Question : 61. Hardister Corp. has the following information available from its financial : 1295723

 

 

61. Hardister Corp. has the following information available from its financial statements for 2008: 

Balance sheet information:

 

 

Income statement information:

 

Assets

 

 

 

 

 

Current assets

$   400,000

 

Sales (all on account)

$3,000,000

 

Long-term assets

  600,000

 

Cost of goods sold

1,500,000

 

Total assets

$1,000,000

 

Salary expense

200,000

 

 

 

Miscellaneous expenses

400,000

Liabilities

 

 

Interest expense

  100,000

 

Current liabilities

$  200,000

 

Income before taxes

$  800,000

 

Long-term liabilities

  100,000

 

Income tax expense

  300,000

 

Total liabilities

$  300,000

 

Net income

$  500,000

 

 

 

 

 

Stockholders’ Equity

 

 

 

 

 

Capital stock

$300,000

 

 

 

 

Retained earnings

  400,000

 

 

 

 

Total Stockholders’ Equity

$  700,000

 

 

 

 

 

 

 

 

 

 

 

 

Refer to the Hardister Corp. information above. Assuming Hardister had total assets at the end of 2007 of $800,000 and an income tax rate of 37.5 percent, what would be return on assets for 2008? (round to the nearest whole percent) A. 63%B. 43%C. 57%D. 59%

 

62. Hardister Corp. has the following information available from its financial statements for 2008: 

Balance sheet information:

 

 

Income statement information:

 

Assets

 

 

 

 

 

Current assets

$   400,000

 

Sales (all on account)

$3,000,000

 

Long-term assets

  600,000

 

Cost of goods sold

1,500,000

 

Total assets

$1,000,000

 

Salary expense

200,000

 

 

 

Miscellaneous expenses

400,000

Liabilities

 

 

Interest expense

  100,000

 

Current liabilities

$  200,000

 

Income before taxes

$  800,000

 

Long-term liabilities

  100,000

 

Income tax expense

  300,000

 

Total liabilities

$  300,000

 

Net income

$  500,000

 

 

 

 

 

Stockholders’ Equity

 

 

 

 

 

Capital stock

$300,000

 

 

 

 

Retained earnings

  400,000

 

 

 

 

Total Stockholders’ Equity

$  700,000

 

 

 

 

 

 

 

 

 

 

 

 

Refer to the Hardister Corp. information above. At the end of 2008, Hardister’s common stock was listed on the stock exchange as having a market price of $65 per share and there are 10,000 shares outstanding. Hardister has no preferred stock. What would be Hardister’s price earnings (P/E) ratio for 2008? (round to two decimal places) A.   7.69 to 1B. 12.31 to 1C.   1.30 to 1D.     .77 to 1

 

63. Which of the following ratios would be the best measure of profitability? A. Current ratioB. Debt-to-equity ratioC. Times-interest-earned ratioD. Return on assets

 

64. Which of the following ratios would not be the best measure of profitability? A. Earnings per shareB. Debt-to-equity ratioC. Return on common stockholders’ equityD. Return on assets

 

65. Grogan Inc. had the following information available from its 2007 and 2008 financial statements: 

Balance sheet information:

   2007  

   2008  

Current assets

$  30,000

$  80,000

Long-term assets

100,000

200,000

Total assets

$130,000

$280,000

 

 

 

Current liabilities

$  15,000

$  10,000

Long-term liabilities

  30,000

  40,000

Total liabilities

$  45,000

$  50,000

 

 

 

Common stock

$  60,000

$100,000

Retained earnings

  25,000

130,000

Total stockholders’ equity

$  85,000

$230,000

 

 

 

Income statement information:

 

 

Income before interest and taxes

$  30,000

$200,000

Interest expense

3,000

8,000

Tax expense

   2,000

  50,000

Net income

$  25,000

$142,000

 

 

 

Other information:

 

 

Dividends paid to stockholders

$           0

$  37,000

Average income tax rate

23%

26%

Net cash flows from operations

$  25,000

$150,000

Cash paid for acquisitions

$  10,000

$  75,000

 

 

 

Refer to the Grogan Inc information above. Performing a horizontal analysis on Grogan’s total assets shows that they have: A. increased by 97.18%.B. increased by 215.38%.C. increased by 115.38%.D. increased by 53.57%

 

66. Grogan Inc. had the following information available from its 2007 and 2008 financial statements: 

Balance sheet information:

   2007  

   2008  

Current assets

$  30,000

$  80,000

Long-term assets

100,000

200,000

Total assets

$130,000

$280,000

 

 

 

Current liabilities

$  15,000

$  10,000

Long-term liabilities

  30,000

  40,000

Total liabilities

$  45,000

$  50,000

 

 

 

Common stock

$  60,000

$100,000

Retained earnings

  25,000

130,000

Total stockholders’ equity

$  85,000

$230,000

 

 

 

Income statement information:

 

 

Income before interest and taxes

$  30,000

$200,000

Interest expense

3,000

8,000

Tax expense

   2,000

  50,000

Net income

$  25,000

$142,000

 

 

 

Other information:

 

 

Dividends paid to stockholders

$           0

$  37,000

Average income tax rate

23%

26%

Net cash flows from operations

$  25,000

$150,000

Cash paid for acquisitions

$  10,000

$  75,000

 

 

 

Refer to the Grogan Inc information above. Converting the 2008 column into a common-size statement would show current assets as being: (round to two decimal places) A. 40.00 percent of long-term assets.B. 28.57 percent of total assets.C. 56.34 percent of net income.D. 266.67 percent of 2007’s current assets.

 

67. Grogan Inc. had the following information available from its 2007 and 2008 financial statements: 

Balance sheet information:

   2007  

   2008  

Current assets

$  30,000

$  80,000

Long-term assets

100,000

200,000

Total assets

$130,000

$280,000

 

 

 

Current liabilities

$  15,000

$  10,000

Long-term liabilities

  30,000

  40,000

Total liabilities

$  45,000

$  50,000

 

 

 

Common stock

$  60,000

$100,000

Retained earnings

  25,000

130,000

Total stockholders’ equity

$  85,000

$230,000

 

 

 

Income statement information:

 

 

Income before interest and taxes

$  30,000

$200,000

Interest expense

3,000

8,000

Tax expense

   2,000

  50,000

Net income

$  25,000

$142,000

 

 

 

Other information:

 

 

Dividends paid to stockholders

$           0

$  37,000

Average income tax rate

23%

26%

Net cash flows from operations

$  25,000

$150,000

Cash paid for acquisitions

$  10,000

$  75,000

 

 

 

Refer to the Grogan Inc information above. Grogan’s working capital for 2008 is: A. $  70,000B. $230,000C. $  50,000D. $150,000

 

68. Grogan Inc. had the following information available from its 2007 and 2008 financial statements: 

Balance sheet information:

   2007  

   2008  

Current assets

$  30,000

$  80,000

Long-term assets

100,000

200,000

Total assets

$130,000

$280,000

 

 

 

Current liabilities

$  15,000

$  10,000

Long-term liabilities

  30,000

  40,000

Total liabilities

$  45,000

$  50,000

 

 

 

Common stock

$  60,000

$100,000

Retained earnings

  25,000

130,000

Total stockholders’ equity

$  85,000

$230,000

 

 

 

Income statement information:

 

 

Income before interest and taxes

$  30,000

$200,000

Interest expense

3,000

8,000

Tax expense

   2,000

  50,000

Net income

$  25,000

$142,000

 

 

 

Other information:

 

 

Dividends paid to stockholders

$           0

$  37,000

Average income tax rate

23%

26%

Net cash flows from operations

$  25,000

$150,000

Cash paid for acquisitions

$  10,000

$  75,000

 

 

 

Refer to the Grogan Inc information above. Grogan’s current ratio for 2008 is: (round to two decimal places) A. 2.67B. 5.60C.   .29D. 8.00

 

69. Grogan Inc. had the following information available from its 2007 and 2008 financial statements: 

Balance sheet information:

   2007  

   2008  

Current assets

$  30,000

$  80,000

Long-term assets

100,000

200,000

Total assets

$130,000

$280,000

 

 

 

Current liabilities

$  15,000

$  10,000

Long-term liabilities

  30,000

  40,000

Total liabilities

$  45,000

$  50,000

 

 

 

Common stock

$  60,000

$100,000

Retained earnings

  25,000

130,000

Total stockholders’ equity

$  85,000

$230,000

 

 

 

Income statement information:

 

 

Income before interest and taxes

$  30,000

$200,000

Interest expense

3,000

8,000

Tax expense

   2,000

  50,000

Net income

$  25,000

$142,000

 

 

 

Other information:

 

 

Dividends paid to stockholders

$           0

$  37,000

Average income tax rate

23%

26%

Net cash flows from operations

$  25,000

$150,000

Cash paid for acquisitions

$  10,000

$  75,000

 

 

 

Refer to the Grogan Inc information above. Grogan’s cash flow from operations to current liabilities ratio for 2008 is: (round to two decimal places) A. 12.00B. 15.00C.   3.00D.   1.06

 

70. Grogan Inc. had the following information available from its 2007 and 2008 financial statements: 

Balance sheet information:

   2007  

   2008  

Current assets

$  30,000

$  80,000

Long-term assets

100,000

200,000

Total assets

$130,000

$280,000

 

 

 

Current liabilities

$  15,000

$  10,000

Long-term liabilities

  30,000

  40,000

Total liabilities

$  45,000

$  50,000

 

 

 

Common stock

$  60,000

$100,000

Retained earnings

  25,000

130,000

Total stockholders’ equity

$  85,000

$230,000

 

 

 

Income statement information:

 

 

Income before interest and taxes

$  30,000

$200,000

Interest expense

3,000

8,000

Tax expense

   2,000

  50,000

Net income

$  25,000

$142,000

 

 

 

Other information:

 

 

Dividends paid to stockholders

$           0

$  37,000

Average income tax rate

23%

26%

Net cash flows from operations

$  25,000

$150,000

Cash paid for acquisitions

$  10,000

$  75,000

 

 

 

Refer to the Grogan Inc information above. Grogan’s debt-to-equity ratio for 2008 is: (round to two decimal places) A. .25B. .22C. .39D. .18

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more