Accounting Homework

1.       The information presented here represents selected data from the December 31, 2010, balance sheets and income statements for the year then ended for three firms.

Required:

Calculate the missing amounts for each firm. (Omit the "$" sign in your response.)

Firm A

Firm B

Firm C

  Total assets, 12/31/10

 $

412,000  

 $

532,000  

 $

326,000  

  Total liabilities, 12/31/10

219,000  

149,000  

(22,500)

  (dividends)

  Ending:

$

$

$

$

$

$

$

$

$

$

$

$

[removed] 

  Total owners' equity

$[removed]  

  Total liabilities and owners' equity

$[removed]  

(b)

What is the company's average income tax rate? (Round your answer to the nearest whole percent. Omit the "%" sign in your response.)

  Average income tax rate

[removed]%

(c)

What interest rate is charged on long-term debt? (Round your answer to the nearest whole percent. Omit the "%" sign in your response.)

  Interest rate

[removed]%

(d)

What is the par value per share of common stock? (Omit the "$" sign in your response.)

  Par value per share

$[removed]  

(e)

What is the company's dividend policy (i.e., what proportion of the company's earnings are used for dividends)? (Round your answer to the nearest whole percent. Omit the "%" sign in your response.)

  Dividend

[removed]%