This is college finance 305 coursework. 10 multiple choice questions. 3 questions where the finance math work needs to be shown. 4 questions where the expert needs to be able to view a balance income statement and a balance sheet. Deadline is 20 days.
Income Statement Cline Custom Bikes Income Statement ($000) For year ended December 31, 2000 Sales revenue$2,200 Less Cost of goods sold$1,420 Gross profit$ 780 Less operating expenses Selling expense$300 G&A$270 Depreciation$ 30 Total operating expenses$ 600 Operating profits$ 180 Less interest expense$ 29 Net profit before tax$ 151 Less taxes (30%)$ 45 Net profit after tax$ 106 Statement of Retained Earnings Retained Earnings balance (Jan 1 2000)$ 80 Plus: net profit after tax (for 2000) 106 Less cash dividends on common (76) Retained Earnings balance (Dec 31, 2000)$ 110 Balance Sheet ($000) December 31 Assets20001999 Current assets Cash$ 30$ 50 Marketable Securities 10 20 Accounts receivable 320 350 Inventory 460 320 Total Current Assets$ 820$ 740 Gross Fixed Assets$ 560 $ 520 Less accumulated depreciation$ 180$ 150 Net fixed assets$ 380$ 370 Total Assets$1,200$1,110 Liabilities & stockholders’ equity Current liabilities Accounts payable$ 390$ 320 Notes payable$ 110$ 90 Accruals$ 20$ 20 Total current liabilities$ 520$ 430 Long-term Debt$ 320$ 350 Total Liabilities$ 840$ 780 Stockholders’ Equity Common stock (500,000 shares, $0.20 par)$ 100$ 100 Paid-in capital in excess of par$ 150$ 150 Retained earnings$ 110$ 80 Total stockholders’ equity$ 360$ 330 Total liabilities & stockholders’ equity$1,200$1,110 Week 3, Quiz 2 1. Earnings available to common stockholders are defined as net profits. a. After taxes b. After taxes and preferred stock dividends (if any) c. After taxes minus common dividends (if any) d. Before taxes 2. Retained earnings on the balance sheet represent _ a. Cash b. Net profit after tax c. The total earning reinvested in the firm d. None of the above 3. The primary concern of creditors when assessing the strength of a firm is that firm’s _ a. Profitability b. P/E ratio c. Short term liquidity d. Share price 4. A company reports a retained earnings balance of $3000 for year 2019. In 2018 the balance was $2500. Between those years they paid, $100 in preferred stock dividends and $200 in common dividends. Given that information what must have been their net income for year 2019? a. $200 b. $300 c. $600 d. $800 Week 4, Exam 2 1. Total assets less current assets equals _ a. Gross profits b. Net fixed assets c. Current assets d. Liabilities and stockholders equity 2. Earnings available to common shareholders are defined as net profits _. a. After taxes b. After taxes minus preferred dividends c. After taxes minus common dividends d. Before taxes 3. Retained earnings on the balance sheet represent _. a. Net profits after taxes b. Cash c. Net profits after tax minus preferred dividends, depreciation, and amortization 4. The Dupont system of analysis “trouble shoots” the firms performance in order to maximize _. a. profitability b. return on assets c. return on equity d. sales e. shareholder wealth 5. The “equity multiplier” is affected by _. a. The amount of preferred stock dividends paid b. The amount of debt in the firm’s capital structure c. The square root of the return on total assets d. The phases of the moon 6. Assuming no preferred stock, common dividends paid plus the increase in retained earnings equals _. a. net working capital b. accumulated depreciation c. paid in – capital in excess of par d. net income 7. Today is 9/25/19 and you work for XYZ Company. XYZ just bought office furniture for $43,000. What would be the amount of depreciation XYZ could take in the following years assuming they use MACRS? SHOW ALL WORK!!! a. 2018 b. 2020 c. 2021 d. 2023 e. 2026 8. On September 30th the Disney Corporation had a retained earnings balance of $8,241 million. One year later it jumped to $9,021 million. They sold no stock during the year but did pay $236 million in common dividends. Their DPS = $0.50. Given this information, what must have been their net income for the year? And how many shares of stock must be outstanding? SHOW ALL WORK!!! 9. CLINE CUSTOM BIKES: What are the current ratios for BOTH 1999 and 2000? SHOW WORK!!! 10. CLINE CUSTOM BIKES: What was the average collection period (year 2000) for accounts receivable? SHOW WORK!!! 11. CLINE CUSTOM BIKES: What was their marginal tax rate? 12. CLINE CUSTOM BIKES: What was their “TIE” (Times Interest Earned) ratio? 13. ABC Corporation provides you with the following data: sales $500,000, selling expense $40,000, operating profit $300,000, interest expense $25,000, net income $100,000, common stock (par) $16,000, paid-in capital in excess of par $214,000, total number of common shares outstanding 46,000. Assuming no flotation costs what was the price of a share of common stock when it was sold? Assuming no preferred stock, what was the EPS?