gdhoo3Q0NZTErqE4rKhjN 8. The December 31, 2019 income statement for App Inc. reported $2.5 million of net income, and its year-end balance sheet reported $15 million of retained earnings. The Dec. 31, 2018 balance sheet showed $14 million of retained earnings. The total amount dividends (in millions of dollars) naid to shareholders for the year 2019 is: *
Q: 11. In 2019, LSP company reported a net income of $57,000. They had reported earnings before interes...
A: Net income = $57000 EBIT = $160,000 Tax rate = 40%
Q: EMC Corporation's current free cash flow of $370,000 and is expected to grow at a constant rate of 6...
A: Value of operations = FCF*(1+g)/(k-g) Where FCF = Free cash flow current g = growth rate k = Cost ...
Q: 13. Adams Corp's sales last year were $57,000, and its total assets were $34,000. What was its total...
A: Sales = $57000 Total assets = $34000
Q: cost of capital f
A: The current cost of capital refers to the amount of return which company required in order to achiev...
Q: Assess the use of interest rate options, including swap options
A: Options are referred as the financial derivatives, which used to giver the purchasers the right, but...
Q: Are financial analysts friends or foes to investors?
A: Given In this question we first need to understand the basic role of a Financial Analyst.
Q: in a page long or 2 define debt and equity financing and the advantages and disadvantages of both. A...
A: Applying for a loan from a lender is what debt entails. It can be temporary, long-term, or revolving...
Q: What is the present value of a $90 annual annuity for 10 years with an additional $1000 received at ...
A: Solution:- When an equal amount is paid each period, it is called annuity. The terminal value receiv...
Q: When discussing a mix of risky assets please briefly explain the following concepts, making sure you...
A: “Since you have posted a question with multiple sub-parts, we will solve the first three subparts fo...
Q: A family wishes to buy a $235,900 home. - If a conventional lender is willing to loan the family 87...
A: Federal housing administration loan helps people with a moderate income to get a mortgage loan for a...
Q: Basic Opfion Strafegies Profif Computation Assume the below prices for calls and puts: Call Put Stri...
A: Call option A call option gives its holder the right to purchase the stock at the strike price. With...
Q: geometric average return on this stock
A: The geometric return shows the calculation of the average rate of return on investment compounded in...
Q: Determine the following: 1. Total present amount of the obligations. 2. Total future amount of the o...
A: Present value can be defined as the amount of money that have to be invested today to earn a require...
Q: Company ABS’s Cash Conversion Cycle has 241.46 days while Company CBN has 194 days of CCC. Which com...
A: Cash conversion cycle (CCC) refers to the time period ( number of days) between the payment for raw ...
Q: A car can be purchased with monthly installments of 8,500 and a down-payment of 115,000 for 48 month...
A: Monthly installment (M) = 8500 Down payment (D) = 115000 n = 48 months r = 12% per annum = 1% per mo...
Q: ingalls Engineering is a manufacturer that produces bracket assemblies. Demand for bracket assemblie...
A: In the given case , X is a bracket assembly which company manufactures. Various items A B C D E F G...
Q: On January 1, Year 1, you are considering the purchase of Niko Enterprises' common stock. Based on y...
A: The purchase price can be found using the Gordon Model. As per Gordon Model, the price of stock toda...
Q: Question: based on the above information, calculate the Motorway CO's leading price to earnings (P/E...
A: The relation between a company's current share price and earnings per share is known as the price ea...
Q: ace value bond carrying a 4.83 % coupon with 25 years until maturity is issued . The bond has a sink...
A: Annual cost of bond is the sinking fund payment and the coupon payment to be paid on the bond. The ...
Q: A $5,000 bond that has a coupon rate of 5.60% payable semi-annually and maturity of 5 years was purc...
A: The book value of the bond refers to the money that the issuer of the bond owes to the holder of the...
Q: The interest rate in Japan is 1%. The yen to dollar spot exchange rate is ¥100 per dollar and the f...
A: Covered Interest rate parity It provides relationships among interest rates and exchange rates (spo...
Q: 5. Suppose 1-year T-bills currently yield 7.00% and the future inflation rate is expected to be cons...
A: The risk-free rate is the interest rate an investor would get on an entirely risk-free investment ov...
Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery w...
A: The cost of equity is the return that an investor requires for investing his money in an entity. The...
Q: Life insurance premiums paid by the company on its officers and employees are considered permanent d...
A: Life insurance is a contract between the two parties like the corporation or the individual and an i...
Q: Emily Dao, 27, just received a promotion at work that increased her annual salary to $37,000. She is...
A: Since you have posted a multiple question, therefore, we will be solving the first question only as ...
Q: P8-3 Portfolio Return At the beginning of the month, you owned $12,000 of Ford Motor, $18,000 of Net...
A: The effective return is the actual return that the company gets when it takes part in investments.
Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery w...
A: "Hi, Thanks for the Question. Since you asked multiple sub parts question, we will answer first thre...
Q: A certain manufacturing plant is being sold and was submitted for bidding. Two bids were submitted b...
A: The discounted value of future cash flows equals the present value of money. The temporal value comp...
Q: Question 2 Cross-Ocean Boats Ltd. is in the 30% tax bracket. It is interested in determining the min...
A: Since specifically Question 1,2 and 3 are asked, so the following solutions are also for the same. S...
Q: Bond valuation Bond X is noncallable and has 20 years to maturity, a 7% annual coupon, and a $1,000...
A: Hi! Thank you for the question , As per the Honor code , we are allowed to answer the one question i...
Q: ds per share and market value per share was recently at P32 and P240 respectively. If dividends grow...
A: Price of shares increases with time and grow at the rate of growth in dividend. That can be found ou...
Q: 1. Malinao Bakery forecast sales 2100 loaves of bread for the month of January. The owner would like...
A: As per Bartleby Honor Code, when multiple questions are asked, the expert is required only to solve ...
Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery w...
A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first ...
Q: 4. Capital Markets are the financial markets for stocks and for intermediate or long-term debt (one ...
A: Solution:- There are two types of financial markets:- 1. Money Market 2. Capital Market
Q: Your parents can take out a federal Direct Plus loan to pay for the total remaining cost of your und...
A: Given: Simple interest rate = 6.84% Years =10 graduation on June 1st Loan taken date = 1st September...
Q: Soprano's Spaghetti Factory issued 26-year bonds two years ago at a coupon rate of 7.50 percent. If ...
A: Bonds: Bonds are the liabilities of the company which is issued to raise the funds required to finan...
Q: 5. When an organization underwrites and distributes new investment securities to helps businesses ob...
A: The business obtains finance by issuing securities and bonds to meet the objectives of the business
Q: You put 280,000 dollars in a bank which gives you 0.75% interest compounded daily. If you leave that...
A: The amount of interest earned can be computed with the help of future value function
Q: 27. Which of the following categories of a firm's total cash flows accounts for cash flows resulting...
A: A financial statement which gives information about the total cash inflows and outflows of a busines...
Q: The sale of a company rose from $ 60,000 in the month of August to $ 69,000 in the month of Septembe...
A: Concept Seasonal index is a measure of how a particular season through some cycle compares with aver...
Q: Duration is a measurement of a bond’s interest rate risk. It is also referred to as the responsivene...
A: Bond duration or duration of the bond means the price sensitivity of the bond when the interest rate...
Q: 1. In buying a car, Amiel pays P 210,000.00 cash and agrees to pay P790,000.00 for 4 years at 12% in...
A: Present Value: The present value is the value of cash flow stream or the fixed lump sum amount at t...
Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery w...
A: Formula's Calculations:
Q: A bond has a $1000 par value, 12 years to maturity, a 5% annual coupon and currently sells for $900....
A: Par value (F) = $1000 Years to maturity (n) = 12 years Coupon (C) = 5% of $1000 = $50 Let r = YTM
Q: 17. Which of the following statements is true about bonds in the US? A) State and local governments ...
A: Bond is referred as the fixed income instruments, which used to represent the loan that are made thr...
Q: * Shara Jane Mariano buys a 137,000 laundry business by paying 26,000 at the end of each year. At 8%...
A: The amortization table means a table showing the schedule of payments in each period including the i...
Q: If Average assets and capital are 900,000 and 540,000, respectively, with a net income of 47,520, wh...
A: Return on equity is a type of financial ratio of a company. Return on equity is a performance measur...
Q: Analyse the Assets-to-equity ratio of 1.87 in 2019 and 1.67 in 2020
A: As per Bartleby Honor Code, when multiple questions are asked, the expert is required only to solve ...
Q: Compute the present value for each of the following bonds a. Priced at the end of its fifth year, a ...
A: To Find: Present Value of Bonds
Q: You work for a logistics company, which considers to invest in a computerized system to improve effi...
A: Here, Initial cost = $90,000 Additional expenses = $25,000 Savings in operating cost = $65,000 Addit...
Step by step
Solved in 2 steps
- Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1,000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50,000 to retire bonds with a face value (and book value) of 50,000. e. On July 2, 2019, Farrell purchased equipment for 63,000 cash. f. On December 31, 2019. land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows.Hyde Corporations capital structure at December 31, 2018, was as follows: On July 2, 2019, Hyde issued a 10% stock dividend on its common stock and paid a cash dividend of 2.00 per share on its preferred stock. Net income for the year ended December 31, 2019, was 780,000. What should be Hydes 2019 basic earnings per share? a. 7.80 b. 7.09 c. 7.68 d. 6.73Roseau Company is preparing its annual earnings per share amounts to be disclosed on its 2019 income statement. It has collected the following information at the end of 2019: 1. Net income: 120,400. Included in the net income is income from continuing operations of 130,400 and a loss from discontinued operations (net of income taxes) of 10,000. Corporate income tax rate: 30%. 2. Common stock outstanding on January 1, 2019: 20,000 shares. 3. Common stock issuances during 2019: July 6, 4,000 shares; August 24, 3,000 shares. 4. Stock dividend: On October 19, 2019, the company declared a 10% stock dividend that resulted in 2,700 additional outstanding shares of common stock. 5. Common stock prices: 2019 average market price, 30 per share; 2019 ending market price, 27 per share. 6. 7% preferred stock outstanding on January 1, 2019: 1,000 shares. Terms: 100 par, nonconvertible. Current dividends have been paid. No preferred stock issued during 2019. 7. 8% convertible preferred stock outstanding on January 1, 2019: 800 shares. The stock was issued in 2018 at 130 per share. Each 100 par preferred stock is currently convertible into 1.7 shares of common stock. Current dividends have been paid. To date, no preferred stock has been converted. 8. Bonds payable outstanding on January 1, 2019: 100,000 face value. These bonds were issued several years ago at 97 and pay annual interest of 9.6%. The discount is being amortized in the amount of 300 per year. Each 1,000 bond is currently convertible into 22 shares of common stock. To date, no bonds have been converted. 9. Compensatory share options outstanding: Key executives may currently acquire 3,000 shares of common stock at 20 per share. The options were granted in 2018. To date, none have been exercised. The unrecognized compensation cost (net of tax) related to the options is 4 per share. Required: 1. Compute the basic earnings per share. Show supporting calculations. 2. Compute the diluted earnings per share. Show supporting calculations. 3. Show how Roseau would report these earnings per share figures on its 2019 income statement. Include an explanatory note to the financial statements.
- On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a 30% corporate income tax rate. During 2019, Kittson earned net income of 67,000, and the following events occurred: 1. Cash dividends of 3 per share on 4,000 shares of common stock were declared and paid. 2. A small stock dividend was declared and issued. The dividend consisted of 600 shares of 10 par common stock. On the date of declaration, the market price of the companys common stock was 36 per share. 3. The company recalled and retired 500 shares of 100 par preferred stock. The call price was 125 per share; the stock had originally been issued for 110 per share. 4. The company discovered that it had erroneously recorded depreciation expense of 45,000 in 2018 for both financial reporting and income tax reporting. The correct depreciation for 2018 should have been 20,000. This is considered a material error. Required: 1. Prepare journal entries to record Items 1 through 4. 2. Prepare Kittsons statement of retained earnings for the year ended December 31, 2019.Using the following Company X information, prepare a Retained Earnings Statement: Retained earnings balance January 1, 2019, $121,500 Net income for year 2019, $145,800 Dividends declared and paid for year 2019, $53,000Prince Corporations accounts provided the following information at December 31, 2019: What should be the current balance of retained earnings? a. 520,000 b. 580,000 c. 610,000 d. 670,000
- Bodie Corporation reported the following amounts in its financial statements: Retained earnings, Jan. 1, 2018 $79842 Retained earnings, Dec. 31, 2018 $60120 Net income, 2018 $53440 What were the dividends declared and paid in 2018? $___________For the year ending December 31, 2022, Sheridan Inc reports net income S147,000 and cash dividends $88.500. Determine the balance in retained earnings at December 31, assuming the balance in retained earnings on January 1, 2022, was $223,500. Balance in retained earningsAccounting For the Year ended December 2019. Alaska company , reported net income of $ 4,200 on revenues of $ 56,000 . Interest expense totaled $ 400 , while preferred stock dividends totaled $ 200 . Average total assets for 2019 were $ 17,500 , and average total liabilities for 2019 were $ 9,000 . Average preferred shareholders ' equity totaled $ 2,000 . The income tax rate is 20 % . 4 The ROCE for Alaska company is A. 32.54 % B. 40.00 % C. 64.61 % D.61.63 %
- Please consider the following financial numbers for Carridine Company and then prepare answers to the required questions. Carridine Company reported a net income of $1.903 million on revenues of $55.618 million for the year 2019. Interest expense totaled $0.459 million and preferred dividends totaled $13.5 million. The average total assets for the year were $17,5 million. The income tax rate is 21%. Average preferred shareholders’ equity totaled $250 million, and average common shareholders’ equity totaled $7.5 million. Compute the rate of return on assets (ROA) and disaggregate ROA into profit margin and assets turnover components. Compute the rate of return on common stock equity (ROCE) and disaggregate ROCE into profit margin, assets turnover, and capital leverage ratio components. Calculate the amount of net income to common shareholders.BE4.9 Portman corporation has retained earnings of $675000 at January 1, 2020. net income during 2020 was $1400000 and cash dividends declared and paid during 2020 totaled $75000. prepare a retained earnings statement for the years ended december 31, 2020The Dec. 31, 2021 balance sheet of Jasmine Corp. showed shareholders' equity of P448,700. Transactions during 2021 which affected the shareholders' equity were: (1) an adjustment to Retained Earnings for an overstatement of depreciation in 2020 P10,000; (2) gain on the sale of treasury shares, P9,000; (3) declared dividends of P60,000 of which P40,000 were paid during the year; and (4) net income after tax of P75,500. The share capital balance of P300,000 remain unchanged during the year. The retained earnings balance on Jan. 1, 2020 was a. P134,200 b. P132,300 c. P123,200 d. P114,200