PROBLEM E ABC company's total equity for 2019 amounted to P1,750,000. There was a 5% and a 15% increase in equity for the next 2 years. Withdrawals were P10,000 for 2020, No additional investments were made during 2020, and P15,000 for 2021. The combination of additional investments and net income for 2021 amounted to 130% of the increase in equity for 2020. Question 42 How much was 2020 net income? Blank 1 Blank 1 Add your answer
Q: ABC company's total equity for 2019 amounted to P1,750,000. There was a 5% and a 15% increase in…
A: Total equity for 2020 = Total equity for 2019 + Total equity for 2019 x 5% = 1750000 + 1750000*5% =…
Q: Sleep Company had the following operating results for 2021-2022. In addition, the company paid…
A: Current Ratio = Current Asset/Current Liabilities
Q: Question 1 Q.1.1 Study the extract from the statement of comprehensive income of Sandton Traders for…
A: Operating expenses refers to the day-to-day expenses a company incurs to run its business. These…
Q: Problem 5 Jill Corporation's sales, current assets, and current liabilities have been reported as…
A: Trend Index = Current Year / Base Year a)
Q: gdhoo3Q0NZTErqE4rKhjN 8. The December 31, 2019 income statement for App Inc. reported $2.5 million…
A: Since you have asked multiple questions we will answer the first question for you. Please post…
Q: QUESTION 10 During the year 2019, Ahmed's Restaurant earned revenues of $250,000, had expenses of…
A: Hi student Since there are multiple questions, we will answer only first question. If you want…
Q: C. Complete the statement of changes in equity. MURA MALL, INC. Statement of Changes in Equity For…
A: Statement of changes in equity shows all the addition and deduction made during the year regarding…
Q: 2. Prepare a horizontal analysis for 2022 using 2021 as the base year. (Note: If the percentage…
A: Horizontal analysis is used to compare the financial statement with the previous year. It helps…
Q: Problem 6. As of the end of 2022, Mindorosas Inc. had total assets of P375,000 and equity of…
A: The process by which a business evaluates possible big projects or investments is known as capital…
Q: PROBLEM E ABC company's total equity for 2019 amounted to P1,750,000. There was a 5% and a 15%…
A: Stockholder's Equity - Stockholder's Equity includes the amount contributed by shareholders issued…
Q: The hypothetical company XYZ Inc started its operations in 2020. On December 31 2020, it had the…
A: Since,Accrual basis of accounting is generally followed .Here,it is assumed that a particular amount…
Q: ABC company's total equity for 2019 amounted to P1,750,000. There was a 5% and a 15% increase in…
A: Total equity for 2020 = Total equity for 2019 + Total equity for 2019 x 5% = 1750000 + 1750000*5% =…
Q: Balance Sheet Calculations Fermer Company's balance sheet information at the end of 2019 and 2020 is…
A: The balance sheet is an essential part of financial statements and it represents a summary of…
Q: The hypothetical company XYZ Inc started its operations in 2020. On December 31 2020, it had the…
A: Balance sheet is an important part of accounting.It shows the company's current status whether it is…
Q: S 5. What is the gain or loss on purchasing power for 2021? (if LOSS, put a negative (-) sign before…
A: When a borrowing company holds monetary assets or liabilities in an inflationary situation and the…
Q: ln 1/1/2020 the balance of retained earnings is 60 000 lD ., the net income for the year 350 000 lD.…
A: Given: Beginning retained earnings 60 000 lD Net income for the year 350…
Q: Owner's equity January 1, 2020 was P130,000. Revenues earned in 2020 was P860,000 and expenses…
A: The ending balance of owner equity is calculated as beginning balance plus net income and changes in…
Q: PART 1- You gathered the following partial information about Company B for the year 2020. Use this…
A: Formula: Total liabilities = Current liabilities + Long term liabilities
Q: 1. Net Income in 2020 a. P140,000 b. Р70,000 с. Р50,000 d. P120,000 2. Working capital, end of 2020…
A: The errors discovered will be adjusted to come up with the correct balances. Unrecorded purchases…
Q: During the year ended December 31, 2020. ABC Company paid P46,000 for interest, but Andrews' 2020…
A: Accrual system of accounting says that every thing which is accrued has to be provided in books of…
Q: b. Liabilities increased by $9,000 during August. Liabilities at August 1, 2020 are $10,000. Assets…
A: Accounting Equation: The accounting equatiion is a basic principle of accountiing and a fundamental…
Q: 53 ABC Company reported net income and retained earnings for a two – year period as follows:…
A: Working Capital Calculation of working capital is the difference between the total current assets…
Q: Q)A1) Muscat Video Products’ sales are expected to dencrease from OMR (S0 = 8) million in 2019 to…
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: ABC company's total equity for 2019 amounted to P1,750,000. There was a 5% and a 15% increase in…
A: Total equity for 2020 = Total equity for 2019 + Total equity for 2019 x 5% = 1750000 + 1750000*5% =…
Q: Chapter 6 - Correction of Errors CHAPTER 6: REVIEW QUESTIONS - COMPUTATIONAL PROBLEM 6-1 Income…
A: Since you have posted question with multiple sub-parts, we will do the first three sub-parts for…
Q: RATIO ANALYSIS Data for Barry Computer Co. and its industry averages follow. Thefirm’s debt is…
A: Financial ratios are the quantitative metrics that evaluate the performance of a business entity…
Q: Net income was $520.000 in 2020. S452.400 in 2021, and $524,784 in 2022. What is the percentage of…
A:
Q: BLEM ABC company's total equity for 2019 amounted to P1,750,000. There was a 5% and a 15% increase…
A: Given information, Equity for 2019 =P1,750,000 Equity for 2020=5% increase =P1,750,000 + (5% of…
Q: ow are the statements of Financial Position for HP Desk Corporation for 2019 and 2020.
A: Solution:
Q: Tgo ul AJ,000 al Die eHd Of Marck, 2020. Buring the month of April, ABC Corporation has revenues of…
A: Retained earnings, Ending= Retained earnings, beginning+ Net income during the period- Dividends…
Q: ABC company's total equity for 2019 amounted to P1,000,000. There was a 10% and a 20% increase in…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Question 12 At the 15 January 2019, the amount of Retained earnings reported by Moon Corporation is…
A: Retained earning is the accumulation of the net income earned by the organization after deduction of…
Q: how much is the net income (net loss) for 2020?
A: Assets: P133,500 increase Liabilities: P40,500 decrease Ordinary share capital: P90,000 increase…
Q: Notes Payable (due 2025) Common Stock Retained Earnings 60,000 2,500,000 1,419,700 In addition to…
A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…
Q: Q5 The Sleep Company had the following operating results for 2021-2022. In addition, the company…
A: Return on equity is calculated by following formula: Return on equity = Net income/Average…
Q: Exercise 12: Marcus corp earned P645,000 during the year ended June 30, 2021. It paid dividends…
A: Retained earnings formula: =Opening retained earnings + Net income for the year - Total Dividends…
Q: HII. DIRECTION: 1. Prepare the Statement of changes in equity with the accounts given below using…
A: xxx Services Statement of changes in owner's equity For the year ended December 31, 2019…
Q: Current Attempt in Progress Net income was $490,000 in 2020, $431,200 in 2021, and $513,128 in 2022.…
A: The change in net income is calculated as current year net income less previous year net income.
Q: Q No 1 Hassan textile anticipates reaching a sales level of Rs. 6 million in one year. The company…
A: Financing The process of raising funds for carrying on activities of the business, making…
Q: 8. The December 31, 2019 income statement for App Inc. reported $3.5 million of net income, and its…
A: The statement of retained earnings is one of the financial statements prepared by a firm that…
Q: ABC company's total equity for 2019 amounted to P1,750,000. There was a 5% and a 15% increase in…
A: Net income denotes the profit after charging all the expenses and taxes from the sales. Withdrawals…
Q: Quinto Capital (Sept 1) P20,000 (Jan 1) P165,000 (Apr 1) 75,000 Requirements: Prepare journal…
A: note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: Bicycle Company had the following operating results for 2021-2022. In addition, the company paid…
A: The cash a firm earns after accounting for cash expenses to sustain operations and maintain capital…
Q: John Landscaping started 2018 with total assets of $23,000 and total liabilities of $13,000. At the…
A: The stockholders equity is the equity capital that is contributed by the equity stockholders as well…
Q: The hypothetical company XYZ Inc started its operations in 2020. On December 31 2020, it had the…
A: Accounting balance sheet is very important aspect as it gives clear cut picture of the company's…
Q: What amount should be reflected as the effect of change in accounting estimate in the statement of…
A: The entity decided to change the inventory valuation method From FIFO to the weighted average the…
Q: 1. Net Income in 2020 a. P100,000 b. P120,000 c. P130,000 d. P150,000 2. Working capital, end of…
A: The expenses and assets have the debit balance and revenues and liabilities have credit balance.
Step by step
Solved in 2 steps
- DIVIDENDS Brooks Sporting Inc. is prepared to report the following 2019 income statement (shown in thousands of dollars). Prior to reporting this income statement, the company wants to determine its annual dividend. The company has 320,000 shares of common stock outstanding, and its stock trades at 37 per share. a. The company had a 25% dividend payout ratio in 2018. If Brooks wants to maintain this payout ratio in 2019, what will be its per-share dividend in 2019? b. If the company maintains this 25% payout ratio, what will be the current dividend yield on the companys stock? c. The company reported net income of 1.35 million in 2018. Assume that the number of shares outstanding has remained constant. What was the companys per-share dividend in 2018? d. As an alternative to maintaining the same dividend payout ratio. Brooks is considering maintaining the same per-share dividend in 2019 that it paid in 2018. If it chooses this policy, what will be the companys dividend payout ratio in 2019? e. Assume that the company is interested in dramatically expanding its operations and that this expansion will require significant amounts of capital. The company would like to avoid transactions costs involved in issuing new equity. Given this scenario, would it make more sense for the company to maintain a constant dividend payout ratio or to maintain the same per-share dividend? Explain.LONG-TERM FINANCING NEEDED At year-end 2019, total assets for Arrington Inc. were 1.8 million and accounts payable were 450,000. Sales, which in 2019 were 3.0 million, are expected to increase by 25% in 2020. Total assets and accounts payable are proportional to sales, and that relationship will be maintained; that is, they will grow at the same rate as sales. Arrington typically uses no current liabilities other than accounts payable. Common stock amounted to 500,000 in 2019, and retained earnings were 475,000. Arrington plans to sell new common stock in the amount of 130,000. The firms profit margin on sates is 5%; 35% of earnings will be retained. a. What were Arringtons total liabilities in 2019? b. How much new long-term debt financing will be needed in 2020? (Hint: AFN - New stock = New long-term debt.)Leverage Cook Corporation issued financial statements at December 31, 2019, that include the following information: Balance sheet at December 31,2019 Assets $8,000,000 Liabilities $1,200,000 Stockholders' equity (300,000 shares) $6,800,000 Income statement for 2019: Income from operations $1,200,000 Less: Interest expense (100,000) Income before taxes $1,100,000 Less: Income taxes expense (0,30) (330,000) Net income $ 770,000 The levels of assets, liabilities, stockholders' equity, and operating income have been stable in recent years; however, Cook Corporation is planning a 51,800,000 expansion program that will increase income from operations by $350,000 to $1,550,000, Cook is planning to sell 8.5% notes at par to finance the expansion. Required: What earnings per share does Cook report before the expansion?
- Begin with the partial model in the file Ch02 P21 Build a Model.xlsx on the textbooks Web site. a. Using the financial statements shown here for Lan Chen Technologies, calculate net operating working capital, total net operating capital, net operating profit after taxes, free cash flow, and return on invested capital for 2020. The federal-plus-state tax rate is 25%. b. Assume there were 15 million shares outstanding at the end of 2019, the year-end closing stock price was 65 per share, and the after-tax cost of capital was 10%. Calculate EVA and MVA for 2020. Lan Chen Technologies: Income Statements for Year Ending December 31 (Millions of Dollars) Lan Chen Technologies: December 31 Balance Sheets (Thousands of Dollars)AFN EQUATION Refer to Problem 16-1 and assume that the company had 3 million in assets at the end of 2019. However, now assume that the company pays no dividends. Under these assumptions, what additional funds would be needed for the coming year? Why is this AFN different from the one you found in Problem 16-1?Balance Sheet Calculations Cornerstone Development Companys balance sheet information at the end of 2019 and 2020 is provided in random order, as follows: Additional information: At the end of 2019, (a) the amount of long-term liabilities is twice the amount of current liabilities and (b) there are 2,900 shares of common stock outstanding. During 2020, the company (a) issued 100 shares of common stock for 25 per share, (b) earned net income of 20,600, and (c) paid dividends of 1 per share on the common stock outstanding at year-end. Required: Next Level Fill in the blanks lettered (a) through (p). All of the necessary information is provided. (Hint: It is not necessary to calculate your answers in alphabetical order.)
- AFN Equation Refer to Problem 9-1. Return to the assumption that the company had 5 million in assets at the end of 2018, but now assume that the company pays no dividends. Under these assumptions, what would be the additional funds needed for the coming year? Why is this AFN different from the one you found in Problem 9-1?Athenian Venues Inc. just reported the following selected portion of its financial statements for the end of 2020. Your assistant has already calculated the 2020 end-of-year net operating working capital (NOWC) from the full set of financial statements (not shown here), which is 13 million. The total net operating capital for 2019 was 50 million. What was the 2020 net investment in operating capital? Athenian Venues Inc.: Selected Balance Sheet Information as of December 31 (Millions of Dollars)Rate of Change Analyses and Ratios Analyses The following are Cohen Companys comparative financial statements for 2020, 2019, and 2018: Additional information: Credit sales were 65% of net sales in 2019 and 60% in 2020. At the beginning of 2020, 400 shares of common stock were issued, the first sale of stock in several years. Cohen is concerned. Although it increased the dividends paid per share by 5% in 2020 and its 2020 net income is higher than 2019 net income, the market price of its common stock dropped from 22 per share at the beginning of 2020 to 21 per share at year-end. Required: 1. For 2019 and 2020, prepare rate of change analyses for the income statements and balance sheets of Cohen using a year-to-year approach. 2. For 2019 and 2020, compute the following ratios; (a) current, (b) inventory turnover, (c) receivables turnover, (d) net profit margin, (e) earnings per share, (f) return on total assets, (g) return on shareholders equity, and (h) debt-to-assets. 3. Next Level Based on your results, discuss the possible reasons for the decrease in the market price per share in 2020.
- ALTERNATIVE DIVIDEND POLICIES In 2017, Keenan Company paid dividends totaling 3,600,000 on net income of 10.8 million. Note that 2017 was a normal year and that for the past 10 years, earnings have grown at a constant rate of 10%. However, in 2018, earnings are expected to jump to 14.4 million and the firm expects to have profitable investment opportunities of 8.4 million. It Ls predicted that Keenan will not be able to maintain the 2018 level of earnings growth because the high 2018 earnings level is attributable to an exceptionally profitable new product line introduced that year. After 2018, the company will return to its previous 10% growth rate. Keenans target capital structure is 40% debt and 60% equity. a. Calculate Keenans total dividends for 2018 assuming that it follows each of the following policies: 1. Its 2018 dividend payment is set to force dividends to grow at the long-run growth rate in earnings. 2. It continues the 2017 dividend payout ratio. 3. It uses a pure residual dividend policy (40% of the 8.4 million investment is financed with debt and 60% with common equity). 4. It employs a regular-dividend-plus-extras policy, with the regular dividend being based on the long-run growth rate and the extra dividend being set according to the residual dividend policy. b. Which of the preceding policies would you recommend? Restrict your choices to the ones listed but justify your answer. c. Assume that investors expect Keenan to pay total dividends of 9,000,000 in 2018 and to have the dividend grow at 10% after 2018. The stocks total market value is 180 million. What is the companys cost of equity? d. What is Keenans long-run average return on equity? [Hint: g - Retention rate ROE = (1.0 Payout rate)(ROE)] e. Does a 2018 dividend of 9,000,000 seem reasonable in view of your answers to parts c and d? If not, should the dividend be higher or lower? Explain your answer.Income, Cash Flow, and Future Losses On January L 2017, Cermack National Bank loaned 55,000,000 under a 2-year, zero coupon note to a real estate developer. The bank recognized interest revenue on this note of approximately $400,000 per year. Due to an economic downturn, the developer was unable to pay the $5,800,000 maturity amount on December 31, 2018. The bank convinced the developer to pay $800,000 on December 31, 2018, and agreed to extend $5,000,000 credit to the developer despite the gloomy economic outlook for the next several years. Thus, on December 31, 2018, the bank issued a new 2-year, zero coupon note to the developer to mature on December 31, 2020, for $6,000,000. The bank recognized interest revenue on this note of approximately $500,000 per year. The banks external auditor insisted that the riskiness of the new loan be recognized by increasing the allowance for uncollectible notes by $1,500,000 on December 31, 2018, and $2,000,000 on December 31, 2019. On December 31, 20201 the bank received $1,200,000 from the developer and learned that the developer was in bankruptcy and that no additional amounts would be recovered. Required: Prepare a schedule showing the effect of the notes on net income in each of the 4 years.
