Reference no: EM132980665
Financial statement data for Delicious Dishes, Inc. are given below.
All figures are in dollars. Use this data to construct an Income Statement for the year ending December 31, 2020 and use your constructed statement to answer the following 4 questions.
Advertising 16,400 Beginning of year inventory 127,800 Depreciation 5,200 End of year inventory 124,600 General and administrative expenses 21,900 Gross sales 842,500 Interest expense 21,700 Lease payments 12,000 Management salaries 106,400 Purchases 524,700 Research and development 12,600 Returns and allowances 3,600 Taxes 35,900
1. What was gross profit from income statement for the year ending December 31, 2020?
2. What was operating profit (i.e., EBIT) from Delicious Dishes income statement for the year ending December 31, 2020?
3. What was profit before taxes (i.e., EBT) from Delicious Dishes income statement for the year ending December 31, 2020?
4. What was net income from Delicious Dishes income statement for the year ending December 31, 2020?
5. On December 10, 2020, Jennings, Inc. paid out total dividends of $350,000 (this was the only dividend payment made during the year). If Jennings reported Retained earnings of $2,681,000 for 2019 and Retained earnings of $2,308,000 for 2020, what was Jennings reported net income in 2020?
6. In 2020, Variman, Incorporated had Gross Accounts receivable of $631,200 and management estimated the Allowance for Doubtful accounts to be $21,500. Compute the ratio of Allowance of Doubtful accounts to Net Accounts receivable for Variman, Inc. for 2020 (that is, compute Allowance/Net Accounts receivable - record your answer as a percent rounded to one decimal place; for example, record 0.234567 as 23.5%).
7. In 2020, the Whaddock Company purchased 10,200,000 units from its supplier at a cost of $10.00 per unit. Whaddock sold 10,525,000 units of its product in 2020 at a price of $14.50 per unit. Whaddock began 2020 with 1,425,000 units in inventory (inventory is carried at a cost of $10.00 per unit). Using this information, compute Whaddock's gross profit for 2020.
8. Referring back to the previous question, compute Whaddock's 2020 ending inventory balance in dollars (valued at cost per unit of $10.00).
9. In 2020, Timmers, Inc. (a retail clothing company) sold 600,000 units of its product at an average price of $50.00 per unit. The company reported estimated returns and allowances in 2020 of 0.8 percent of gross revenue. Timmers actually purchased 510,000 units of its product from its manufacturer in 2020 at an average cost of $38.00 per unit. Timmers began 2020 with 52,000 units of its product in inventory (carried at an average cost of $38.00 per unit). Operating expenses (excluding depreciation) for Timmers, Inc. in 2020 were $2,520,000 and depreciation expense was $850,000. Timmers had $8,500,000 in debt outstanding throughout all of 2020. This debt carried an average interest rate of 7.5 percent. Finally, Timmers' tax rate was 30 percent. Timmers' fiscal year runs from January 1 through December 31. Given this information, compute net income for Timmers for 2020. Referring back to the previous problem, compute Timmers' ending inventory balance for 2020 (that is, what did Timmers report as inventory on its December 31, 2020 balance sheet).
10. Referring back to the previous problem, compute Timmers' ending inventory balance for 2020 (that is, what did Timmers report as inventory on its December 31, 2020 balance sheet).
Financial data for Jade's Jeans are given below. All figures are in dollars. Use this data to construct a Balance Sheet for the company for the year ending December 31, 2020 and use your constructed statement to answer the following 5 questions (i.e., 11 through 15). NOTE: Not every item in the list below belongs on the balance sheet - you have to use some given data to determine needed accounts for the balance sheet. However, other than what is listed and/or can be derived, there are no other accounts on Jade's balance sheet - use cash as a plug figure to balance the balance sheet.
Accounts payable 49,500 Accruals 14,200 Accumulated depreciation 358,400 Additional paid in capital 216,000 Beginning of year inventory 348,600 Common stock ($2.00 par value) 162,000 Cost of goods sold 1,026,800 Current portion of Long-term debt 12,800 Gross accounts receivable 162,200 Gross fixed assets 1,035,700 Long-term debt (excluding current portion) 543,200 Purchases 1,019,400 Retained earnings 236,100 Returns and allowances 2,100 Short-term bank loan 87,800 Cash ???
11. What did Jade's Jeans record as Total Current Assets on December 31, 2020 balance sheet?
12. What did Jade's Jeans record as Total Current Liabilities on December 31, 2020 balance sheet?
13. What did Jade's Jeans record as Total Assets on December 31, 2020 balance sheet?
14. What was Total Shareholder's Equity on Jade's Jeans December 31, 2020 balance sheet?
15. Jade's Jeans Company reported net income for 2020 of $71,800 and the company paid dividends of $0.60 per share in 2020. Given this information (along with the data provided above), compute what Jade's Jeans Company reported as retained earnings on its December 31, 2019 balance sheet? (Assume that no additional shares of stock were issued between December 31, 2019 and December 31, 2020).
16. The year-end 2020 balance sheet for Brad's Copy, Inc. lists common stock ($1.25 par value) at $7,626,000 capital surplus at $86,543,126 and retained earnings at $218,546,280. On the 2019 year-end balance sheet, retained earnings is listed as $214,368,900. The firm's net income in 2020 was $12,050,120. No stock was issued or repurchased in 2020. What were dividends per share paid by the firm in 2020 (rounded to the nearest cent)?
17. The Lunder Company has total assets of $21,542,000, current liabilities of $2,547,000, and long-term liabilities of $7,410,000. The firm has 1,280,000 shares of common stock outstanding. Compute the firm's book value per share.
18. Referring back to the previous question, if Lunder's net income equals $1,600,000 and Lunder has a P/E ratio of 17.0 (note that P/E ratio = stock price per share divided by earnings per share), what is the current price of the stock?
USE THE FOLLOWING INFORMATION TO ANSWER QUESTIONS 19 - 22
The Devlin Corporation, a diversified distribution company, purchases cartons of canned tennis balls from the Questor Company and markets the balls under the Devlin brand name. Devlin started operations on January 1, 2016. In the table below, Quarter 1 represents the time period from January 1, 2016 to March 31, 2016 and Quarter 2 represents the time period from April 1, 2016 to June 30, 2016. Devlin began operations on January 1, 2016 with no inventory. Purchases and sales data for Devlin's first two quarters of business are shown below:
Quarter 1 Sales 65,000 cartons at $30 per carton Purchases January 20,000 cartons at $10 February 25,000 cartons at $12 March 30,000 cartons at $15
Quarter 2 Sales 126,000 cartons at $35 per carton Purchases April 35,000 cartons at $16 May 40,000 cartons at $18 June 45,000 cartons at $20
19. Calculate the Quarter 2 ending inventories (in dollars) using the LIFO inventory valuation method.
20. Calculate Quarter 2 GROSS PROFIT using the LIFO inventory valuation method.
21. Calculate the Quarter 2 ending inventories (in dollars) using the FIFO inventory valuation method.
22. Calculate Quarter 2 GROSS PROFIT using the FIFO inventory valuation method. 4 For each of the algebra problems below, round your answer to 2 decimal places and record your answer on ICOLLEGE without (if applicable) a comma. Thus, enter 3.24765 as 3.25 or .18763 as 0.19 or 3,214.842876 as 3214.85.
23. Suppose that A = D + E and that D/A = 0.55. Solve for A/E.
24. Suppose that A = D + E and that D/A = 0.40. Solve for D/E.
25. Suppose that D + E = A, that N/A = .15 and that D/A = 0.75. Solve for N/E.
26. Suppose that S/A = 5.0 and N/S = .08. Solve for N/A.
27. Suppose A - D = E, that N = 20,000, E/A = .75 and N/E = .40. Compute D/A.
28. Assume that S/A = 6.5, D/A = .40, N/E = .75 and A = D + E. Solve for N/S.
29. Given that: 2y + 10x + 18 = 4 and 4x - y + 11 = 0, solve for x.
30. Referring back to the prior problem, what is y?
31. Given that: 4(3g + 104) - 90 = 504 + 6(g - 14), solve for g.
32. Bill can mow his mother's lawn in 45 minutes. His brother Jim can mow it in 75 minutes. How long will it take them to do it together, if each has his own lawnmower? (Record your answer in minutes rounded to one decimal place. For example, if the answer you find is 14.2835 minutes, record 14.3).
33. On a particular day, the campus bookstore sold 30 T-shirts. White ones cost $9.95 and yellow ones cost $10.50. Total sales of T-shits were $310.60. How many white shirts were sold?
34. Referring back to the prior problem, how many yellow shirts were sold?
35. If working alone, Marcus can paint a room in 3.15 hours. Working together with Claudia, they can both paint the room in 2.09 hours. How long would it take Claudia working alone to paint the room?
36. The weight of a bag of bricks plus 20% of its weight is 30 pounds. How much does the bag of bricks weigh, in pounds?
37. A rich merchant had collected many gold coins. He did not want anybody to know about them. One day, his wife asked, "How many gold coins do you have?" After pausing a moment, he replied, "Well! If I divide the coins into two unequal numbers, then 25 times the difference between the two numbers equals the difference between the squares of the two numbers." How many gold coins does the rich merchant have?
38. Suppose that you go out and buy 100 lbs. of cucumbers that are 99% water. Unfortunately, you do not observe the rules of caring for your cucumbers so after some time they dehydrate until they are only 98% water. How much do they then weigh?
39. Ed invests $57,000 in stocks paying 8%. How much additional money should he invest in certificates of deposit paying 3% so that the average return on Ed's investments is 4%?
40. In a lake, there is a patch of lily pads. Every day, the patch doubles in size. If it takes 48 days for the patch to cover the entire lake, how long would it take for the patch to cover half of the lake?