Question

1. a. The balance sheet shows a company's assets and liabilities, at one point in time assets and liabilities; over a period of time revenue and costs; at one point in time revenue and costs, over a period of time b. Which are examples of current assets? Check all that apply: Cash Accounts receivable Accrued expenses Inventory c. Which are examples of current liabilities? Check all that apply: Accounts payable Accrued wages Current portion of long-term debt Paid-in capital 2. a. The market value of an asset is. . Check all that apply: the price at which the asset can be sold usually the same as the book value usually greater than the book value usually lower than the book value 3. Below is the balance sheet for Glucose Control Company as of Dec. 31, 2016. The company reported an annual net income of $85,000 for the following year, 2019, but did not change its assets or liabilities, unless otherwise noted. Assets Liabilities and Equity Cash 13.000 Accounts payable 18,000 Marketable securities 2,000 Notes payable 6,000 Accounts receivable 5,000 Current liabilities 24,000 Inventory 33,000 Long-term debt 95,000 Current assets 53,000 Total liabilities 119,000 Machines 34.000 Paid-in capital 20,000 Real estate 80,000 Retained earnings 28,000 Fixed assets 114,000 Equity 48,000 Total assets 167,000 Total liab. & equity 167,000 a. If the company distributed its entire net income as dividends, what would be the value of total equity on Dec. 31, 2019? b. If the company distributed half of its net income as dividends and used the rest to invest in new machines, what would be the value of total equity on Dec. 31, 2019? c. If the company distributed half of its net income as dividends, used the rest to invest in new machines and sold all its marketable securities to pay back some long-term debt, what would be the value of total equity on Dec 31, 2019? 4. Below is the balance sheet for Stieger Corp. The current stock price is $52 and there are 4,500 shares outstanding. Assets Liabilities and Equity Cash 14,000||Accounts payable 21,000 Marketable securities 2,000 Notes payable 6,000 Accounts receivable 7.000 Current liabilities 27,000 Inventory 23,000 Long-term debt 95,000 Current assets 46,000 Total liabilities 122,000 Machines 34.000 Paid-in capital 20,000 Real estate 80,000 Retained earnings 18,000 Fixed assets 114.000 Equity 38,000 Total assets 160,000 Total liab. & equity 160,000 a. What was the market value of equity?

Answer 1

(a Taxable income 390000 Tax e 34% 2 132600 Net Income 257400 Preference Dividend 12000 Puid 13700 Earning for equity shareholder .. 137you Earning Per Shane 18ooo z $ 7.63 Net Income 2574100 Preferene Dividend 120000 137400 Equity Dividenda 109980 (6.xidow) Retained Eunings Ecunitys - $27420

7 Beginning retained earning 238000 + Net Income 66 000 Ending retained earning 289000 Dividend paid 15000

Our a The belence sheet shows a company's assets and liabilities; at one point of in time answe -> @ Examples g Cuvent assets are:- Canh • Accounts receivables . Inventory С C Examples cunent liabilities are : g Accounts payable Accred wages Current postin g long-term debt.

Our: 6 The income Statement shows a company's period of revenue and expenses ouer time. Answer is (d)

9 $ 156 Market Price per share Ple = 25 Formular; Ple MPS N EPS 25 £ 156 Eps EPS z 6.24