Problem 11-7A Ayayai Company manufactures backpacks. During 2017, Ayayai issued bonds at 10% inte...
Problem 11-7A Your answer is partially correct. Try again. Flint Company manufactures backpacks. During 2017, Flint issued bonds at 10% interest and used the cash proceeds to purchase treasury stock. The flowing financial information is avallable for Flint Company for the years 2017 and 2016. 2017 2016 $18,000,000 $18,000,000 4,480,000 5,000,000 420,000 1,340,000 1,500,000 2,670,000 3,078,000 900,000 900,000 Net income Interest expense 1,500,000 paid on common stock Dividends paid on preferred stock Total assets (year-end) Average total assets Total liabilities...
Evaluate a company's profitability and solvency (LO 4), AP P11-7A Spahn Company manufactures backpacks. During 2017, Spahn issued bonds at 10% interest and used the cash proceeds to purchase treasury stock. The following finan- cial information is available for Spahn Company for the years 2017 and 2016. 2017 2016 Sales revenue Net income Interest expense Tax expense Dividends paid on common stock Dividends paid on preferred stock Total assets (year-end) Average total assets Total liabilities (year-end) Avg. total common stockholders'...
On August 1, 2017, Ayayai Corp. issued $506,400, 7% , 10- year bonds at face value. Interest is payable annually on August 1. Ayayai's year-end is December 31. Prepare a tabular summary to record the following events (a) The issuance of the bonds. (Ь) The accrual of interest on December 31, 2017. stive (c) The payment of interest on August 1, 2018 (If a transaction causes a decrease in Assets, Liabilties or Stockholders' Equity, place a negative sign (or parentheses)...
Ayayai Company reported the following amounts in the
stockholders’ equity section of its December 31, 2016, balance
sheet.
Preferred stock, 10%, $100 par (10,000 shares authorized, 1,800
shares issued)
$180,000
Common stock, $5 par (93,000 shares authorized, 18,600 shares
issued)
93,000
Additional paid-in capital
130,000
Retained earnings
467,000
Total
$870,000
During 2017, Ayayai took part in the following transactions
concerning stockholders’ equity.
1.
Paid the annual 2016 $10 per share dividend on preferred stock
and a $2 per share dividend...
The condensed financial statements of Crane Company for the years 2016 and 2017 are presented as follows. (Amounts in thousands.) CRANE COMPANY Balance Sheets December 31 2017 2016 Current assets Cash and cash equivalents $330 $360 Accounts receivable (net) 570 500 Inventory 580 510 Prepaid expenses 120 160 Total current assets 1,600 1,530 Investments 110 110 Property, plant, and equipment (net) 380 420 530 510 Intangibles and other assets $2,660 $2,530 Total assets $890 $1,000 Current liabilities 500 530 Long-term...
The condensed financial statements of Ivanhoe Company for the years 2016 and 2017 are presented as follows. (Amounts in thousands.) IVANHOE COMPANY Balance Sheets December 31 2017 2016 Current assets Cash and cash equivalents $330 $360 Accounts receivable (net) 550 Inventory 530 460 Prepaid expenses 160 120 1,530 Total current assets 1,460 Investments Property, plant, and equipment (net) Intangibles and other assets Total assets 420 380 530 510 $2,570 $2,440 $980 $870 480 450 1,110 1,120 Current liabilities Long-term liabilities...
Ayayai Inc. manufactures a variety of consumer products. The company’s founders have run the company for 30 years and are now interested in retiring. Consequently, they are seeking a purchaser who will continue its operations, and a group of investors, Morgan Inc., is looking into the acquisition of Ayayai. To evaluate its financial stability and operating efficiency, Ayayai was requested to provide the latest financial statements and selected financial ratios. Summary information provided by Ayayai is as follows. Ayayai Inc....
Exercise 13-11 Profitability analysis LO P3 Simon Company’s year-end balance sheets follow. At December 31 2017 2016 2015 Assets Cash $ 31,400 $ 34,700 $ 36,200 Accounts receivable, net 88,500 64,200 58,600 Merchandise inventory 107,339 84,200 50,300 Prepaid expenses 11,047 9,166 3,628 Plant assets, net 331,714 257,734 191,272 Total assets $ 570,000 $ 450,000 $ 340,000 Liabilities and Equity Accounts payable $ 143,349 $ 76,050 $ 44,880 Long-term notes payable secured by mortgages on plant assets 106,088 105,570 73,637 Common...
Monty Corp. decided to issue common stock and used the $449,000 proceeds to redeem all of its outstanding bonds on January 1, 2017. The following information is available for the company for 2017 and 2016. 2017 2016 Net income $ 186,500 $ 140,500 Dividends declared for preferred stockholders 7,100 7,100 Average common stockholders’ equity 1,174,000 808,000 Total assets 1,506,000 1,282,000 Current liabilities 284,000 284,000 Total liabilities 332,000 474,000 (a) Compute the return on common stockholders’ equity for both years. (Round...
The condensed financial statements of Crane Company for the years 2016 and 2017 are presented as follows. (Amounts in thousands.) CRANE COMPANY Balance Sheets December 31 2017 2016 Current assets Cash and cash equivalents Accounts receivable (net) Inventory Prepaid expenses Total current assets Investments $330 $360 570 500 580 510 120 160 1,600 1,530 110 110 420 380 530 510 $2,660 $2,530 $1,000 $890 530 500 Property, plant, and equipment (net) Intangibles and other assets Total assets Current liabilities Long-term...