6.The following is the balance sheet of Able Corporation immediately prior to deciding how to finance the purchase of a $300 addition to its building.
Able Corporation
Balance Sheet
December 31, 2010
Assets
Cash$ 300
Accounts receivable260
Building390
Land 370
Total assets$1,320
Liabilities and Shareholders’ Equity
Accounts payable$ 190
Long-term bonds payable 620
Contributed capital 340
Retained earnings 170
Total liabilities &shareholders’ equity $1,320
The bonds payable contract agreement requires current assets to be twice as much as current liabilities. Assume the $300 addition to the building is to be paid in cash and financed by issuing more stock. Calculate and explain the maximum cash that Able can pay and still honor its debt agreement.
7. What is the total amount owed to Ulrich by its customers at the end of 2010?
8.Calculate total expenses for Ulrich.
9.Calculate Ulrich’s total current assets.
10.How much must Ulrich pay out during its next accounting period for amounts owed?
11.Below is all of the account information from Chamber Company’s balance sheet, with the exception of Retained Earnings.
Cash$12,000
Inventory15,000
Equipment50,000
Accounts Payable17,000
Long-term Payable10,000
Contributed capital30,000
Using this information, please calculate the following:
A.The total amount of retained earnings for Chamber Company.
B.The total amount of shareholders’ equity for the company at the end in the year.
12.The following information is shown on Morris Company’s balance sheet. Answer the questions that follow.
Cash$12,000
Inventory15,000
Equipment50,000
Accounts Payable15,000
Bonds Payable30,000
Contributed capital20,000
A.How much did debt investors provide to Morris Company?
B.What is the amount of money provided by equity investors to Morris Company?
C.How much would be classified as property, plant, and equipment?
13.Autry Company determined its total sales were $380,000, salaries expense was $120,000, dividends paid were $8,000, rent expense was $14,000, other operating expenses were $20,000, and customers still owed $2,000 at the end of the year. How much is net income for the year?
14.If cash flows from operating activities were $3,000, cash outflows for financing activities were $2,500, and the net increase in cash was $5,000, how much are cash flows from investing activities?
15.The following is the balance sheet of Columbus Corporation immediately prior to deciding how to finance the purchase of an additional $200,000 parcel of land. Answer the question that follows.
Columbus Corporation
Balance Sheet
December 31, 2010
Assets
Cash$ 180,000
Accounts receivable60,000
Land270,000
Total assets$510,000
Liabilities and Shareholders’ Equity
Accounts payable $ 90,000
Contributed capital 250,000
Retained earnings170,000
Total liabilities &shareholders’ equity $510,000
REQUIRED: Columbus will finance the $200,000 investment in land by issuing either $200,000 of common stock or using $200,000 of additional accounts payable that will be due in 90 days. Indicate which method of financing is preferable for Columbus. Consider the effects on short-term solvency positions.
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.
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 moreEach 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 moreThanks 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 moreYour 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 moreBy 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