CORPORATE FIN.(LL)-W/ACCESS >CUSTOM<
11th Edition
ISBN: 9781260269901
Author: Ross
Publisher: MCG CUSTOM
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Chapter 2, Problem 22QP
Use the following information for Ingersoll, Inc., for Problems 22 and 23 (assume the tax rate is 34 percent):
| 2014 | 2015 | |
| Sales | $9,402 | $ 10,091 |
| 1,350 | 1,351 | |
| Cost of goods sold | 3,235 | 3,672 |
| Other expenses | 767 | 641 |
| Interest | 630 | 724 |
| Cash | 4,931 | 6,244 |
| Accounts receivable | 6,527 | 7,352 |
| Short-term notes payable | 953 | 895 |
| Long-term debt | 16,152 | 19,260 |
| Net fixed assets | 41,346 | 42,332 |
| Accounts payable | 5,179 | 5,022 |
| Inventory | 11,604 | 11,926 |
| Dividends | 1,147 | 1,261 |
22. Financial Statements Draw up an income statement and
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Use the following information for Taco Swell, Inc., (assume the tax rate is 24 percent):
2017
2018
Sales
$
15,573
$
15,336
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1,741
1,816
Cost of goods sold
4,379
4,787
Other expenses
986
864
Interest
835
966
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Accounts receivable
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9,667
Short-term notes payable
1,250
1,227
Long-term debt
20,560
24,836
Net fixed assets
51,064
54,513
Accounts payable
4,512
4,884
Inventory
14,419
15,368
Dividends
1,350
1,698
Prepare a balance sheet for this company for 2017 and 2018. (Do not round intermediate calculations.)
Prepare an income statement for this company for 2017 and 2018. (Do not round intermediate calculations. Round your answers to 2 decimal places, e.g., 32.16. Input all answers as positive values.)
Use the following information to answer this question.
Bayside, Inc.2017 Income Statement($ in thousands)
Net sales
$
6,040
Cost of goods sold
4,200
Depreciation
400
Earnings before interest and taxes
$
1,440
Interest paid
30
Taxable income
$
1,410
Taxes
423
Net income
$
987
Bayside, Inc.2016 and 2017 Balance Sheets($ in thousands)
2016
2017
2016
2017
Cash
$
115
$
220
Accounts payable
$
1,580
$
1,510
Accounts rec.
990
830
Long-term debt
810
610
Inventory
1,705
2,040
Common stock
3,240
3,280
Total
$
2,810
$
3,090
Retained earnings
880
1,130
Net fixed assets
3,700
3,440
Total assets
$
6,510
$
6,530
Total liab. & equity
$
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$
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What is the return on equity for 2017?
Use the following information to answer this question.
Windswept, Inc.2017 Income Statement($ in millions)
Net sales
$
9,000
Cost of goods sold
7,350
Depreciation
360
Earnings before interest and taxes
$
1,290
Interest paid
87
Taxable income
$
1,203
Taxes
421
Net income
$
782
Windswept, Inc.2016 and 2017 Balance Sheets($ in millions)
2016
2017
2016
2017
Cash
$
160
$
190
Accounts payable
$
1,150
$
1,332
Accounts rec.
840
740
Long-term debt
1,000
1,233
Inventory
1,570
1,565
Common stock
3,190
2,910
Total
$
2,570
$
2,495
Retained earnings
470
720
Net fixed assets
3,240
3,700
Total assets
$
5,810
$
6,195
Total liab. & equity
$
5,810
$
6,195
What is the equity multiplier for 2017?
Chapter 2 Solutions
CORPORATE FIN.(LL)-W/ACCESS >CUSTOM<
Ch. 2 - Prob. 1CQCh. 2 - Prob. 2CQCh. 2 - Prob. 3CQCh. 2 - Prob. 4CQCh. 2 - Prob. 5CQCh. 2 - Cash Flow from Assets Why is it not necessarily...Ch. 2 - Operating Cash flow Why is it not necessarily bad...Ch. 2 - Net Working Capital and Capital Spending Could a...Ch. 2 - Cash Flow to Stockholders and Creditors Could a...Ch. 2 - Prob. 10CQ
Ch. 2 - Building a Balance Sheet Sankey, Inc., has current...Ch. 2 - Building an Income Statement Shellon, Inc., has...Ch. 2 - Market Values and Book Values Klingon Cruisers,...Ch. 2 - Prob. 4QPCh. 2 - Calculating OCF Barrell, Inc., has sales of...Ch. 2 - Calculating Net Capital Spending Gordon Driving...Ch. 2 - Building a Balance Sheet The following table...Ch. 2 - Cash Flow to Creditors The 2014 balance sheet of...Ch. 2 - Cash. Flow to Stockholders The 2014 balance sheet...Ch. 2 - Prob. 10QPCh. 2 - Cash Flows Ritter Corporations accountants...Ch. 2 - Financial Cash flows The Stancil Corporation...Ch. 2 - Building an Income Statement During the year, the...Ch. 2 - Calculating total Cash Flows Schwert Corp. shows...Ch. 2 - Using Income Statements Given the .following...Ch. 2 - Prob. 16QPCh. 2 - Marginal versus Average Tax Rates (Refer to Table...Ch. 2 - Prob. 18QPCh. 2 - Accounting Values versus Cash Flows In Problem 18,...Ch. 2 - Calculating Cash Flows Cusic Industries had the...Ch. 2 - Prob. 21QPCh. 2 - Use the following information for Ingersoll, Inc.,...Ch. 2 - Prob. 23QPCh. 2 - Prob. 24QPCh. 2 - Net Fixed Assets and Depreciation On the balance...Ch. 2 - Prob. 26QPCh. 2 - Prob. 1MCCh. 2 - Prob. 2MCCh. 2 - Prob. 3MC
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