Johnson Company Balance Sheet
Assets:
Cash and marketable securities $300,000
Accounts receivable 1,239,000
Inventories 1,747,500
Total current assets 3,286,500
Fixed assets 2,700,000
Less: accum. depr. (1,087,500)
Net fixed assets 1,612,500
Total assets $4,899,000
Liabilities:
Accounts payable $ 240,000
Notes payable 825,000
Accrued taxes 42,000
Total current liabilities $1,107,000
Long-term debt 975,000
Owner's equity 2,817,000
Total liabilities and owner's equity $4,899,000
Net sales (all credit) $6,375,000
Less: Cost of goods sold (4,312,500)
Selling and administrative expense (1,387,500)
Depreciation expense (135,000)
Interest expense (127,000)
Earnings before taxes $ 412,500
Income taxes (225,000)
Net income $ 187,500
6. The quick ratio for Johnson Company is:
a. 2.97
b. 1.31
c. 1.39
d. 2.11 Johnson Company Balance Sheet
Assets:
Cash and marketable securities $300,000
Accounts receivable 1,239,000
Inventories 1,747,500
Total current assets 3,286,500
Fixed assets 2,700,000
Less: accum. depr. (1,087,500)
Net fixed assets 1,612,500
Total assets $4,899,000
Liabilities:
Accounts payable $ 240,000
Notes payable 825,000
Accrued taxes 42,000
Total current liabilities $1,107,000
Long-term debt 975,000
Owner's equity 2,817,000
Total liabilities and owner's equity $4,899,000
Net sales (all credit) $6,375,000
Less: Cost of goods sold (4,312,500)
Selling and administrative expense (1,387,500)
Depreciation expense (135,000)
Interest expense (127,000)
Earnings before taxes $ 412,500
Income taxes (225,000)
Net income $ 187,500
7. The inventory turnover ratio for Johnson Company is:
a. 0.29 times
b. 2.35 times
c. 0.43 times
d. 2.47 times 22. Craig's Manufacturing Company is considering the purchase of a new machine for a cost of $250,000. The new machine will have a 5-year useful life and will be depreciated to an expected salvage value of zero using the straight-line method. The machine will allow the firm to produce a new product, which is expected to increase the firm's income before depreciation, interest, and taxes by $100,000 per year (in each of the five years). Craig's income tax rate is 34%. What is the projected incremental operating cash flow of the machine in each of years 1 to 5?
a. $ 66,000
b. $ 77,000
c. $ 83,000
d. $100,000
e. $116,000 37. An investment in Larry's Dodge Ball Company is expected to provide the following cash flows at the end of each respective year: Year Cash Flow
1 $200,000
2 350,000
3 500,000
4 600,000
What is the PV of these cash flows if the appropriate discount rate is 10%?
a. $1,033,994
b. $1,256,540
c. $1,410,373
d. $1,767,433 world geographyWhich country in West Africa has the highest number of people vulnerable to severe food insecurity? What is the number?
$$
\begin{matrix}\text{People Vulnerable to Food Insecurity,}\\\text{March 2012}\\\end{matrix}
$$
$$
\begin{matrix}\text{Country} & \text{Number of People Food Insecure}\\\text{Burkina Faso} & \text{2,852,280 food insecure}\\\text{Chad} & \text{3,622,200 food insecure,}\\ & \text{of which 1,180,300 severe}\\
\text{Gambia} & \text{713,433 in areas at risk}\\\text{Mauritania} & \text{700,000 food insecure,}\\ & \text{of which 290,000 severe}\\\text{Niger} & \text{6,112,089 food insecure,}\\ & \text{of which 1,916,855 severe}\\
\text{Senegal} & \text{850,000 food insecure}\\\end{matrix}
$$ 11th Edition•ISBN: 9781337623124Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman1,012 solutions
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