, use the AFN equation to determine Uptons projected external capital requirements. b. Using the AFN equation, determine Uptons self-supporting growth rate. That is, what is the maximum growth rate the firm can achieve without having to employ nonspontaneous external funds? c. Use the forecasted financial statement method to forecast Uptons balance sheet for December 31, 2020. Assume that all additional external capital is raised as a line of credit at the end of the year. (Because the debt is added at the end of the year, there will be no additional interest expense due to the new debt.) Assume Uptons profit margin and dividend payout ratio will be the same in 2020 as they were in 2019. What is the amount of the line of credit reported on the 2020 forecasted balance sheets? (Hint: You dont need to forecast the income statements because the line of credit is taken out on the last day of the year and you are given the projected sales, profit margin, and dividend payout ratio; these figures allow you to calculate the 2020 addition to retained earnings for the balance sheet without actually constructing a full income statement.)
You are evaluating the balance sheet for Goodman bees corporation from the balance sheet you find the following balances cash and marketable securities equal $400,000, account receivable equals $1,200,000, Inventory equals $2,100,000 acured wages and taxes $500,000 accounts payable $800,000 notes payable $600,000 calculate goodman bees networking capital. answer in dollars not millions round your answer to the nearest dollar amount networking capital
You are evaluating the balance sheet for Goodman Bees Corporation. From the balance sheet you find the following balances: cash and marketable securities = $400,000, accounts receivable = $1,200,000, inventory = $2,100,000, accrued wages and taxes = $500,000, accounts payable = $800,000, and notes payable = $600,000. Calculate Goodman Bees' net working capital. (Enter your answer in dollars not in millions. Round your answer to the nearest dollar amount.)
Consider the following balance sheet, for easy lunchbox. will the company be able to pay cash to buy an asset with a cost of $200,000 knowing they have $800.000 in retained earnings? Cash $ 50,000 Accounts payable 100,000 Inventory 200,000 Accruals 100,000 Accounts receivable 250,000 Total CL $ 200,000 Total CA $ 500,000 Debt 200,000 Net fixed assets $ 900,000 Common stock 200,000 Retained earnings 800,000 Total assets $1,400,000 Total L & E $1,400,000
Consider the following balance sheet, for easy lunchbox. will the company be able to pay cash to buy an asset with a cost of $200,000 knowing they have $800.000 in retained earnings? Cash $ 50,000 Accounts payable $ 100,000Inventory 200,000 Accruals 100,000Accounts receivable 250,000 Total CL $ 200,000Total CA $ 500,000 Debt 200,000Net fixed assets $ 900,000 Common stock 200,000 Retained earnings 800,000Total assets $1,400,000 Total L & E $1,400,000
Hayley was evaluating whether she should invest in Company M. Based on the below information, calculate the Quick Ratio. Company M Cash $ 240,000 Short-term investments $ 900,000 Accounts receivable $ 100,000 Total current assets $ 1,600,000 Total current liabilities $ 750,000 Total liabilities $ 500,000 Total stockholders’ equity $ 1,900,000 Total revenue $ 1,000,000 Net income/(loss) $ 400,000 a. .40 b. 2.13 c. 1.65 d. 4.0
Zumbahlen Inc. has the following balance sheet information. How much total operating capital does the firm have? Cash $30.00 Accounts payable $40.00 Short-term investments 60 Accruals 64 Accounts receivable 25 Notes payable 45 Inventory 91 Gross fixed assets $200.00 Accumulated deprec. 50 Round your answer to the nearest whole number.
Zam Corp has a book value of equity of $17,010. Long-term debt is $8,400. Net working capital, other than cash is $2,150. Fixed assets are $22,430 and current liabilities are $2,260. How much cash does the company have? What are current assets?
Given the following information for Tiger Company: Cash 100,000 Accounts payable 50,000 Accounts receivable 200,000 Notes payable 150,000 Inventories 200,000 Accruals 50,000 Net fixed assets 500,000 Long-term debts 400,000 Common stock 100,000 Retained earnings 250,000 What is the total working capital? What is the net working capital? Thank you so much!
Construct a balance sheet for Sophie's Sofas given the following data, including shareholders' equity. Cash balances $ 12,500 Inventory of sofas $ 225,000 Store and property $ 125,000 Accounts receivable $ 24,500 Accounts payable $ 19,500 Long-term debt $ 195,000
Consider the following financial information and answer the questions that follow: Sales:$250,000 Costs: $134,000 Depreciation:$10,200 Operating expenses: $6,000 Interest expenses:$20,700 Taxes: $18,420 Dividends: $10,600 Addition to Retained Earnings: $50,000 Long term debt repaid:$9,300 New Equity issued:8,470 New fixed assets acquired:$15,000 You are required to: 1) Calculate the cash flow to creditors ii) Calculate the cash flow to shareholders iii)Calculate the cash flow from assets (iv)Calculate net capital spending v)Calculate change in NWC

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Construct a Balance Sheet for JR's Jigsaws given the following data. Remember to calculate Shareholders' Equity! Cash = $20,000 Inventory of Jigsaws = $400,000 Store and Property = $200,000 Accounts Receivable = $44,000 Accounts Payable = $34,000 Long Term Debt = $340,000