Fundamentals of Corporate Finance, 2 Semester Access, FIN 3043
11th Edition
ISBN: 9781259721816
Author: 11e Ross
Publisher: MCG CUSTOM
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Textbook Question
Chapter 2, Problem 25QP
Use the following information for Taco Swell, Inc., for Problems 25 and 26 (assume the tax rate is 34 percent):
2014 | 2015 | |
Sales | $12,730 | $ 14,229 |
1,827 | 1,910 | |
Cost of goods sold | 4,377 | 5,178 |
Other expenses | 1,041 | 906 |
Interest | 854 | 1,019 |
Cash | 6,674 | 7,113 |
Accounts receivable | 8,837 | 10,371 |
Short-term notes payable | 1,288 | 1,262 |
Long-term debt | 22,352 | 27,099 |
Net fixed assets | 55,977 | 59,700 |
Accounts payable | 4,822 | 5,108 |
Inventory | 15,711 | 16,817 |
Dividends | 1,522 | 1,780 |
25. Financial Statements [LO1] 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
Depreciation
1,741
1,816
Cost of goods sold
4,379
4,787
Other expenses
986
864
Interest
835
966
Cash
6,187
6,706
Accounts receivable
8,120
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
$
6,510
$
6,530
What is the return on equity for 2017?
You have obtained the following information for Blue Bell Farms. The tax rate is 34 percent.
Cash $ 124
Net fixed assets 2,498
Accrued expenses 135
Inventory 1,027
Long-term debt 1,876
Sales 3,850
Costs 2,220
Accounts payable 486
Depreciation 321
Interest paid 136
Accounts receivable 518
Dividends paid 281
What is the quick ratio?
Group of answer choices
a) 0.96 times
b) 0.82 times
c) 1.26 times
d) 1.03 times
e) 1.08 times
Chapter 2 Solutions
Fundamentals of Corporate Finance, 2 Semester Access, FIN 3043
Ch. 2.1 - Prob. 2.1ACQCh. 2.1 - What is liquidity? Why is it important?Ch. 2.1 - What do we mean by financial leverage?Ch. 2.1 - Explain the difference between accounting value...Ch. 2.2 - What is the income statement equation?Ch. 2.2 - Prob. 2.2BCQCh. 2.2 - Why is accounting income not the same as cash...Ch. 2.3 - What is the difference between a marginal and an...Ch. 2.3 - Do the wealthiest corporations receive a tax break...Ch. 2.4 - Prob. 2.4ACQ
Ch. 2.4 - Prob. 2.4BCQCh. 2.4 - Why is interest paid not a component of operating...Ch. 2 - What types of accounts are the most liquid?Ch. 2 - What is an example of a noncash expense?Ch. 2 - The marginal tax rate is the tax rate which...Ch. 2 - Prob. 2.4CTFCh. 2 - Prob. 1CRCTCh. 2 - Accounting and Cash flows [LO2] Why might the...Ch. 2 - Prob. 3CRCTCh. 2 - Operating Cash Flow [LO2] In comparing accounting...Ch. 2 - Prob. 5CRCTCh. 2 - Cash Flow from Assets [LO4] Suppose a companys...Ch. 2 - Prob. 7CRCTCh. 2 - Net Working Capital and Capital Spending [LO4]...Ch. 2 - Prob. 9CRCTCh. 2 - Prob. 10CRCTCh. 2 - Prob. 11CRCTCh. 2 - Earnings Management [LO2] Companies often try to...Ch. 2 - Building a Balance Sheet [LO1] KCCO, Inc., has...Ch. 2 - Building an Income Statement [LO1] Billys...Ch. 2 - Dividends and Retained Earnings [LO1] Suppose the...Ch. 2 - Prob. 4QPCh. 2 - Calculating Taxes [LO3] The Dyrdek Co. had 267,000...Ch. 2 - Prob. 6QPCh. 2 - Calculating OCF [LO4] Ridiculousness, Inc., has...Ch. 2 - Calculating Net Capital Spending [LO4] Bowyer...Ch. 2 - Calculating Additions to NWC [LO4] The 2014...Ch. 2 - Cash Flow to Creditors [LO4] The 2014 balance...Ch. 2 - Cash Flow to Stockholders [LO4] The 2014 balance...Ch. 2 - Prob. 12QPCh. 2 - Market Values and Book Values [LO1] Klingon...Ch. 2 - Prob. 14QPCh. 2 - Using Income Statements [LO1] Given the following...Ch. 2 - Preparing a Balance Sheet [LO1] Prepare a 2015...Ch. 2 - Prob. 17QPCh. 2 - Prob. 18QPCh. 2 - Net Income and OCF [LO2] During 2014, Raines...Ch. 2 - Prob. 20QPCh. 2 - Prob. 21QPCh. 2 - Calculating Cash Flows [LO4] Consider the...Ch. 2 - Net Fixed Assets and Depreciation [LO4] On the...Ch. 2 - Prob. 24QPCh. 2 - Use the following information for Taco Swell,...Ch. 2 - Use the following information for Taco Swell,...Ch. 2 - Prob. 1MCh. 2 - Prob. 2M
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