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Busi 320 Dev Shell - 2012 Fall B Assignment 1-Frantic Fast Foods had earnings after taxes of $1,200,000

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Question;1.Problem 2-1 Income statement [LO1]Frantic Fast Foods had earnings after taxes of $1,200,000 in the year 2009 with 322,000 shares outstanding. On January 1, 2010, the firm issued 30,000 new shares. Because of the proceeds from these new shares and other operating improvements, earnings after taxes increased by 24 percent.(a)Compute earnings per share for the year 2009.(Round your answer to 2 decimal places. Omit the "$" sign in your response.)Earnings per share(b)Compute earnings per share for the year 2010.(Round your answer to 2 decimal places. Omit the "$" sign in your response.)Earnings per share2.Problem 2-3 Gross profit [LO1]Hillary Swank Clothiers had sales of $428,000 and cost of goods sold of $260,000.(a)What is the gross profit margin (ratio of gross profit to sales)?(Round your answer to the nearest whole percentage. Omit the "%" sign in your response.)Gross profit margin(b)If the average firm in the clothing industry had a gross profit of 35 percent, how is the firm doing?The firm is.3.Problem 2-4 Operating profit [LO1]A-Rod Fishing Supplies had sales of $2,160,000 and cost of goods sold of $1,550,000. Selling and administrative expenses represented 10 percent of sales. Depreciation was 6 percent of the total assets of $4,450,000.What was the firm?s operating profit? (Omit the "$" sign in your response.)Operating profit4.Problem 2-6 Income statement [LO1]Given the following information, prepare an income statement for the Dental Drilling Company. (Input all amounts as positive values. Omit the "$" sign in your response.)Selling and administrative expense$72,000Depreciation expense71,000Sales536,000Interest expense45,000Cost of goods sold179,000Taxes53,0005.Problem 2-7 Income statement [LO1]Given the following information, prepare an income statement for Jonas Brothers Cough Drops. (Input all amounts as positive values. Omit the "$" sign in your response.)Selling and administrative expense$326,000Depreciation expense196,000Sales1,600,000Interest expense124,000Cost of goods sold551,000Taxes167,0006.Problem 2-11 Depreciation and earnings [LO1]Stein Books, Inc., sold 2,300 finance textbooks for $200 each to High Tuition University in 2010. These books cost $170 to produce. Stein Books spent $12,300 (selling expense) to convince the university to buy its books.Depreciation expense for the year was $15,500. In addition, Stein Books borrowed $102,000 on January 1, 2010, on which the company paid 17 percent interest. Both the interest and principal of the loan were paid on December 31, 2010. The publishing firm?s tax rate is 30 percent.Prepare an income statement for Stein Books. (Input all amounts as positive values. Omit the "$" sign in your response.)7.Problem 2-15 Development of balance sheet [LO3]Arrange the following items in proper balance sheet presentation (Be sure to list the assets in order of their liquidity. Input all amounts as positive values. Omit the "$" sign in your response):Accumulated depreciation$347,000Retained earnings46,000Cash14,000Bonds payable137,000Accounts receivable51,000Plant and equipment?original cost668,000Accounts payable38,000Allowance for bad debts6,000Common stock, $1 par, 100,000 shares outstanding100,000Inventory71,000Preferred stock, $52 par, 1,000 shares outstanding52,000Marketable securities28,000Investments24,000Notes payable39,000Capital paid in excess of par (common stock)91,0008.Problem 2-16 Earnings per share and retained earnings [LO1, 3]Okra Snack Delights, Inc., has an operating profit of $241,000. Interest expense for the year was $35,800, preferred dividends paid were $34,100, and common dividends paid were $39,600. The tax was $61,400. The firm has 23,700 shares of common stock outstanding.(a)Calculate the earnings per share and the common dividends per share.(Round your answers to 2 decimal places. Omit the "$" sign in your response.)Earnings per shareCommon dividends per share(b)What was the increase in retained earnings for the year?(Omit the "$" sign in your response.)Increase in retained earnings

 

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