Reference no: EM13749149
Financial Statement Analysis:
Problem 1: On December 31, 20XX, Ms. Ima Richperson, a self employed financial consultant prepared the following information. She endeavored to determine how well her company is doing:
Revenues---------------------------------$250,000
Salaries (Per year)
Richperson----------$46,800
Assistant-------------$29,200
Secretary------------$24,000
|
Employment Taxes and Benefit (Per month)
|
$3125
|
|
Office Supplies
|
$8100
|
|
Travel
|
$3500
|
|
Lease Payments (Per month)
|
$1000
|
|
Depreciation
|
$5500
|
|
Interest Paid
|
$37500
|
|
Preferred Stock Dividends
|
$10000
|
|
Common Stock Shares
|
22000 shares issued
|
|
Tax Bracket
|
38%
|
1. What is Ms. Richperson's tax liability?
2. What were the Earnings after Tax (EAT)?
3. If Ms. Richperson had preferred stockholders' dividends of $10 000, how much were the earnings available to common stockholders?
4. If Ms. Richperson had 22 000 common stock shares outstanding, how much in dividends (DPS) did each share receive?
5. How much HIT did Ms. Richperson earn?
6. How much cash flow from operations did Ms. Richperson realize? (EAT + non-cash items)
7. If the price of Richperson stock is $15 per share, what is its P/E ratio (Use EPS)?
8. What is Richperson's interest coverage ratio?
9. What was Ms. Richperson's return on sales?
Problem 2: Gooey Candy had net profit before taxes (EBT) of $450,000. The company is in the 40% tax bucket and must pay $82,000 in preferred stock dividends before distribution any earnings on the 110,000 shares of common stock outstanding.
1. What were Gooey's Earning Per Share (EPS)?
2. If the firm paid dividends of $.80, how much would go to retained earnings?
|
Discuss political philosophie of two presidential canidates
: Discuss and analyze backgrounds and political philosophies of the two presidential canidates. Describe their positive and negative qualities as campaigners.
|
|
Prepare a statement of cash flows using the indirect method
: The comparative balance sheet of Nance Company, for the current year and the preceding year ended December 31, appears below: Prepare a statement of cash flows using the indirect method.
|
|
Entries records proper adjusting entry for bad debt expense
: Allowance for Doubtful Accounts has a debit balance of $600 at the end of the year (before adjustment), and an analysis of accounts in the customers ledger indicates uncollectible receivables of $13,000. Which of the following entries records the pro..
|
|
Exercise in resolving ethical dilemmas
: Those in the field say that one of the most effective methods of ethics training is an exercise in resolving ethical dilemmas that relates to actual situations employees may face on the job. Why do you think that this is so?
|
|
Problem related to financial statement analysis
: Problem 1: On December 31, 20XX, Ms. Ima Richperson, a self employed financial consultant prepared the following information. She endeavored to determine how well her company is doing:
|
|
Net method is used for recording purchases
: Ace Corp. purchased merchandise during 2014 on credit for $500,000; terms 2/10, n/30. (b) All of the gross liability except $88,000 was paid within the discount period.
|
|
Identify whether it represents an accounting change
: Williams- Santana inc. is a manufacturer of high- tech industrial parts that was started in 2001 by two talented engineers with little business training. In 2013, the company was acquired by one of its major customers.
|
|
What are some of the ways in which nationalism shows itself
: What are some of the ways in which nationalism shows itself to be stronger than any other ideology of the mid-twentieth century, in every region of the globe, in the time before, during and after the second world war?
|
|
How can students take advantages from using library
: Research for How can students take advantages from using library
|