Homework Answers
Current ratio = Current Assets/Current Liabilities
Desired Current Assets = 50,000*2.5 = $125,000
Reduction in Inventory = 210,000-125000 = $85,000
ROE = Net Income/Equity
Current ROE = 15000/200,000 = 7.5%
New ROE = 15000/(200,000-85000) = $13.04%
Hence, Change in ROE = 13.04% - 7.5% = 5.54%
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Cash AR INV CA Net fixed Assets Total Assets 10000 50000 150000 210000 90000 300000 AP...
i need help on my retained earnings and income statement. i have a income tax rate...
i need help on my retained earnings and income statement. i
have a income tax rate of 20% and my RE ending has to be 361,000.
not sure what i am missing on my income statement
here are some updated pictures
We were unable to transcribe this imageWe were unable to transcribe this imageWe were unable to transcribe this image17000 75000 25000 117000 50000 150000 400000 Liabilities and Shareholders' Equity Current Liabilities: Accounts Payable Income Tax Payable t Payable Current...
524257 374554 10000 5000 29408 1000 Sales Operating Costs Depreciation Expense Interest Expense Tax Expense Cash...
524257 374554 10000 5000 29408 1000 Sales Operating Costs Depreciation Expense Interest Expense Tax Expense Cash Receivables Inventories Fixed Assets, Net Payables Accrued Expenses Long-Term Loan Common Equity 30000 62425 50000 11000 10000 50000 72425 Assignment: Prepare an income statement and a balance sheet for is company using the information provided. Calculate: 1. Current ratio 2. Quick ratio 3. NWC-to-total-Assets (Working capital to assets) 4. Ratio of total debt and liabilities to total assets 5. Ratio of total debt and...
eBook Problem Walk-Through Lloyd Inc. has sales of $100,000, a net income of $7,000, and the...
eBook Problem Walk-Through Lloyd Inc. has sales of $100,000, a net income of $7,000, and the following balance sheet: Cash $ 17,400 Accounts payable $ 31,030 Receivables 49,010 Notes payable to bank 15,950 Inventories 130,500 Total current liabilities $ 46,980 Total current assets $196,910 Long-term debt 48,140 Net fixed assets 93,090 Common equity 194,880 Total assets $ 290,000 Total liabilities and equity $ 290,000 The new owner thinks that inventories are excessive and can be lowered to the point where...
RETURN ON EQUITY AND QUICK RATIO Lloyd Inc. has sales of $350,000, a net income of...
RETURN ON EQUITY AND QUICK RATIO Lloyd Inc. has sales of $350,000, a net income of $31,500, and the following balance sheet: Cash $64,400 Accounts payable $45,360 Receivables 76,720 Notes payable to bank 23,520 Inventories 330,400 Total current liabilities $68,880 Total current assets $471,520 Long-term debt 77,840 Net fixed assets 88,480 Common equity 413,280 Total assets $560,000 Total liabilities and equity $560,000 The new owner thinks that inventories are excessive and can be lowered...
Lloyd Inc. has sales of $450,000, a net income of $45,000, and the following balance sheet:...
Lloyd Inc. has sales of $450,000, a net income of $45,000, and the following balance sheet: Cash $67,500 Accounts payable $60,075 Receivables 124,200 Notes payable to bank 39,150 Inventories 330,750 Total current liabilities $99,225 Total current assets $522,450 Long-term debt 84,375 Net fixed assets 152,550 Common equity 491,400 Total assets $675,000 Total liabilities and equity $675,000 The new owner thinks that inventories are excessive and can be lowered to the point where the current ratio is equal to the industry...
Jordan Inc has the following balance sheet and income statement data: Cash $ 14,000 Accounts payable...
Jordan Inc has the following balance sheet and income statement data: Cash $ 14,000 Accounts payable $ 42,000 Receivables 70,000 Other current liab. 28,000 Inventories 280,000 Total CL $ 70,000 Total CA $364,000 Long-term debt 140,000 Net fixed assets 126,000 Common equity 280,000 Total assets $490,000 Total liab. and equity $490,000 Sales $280,000 Net income $ 21,000 The new CFO thinks that inventories are excessive and could be lowered sufficiently to cause the current ratio to equal the industry...
Muscarella Inc. has the following balance sheet and income statement data: Cash $ 14,000 Accounts payable...
Muscarella Inc. has the following balance sheet and income statement data: Cash $ 14,000 Accounts payable $ 42,000 Receivables 70,000 Other current 28.000 liabilities Inventories 210.000 TotalCL $70,000 Total CA $294,000 Long-term debt 70,000 Net foed assets 125.000 Common equity 280.000 Total assets $420.000 Total liab. and equity $420,000 Sales $280,000 Net income $ 21,000 The new CFO thinks that inventories are excessive and could be lowered sufficiently to cause the current ratio to equal the industry average, 2.50, without...
4. Baker Inc has the following balance sheet and income statement data: Cash $14,000 Accounts payable...
4. Baker Inc has the following balance sheet and income statement data: Cash $14,000 Accounts payable $42,00 0 Receivables 70,000 Other current liabilities 28,000 $70,00 0 Inventories 280,000 Total CL Total CA $364,000 Long-term debt 140,00 0 Net fixed assets 126,000 Common equity 280,00 0 Total assets $490,000 Total liab. and equity $490,0 00 Sales $280,000 21,000 Net income The new CFO thinks that inventories are excessive and could be lowered sufficiently to cause the current ratio to equal the...
Balance Sheet Current assets Cash 870,000 Acc receivable not given Inventories 1,050,000 Fixed assets 3,220,000 TOTAL...
Balance Sheet Current assets Cash 870,000 Acc receivable not given Inventories 1,050,000 Fixed assets 3,220,000 TOTAL ASSETS 6,200,000 Current liabilities Acc payable not given Long-term debt 1,900,000 Common stock 680,000 Retained earnings 3,190,000 TOTAL LIAB and EQUITY 6, 200,000 Income Statement Sales 18,600,000 Operating expense 14,320,000 EBIT 4,280,000 Interest expense 266,000 EBT 4,014,000 Taxes 1,606,000 Net income 2,408,000 What is the firm's debt ratio? O 30.65% 0 37.58% 062.42% O93.06% 89.03%
Balance Sheet Current assets Cash 870,000 Acc receivable not given Inventories 1,050,000 Fixed assets 3,220,000 TOTAL...
Balance Sheet Current assets Cash 870,000 Acc receivable not given Inventories 1,050,000 Fixed assets 3,220,000 TOTAL ASSETS 6,200,000 Current liabilities Acc payable not given Long-term debt 1,900,000 Common stock 680,000 Retained earnings 3,190,000 TOTAL LIAB and EQUITY 6,200,000 Income Statement Sales 18,600,000 Operating expense 14,320,000 EBIT 4,280,000 Interest expense 266,000 EBT 4,014,000 Taxes 1,606,000 Net income 2,408,000 What is the firm's debt ratio? Question 5 options: 30.65% 37.58% 62.42% 93.06% 89.03%
i need help on my retained earnings and income statement. i
have a income tax rate of 20% and my RE ending has to be 361,000.
not sure what i am missing on my income statement
here are some updated pictures
We were unable to transcribe this imageWe were unable to transcribe this imageWe were unable to transcribe this image17000 75000 25000 117000 50000 150000 400000 Liabilities and Shareholders' Equity Current Liabilities: Accounts Payable Income Tax Payable t Payable Current...
524257 374554 10000 5000 29408 1000 Sales Operating Costs Depreciation Expense Interest Expense Tax Expense Cash Receivables Inventories Fixed Assets, Net Payables Accrued Expenses Long-Term Loan Common Equity 30000 62425 50000 11000 10000 50000 72425 Assignment: Prepare an income statement and a balance sheet for is company using the information provided. Calculate: 1. Current ratio 2. Quick ratio 3. NWC-to-total-Assets (Working capital to assets) 4. Ratio of total debt and liabilities to total assets 5. Ratio of total debt and...
eBook Problem Walk-Through Lloyd Inc. has sales of $100,000, a net income of $7,000, and the following balance sheet: Cash $ 17,400 Accounts payable $ 31,030 Receivables 49,010 Notes payable to bank 15,950 Inventories 130,500 Total current liabilities $ 46,980 Total current assets $196,910 Long-term debt 48,140 Net fixed assets 93,090 Common equity 194,880 Total assets $ 290,000 Total liabilities and equity $ 290,000 The new owner thinks that inventories are excessive and can be lowered to the point where...
Muscarella Inc. has the following balance sheet and income statement data: Cash $ 14,000 Accounts payable $ 42,000 Receivables 70,000 Other current 28.000 liabilities Inventories 210.000 TotalCL $70,000 Total CA $294,000 Long-term debt 70,000 Net foed assets 125.000 Common equity 280.000 Total assets $420.000 Total liab. and equity $420,000 Sales $280,000 Net income $ 21,000 The new CFO thinks that inventories are excessive and could be lowered sufficiently to cause the current ratio to equal the industry average, 2.50, without...
4. Baker Inc has the following balance sheet and income statement data: Cash $14,000 Accounts payable $42,00 0 Receivables 70,000 Other current liabilities 28,000 $70,00 0 Inventories 280,000 Total CL Total CA $364,000 Long-term debt 140,00 0 Net fixed assets 126,000 Common equity 280,00 0 Total assets $490,000 Total liab. and equity $490,0 00 Sales $280,000 21,000 Net income The new CFO thinks that inventories are excessive and could be lowered sufficiently to cause the current ratio to equal the...
Balance Sheet Current assets Cash 870,000 Acc receivable not given Inventories 1,050,000 Fixed assets 3,220,000 TOTAL ASSETS 6,200,000 Current liabilities Acc payable not given Long-term debt 1,900,000 Common stock 680,000 Retained earnings 3,190,000 TOTAL LIAB and EQUITY 6, 200,000 Income Statement Sales 18,600,000 Operating expense 14,320,000 EBIT 4,280,000 Interest expense 266,000 EBT 4,014,000 Taxes 1,606,000 Net income 2,408,000 What is the firm's debt ratio? O 30.65% 0 37.58% 062.42% O93.06% 89.03%
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