The Green Giant has a 5% profit margin and a 40% dividend payout ratio. The total asset turnover is 1.40 and the equity multiplier is 1.50. What is the sustainable rate of growth? A. 6.30% B. 6.53% C. 6.72% D. 6.80% E. 6.83%
Bet'r Bilt Toys just purchased some MACRS 5-year property at a cost of $230,000. Which of the following will correctly give you the book value of this equipment at the end of year 2? MACRS 5-Year property Year Rate 1 20.00% 2 32.00% 3 19.20% 4 11.52% 5 11.5
Caruso Company had 500,000 shares of common stock issued and outstanding at December 31, 2007. On July 1, 2008 an additional 500,000 shares were issued for cash. Caruso also had stock options outstanding at the beginning and end of 2008 which allow the holders to purchase 150,000 shares of common stock at $20 per share. The aver
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Do you think that companies should maximize their payment power by only paying bills when they are due rather than early so they can use the cash flow on something else?
On January 1, 2001, Gonzalez Corporation issued $4,500,000 of 10% ten-year bonds at 103. The bonds are callable at the option of Gonzalez at 105. Gonzalez has recorded amortization of the bond premium on the straight-line method (which was not materially different from the effective-interest method). On December 31, 2007, whe
Name: ______________________________ Jarbee Company, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $129 Units in beginning inventory 500 Units produced 3,600 Units sold 3,800 Units in ending inventory 300 Variable costs pe
The following information for Quadrado Corporation relates to the three-month period ending September 30, 2009. Units Price Per Unit Sales....................110,000 $20 Beginning Inventory........20,000 12 Purchases.................100,000 14 Ending Inventory...........10,
What does the phrase "cash is king" mean to you?
Brazen, Inc. produces sound amplifiers for electric guitars. The firm's income statement showed the following: Revenues (8,400 units) $504,000 100% Variable expenses (302,400) 60% Contribution margin $201,600 40% Fixed expenses (140,400) Operating income $ 61,200 An
Johnson Company uses a job order cost accounting system. In the last month, the system accumulated labor time tickets totaling $24,600 for direct labor and $4,300 for indirect labor. These costs were accumulated in Factory Payroll as they were paid. Which entry should Johnson make to assign the Factory Payroll? A) Payroll Ex
Montana Matt's Golf Inc was formed on July 1,2006, when Matt Magilke purchased the old master golf company. Master provides video golf instructions at kiosks in shopping malls. Magilke plans to integrate the instruction business into his golf equipment and accessory stores. Magilke paid $750,000 cash for old master. At the time
1. At December 21, 2004, Marshall Company had 500,000 shares of common stock issued and outstanding, 400,000 of which had been issued and outstanding throughout the year and 100,000 of which were issued on October 1, 2004. Net income for the year ended December 31, 2004, was $765,000. What should be Marshall's 2004 earnings p
Using the data in BE3-5, journalize and post the entry on July 1 and the adjusting entry on December 31 for Pizner Insurance Co. Pizner uses the accounts Unearned Insurance Revenue and Insurance Revenue. (BE3-5 On July 1, 2006, Orlow Co. pays $12,000 to Pizner Insurance Co. for a 3-year insurance contract. Both companies have
Gleason Advertising Company's trial balance at December 31 shows Advertising Supplies $6,700 and Advertising Supplies Expense $0. On December 31, there are $1,700 of supplies on hand. Prepare the adjusting entry at December 31, and using T accounts, enter the balances in the accounts, post the adjusting entry, and indicate the a
In your opinion how much assurance is provided by the auditor's report? Is it even worth publishing?
Kelley and Eckert formed a partnership, Eckert invested $82,500 in cash and Kelley invested land valued at $60,000 and a bldg valued at $100,000. The partnership also assumed responsibility of Kelley's $92,500 long-term note payable associated w/the land and bldg. They agreed to share income, Eckert to receive and annyal salar
1. The traditional business model of accounting is inadequate for governments and not-for-profit organizations primarily because businesses differ from governments and not-for-profit organizations in that a. They have different missions b. They have fewer assets c. Their assets are intangible d. Taxes are a major expenditu
All questions regading Use of Cost and Equity Methods. Can you help me get started with this assignment? ----------------- 1. Peel Company received a cash dividend from a common stock investment. Should Peel report an increase in the investment account if it uses the cost method or equity method of accounting? Cost Equi
1. Topper Company established a subsidiary and transferred equipment with a fair value of $72,000 to the subsidiary. Topper had purchased the equipment with an expected life of 10 years 4 years earlier for $100,000 and has used straight-line depreciation with no expected residual value. At the time of the transfer, the subsidiar
ABC Corp. is a firm with all-equity financing. Its equity beta is .80. The Treasury bill rate is 4 percent, and the market risk premium is expected to be 10 percent. What is ABC's asset equity beta? What is its weighted average cost of capital? The firm is exempt from paying taxes.
Calculate the expected return on the portfolio. [E (R)] of the following assets. If you invest 20% in asset 1, 30% in asset 2, AND 50% in asset 3. How and why will your answer change if you shift 20% of invested funds from the least risky asset 3 to the most risky asset 1 asset? Asset 1. 10% 2. 7% 3. 6%
BuildingOne Properties is a limited partnership formed with the express purpose of investing in commercial real estate. The firm is currently considering the acquisition of an office building that we refer to simply as Building B. Building B is very similar to Building A, which recently sold for $36,960,000. BuildingOne has
Information for Lynchburg division is as follows: Net earnings for division $20,000 Asset base for division $50,000 Target rate of return 13% Operating income margin 12% Weighted average cost of capital 8% What is Lynchburg's residual income? $13,500 $14,000 $16,000 $47,600
Brockette Chair Company manufactures rocking chairs. The estimated number of rocking chair sales for each of the last three months of Year 1 is as follows: Month Unit Sales October 5,000 November 7,000 December 6,500 Finished goods inventory at the end of September was 1,500 units. Ending finished goods inventory i
The following information pertains to Oliver's operations: Selling price per unit $50 Variable costs per unit $30 Total fixed costs $100,000 The sales volume required to obtain a target pretax profit of $25,000 is: $125,000 $208,333 $250,000 $312,500
The income statement for Ellwell is as follows: Sales (10,000 units) $80,000 Less variable costs -$48,000 Contribution margin $32,000 Less fixed costs -$24,000 Net income $8,000 If sales increase by 1,000 units, profits will: increase by $800. increase by $3,200. increase by $4,800.
24. What is Lynch's residual income, given the following information: Lynch Net earnings for division $20,000 Asset base for division $50,000 Target rate of return 15% Operating income margin 10% Weighted average cost of capital 2% Choose the correct answer $20,000 $12,500 $7,500
George Company sells one product at a price of $20 per unit. Variable expenses are 60 percent of sales, and fixed expenses are $20,000. The amount of sales required to break even is: $2,500 $12,000 $33,333 $50,000.
Acton Company has two products: A and B. The annual production and sales of Product A is 800 units and of Product B is 500 units. The company has traditionally used direct labor-hours as the basis for applying all manufacturing overhead to products. Product A requires 0.3 direct labor hours per unit and Product B requires 0.2 di