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Busi 320 Dev Shell - 2012 Fall B Assignment 1

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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 share;2.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 profit;4.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;$" sign in your response.);Selling and;administrative expense;$;72,000;Depreciation expense;71,000;Sales;536,000;Interest expense;45,000;Cost of goods sold;179,000;Taxes;53,000;5.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;$" sign in your response.);Selling and;administrative expense;$;326,000;Depreciation expense;196,000;Sales;1,600,000;Interest expense;124,000;Cost of goods sold;551,000;Taxes;167,000;6.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 "$" sign in your response);Accumulated depreciation;$;347,000;Retained earnings;46,000;Cash;14,000;Bonds payable;137,000;Accounts receivable;51,000;Plant and;equipment?original cost;668,000;Accounts payable;38,000;Allowance for bad;debts;6,000;Common stock, $1 par;100,000 shares outstanding;100,000;Inventory;71,000;Preferred stock, $52;par, 1,000 shares outstanding;52,000;Marketable securities;28,000;Investments;24,000;Notes payable;39,000;Capital paid in excess;of par (common stock);91,000;8.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 share;Common 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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