exercise for finance acc.pdfO File | C:/Users/User/Desktop/FIN%20ACC/exercise%20for%20finance%20acc.pdf+(D Page viewA Read aloudT Add textV DrawE HighlightO Eraseof 4increaseDecreaseNo Effect3 The company receives cash from a bank loanAssetIncreaseDecreaseNo EffectLiabilityIncreaseDecreaseNo EffectOwner's EquityIncreaseDecreaseNo Effect4 The company repays the bank loan.AssetIncreaseDecreaseNo EffectLiabilityIncreaseDecreaseNo EffectOwner's EquityIncreaseDecreaseNo Effect5 The company purchases office equipment by cash.AssetIncreaseDecreaseNo EffectLiabilityIncreaseDecreaseNo EffectOwner's EquityIncreaseDecreaseNo Effect5:29 PMO Type here to searchIMI26/10/2021ENG(p ツ exercise for finance acc.pdfO File | C:/Users/User/Desktop/FIN%20ACC/exercise%20for%20finance%20acc.pdfD Page viewA Read aloudT Add textV DrawE HighlightO Eraseof 4EXERCISESFor questions number 1 to 7, given the accounting transaction, indicatewhether the asset, liability or owner's equity has increase or decrease orhas no effect by circling the appropriate answer.1 The owner invests personal cash in the business. (Example)AssetIncreaseDecreaseNo EffectLiabilityIncreaseDecreaseNo EffectOwner's EquityIncreaseDecreaseNo Effect2 The owner withdraws cash from the business for personal use.AssetIncreaseDecreaseNo EffectLiabilityIncreaseDecreaseNo EffectOwner's EquityIncreaseDecreaseNo Effect3 The company receives cash from a bank loanAssetIncreaseDecreaseNo Effect5:29 PMO Type here to searchIMI26/10/2021ENG

The assets includes cash, account receivables, prepaid expenses, etc. The assets are debited with an…

EXERCISES For questions number 1 to 7, given the accounting transaction, indicate whether the asset, liability or owner's equity has increase or decrease or has no effect by circling the appropriate answer. 1 The owner invests personal cash in the business. (Example) Asset Increase Decrease No Effect Liability Increase Decrease No Effect Owner's Equity Increase Decrease No Effect 2 The owner withdraws cash from the business for personal use. Asset Increase Decrease No Effect Liability Increase Decrease No Effect Owner's Equity Increase Decrease No Effect 3 The company receives cash from a bank loan. Asset Increase Decrease No Effect

EXERCISES For questions number 1 to 7, given the accounting transaction, indicate whether the asset, liability or owner's equity has increase or decrease or has no effect by circling the appropriate answer. 1 The owner invests personal cash in the business. (Example) Asset Increase Decrease No Effect Liability Increase Decrease No Effect Owner's Equity Increase Decrease No Effect 2 The owner withdraws cash from the business for personal use. Asset Increase Decrease No Effect Liability Increase Decrease No Effect Owner's Equity Increase Decrease No Effect 3 The company receives cash from a bank loan. Asset Increase Decrease No Effect

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter22: Master Budget (master)

Section: Chapter Questions

Problem 2R: Open the file MASTER from the website for this book at cengagebrain.com. Enter all the formulas...

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Comprehensive/Spreadsheet Problem 16-15 FORECASTING FINANCIAL STATEMENTS Use a spreadsheet model to forecast the financial statements in Problems 16-13 and 16-14. 16-13 ADDITIONAL FUNDS NEEDED Morrissey Technologies Inc.'s 2014 financial statements arc shown here. Morrissey Technologies Inc.: Balance Sheet as of December 31, 2014 Morrissey Technologies Inc.: Income Statement for December 31, 2014 Sales 3.600.000 Operating costs including depreciation 3,279,720 E81T 320.280 Interest 20.280 EST 300.000 Taxes (40%} 120,000 Net Income 180.000 Per Share Data: Common stock price 45.00 Earnings per share (EPS) 1.80 Dividends per share (DPS) 1.08 Suppose that in 2015, sales increase by 10% over 2014 sales. 1hc firm currently has 100,000 shares outstanding. It expects to maintain its 2014 dividend payout ratio and believes that its assets should grow at the same rate as sales. The firm has no excess capacity. However, the firm would Like to reduce its Operating costs/Sales ratio to 87.5% and increase its total liabilities-to-assets ratio to 30%. (It believes its liabilities to-assets ratio currently is too low relative to the industry average.) The firm will raise JOO/o of the 2015 forecasted interest bearing debt as notes payable, and it will issue long-term bonds for the remainder. the firm forecasts that its before-tax cost of debt (which includes both short-term and long-term debt) is 12.5%. Assume that any common stock issuances or repurchases can be made at the firm's current stock price of S45. a. Construct the forecasted financial statements assuming that these changes are made. What are the firm's forecasted notes payable and long-term debt balances? What is the forecasted addition to retained earnings? b. If the profit margin remains at S'/o and the dividend payout ratio remains at 60%, at what growth rate in sales will the additional financing requirements be exactly zero? In other words, what is the firm's sustainable growth rate? (Hint: Set AFN equal to zero and solve for g.) 16-14 EXCESS CAPACITY Krogh Lumber's 2014 financial statements are shown here. Krogh Lumber: Balance Sheet as of December 31, 2014 (Thousands of Dollars) Krogh Lumber: Income Statement for December 31, 2014 (Thousands of Dollars) Sales 36,000 Operating costs including depredation 30,783 Earnings before interest and taxes 5,217 Interest 1,017 Earnings before taxes 4,200 Taxes (40%) 1680 Net income 2.520 Dividends (60%} 1,512 Addition to retained earnings 1,008 a. Assume that the company was operating at full capacity in 2014 with regard to all items except fixed assets; fixed assets in 2014 were being utilized to only 75% of capacity. By what percentage could 2015 sales increase over 2014 sales without the need for an increase in fixed assets? b. Now suppose 2015 sales increase by 25% over 2014 sales. Assume that Krogh cannot sell any fixed assets. AU assets other than fixed assets will grow at the same rate as sales; however, after reviewing industry averages, the firm would like to reduce its operating costs/sales ratio to 82% and increase its total liabilities-to-assets ratio to 42%. The firm will maintain its 60% dividend payout ratio, and it currently has 1 million shares outstanding. The firm plans to raise 35% of its 2015 forecasted interest-bearing debt as notes payable, and it will issue bonds for tile remainder. The firm forecasts that its before-tax cost of debt (which includes both short-term and long-term debt) is 11%. Any stock issuances or repurchases will be made at the firm's current stock price of 40. Develop Krogh's projected financial statements like those shown in Table 16.2 What are the balances of notes payable, bonds, common stock, and retained earnings?
Comparative Analysis: Under Armour, Inc., versus Columbia Sportswear Refer to the 10-K reports of Under Armour, Inc., and Columbia Sportswear that are available for download from the companion website at CengageBrain.com. Required: Are debt and equity likely to be available as inflows of cash in the near future?
CALCULATING 3MS COST OF CAPITAL Use online resources to work on this chapters questions. Please note that website information changes over time, and these changes may limit your ability to answer some of these questions. In this chapter, we described how to estimate a companys WACC, which is the weighted average of its costs of debt, preferred stock/ and common equity. Most of the data we need to do this can be found from various data sources on the Internet. Here we walk through the steps used to calculate Minnesota Mining Manufacturings () WACC DISCUSSION QUESTIONS 1. As a first step, we need to estimate what percentage of MMMs capital comes from debt, preferred stock, and common equity This information can be found on the firms latest annual balance sheet. (As of year end 2017, had no preferred stock.) Total debt includes all interest-bearing debt and is the sum of short-term debt and long-term debt. a. Recall that the weights used in the WACC are based on the companys target capital structure. If we assume that the company wants to maintain the same mix of capital that it currently has on its balance sheet, what weights should you use to estimate the WACC for ? b. Find MMMs market capitalization, which is the market value of its common equity. Using the sum of its short-term debt and long-term debt from the balance sheet (we assume that the market value of its debt equals its book value) and its market capitalization, recalculate the firms debt and common equity weights to be used in the WACC equation. These weights are approximations of market-value weights. Be sure not to include accruals in the debt calculation.
Using financial functions (RATE, PMT, FV, NPER, PV) complete the shaded cells to analyze 5 financial options for MIS Enterprises. (HINT: Make sure your interest rate and number of payments are set to the correct terms) See attached for shaded cells (1) Calculate PMT (2) Calculate FV (3) Calculate PV (4) Calculate RATE (5) Calculate NPER
Guys could you please help me: I'm attaching AT&T's Balance Sheet and Income Statement for the analysis.I'd really appreciate help with the following: Perform a vertical financial analysis incorporatingi. Debt ratioii. Debt to equity ratioiii. Return on assetsiv. Return on equityv. Current ratiovi. Quick ratiovii. Inventory turnoverviii. Days in inventoryix. Accounts receivable turnoverx. Accounts receivable cycle in daysxi. Accounts payable turnoverxii. Accounts payable cycle in daysxiii. Earnings per share (EPS)xiv. Price to earnings ratio (P/E)xv. Cash conversion cycle (CCC), andxvi. Working capitalxvii. Explain Dupont identity, apply it to your selected company, interpret thecomponents in Dupont identity.
First hint: The Cash column should equal $49,910, A/R $900, Supplies $800, Equipment $5200 (these are all under Assets and the balance along the bottom should equal these amounts) 2nd hint: A/P column should be $5200 3rd hint: $9000 wasn't on account....so that means it is cash. Net income=10610 Read the headings. Assets = Liabilities + Owners Equity If you run stuck, please ask. Again, do not wait until the last minute to work on this assignment. Title: Accounting Finance Exercise As an accountant, your new client Michael Suze needs assistance in setting up his books for his business. To do this successfully, you start by showing him how you perform a transaction analysis based on the accounting equation of Assets = Liabilities + Owner’s Equity. You explain to Michael how to show increases and decreases in assets, liabilities and owner’s equity accounts using the analysis template. To help Michael understand transaction analysis, you reconcile each side of the equation by…
Directions: Read the following sentences. Write the letter “T” if the statement is True and “F” if the statement is False. Write your answer on the space before the number. You may view this test at our google class. __________1. An excess of equity over current assets is equal to liabilities. __________2. The asset is cash or cash equivalent restricted to settle a liability for more than twelve months after the reporting period is classify as current assets. __________3. Assets are classified as noncurrent if the assets are reasonably expected to be realize in cash or consume beyond the normal operating cycle. __________4. LCNRV should always be equal to net realizable value. __________5. Lower of cost and net realizable value gives the lowest valuation if applied to individual item of inventory. __________6. The amount of any writedown of inventory to net realizable value and all losses of inventory should be recognized as operating expense in the period the…
Hello Tutor, Can I have assistance with creating the attached commomn statement using income and Balance sheet statements along with the interpreation. I would really appreciate it. using the column of difference on Balance sheet and some transactions on income to determine added or subtracted and transfer to appropriate activity (operating, investing, and financing) with numbers (NO ü). Please insert more column as you need Items 2020 2019 Difference Added Subtracted Operating Investing Financing…
‏Find out the missing value assets in an accounting equation if liabilities is OMR 320000 and capital is OMR 119000 Select one : O a . OMR 439000 assets O b . OMR 201000 assets O c . OMR 349000 assets O d . OMR 102000 assets Clear my choice
Q4. Analysis of Financial StatementsThere was a bit of concern about one of Big Rock’s newer entities – Big Rock PavingCompany. Management wants you to review the two financial statements below and giveyour analysis of the company’s performance.Big Rock Paving CompanyAssets LiabilitiesCurrent Assets: Current Liabilities:Cash 200,000 Accounts Payable 700,000Accounts Receivable 300,000 Notes Payable 600,000Inventory 800,000Total Current Assets 1,300,000 Total Current Liabilities 1,300,000Fixed Assets: Owners’ Equity:Property, Plant & Equipment 2,200,000 Common Stock ($1 Par) 600,000Less: Accumulated Depreciation 600,000 Capital Surplus 100,000Net Fixed Assets 1,600,000 Retained Earnings 100,000Total Assets 2,900,000 Total Owners’ Equity 800,000Total Liabilities and Owners’Equity2,900,000Big Rock Paving CompanyIncome Statement for Year Ending December 31, 2021Sales 3,400,000Less: Cost of Goods Sold 2,700,000Less: Administrative Expenses 700,000Less Depreciation 682,000Earnings Before…
Integrative ExerciseIntegrating Accounting for Liabilities and Equity Obtain Apple's 2016 10-K (filed October 26, 2016) either through the "Investor Relations" portion of its website (do a web search for "Apple Investor Relations") or go to www.sec.gov and click "Company Filings Search" under "Filings." Required: Using Apple's 10-K, answer the following questions (Hint: It may be easier to use the Word or PDF file and use the search feature within the program): 1. Calculate Apple's current, quick, and cash ratios for 2015 and 2016. The industry averages for these ratios for 2016 were 1.72, 1.41, and 0.77, respectively. Round your answers to two decimal places. 2016 2015 Current Ratio fill in the blank 1 fill in the blank 2 Quick Ratio fill in the blank 3 fill in the blank 4 Cash Ratio fill in the blank 5 fill in the blank 6 Comment on Apple's short-term liquidity. For 2016, Apple the industry average for the cash but is below the industry average for the current and…
Integrative ExerciseIntegrating Accounting for Liabilities and Equity Obtain Apple's 2016 10-K (filed October 26, 2016) either through the "Investor Relations" portion of its website (do a web search for "Apple Investor Relations") or go to www.sec.gov and click "Company Filings Search" under "Filings." Required: Using Apple's 10-K, answer the following questions (Hint: It may be easier to use the Word or PDF file and use the search feature within the program): 1. Calculate Apple's current, quick, and cash ratios for 2015 and 2016. The industry averages for these ratios for 2016 were 1.72, 1.41, and 0.77, respectively. Round your answers to two decimal places. 2016 2015 Current Ratio fill in the blank 1 fill in the blank 2 Quick Ratio fill in the blank 3 fill in the blank 4 Cash Ratio fill in the blank 5 fill in the blank 6 Comment on Apple's short-term liquidity. For 2016, Apple ____?______ the industry average for the cash but is below the industry average for the…