A summary of the operations of XYZ Inc. for the year ended May 31, 2006, is shown below. Advertising expense . . . . . . . . . $ 2,760 Supplies expense . . . . . . . . . . . 37,820 Rent expense . . . . . . . . . . . . . 1,500 Salaries expense . . . . . . . . . . . 18,150 Miscellaneous expense . . . . . . . 4,1
I have been asked to correct the balance sheet; however, I do not understand what I am to do. Please assist. Correct the following balance sheet. Balance Sheet December 31, 2006 Assets Liabilities and Owners' Equity Cash .............$ 55,000 Buildings . . . . . . .. .$325,000
Commmon and preferred stock-issuances and dividends. Permabilt Corp. was incorporated on January 1, 2003, and issued the following stock, for cash: 1,200,000 shares of no-par common stock were authorized; 350,000 shares were issued on January 1, 2003, at $23 per share. 400,000 shares of $100 par value, 10.5% cumulative,
Retained Earnings Computations During 2006, Edgemont Corporation had revenues of $230,000 and expenses, including income taxes, of $190,000. On December 31, 2005, Edgemont had assets of $350,000, liabilities of $80,000, and capital stock of $210,000. Edgemont paid a cash dividend of $25,000 in 2006. No additional stock was is
Balance Sheet Preparation From the following data, prepare a classified balance sheet for Simon Company at December 31, 2006. Accounts payable . . . . . . . . . . . . . . . . . . $ 62,500 Accounts receivable . . . . . . . . . . . . . . . . . 123,000 Buildings . . . . . . . . . . . . . . . . . . . . . . 418,500 Owners' equi
A company purchased a machine for $100,000 four years ago. It was being depreciated on a straight-line basis over five years. The company decides to replace this machine today with a more productive machine that costs $125,000. The old machine can be sold today for $25,000. The income tax rate is 40%. The net initial investment
Could someone please help with the following true/false question. I am lost on how to figure it out. Thanks so much:) Q: The marginal propensity to consume is 0.8 and autonomous expenditures have just increased by $122. Equilibrium income will drop by $488.
Springsten Music Company earned $ 820 million last year and paid out 20 percent of earnings in dividends. By how much did the company's retained earnings increase? With 100 million share outstanding and stock price of $50, what was the dividend yield?
The Optimal Scam Company would like to see its sales grow at 20 percent for the foreseeable future. Its financial statements for the current year are presented below. Income Statement ($ millions) Balance Sheet ($ millions) Sales 32.00 Current assets 16 Costs 28.97 Fixed assets 16 Gross profit 3.03
For Q2, what are the main things do I need to talk about in my answers, except for the London Hotels report? I know for definite I need to show how the rule of thumb works, but other than that, what else? One more thing, what is the rule of thumb? I found the rule of pricing in the text book: P = MC/(1+1/Ed), is this the
Given the following data: sales, $200,000; net income, $30,000; total assets, $100,000; and total debt, $40,000 calculate: 1. net profit margin 2. total asset turnover rate 3. return on assets 4. return on equity
Discuss the relationship between the level of GDP and economic well-being. What factors of well-being are missing from the GDP? Is there a point where the GDP could increase to such a high level that economic well-being could be compromised? If so, describe some of the opportunity costs associated with maximizing the GDP.
Consider two equally risky shares, Hi and Lo. Hi shares pay a generous dividend and offer low expected capital gains. Lo shares pay low dividends and offer high expected capital gains. Which of the following investors would prefer the Lo shares? Which would prefer the Hi shares? Which wouldn't care? Explain. Assume that any stoc
1. The Sally Corporation's income statement is given below. Sally Corporation Sales.......................................$250,000 Cost of Goods Sold....................... 145,000 Gross Profit.................................105,000 Fixed Charges (other than interest)...... 25,000 Income before interest and
________________________________________ Practice 2-14 Expanded Accounting Equation p. 60 For the following four cases, use the expanded accounting equation to compute the missing quantity. ________________________________________ Exercise 2-6 Balance Sheet Preparation p. 63 From the following data, prepare a
Ricardo believed that the goal of economic analysis was to understand the distribution of income between the three major classes: capitalists, workers, and landowners. He also believed that the prices of commodities would be proportional to the labor embodied in the commodities, and be independent of the wage and profit rate. S
Get Rich Corporation has to choose between two investment opportunities. Investment A requires an immediate cash outlay of $100,000 and provides after-tax income of $20,000 per year for 10 years. Investment B requires an immediate cash outlay of $1,000 and generates after-tax income of $350 per year for five years. Required:
From a labor perspective, there has always been a clear distinction of the classes ( high class, middle class and working class). Currently, what is the trend for the American work force of the following: 1) middle class backsliding or melting away into the working class 2) the workforce continuously sliding into the haves
Retained Earnings Computations - During 2006, Edgemont Corporation had revenues of $230,000 and expenses, including income taxes, of $190,000. On December 31, 2005 Edgemont had assets of $350,000, liabilities of $80,000, and capital stock of $210,000. Edgemont paid a cash dividend of $25,000 in 2006. No additional stock was issu
Why are the dates on financial statements important? How do the primary financial statements (income statement, balance sheet, and cash flow) tie together? What managerial assessments can you make about a company that has a profit and a negative cash flow in the same accounting period?
Name a firm that has recently (within 1 year) reported publicly that it either overstated or understated its earnings or profits. (for a recent quarter or annual period). What effects do you think the "over or under stated " earnings (profits) will have on the firm?
Suppose that I am selling cans of beer to people on a beach. Since I am concerned about my income (and since I am the only beer seller), I decide to sell beer in the following way. I will not tell the people on the beach how many cans of beer I have. I will sell the cans of beer individually to my customers. Each can of beer wil
Key Question: Assume that Al, Beth, Carol, David, and Ed receive incomes of $500, $250, $125, $75, and $50, respectively. Construct and interpret a Lorenz particular level of total income. The main argument for income inequality is that it provides the incentives to work, invest, and assume risk and is necessary for the producti
The stockholders' equity portion of the balance sheet of Rollover Tire Company is as follows: Common Stock (2,000,000 shares at $10 par) $20,000,000 Paid-in-Capital in Excess of Par 17,000,000 Retained Earnings 33,000,000 Total
Outdoor Sports Company, with its main office in Iowa, is considering opening a branch office in Los Angeles. Under normal economic conditions, which have a 45% chance of occurring, Outdoor can expect to earn a net income in that branch office of $50,000. If there is a mini-recession, which has a 25% chance of occurring, Outdoor
During 2003, A Company and Z Company made the following identical purchases in the order shown: 100 units @ $10.00 each 200 units @ $10.50 each 200 units @ $11.50 each 100 units @ $12.00 each Each company sold 400 units but A Company uses LIFO inventory costing and Z Company uses FIFO inventory costing. Assume there was
17. Plank's Plants had net income of $2,000 on sales of $50,000 last year. The firm paid a dividend of $500. Total assets were $100,000, of which $40,000 was financed by debt. a. What is the firm's sustainable growth rate? b. If the firm grows at its sustainable growth rate, how much debt will be issued next year? c. W
--- Assume that a pure monopolist and a purely competitive firm have the same unit costs. Contrast the two firms in the long run equilibrium with respect to the following: a) Price charged b) Output produced c) Profits d) Allocation of resources e) Impact on income distribution
What problems arise in determining whether an equal income distribution is fair or not? What is the difference between income and wealth? What are the factors that influence the elasticity of the market supply of labor?
Use the following information about 2 countries, Northland and Southland, each with a population of 10 people and each with a poverty threshold of $18,000 ($18K) per person. Show your work for all questions. (SEE ATTACHED).