Question: Using the ratios and information given for

> Dynamo Manufacturing paid cash to acquire the assets of an existing company. Among the assets acquired were the following items: Patent with 4 remaining years of legal life………â€&brvb

> Colorado Mining paid $600,000 to acquire a mine with 40,000 tons of coal reserves. The following statements model reflects Colorado Mining’s financial condition just prior to purchasing the coal reserves. The company extracted 15,000 to

> On January 1, 2018, Webb Construction Company overhauled four cranes resulting in a slight increase in the life of the cranes. Such overhauls occur regularly at two-year intervals and have been treated as maintenance expense in the past. Management is co

> Sellers Construction Company purchased a compressor for $28,000 cash. It had an estimated useful life of four years and a $4,000 salvage value. At the beginning of the third year of use, the company spent an additional $6,000 related to the equipment. Th

> Bill’s Wrecker Service has just completed a minor repair on a tow truck. The repair cost was $1,550, and the book value prior to the repair was $6,500. In addition, the company spent $12,000 to replace the roof on a building. The new roof extended the li

> On January 1, 2018, Poultry Processing Company purchased a freezer and related installation equipment for $42,000. The equipment had a three-year estimated life with a $3,000 salvage value. Straight line depreciation was used. At the beginning of 2020, P

> On January 1, 2018, Prairie Enterprises purchased a parcel of land for $28,000 cash. At the time of purchase, the company planned to use the land for a warehouse site. In 2020, Prairie Enterprises changed its plans and sold the land. Required: a. Assume

> Un Company sold office equipment with a cost of $23,000 and accumulated depreciation of $12,000 for $14,000. Required: a. What is the book value of the asset at the time of sale? b. What is the amount of gain or loss on the disposal? c. How would the sa

> City Taxi Service purchased a new auto to use as a taxi on January 1, 2018, for $36,000. In addition, City paid sales tax and title fees of $1,200 for the vehicle. The taxi is expected to have a five-year life and a salvage value of $4,000. Required: a.

> The following quarterly information is given for Raybon for the year ended 2018 (amounts shown are in millions): Required: a. Divide the class into groups and organize the groups into four sections. Assign each section financial information for one of

> Use the Target Corporation’s Form 10-K to answer the following questions related to Target’s 2015 fiscal year (year ended January 30, 2016). Target’s Form 10-K is available on the company’s website or through the SEC’s EDGAR database. Appendix A provides

> Using the information below for Dean Corporation, calculate the amount of dividends Dean most likely paid to common stockholders in 2013, 2014, and 2015. Retained Earnings Balances Year Net Income $ 700 January 1, 2013 December 31, 2013 890 2008 $25

> The Lazy O ranch just purchased equipment costing $60,000. the equipment is expected to last five years and have no salvage value. (a) Calculate the depreciation expense using the straight-line method for the first two years the equipment is owned. (b) C

> The King Corporation has total annual revenue of $800,000; expenses other than depreciation of $350,000; depreciation expense of $200,000 for tax purposes; and depreciation expense of $130,000 for reporting purposes. the tax rate is 34%. Calculate net in

> Alpha Company purchased 30% of the voting common stock of Beta Company on January 1 and paid $500,000 for the investment. Beta Company reported $100,000 of earnings for the year and paid $40,000 in cash dividends. Calculate investment income and the bala

> The hydrogenics case is the first in a series of four cases that illustrate a comprehensive analysis of an international corporation. In this case the balance sheet will be analyzed with the income statement and cash flow statement analyzed in cases for

> The following excerpts are from the 2013 Walgreen Co. Form 10-K: The accompanying Notes to Consolidated Financial Statements are integral parts of these statements. Notes to Consolidated Financial Statements 1. Summary of Major Accounting Policies Des

> Each chapter in the textbook contains a continuation of this problem. the objective is to learn how to do a comprehensive financial statement analysis in steps as the content of each chapter is learned. Using the 2013 Applied Materials Form 10-K that can

> The 2013 Intel Form 10-K can be found at the following Web site: www.pearsonhighered .com/fraser. Using the Form 10-K, answer the following questions: (a) Prepare a common-size balance sheet for Intel for all years presented. (b) Describe the types of as

> Excerpts from the Management Discussion and analysis of Financial condition and results of Operations (MD&a) of the Biolase, Inc., 2013 Form 10-K are found on pages 39–46. Required: (a) Why is the MD&a section of the annual report useful to the financi

> Locate the Form 10-K for Mattel Inc. using the EDGar database at the SEc Web site: www.sec.gov. answer the following questions using Mattel’s 2013 Form 10-K. 1. Briefly state the line of business within which Mattel Inc. operates. 2. Find the following i

> Each chapter in the textbook contains a continuation of this problem. the objective is to learn how to do a comprehensive financial statement analysis in steps as you learn the content of each chapter. To complete this problem, access the applied Materia

> Look up the FASB home page on the Internet at the following address: www.fasb.org/. Find the list of technical projects that are currently on the board’s agenda. Choose one of the projects that will affect the income statement. Describe the potential cha

> Indicate whether each of the following items would result in net cash flow from operating activities being higher (h) or lower (L) than net income. (a) Decrease in accounts payable. (b) Depreciation expense. (c) Decrease in inventory. (d) Gain on sale of

> Indicate which of the following current assets and current liabilities are operating accounts (O) and thus included in the adjustment of net income to cash flow from operating activities and which are cash (C), investing (I), or financing (F) accounts. (

> Identify the following as financing activities (F) or investing activities (I): (a) Purchase of equipment. (b) Purchase of treasury stock. (c) reduction of long-term debt. (d) Sale of building. (e) resale of treasury stock. (f) Increase in short-term deb

> Why is the statement of cash flows a useful document?

> Research the joint FaSB/IaSB Financial Statement presentation project. Write a short essay outlining the current status of the project and the expected changes to the financial statements.

> How is it possible for a company with positive retained earnings to be unable to pay a cash dividend?

> What are the intangible factors that are important in evaluating a company’s financial position and performance but are not available in the annual report?

> Explain what can be found on a statement of stockholders’ equity.

> Indicate whether each of the following events would cause an inflow or an outflow of cash and whether it would affect the investing (I) or financing (F) activities on the statement of cash flows. (a) repayments of long-term debt. (b) Sales of marketable

> Which inventory valuation method, FIFO or LIFO, will generally produce an ending inventory value on the balance sheet that is closest to current cost?

> What is an example of an industry that would need to spend a minimum amount on advertising to be competitive? On research and development?

> How is a common-size income statement created?

> What organization has legal authority to set accounting policies in the United States? Does this organization write most of the accounting rules in the United States? Explain.

> What are the two causes of an increasing or decreasing sales number?

> How is a common-size balance sheet created?

> What is the difference between a multiple-step and a single-step format of the earnings statement? Which format is the most useful for analysis?

> Eleanor’s Computers is a retailer of computer products. Using the financial data provided, complete the financial ratio calculations for 2016. Advise management of any ratios that indicate potential problems and provide an explanation o

> Determine the effect on the current ratio, the quick ratio, net working capital (current assets less current liabilities), and the debt ratio (total liabilities to total assets) of each of the following transactions. Consider each transaction separately

> ABC Company and XYZ Company are competitors in the manufacturing industry. The following ratios and financial information have been compiled for these two companies for the most recent year: Required: (a) Compare and evaluate the strengths and weakness

> RareMetals Inc. sells a rare metal found only in underdeveloped countries overseas. As a result of unstable governments in these countries and the rarity of the metal, the price fluctuates significantly. Financial information is given assuming the use of

> Luna Lighting, a retail firm, has experienced modest sales growth over the past three years but has had difficulty translating the expansion of sales into improved profitability. Using three years’ financial statements, you have develop

> How is the Du Pont System helpful to the analyst?

> What do liquidity ratios measure? Activity ratios? Leverage ratios? Profitability ratios? Market ratios?

> What are the limitations of financial ratios?

> Sage Inc.’s staff of accountants finished preparing the financial statements for 2016 and will meet next week with the company’s CEO as well as the Director of Investor relations and representatives from the marketing and art departments to design the cu

> Using the ratios and information given for republic Airways holdings Inc. & Subsidiaries, an airline company, analyze the capital structure, long-term solvency, and profitability of republic Airways as of 2013. Financial ratios 2013 2012 Leverag

> Laurel Street, president of Uvalde Manufacturing Inc., is preparing a proposal to present to her board of directors regarding a planned plant expansion that will cost $10 million. At issue is whether the expansion should be financed with debt (a long-ter

> Explain how the credit analyst’s focus will differ from the investment analyst’s focus.

> Condensed financial statements for Dragoon Enterprises follow. (a) Calculate the amount of dividends Dragoon paid using the information given. (b) Prepare a statement of cash flows using the indirect method. Dragoon Enterprises Comparative Balance

> What can creditors, investors, and other users learn from an analysis of the cash flow statement?

> How does the direct method differ from the indirect method?

> Define the following terms as they relate to the statement of cash flows: cash, operating activities, investing activities, and financing activities.

> Prior to the financial recession in the late 2000s, some companies had built up significant cash balances. Since that time some companies have continued to increase their cash balances and discussions began about whether “cash hoarding” by firms was an a

> Write a short article (250 words) for a local business publication in which you explain why cash flow from operations is important information for small business owners.

> The following cash flows were reported by Techno Inc. in 2015 and 2014. (a) Explain the difference between net income and cash flow from operating activities for Techno in 2015. (b) Analyze Techno Inc.’s cash flows for 2015 and 2014.

> The following comparative balance sheets and income statement are available for AddieMae Inc. Prepare a statement of cash flows for 2016 using the indirect method and analyze the statement. December 31, 2016 2015 $ 3,300 1,100 11,200 $15,600 Cash $

> The following income statement and balance sheet information are available for two firms, Firm A and Firm B. (a) Calculate the amount of dividends Firm A and Firm B paid using the information given. (b) Prepare a statement of cash flows for each firm usi

> Discuss the four items that are included in a company’s comprehensive income.

> Explain how a company could have a decreasing gross profit margin but an increasing operating profit margin.

> Discuss all reasons that could explain an increase or decrease in gross profit margin.

> Income statements are presented for the Elf Corporation for the years ending December 31, 2016, 2015, and 2014. Required: Write a one-paragraph analysis of Elf Corporation’s profit performance for the period. To the Student: The focus

> LA Theatres Inc. has two distinct revenue sources, ticket and concession revenues. The following information from LA Theatres Inc. income statements for the past three years is available: (a) Calculate gross profit margins for tickets and concessions f

> Income statements for Yarrick Company for the years ending December 31, 2016, 2015, and 2014 are shown below. Prepare a common-size income statement and analyze the profitability of the company. Yarrick Company Income Statements for the Years Ending

> Prepare a multiple-step income statement for Jackrabbit Inc. from the following single step statement. Net sales……………………………………………………..$1,840,000 Gain on sale of equipment……………………………………15,000 Interest income…………………………………………………..13,000

> Using the excerpt from the Moon Company’s annual report, calculate any profit measures deemed necessary and discuss the implications of the profitability of the company. Moon Company Income Statements for the Years Ended December 3

> Why is the bottom line figure, net income, not necessarily a good indicator of a firm’s financial success?

> What is the purpose of listing the account “Commitments and contingencies” on the balance sheet even though no dollar amounts appear?

> Discuss the difference between the straight-line method of depreciation and the accelerated methods. Why do companies use different depreciation methods for tax reporting and financial reporting?

> Why would a company switch to the LIFO method of inventory valuation in an inflationary period?

> Why is the valuation of inventories important in financial reporting?

> At fiscal year-end December 31, 2015, ShopWorld had the following assets and liabilities on its balance sheet (in millions): Current liabilities……………&aci

> From the following accounts, prepare a balance sheet for Chester Co. for the current calendar year. Accrued interest payable………………………………$ 1,400 Property, plant, and equipment……………………34,000 Inventory…………………………………………………….12,400 Additional paid-in capital…

> Discuss how marketable securities are valued on the balance sheet.

> Using the following amounts (in thousands) reported in Zebra technologies consolidated balance sheets and statements of income at December 31, 2013 and 2012, and the valuation schedule, analyze the accounts receivable and allowance accounts for all years

> The following information is available for Chemco Inc’s inventories as of June 30, 2015: We used the LIFO method of valuing our inventories for approximately 40% and 44% of total inventories at June 30, 2015 and 2014, respectively. (

> The F.L.A.C. Corporation sells a single product. the following is information on inventory, purchase, and sales for the current year: (a) Compute the inventory balance and the cost of goods sold expense reported at the end of the year using the followi

> Tucker’s technology had the following goods available for sale in the last accounting period: Beginning inventory…………………………………..100 units @ $ 5 Purchases (in order from first to last):………..140 units @ $ 7

> Access the FaSB website: http://www.fasb.org. Locate information about projects that the FaSB and IaSB are working on related to international convergence. Write a short essay outlining the topics that the FaSB and IaSB are currently working on and the p

> Explain how treasury stock affects the stockholders’ equity section of the balance sheet and the calculation of earnings per share.

> Staff members from the marketing department of your firm are doing a splendid job selling products to customers. Many of the customers are so pleased, in fact they are also buying shares in the company’s stock, which means that they receive a copy of the

> What information is provided in a balance sheet?

> What is a proxy statement, and why is it important to the analyst?

> Why is the management discussion and analysis useful to the financial analyst?

> What causes an auditor’s report to be qualified? adverse? a disclaimer of opinion? Unqualified with explanatory language?

> Explain the importance of the notes to the financial statements.

> Describe the financial statements that are contained in an annual report or Form 10-K.

> How can the allowance for doubtful accounts be used to assess earnings quality?

> What are the particular items an analyst should review and study in an annual report, and what material should be read with caution?

> What is the difference between an annual report and a 10-Kreport?

> What types of questions can be answered by analyzing financial statements?

> The 2013 Intel Form 10-K can be found at the following Web site: www.pearsonhighered .com/fraser. (a) Prepare a summary analysis of the Statements of Cash Flows for all three years. (b) Analyze the Consolidated Statements of Cash Flows for Intel for 2013

> This case is a continuation of Cases 2.4, 3.4, and 4.4. (a) Open the financial statement template that you have saved from the Chapter 4 hydrogenics Case. Click on the “ratios” tab at the bottom of the screen and print out this page. (b) Using all inform

> The following excerpts are from the 2013 Form 10-K of Facebook, Inc11. See Accompanying Notes to Consolidated Financial Statements. See Accompanying Notes to Consolidated Financial Statement Item 1. Business Overview Our mission is to give peopl

> Each chapter in the textbook contains a continuation of this problem. The objective is to learn how to do a comprehensive financial statement analysis in steps as the content of each chapter is learned. Using the 2013 Applied Materials Form 10-K, which c

> The 2013 Intel Annual report can be found at the following Web site: www.pearsonhighered.com/fraser. Using the annual report, answer the following questions: (a) Using the Intel Annual report, calculate key financial ratios for all years presented. (b)

> This case is a continuation of Cases 2.4 and 3.4. (a) Open the financial statement analysis template that you saved from the Chapter 3 hydrogenics Case. Click on the “Cover” tab at the bottom of the screen.

> Avnet is one of the world’s largest value-added distributors of electronic componenets, enterprise computer and storage products, IT services and embedded subsystems. Avnet creates a vital link in the technology supply chain that connec