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Accounting Problems with a + answer




Question;1) Building a Balance Sheet Bishop, Inc., has current assets of $5,700, net fixed assets of $27,000, current liabiities of $4,400, and long-term debt of $12,900. What is the value of the shareholders equity account for this firm? How much is net working capital?3) Market Values and Book Values Klingon Cruisers, Inc., purchased new cloaking machinery three years ago for $9.5 million. The machinery can be sold to the Romulans today for $6.5 million. Klingon?s current balance sheet shows net fixed assets of $5.2 million, current liabiities of $2.4 million, and net working capital of $800,000. If all the current assets were liquidated today, the company would receive $2.6 million cash. What is the book value of Klingon?s assets today? What is the market value?4) Calculating Taxes The Locker Co. had $273,000 in taxable income. Using the rates from Table 2.3 in the chapter, calculate the company?s income taxes. What is the average tax rate? What is the marginal tax rate?problem 4 tableTaxable Income Tax Rate$ 0? 50,000 15%50,001? 75,000 2575,001? 100,000 34100,001? 335,000 39335,001?10,000,000 3410,000,001?15,000,000 3515,000,001?18,333,333 3818,333,3341 358) The 2011 balance sheet of Anna?s Tennis Shop, Inc.,showed long-term debt of $1.45 million, and the 2012 balance sheet showed long-term debt of $1.52 million. The 2012 income statement showed an interest expense of $127,000. What was the firm?s cash flow to creditors during 2012?13) Building an Income Statement During the year, the Senbet Discount Tire Company had gross sales of $1.06 million. The firm?s cost of goods sold and selling expenses were $525,000 and $215,000, respectively. Senbet also had notes payable of $800,000. These notes carried an interest rate of 7 percent. Depreciation was $130,000. Senbet?s tax rate was 35 percent. a. What was Senbet?s net income? b. What was Senbet?s operating cash flow?21) Calculating Cash Flows Consider the following abbreviated financial statements for Weston Enterprises:WESTON ENTERPRISES2011 and 2012 Partial Balance SheetsAssets Liabilities and Owners? Equity2011 2012 2011 2012Current assets $936 $1,015 Current liabilities $382 $416Net fixed assets 4,176 4,896 Long-term debt 2,160 2,477WESTON ENTERPRISES2012 Income StatementSales------------$12,380Costs------------ 5,776Depreciation--- 1,150Interest paid--- 314a.What is owners? equity for 2011 and 2012?b.What is the change in net working capital for 2012?c. In 2012, Weston Enterprises purchased $2,160 in new fixed assets. How much in fixed assets did Weston Enterprises sell? What is the cash flow from assets for the year? (The tax rate is 40 percent.)d. During 2012, Weston Enterprises raised $432 in new long-term debt. How much long-term debt must Weston Enterprises have paid off during the year? What is the cash flow to creditors?22) Financial Statements Draw up an income statement and balance sheet for this company for 2011 and 2012.2011 2012Sales $ 7,835 $ 8,409Depreciation 1,125 1,126Cost of goods sold 2,696 3,060Other expenses 639 534Interest 525 603Cash 4,109 5,203Accounts receivable 5,439 6,127Short-term notes payable 794 746Long-term debt 13,460 16,050Net fixed assets 34,455 35,277Accounts payable 4,316 4,185Inventory 9,670 9,938Dividends 956 1,051


Paper#42220 | Written in 18-Jul-2015

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