Reference no: EM133159264

Question 1 - Muffin Co. has a December 31 year-end. It used some of its excess cash to buy temporary investments. The following transactions relating to these investments occurred this year:

Jan 15th - Bought 2,335 shares of IBM @ $120

March 1st - Bought $17,460 of GMC 6% bonds @ par

March 20 - IBM declares a $5/share dividend payable March 31.

December 31 - Market values of IBM shares are $130. Market value of GMC bonds are $14,000.

Required -

Required 1: What is the amount reported as revenue from dividends in the annual Income Statement?

Required 2: What is the amount reported as Interest Revenue in the annual Income Statement?

Required 3: What is the amount reported as the ending balance of the account "IBM Shares" at year end in the Balance sheet?

Required 4: What is the amount reported as the ending balance of the account "GMC Bonds" at year end in the Balance sheet?

Question 2 - During the year, ABC Inc. reported an increase in Inventory of $10,800. Cost of goods sold for the year was $60,000, and there was an $5,400 decrease in accounts payable.

Required - What were the cash payments to suppliers during the year?

Question 3 - A Company has 2,000 outstanding shares and a Price/Earnings (P/E) ratio of 11.44.

During the year the company reported cost of goods sold for $206850 and on average charged a 20% mark up.

Assume a 365 day year.

Required -

Required 1: Assume the share price of the company stay the same next year. If earnings per share double next year while the share price is maintained, how much will the P/E ratio be?

Required 2: If the market price of each outstanding common share is $123, determine the Net Income of the period.

Required 3: The company's Gross profit percentage is (report it as multiplied by 100 to represent it as a percentage):

Required 4: If the market price of each outstanding common share is $100 The company's Return on Sales is (report it as multiplied by 100 to represent it as a percentage):

Required 5: If the market price of each outstanding common share is $200, determine the Earnings Per Share.