The demand for business goods is ultimately derived from the demand for ________
A) raw materials
B) consumer goods
C) services
D) business solutions
E) e-commerce
B
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The following information applies to Acorn Construction Company (ACC):?Year 2Year 1Net sales$ 880,000$ 600,000Income before interest and taxes127,50084,000Net income59,00052,000Interest expense24,50015,000Stockholders' equity, December 31810,300725,000Common stock750,300700,000Preferred stock dividends24,00024,000Information on the number of shares outstanding is provided below:Avg. # of shares outstanding Year 138,000Avg. # of shares outstanding Year 233,000Required:Compute the following ratios for ACC for Year 2 and Year 1:(a) Number of times interest is earned(b) Earnings per share(c) Price-earnings ratio (Market prices: Year 2 $17.50 per share, Year 1 $15.00 per share)(d) Return on equity(e) Net margin.
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At the beginning of the year, William bought 20 shares of Zync Corporation at $18.50 per share. Zync pays dividend at the end of each year based on annual profits, which generally vary substantially from year to year. In its 25 years history, Zync has paid dividends every year without fail. The initial investment by William and the receipt of dividend at the end of every year are examples of a(n) _____ and a(n) _____, respectively.
A. uneven cash flow stream; annuity due B. uneven cash flow stream; ordinary annuity C. lump-sum payment; annuity due D. lump-sum payment; uneven cash flow stream E. lump-sum payment; ordinary annuity
Cardinal Company uses the indirect method to prepare its statement of cash flows
Using the following information, complete the worksheet for the year ended December 31, 2016. - Net Income for the year ended December 31,2016 was $49,000 - Depreciation expense for 2016 was $12,000 - During 2016, plant assets with a book value of $10,000 (cost $10,000 and accumulated depreciation $0 ) were sold for $14,000 - Plant assets were acquired for $52,000 cash - Issued common stock for $28,000 - Issued long-term notes payable for $34,000 - Repaid long-term notes payable for $40,000 - Purchased treasury stock for 3,000 - Paid dividends of $10,000 Cardinal Company Spreadsheet for Statement of Cash Flows Year Ended December 31, 2016 Balance 12/31/15 Transaction Analysis Debit Transaction Analysis Credit Balance 12/31/16 Panel A-Balance Sheet: Cash $18,000 $21,000 Accounts Receivable 35,000 31,000 Merchandise Inventory 25,000 53,000 Plant Assets 70,000 112,000 Accumulated Depreciation-Plant Assets (20,000 ) (32,000 ) Total Assets $128,000 $185,000 Accounts Payable 6,000 4,000 Accrued Liabilities 1,000 2,000 Long-term Notes Payable 50,000 44,000 Common Stock 2,000 30,000 Retained Earnings 74,000 113,000 Treasury Stock (5,000 ) (8,000 ) Total Liabilities and Stockholder's Equity $128,000 $185,000 Panel B-Statement of Cash Flows: Cash Flows from Operating Activities: Net Income Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Depreciation Expense-Plant Assets Gain on Disposal of Plant Assets Increase/Decrease in Accounts Receivable Increase/Decrease in Merchandise Inventory Increase/Decrease in Accounts Payable Increase/Decrease in Accrued Liabilities Net Cash Provided by Operating Activities Cash Flows from Investing Activities: Cash Payment for Acquisition of Plant Assets Cash Receipt from Disposal of Plant Assets Net Cash Used for Investing Activities Cash Flows from Financing Activities: Cash Receipt from Issuance of Notes Payable Cash Payment of Notes Payable Cash Receipt from Issuance of Common Stock Cash Payment for Purchase of Treasury Stock Cash Payment of Dividends Net Cash Provided by Financing Activities Net Increase (Decrease) in Cash Total What will be an ideal response
Texark Inc., a calendar year taxpayer, reported $5,210,300 net income before tax on its financial statements prepared in accordance with GAAP. The corporation's records reveal the following information.• Depreciation expense per books was $713,700, and MACRS depreciation was $662,000. • Texark exchanged old realty (-0- tax basis; $44,200 book basis) for new realty (FMV $50,000). Book gain was included in book income, although the exchange was nontaxable for tax purposes. • Texark received a $100,000 insurance reimbursement for the destruction of machinery with a $29,000 tax basis and a $70,000 book basis. Texark spent $110,000 to replace the machinery before year-end. Compute Texark's taxable income.
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