Corporate finance
using the financial statements above, all numbers are in thousands.
1. prepare the common size balance sheet and income statement
2. calculate financial ratios. (suppose stock price is 5$ per share, there are 10 million shares outstanding)
3. Calculate the DuPont identity, how does each component contribute to ROE?
Homework Answers
using the financial statements above, all numbers are in thousands. 1. prepare the common size balance...
using the financial statements above, all numbers are in
thousands.
1. prepare the common size balance sheet and income
statement
2. calculate financial ratios. (suppose stock price is 5$ per
share, there are 10 million shares outstanding)
3. Calculate the DuPont identity, how does each component
contribute to ROE?
2009 2010 Assets $ Current assets Cash Accounts receivable Inventory Total Fixed assets Net plant and equipment Total assets 3,291 4,787 12,398 $ 20,476 3,507 5,821 13,822 23,150 $ 48,907 $...
ACC 3020 FA 2019 Class exercise: Ch 18-19 Ch. 18 Bentley Corporation's corporate charter authorized the...
ACC 3020 FA 2019 Class exercise: Ch 18-19 Ch. 18 Bentley Corporation's corporate charter authorized the issuance of 10,000,000 shares of $1 par value common stock and 1,000,000 shares of 5%, $25 par value, cumulative, nonparticipating preferred stock. At December 31, 2018, the shareholders' equity section of Bentley's balance sheet included the following: All numbers in millions, except numbers of shares and per share amounts Preferred stock: 5%, $25 par/share; cumulative, nonparticipating; 1,000,000 shares authorized, issued, and outstanding $ 25...
Easy Problems 1-6 4-1 DAYS SALES OUTSTANDING $7 300,000. What is its accounts receivable balance? Assume...
Easy Problems 1-6 4-1 DAYS SALES OUTSTANDING $7 300,000. What is its accounts receivable balance? Assume DEBT TO CAPITAL RATIO is $14 per share and it has 5 million shares outstanding, The firm's total capital is $125 million and it finances with only debt and common equity. What is its d DuPONT ANALYSIS ROE of 15%. What is its total assets turnover? what is its equity multiplier? Baker Brothers has a DSO of 40 days, and its annual sales are...
E3-38. Disaggregate Traditional DuPont ROE Graphical representations of the KLA-Tencor 2018 income statement and average balance...
E3-38. Disaggregate Traditional DuPont ROE Graphical representations of the KLA-Tencor 2018 income statement and average balance sheet num- bers (2017–2018) follow ($ thousands). Average Balance Sheet 2017-2018 Income Statement 2018 $1,473,464 $802,265 -$2,627,235.5 $2,583,930 $653,666 - - $2,499,507 $2,948,529 $81,263 $1,518,371 Operating liabilities Interest expense, net Operating assets Nonoperating assets Nonoperating liabilities Equity Operating expenses Tax expense Net income a. Compute return on equity (ROE). b. Apply the DuPont disaggregation into return on assets (ROA) and financial leverage. c. Calculate...
Chapter 4 Analysis of Financial Statements 141 Barry Computer Company: Income Statement for Year Ended December...
Chapter 4 Analysis of Financial Statements 141 Barry Computer Company: Income Statement for Year Ended December 31, 2019 (in Thousands) Sales Cost of goods sold $1,607,500 Materials $717,000 Labor 453,000 Heat, light, and power 68,000 Indirect labor 113,000 Depreciation 41,500 1,392,500 Gross profit $ 215,000 Selling expenses 115,000 General and administrative expenses 30,000 Earnings before interest and taxes (EBIT) 70,000 Interest expense 21,000 Earnings before taxes (EBT) 49,000 Federal and state income taxes (25%) 12,250 Net income $ 36,750 Earnings...
Disaggregate Traditional DuPont ROE Graphical representations of the KLA-Tencor 2018 income statement and average balance sheet...
Disaggregate Traditional DuPont ROE Graphical representations of the KLA-Tencor 2018 income statement and average balance sheet numbers (2017-2018) follow (5 thousands). KLA.Tencor Average Balance Sheet 2017-2018 $1.473,464 52.6272355 KLA-Tencor Income Statement 2018 5802,265 $2,583,930 5653666 52.499,507 - 52.948.529 581,263 51.518,371 Operating at Noperating sites Norper Og expenses Netwo a. Compute return on equity (ROE). Round answer to two decimal places (ex: 0.12345 - 12.3596) ROE b. Apply the DuPont disaggregation into return on assets (ROA) and financial leverage. Round answers...
Corporate Finance 5. An annuity with payments that occur at the beginning of each period is...
Corporate Finance 5. An annuity with payments that occur at the beginning of each period is known as a_____. a) annuity due b) discounted annuity c) ordinary annuity d) immediate annuity e) deferred annuity 6. The balance sheet is a financial statement measuring the flow of funds into and out of various accounts over time while the income statement measures the progress of the firm at a point in time. a) True b) false 7. Which of the following mathematical...
AP11-18B (P/E, dividend payout, dividend yield and ROE) OCloud Corporation's suite of software products and services...
AP11-18B (P/E, dividend payout, dividend yield and ROE) OCloud Corporation's suite of software products and services provides secure and scalable solutions for global companies. The following is an extract from the company's 2020 and 2019 comparative income statements and statement of financial position. The market price of OCloud's common shares was $40.93 and $38.20 on June 30, 2020, and June 30, 2019, respectively. OCloud declared dividends per common share of $0.477 and $0.415 for 2020 and 2019, respectively OCLOUD CORPORATION...
he effects of the entry to record the declaration of the dividend on June 14, 2016...
he effects of the entry to record the declaration of the dividend on June 14, 2016 a. decrease stockholders' equity and increase liabilities. increase stockholders' equity and increase liabilities. decrease stockholders' equity and decrease assets d. C. increase stockholders' equity and decrease assets. When common stock is issued by a corporation for a cash price above par value, t over the par value should be reported in the financial statements as a component of retained earnings on the balance sheet....
DeZurik Corp. had the following stockholders’ equity section in its June 30, 2019, balance sheet (in...
DeZurik Corp. had the following stockholders’ equity
section in its June 30, 2019, balance sheet (in thousands, except
share and per share amounts):
Calculate the par value per share of preferred stock and
determine the preferred stock dividend percentage.
Calculate the amount that should be shown on the balance
sheet for common stock at June 30, 2019.
What was the average issue price of common stock shown
on the June 30, 2019, balance sheet?
How many shares of treasury stock...
using the financial statements above, all numbers are in
thousands.
1. prepare the common size balance sheet and income
statement
2. calculate financial ratios. (suppose stock price is 5$ per
share, there are 10 million shares outstanding)
3. Calculate the DuPont identity, how does each component
contribute to ROE?
2009 2010 Assets $ Current assets Cash Accounts receivable Inventory Total Fixed assets Net plant and equipment Total assets 3,291 4,787 12,398 $ 20,476 3,507 5,821 13,822 23,150 $ 48,907 $...
ACC 3020 FA 2019 Class exercise: Ch 18-19 Ch. 18 Bentley Corporation's corporate charter authorized the issuance of 10,000,000 shares of $1 par value common stock and 1,000,000 shares of 5%, $25 par value, cumulative, nonparticipating preferred stock. At December 31, 2018, the shareholders' equity section of Bentley's balance sheet included the following: All numbers in millions, except numbers of shares and per share amounts Preferred stock: 5%, $25 par/share; cumulative, nonparticipating; 1,000,000 shares authorized, issued, and outstanding $ 25...
Easy Problems 1-6 4-1 DAYS SALES OUTSTANDING $7 300,000. What is its accounts receivable balance? Assume DEBT TO CAPITAL RATIO is $14 per share and it has 5 million shares outstanding, The firm's total capital is $125 million and it finances with only debt and common equity. What is its d DuPONT ANALYSIS ROE of 15%. What is its total assets turnover? what is its equity multiplier? Baker Brothers has a DSO of 40 days, and its annual sales are...
E3-38. Disaggregate Traditional DuPont ROE Graphical representations of the KLA-Tencor 2018 income statement and average balance sheet num- bers (2017–2018) follow ($ thousands). Average Balance Sheet 2017-2018 Income Statement 2018 $1,473,464 $802,265 -$2,627,235.5 $2,583,930 $653,666 - - $2,499,507 $2,948,529 $81,263 $1,518,371 Operating liabilities Interest expense, net Operating assets Nonoperating assets Nonoperating liabilities Equity Operating expenses Tax expense Net income a. Compute return on equity (ROE). b. Apply the DuPont disaggregation into return on assets (ROA) and financial leverage. c. Calculate...
Chapter 4 Analysis of Financial Statements 141 Barry Computer Company: Income Statement for Year Ended December 31, 2019 (in Thousands) Sales Cost of goods sold $1,607,500 Materials $717,000 Labor 453,000 Heat, light, and power 68,000 Indirect labor 113,000 Depreciation 41,500 1,392,500 Gross profit $ 215,000 Selling expenses 115,000 General and administrative expenses 30,000 Earnings before interest and taxes (EBIT) 70,000 Interest expense 21,000 Earnings before taxes (EBT) 49,000 Federal and state income taxes (25%) 12,250 Net income $ 36,750 Earnings...
Disaggregate Traditional DuPont ROE Graphical representations of the KLA-Tencor 2018 income statement and average balance sheet numbers (2017-2018) follow (5 thousands). KLA.Tencor Average Balance Sheet 2017-2018 $1.473,464 52.6272355 KLA-Tencor Income Statement 2018 5802,265 $2,583,930 5653666 52.499,507 - 52.948.529 581,263 51.518,371 Operating at Noperating sites Norper Og expenses Netwo a. Compute return on equity (ROE). Round answer to two decimal places (ex: 0.12345 - 12.3596) ROE b. Apply the DuPont disaggregation into return on assets (ROA) and financial leverage. Round answers...
AP11-18B (P/E, dividend payout, dividend yield and ROE) OCloud Corporation's suite of software products and services provides secure and scalable solutions for global companies. The following is an extract from the company's 2020 and 2019 comparative income statements and statement of financial position. The market price of OCloud's common shares was $40.93 and $38.20 on June 30, 2020, and June 30, 2019, respectively. OCloud declared dividends per common share of $0.477 and $0.415 for 2020 and 2019, respectively OCLOUD CORPORATION...
he effects of the entry to record the declaration of the dividend on June 14, 2016 a. decrease stockholders' equity and increase liabilities. increase stockholders' equity and increase liabilities. decrease stockholders' equity and decrease assets d. C. increase stockholders' equity and decrease assets. When common stock is issued by a corporation for a cash price above par value, t over the par value should be reported in the financial statements as a component of retained earnings on the balance sheet....
DeZurik Corp. had the following stockholders’ equity
section in its June 30, 2019, balance sheet (in thousands, except
share and per share amounts):
Calculate the par value per share of preferred stock and
determine the preferred stock dividend percentage.
Calculate the amount that should be shown on the balance
sheet for common stock at June 30, 2019.
What was the average issue price of common stock shown
on the June 30, 2019, balance sheet?
How many shares of treasury stock...
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