Chapter 3, Problem 11E

The following data were taken from the comparative balance sheet of Osborn Sisters Company for the years ended December 31, 20Y9 and December 31, 20Y8:   Dec. 31, 20Y9   Dec. 31, 20Y8 Cash $295,200     $218,900   Temporary investments 315,000     239,800   Accounts and notes receivable (net) 289,800     261,300   Inventories 405,000     324,000   Prepaid expenses 345,000     126,000     Total current assets $1,650,000     $1,170,000   Accounts payable $290,000     $315,000   Accrued liabilities 210,000     135,000     Total current liabilities $500,000     $450,000

The following information pertains to Diane Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit. Assets Cash and short-term investments $39,106 Accounts receivable (net) 30,483 Inventory 36,576 Property, plant, and equipment 260,287 Total Assets $366,452   Liabilities and Stockholders' Equity Current liabilities $59,300 Long-term liabilities 94,785 Common stock 146,337 Retained earnings 66,030 Total liabilities and stockholders' equity $366,452   Income Statement Sales $89,476  Cost of goods sold 35,790  Gross margin $53,686  Operating expenses (23,597) Interest expense (4,474) Net income $25,615    Number of shares of common stock outstanding 6,603 Market price of common stock $29 Total dividends paid $9,000 Cash provided by operations $30,000 What is the return on total assets for Diane Company?

Fragile Company used the direct method tom prepare the statement of cash flows. The entity had the following cash flows during the current year: Cash receipts from issuance of ordinary shares                                   4,000,000Cash receipts from customers                                                                2,000,000Cash receipts from dividends                                                                     300,000Cash receipts from repayment of loan made to another entity          2,200,000Cash payments for wages and other operating expenses                    1,200,000Cash payments for insurance                                                                     100,000Cash payments for dividends                                                                     200,000Cash payments for taxes                                                                             400,000Cash payment to purchase land…

The following information pertains to Diane Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit. Use this information to answer the questions that follow. Assets Cash and short-term investments $ 30,000Accounts receivable (net) 20,000Inventory 15,000Property, plant, and equipment 185,000Total assets $250,000 Liabilities and Stockholders’ Equity Current liabilities $ 45,000Long-term liabilities 70,000Stockholders’ equity—Common 135,000Total liabilities and stockholders’ equity $250,000 Income Statement Sales $ 85,000 Cost of goods sold 45,000 Gross margin $ 40,000 Operating expenses (15,000)Interest expense (5,000)Net income $ 20,000 Number of shares of common stock outstanding 6,000Market price of common stock $20Total dividends paid $9,000Cash provided by operations $30,000   What would be Asset turnover, turn on total assets, the dividen yield, return on common stockholders equity and the price-earning per…

(AACSB) AnalysisYou review a company’s statement of cash flows and find that cash inflows from operations are $150,000,net outflows from investing are $80,000, and net inflows from financing are $60,000. Did the company’scash balance increase or decrease for the year? By what amount? What types of activities would you findunder the category investing activities? Under financing activities? If you had access to the company’sincome statement and balance sheet, why would you be interested in reviewing its statement of cash flows?What additional information can you gather from the statement of cash flows?

The following data were taken from the comparative balance sheet of Osborn Sisters Company for the years ended December 31, 20Y9 and December 31, 20Y8:   Dec. 31, 20Y9   Dec. 31, 20Y8 Cash $360,800     $273,600   Temporary investments 385,000     299,700   Accounts and notes receivable (net) 354,200     326,700   Inventories 495,000     405,000   Prepaid expenses 355,000     135,000     Total current assets $1,950,000     $1,440,000   Accounts payable $290,000     $315,000   Accrued liabilities 210,000     135,000     Total current liabilities $500,000     $450,000     a.  Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio.  Round ratios to one decimal place.       20Y9     20Y8 Working capital   $fill in the blank 1   $fill in the blank 2 Current ratio   fill in the blank 3   fill in the blank 4 Quick ratio   fill in the blank 5   fill in the blank 6

The following information pertains to Diane Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Use this information to answer the question that follow. Assets Cash and short-term investments $41,385 Accounts receivable (net) 27,338 Inventory 36,309 Property, plant, and equipment 206,732 Total assets $311,764     Liabilities and Stockholders' Equity   Current liabilities $56,225   Long-term liabilities 90,205   Stockholders' equity—Common 165,334   Total liabilities and stockholders' equity $311,764   Income Statement   Net Sales $82,724   Cost of goods sold (33,090)   Gross margin 49,634   Operating expenses (29,417)   Interest expense  (4,136)   Net income $16,081     Number of shares of common stock outstanding 6,061   Market price of common stock $25   Total dividends paid $9,700   Cash provided by operations $41,385 Using the data provided for…

he following information pertains to Diane Company.  Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit.  Use this information to answer the questions that follow. ​                                             Assets                                               Cash and short-term investments $  30,000 Accounts receivable (net) 20,000 Inventory 15,000 Property, plant, and equipment   185,000 Total assets $250,000                             Liabilities and Stockholders’ Equity                      Current liabilities $  45,000 Long-term liabilities 70,000 Stockholders’ equity—Common   135,000 Total liabilities and stockholders’ equity $250,000                                       Income Statement                                      Sales $ 85,000  Cost of goods sold    45,000  Gross margin $ 40,000  Operating expenses (15,000) Interest expense…

The cash account balance of FDNACCT came from the following: From clients for service rendered, P361,000, From clients for services to be rendered, P23,000 From a bank loan, P102,000, and From additional investment of the owner, P174,000.    How much is the income of the business?