Question

See the following financial information (Income Statement and balance Sheet) for Thornton Company for the years ending December 31, 1998 and 1999.

1998 1999 Notes Payable Inventories Long-term Investment (Long-term Asset) Sales Corporate Bond (Long-term Debt) Annual Depre

  1. What is the Net Plant & Equipment in 1998 and 1999?
  2. Calculate the Cash balance in 1998 and 1999?
  3. What is firm’s Net Income in 1998 and 1999?
  4. What is the Quick ratio in 1998 and 1999?
  5. What is the ROE in 1998 and 1999?
  6. What is the EPS (Earnings Per Share) in 1998 and 1999?
0 0
Add a comment Improve this question Transcribed image text
Answer #1
With the information given , we should first draft Income Statement & Balance Sheet
Income Statement
1998 1999
Sales 2,500,000.00 2,900,000.00
Cost of Goods Sold 1,600,000.00 1,900,000.00
R & D Expense      170,000.00      190,000.00
Selling & Admin Expense      300,000.00      450,000.00
EBIDA      430,000.00      360,000.00
Depreciation      100,000.00      110,000.00
EBIT      330,000.00      250,000.00
Interest Expense        80,000.00        90,000.00
EBIT      250,000.00      160,000.00
Taxes        70,000.00        90,000.00
PAT      180,000.00        70,000.00
Balance Sheet
Assets 1998 1999 EQUITY & LIABILITY 1998 1999
Inventory      530,000.00      490,000.00 Notes Payable      250,000.00      220,000.00
Cash(Balance Figure)      220,000.00        90,000.00 Accounts Payable      540,000.00      500,000.00
Marketable Secuities        20,000.00        20,000.00 Accured Expenses        70,000.00        50,000.00
Accounts Receivables      180,000.00      230,000.00 Corporate Bond      580,000.00      650,000.00
Long Term Investment        70,000.00        80,000.00 Common Stock(Face Value $1)      100,000.00      150,000.00
Gross Plant & Equpiment 1,000,000.00 1,310,000.00 Excess Paid in Capital      100,000.00      130,000.00
Accumulated Depreciation    (200,000.00)    (310,000.00) Retained Earnings      180,000.00      210,000.00
TOTAL 1,820,000.00 1,910,000.00 TOTAL 1,820,000.00 1,910,000.00
Solution
Net Plant & Equipment 1998 1999
Gross Plant & Equpiment 1,000,000.00 1,310,000.00
Accumulated Depreciation    (200,000.00)    (310,000.00)
Net Plant & Equipment      800,000.00 1,000,000.00
Cash Balance 1998 1999
Balance Figure as per Balance Sheet      220,000.00        90,000.00
Net Income 1998 1999
PAT(as per income statement+A11)      180,000.00        70,000.00
Quick Ratio=Quick Assets/Current Liability 1998 1999
Quick Assets
Cash(Balance Figure)      220,000.00        90,000.00
Marketable Secuities        20,000.00        20,000.00
Accounts Receivables      180,000.00      230,000.00
Total Quick Assets      420,000.00      340,000.00
Current Liabilities
Notes Payable      250,000.00      220,000.00
Accounts Payable      540,000.00      500,000.00
Accured Expenses        70,000.00        50,000.00
Total Current Liabilities      860,000.00      770,000.00
Quick Ratio=Quick Assets/Current Liability                  0.49                  0.44
ROE=Net Income/Shareholer's Equity 1998 1999
Net Income      180,000.00        70,000.00
Shareholder's Equity
Common Stock(Face Value $1)      100,000.00      150,000.00
Excess Paid in Capital      100,000.00      130,000.00
Retained Earnings      180,000.00      210,000.00
Total Shareholder's Equity      380,000.00      490,000.00
ROE                  0.47                  0.14
EPS=Net Income/Total Outstanding Common Stock 1998 1999
Net Income      180,000.00        70,000.00
Total Outstanding Common Stock      100,000.00      150,000.00
EPS                  1.80                  0.47
Add a comment
Know the answer?
Add Answer to:
See the following financial information (Income Statement and balance Sheet) for Thornton Company for the years...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • The balance sheet data of Naley Company at the end of 2019 and 2018 follow: 2019...

    The balance sheet data of Naley Company at the end of 2019 and 2018 follow: 2019 2018 Cash $ 50,000 $ 70,000 Accounts receivable (net) 120,000 90,000 Merchandise inventory 140,000 90,000 Prepaid expenses 20,000 50,000 Buildings and equipment 180,000 150,000 Accumulated depreciation—buildings and equipment (36,000) (16,000) Land 180,000 80,000 Totals $654,000 $514,000 Accounts payable $136,000 $110,000 Accrued expenses 24,000 36,000 Notes payable—bank, long-term 80,000 Mortgage payable 60,000 Common stock, $10 par 418,000 318,000 Retained earnings (deficit) 16,000 (30,000) $654,000 $514,000...

  • PROBLEM 2-Classified Balance Sheet The following information is for Benton Office Supplies Benton Office Supplies Balance...

    PROBLEM 2-Classified Balance Sheet The following information is for Benton Office Supplies Benton Office Supplies Balance Sheet December 31, 2014 $ 65,000 30,000 50,000 70,000 75,000 90,000 Accounts Payable Salaries Payable Bonds Payable Total Liabilities $ 60,000 10,000 90.000 $160,000 Cash Prepaid Insurance Accounts Receivable Inventory Land held for investment Land Building $100,000 Less Accumulated Depreciation (20,000) Patent Total Assets Owner's Equity R. Benton, Capital 370,000 80,000 70.000 $530,000 Total Liabilities and Owner's Equity $530,000 The total dollar amount of...

  • Prepare a Cash Flow Statement. Robust Robots, Inc. Comparative Balance Sheet December 31, 2019 and 2018...

    Prepare a Cash Flow Statement. Robust Robots, Inc. Comparative Balance Sheet December 31, 2019 and 2018 2018 2019 $ Assets Current Assets: Cash Accounts Receivable, net Merchandise Inventory Supplies Prepaid Insurance Total Current Assets 65,000 150,000 135,000 9,700 30,000 389,700 $ $ $ $ $ $ 80,000 100,000 70,000 500 10,000 260,500 $ Property, plant, and Equipment: Equipment Less: Accumulated Depreciation - Equipment Total Property, Plant, and Equipment Total Assets $ $ $ $ 500,000 (80,000) 420,000 809,700 $ $...

  • Prepare a Cash Flow statement using indirect method Robust Robots, Inc. Comparative Balance Sheet December 31,...

    Prepare a Cash Flow statement using indirect method Robust Robots, Inc. Comparative Balance Sheet December 31, 2019 and 2018 Assets 2019 2018 Current Assets: Cash Accounts Receivable, net Merchandise Inventory Supplies Prepaid Insurance Total Current Assets $ $ $ $ $ 65,000 150,000 135,000 9,700 30,000 389,700 $ $ $ $ $ $ 80,000 100,000 70,000 500 10,000 260,500 Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation - Equipment Total Property, Plant, and Equipment Total Assets 500,000 (80,000) 420,000 809,700...

  • Problem 8 The balance sheet data of Naley Company at the end of 2019 and 2018...

    Problem 8 The balance sheet data of Naley Company at the end of 2019 and 2018 follow: 2019 2018 $_50.000 Cash Accounts receivable (net) $ 70,000 90,000 120,000 Merchandise inventory 140,000 Prepaid expenses Buildings and equipment 90,000 50,000 150,000 180,000 (36,000) Accumulated depreciation-buildings and equipment Land Totals Accounts payable Accrued expenses Notes payable-bank, long-term Mortgage payable $654.000 $136,000 24,000 (16,000) 80,000 $514.000 $110,000 36,000 80,000 60,000 418,000 318,000 Common stock, $10 par Retained earnings (deficit) 16,000 $654.000 30,000) $514.000 Land...

  • Prepare Statement of cash flows for current year using indirect method. Dynamic Drones Comparative Balance Sheet...

    Prepare Statement of cash flows for current year using indirect method. Dynamic Drones Comparative Balance Sheet December 31, 2019 and 2018 2019 2018 Assets Current Assets: Cash Accounts Receivable, Net Merchandise Inventory Prepaid Rent Total Current Assets $60,000 $140,000 $110,000 $20,000 $330,000 $80,000 $100,000 $70,000 $10,000 $260,000 Property, plant, and Equipment: Equipment $400,000 Less: Accumulated Depreciation - Equipment ($60,000) Total Property, Plant, and Equipment $340,000 Total Assets $670,000 $191,000 ($42,400) $148,600 $408,600 2019 2018 Liabilities and Stockholders' Equity Current Liabilities:...

  • 1. Based on the following data, what is the amount of working capital? Accounts payable....................$32,000 Accounts...

    1. Based on the following data, what is the amount of working capital? Accounts payable....................$32,000 Accounts receivable....................64,000 Accrued liabilities....................7,000 Cash.........................................20,000 Intangible assets............................40,000 Inventory...............................................72,000 Long-term investments...............................100,000 Long-term liabilities.....................................75,000 Marketable securities.................................35,000 Notes payable (short-term)........................20,000 Property, plant, and equipment.................625,000 Prepaid expenses.........................................2,000 WHAT IS WORKING CAPITAL? a. $162,000 b. $134,000 c. $193,000 d. $62,000 2. Use the following data to determine the total dollar amount of assets to be classified as current assets. Cash..............................................$60,000 Prepaid insurance..........................40,000 Accounts receivable......................50,000 Inventory.........................................70,000 Land held for investment................80,000 Land................................................95,000...

  • Refer to the following financial statements for Crosby Corporation: CROSBY CORPORATION Income Statement For the Year...

    Refer to the following financial statements for Crosby Corporation: CROSBY CORPORATION Income Statement For the Year Ended December 31, 20X2 Sales Cost of goods sold 2,200,000 1,300,000 900,000 420,000 150,000 330,000 90,000 240,000 80,000 160,000 10,000 150,000 120,000 1.25 Gross profit Selling and administrative expense Depreciation expense Operating income Interest expense Earnings before taxes Taxes Earnings after taxes Preferred stock dividends Earnings available to common stockholders Shares outstanding Earnings per share Statement of Retained Earnings For the Year Ended December...

  • Shown below, is a Comparative Balance sheet using Horizontal analysis, please prepare an Income statement using...

    Shown below, is a Comparative Balance sheet using Horizontal analysis, please prepare an Income statement using vertical Analysis Robust Robots, Inc. Comparative Balance Sheet- Horizontal Analysis December 31, 2019 and 2018 Assets 2019 2018 Differents Percentage Current Assets: Cash $65,000 $80,000 $   (15,000.00) -18.75% Accounts Receivable, net $150,000 $100,000 $     50,000.00 50.00% Merchandise Inventory $135,000 $70,000 $     65,000.00 92.86% Supplies $9,700 $500 $       9,200.00 1840.00% Prepaid Insurance $30,000 $10,000 $     20,000.00 200.00% Total Current Assets $389,700 $260,500 $   129,200.00 49.60%...

  • Prepare a statement of Cash Flow for the current year using the indirect method Robust Robots,...

    Prepare a statement of Cash Flow for the current year using the indirect method Robust Robots, Inc. Comparative Balance Sheet December 31, 2019 and 2018 2019 2018 Assets Current Assets: Cash Accounts Receivable, net Merchandise Inventory Supplies Prepaid Insurance Total Current Assets $ $ $ $ $ $ 65,000 150,000 135,000 9,700 30,000 389,700 $ $ $ $ $ $ 80,000 100,000 70,000 500 10,000 260,500 Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation - Equipment Total Property, plant, and...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT