Homework Assignment

MGMT_240_wk2_HW.3.xls

Week 2 HW Assignment

WEEK 2 HOMEWORK ASSIGNMENT- 240


Problem 3-5

Part a. Earnings per share

	Net profit before taxes
	Less: Taxes at 40%
	Net profit after taxes
	Less: Preferred dividends
	Earnings available to common stockholders

						Earnings per share =


Part b. Amount to retained earnings:

	Earnings available to common stockholders
	Less: Common stock dividend
	Amount to retained earnings


Problem 3-13

	Item				2012	2013	2014	2015
	Total current assets				16,950	21,900	22,500	27,000
	Total current liabilities				9,000	12,600	12,600	17,400
	Inventory				6,000	6,900	6,900	7,200

Part a.
		Ratio			2012	2013	2014	2015
		Current Ratio
		Quick Ratio


Part b.



Part c.





Problem P4-3:

Part a.

	Cost of grinder
	Depreciation %
	Depreciation


Part b.

	Pre-tax income
	Less: Depreciation
	Net taxable income




	Original tax liability on $430,000 =

	Net tax liability on $414,000 =

	Tax savings =



Problem P4-5:

	Item		Change	I/O	Item	Change	I/O
	Cash		100		Accts. Rec.	-700
	Accounts payable		-1000		Net profits	600
	Notes payable		500		Depreciation	100
	Long-term debt		-2000		Repurchase stk	600
	Inventory		200		Cash dividends	800
	Fixed assets		400		Sale of stock	1000


Problem 4-7:

				April	May	June	July	August
	Sales			$65,000	$60,000	$70,000	$100,000	$100,000
	Cash sales (50%)
	Collections:
	1 month ago (25%)
	2 months ago (25%)
	Total Cash Receipts


Problem P4-12
						Pro Forma	Pro Forma
					Cash	Income	Balance
	Transaction				Budget	Statement	Sheet
	Cash sale
	Credit sale
	Accounts receivable collected
	Asset, 5-year life, purchased
	Depreciation is taken
	Amortization of goodwill taken
	Sale of Common Stock
	Retirement of outstanding bonds
	Fire insurance paid for 3 years