ANN HARRIS ONY

Ch. 1: Question 3 (Concepts Review and Critical Thinking Questions section)

What is the primary disadvantage of the corporate form of organization? Name at least two advantages of corporate organization.

Ch. 2: Question 4 (Questions and Problems section): Microsoft® Excel® template provided for Problem 4.

Suppose the firm in Problem 3 had 90,000 shares of common stock outstanding. What is the earnings per share, or EPS, figure? What is the dividends per share figure?

Question 4

Input area:

Sales

Costs

Depreciation expense

Interest expense

Tax rate

Cash dividends

Shares outstanding

Output area:

Income Statement

Sales $-

Costs -

Depreciation expense -

EBIT $-

Interest expense -

EBT $-

Taxes (0%) -

Net income $-

Addition to retained earnings $-

Earnings per share #DIV/0!

Dividends per share #DIV/0!

Ch. 3: Question 4 (Question and Problems section)

The Green Corporation has ending inventory of $417,381, and cost of goods sold for the year just ended was $4,682,715. What is the inventory turnover? The days’ sales in inventory? How long on average did a unit of inventory sit on the shelf before it was sold?

Ch. 4: Question 6 (Questions and Problems section): Microsoft® Excel® template provided for Problem 6.

The most recent financial statements for Schenkel Co. are shown here: