You are considering making a loan to The Coca-Cola Company. The following information is from the financial statements included in Form 10-K for fiscal years 2013 and 2012 (in millions of dollars): Net operating revenues for the year ended: December 31, 2013 ……………………………….. $46,854 December 31, 2012 ………………………………. 48,017 Trade accounts receivable, less allowances of […]
You are considering making a loan to The Hershey Company. The following information is from the financial statements included in Form 10-Kfbr fiscal years 2013 and 2012 (in thousands of dollars): Net sales for the year ended: December 31, 2013 ………………………………….. $7,146,079 December 31, 2012 ………………………………….. 6,644.252 Accounts receivable-trade, net: December 31, 2013 ………………………………….. 477,912 […]
You are given the following data: Sales ….. $227,500,000 Invested capital . $ 65,000,000 Net income ….. $ 9,100,000 Compute the following: 1. Turnover of capital 2. Return on sales 3. Return on investment (ROI)
You have been asked to account for a plant asset exchange on the books of the Ecara Video Game Company. On January 1, 2010, Ecara acquired a plastic extruding machine at a cost of $ 260,000. This machine had an original estimated useful life of 10 years and a scrap value of $ 20,000. The […]
You have been asked to compute the capital dividend account of Granatstein Ltd., a Canadian-controlled private corporation incorporated in 1986. You have reviewed the tax returns of the corporation for the period January 1, 1986 to December 31, 2008 and made the following notes: 1987 Disposed of bonds resulting in a capital gain of $10,000. […]
You have been asked to consider investing in ASAP Printing Services Inc. Additional information: Total assets at January 1, 2016, were $4,100,000. Net income for 2016 was $420,000. No new shares were issued in 2016. Required Calculate the following for 2016: 1. Rate of return on total assets 2. Rate of return on common shareholders […]
You have been assigned to examine the financial statements of Picard Corporation for the year ended December 31, 2017, as prepared following IFRS. Picard uses a periodic inventory system. You discover the following situations: 1. The physical inventory count on December 31, 2016 improperly excluded merchandise costing $34,000 that had been temporarily stored in a […]
You have been assigned to the audit of Mid-State Electronics Corporation, a medium-size distributor of electronics equipment serving a geographic area within a radius of 150 miles. Mid-State has installed a client-server computer and provides remote access to its sales people on the road. Salespeople can enter sales orders via remote dial-in at any time. […]
You have been attending a small and medium-sized companies trade conference where one of the topics was inventory management. You have gathered and shared the following information on cutting tools: Required: (a) Calculate the EOQ for cutting tools for each company. (b) Calculate the number of orders per year. Round up to the nearest unit.
You have been employed for six months in the marketing department at Joe s Transports Ltd. Joe has asked for your advice on how to invest the firm s $100,000 in liquid cash since you are the most recent graduate on staff. He wants to invest in the trucking industry since that is what he […]
