Chapter 2, Problem 2.11E

Bostian, Inc. has total assets of $665,000. Its total debt outstanding is $185,000. The Board of Directors has directed the CFO to move towards a debt-to-assets ratio of 55%. How much debt must the company add or subtract to achieve the target debt ratio? Select the correct answer.   a. $180,626     b. $180,750     c. $180,812     d. $180,874     e. $180,688

The questions related to this section are based on the following scenario.The financial records of Mr. Tan as at 31 October 2020 is as follows:Creditors/ Payables $3,000 Office fittings $6,000 Operating expenses $7,000 Inventory-closing $6,000 Debtors/Receivables $4,050 Bank overdraft $9,100 Sales $50,000 Purchases $20,000   1.Based on the above scenario in this section. Compute the total liabilities? 2.Based on the above scenario in this section. compute the net profit? Based on the above scenario in this section. Compute the gross profit?

At the end of the current year, the following information is available for both Pulaski Company and Scott Company.    Pulaski Company Scott Company Total assets $ 2,287,500   $ 1,156,500   Total liabilities   871,500     565,500   Total equity   1,416,000     591,000      1. Compute the debt-to-equity ratios for both companies.2. Which company has the riskier financing structure?

4) A paragraph stating your evaluation of the company’s performance and financial status for the quarter ending March 30, 2022. In your evaluation, state whether: a) the business is profitable? b) it is able to pay its current obligations/liabilities?  c) its assets are financed more by debts or equity? d)  its retained earnings increased or decreased during the quarter and why? You may state any other insights you have on the company’s financial statements. Justify your evaluation and support your discussion with relevant calculations or ratios.

You are the new CFO of Risk Surfing Ltd, which has current assets of $7,920, net fixed assets of$17,700, current liabilities of $4,580 and long-term debts of $5,890.Required:a. What are the three important questions of corporate finance you will need to address?Please briefly explain them and indicate how they are related to the areas in the balancesheet of a company. b. Calculate owners’ equity and build a balance sheet for the company? c. How much is net working capital of the company? d. Calculate the return on assets of the company given that Return on Equity is 30%? e. What is the PE of the company total number of ordinary share outstanding of thecompanies is 2,000 and market price of each share is $12?

The December 31, 2021, balance sheet of Chen, Incorporated, showed long-term debt of $1.38 million, and the December 31, 2022, balance sheet showed long-term debt of $1.52 million. The 2022 income statement showed an interest expense of $104,500. What was the firm’s cash flow to creditors during 2022?

i. Use the following simplified 2019 balance sheet to show, in general terms, how an improvement in one of the ratios—say, the DSO—would affect the stock price. For example, if the company could improve its collection procedures and thereby lower the DSO from 38.1 days to 27.8 days, how would that change “ripple through” the financial statements (shown in thousands below) and influence the stock price? Accounts receivable $ 402                                         Debt $ 965                              Other current assets 888 Net fixed assets 361 Equity 686.                        Total assets $1,651                  Total liabilities and equity $1,651 j. Although financial statement analysis can provide useful information about a company’s operations and its financial condition, this type of analysis does have some potential problems and limitations, and it must be used with care and judgment. What are some problems and limitations?

I need help creating some type of formula that will help me in solving thesse types of problems? At the beginning of the year, Monty Company had total assets of $819,000 and total liabilities of $442,000. Answer the following questions. (a) If total assets increased $164,000 during the year and total liabilities decreased $64,000, what is the amount of stockholders’ equity at the end of the year? Stockholders’ equity $ (b) During the year, total liabilities increased $112,000 and stockholders’ equity decreased $61,000. What is the amount of total assets at the end of the year? Total assets $ (c) If total assets decreased $54,000 and and owner’s equity increased $105,000 during the year, what is the amount of total liabilities at the end of the year? Total liabilities $

Listed below are the current Accounting Assumptions and Principles                               Economic Entity Assumption   Monetary Unit Assumption   Historical Cost Principle           Going Concern Assumption   Revenue Recognition Principle   Full Disclosure Principle           Time Period Assumption   Matching Principle                                   Required:                   For the following situations, identify whether the situation represents a violation or a correct application of GAAP, and which assumption/principle is applicable.                   g. Buckner Corp is being sued for $1,000,000. There is a probable chance they will lose. The company disclosed this fact in their notes to their financials.                       Violation: (Yes/No)                   Applicable Assumption/Principle:                                         h. Nixon Corp records and maintains their books at cost and/or current value, not at a liquidated value.…