A vacant lot acquired for $100,000 is sold for$350,000 in cash. What is the effect of the sale on the total amount of the seller’s (1) assets, (2) liabilities, and (3) owner’s equity?

A company proposes to include in its SEC registration statement a balance sheet showing its subordinate debt as a portion of stockholders' equity. Will the SEC allow this? Why or why not?

The Graber Corporation’s common stock has a beta of 1.15. If the risk-free rate is 3.5% and the expected return on the market is 11%, determine the company’s cost of equity capital.

This period, Amadeus Co. purchased its only available-for sale investment in the notes of Bach Co. for $83,000. The period-end fair value of these notes is$84,500. Amadeus records a

a. Credit to Unrealized Gain-Equity for $1,500.

b. Debit to Unrealized Loss-Equity for$1,500.

c. Debit to Investment Revenue for $1,500.

d. Credit to Fair Value Adjustment- Available-for-Sale for$3,500.

e. Credit to Cash for $1,500.

Use the formulas in the How To box: Prepare a Balance Sheet to explain the formula: Total current assets $+$ total plant and equipment $=$ total liabilities $+$ total owner's equity.

Calculate the unknown amount in each of the following separate companies a through d.

Indicate whether each of the following types of transactions will either decrease owner’s equity:

1. owner’s investments
2. revenues
3. expenses
4. owner’s withdrawals

Refer to Samsung’s 2013 balance sheet in Appendix A near the end of the book. Confirm that its total assets equal its total liabilities plus total equity.

The following data were taken from Alvarado Company’s balance sheet:

a. Compute the ratio of liabilities to owner’s equity. b. Has the creditor’s risk increased or decreased from December 31, 2013, to December 31, 2014?

At the moment, Charter Enterprises is entirely funded by equity and has assets worth $1 million. It's thinking about altering its capital structure. Calculate the debt and equity balances that would exist if the company switched to the following debt ratios: 10%, 20%, 30%, 40%, 50%, 60%, and 90%. (Note: The total number of assets would remain the same.) Does the debt ratio have a maximum value?

In early $2015$, Abercrombie & Fitch (ANF) had a book equity of $\$ 1390$ million, a price per share of $\$ 25.52$, and $69.35$ million shares outstanding. At the same time, The Gap (GPS) had a book equity of $\$ 2983$ million, a share price of $\$ 41.19$, and $421$ million shares outstanding.

a. What is the market-to-book ratio of each of these clothing retailers?

b. What conclusions can you draw by comparing the two ratios?

Determine the financial statement on which the item below appears. Use I for income statement. E for statement of owner's equity, and B for balance sheet.
 Owner Withdrawals

Best Buy Co., Inc., reported the following amounts in its February 3, 2018, and January 28, 2017, financial statements.

Compute Best Buy's debt-to-equity ratio as of February 3, 2018.

a. Show that the logistic function $f(x)=\frac{N}{1+A b^{-x}}$ can be written in the form $f(x)=\frac{N b^{x}}{A+b^{x}}$. b. Use the result of part (a) and a suitable substitution to show that $\int \frac{N}{1+A b^{-x}} d x=\frac{N \ln \left(A+b^{x}\right)}{\ln b}+C$. The rate of graduation of private high school students in the United States for the period 1994-2008 was approximately $r(t)=220+\frac{110}{1+3.8(1.27)^{-t}}$ thousand students per year $(0 \leq t \leq 14)$ t years since 1994. Use the result of part (b) to estimate the total number of private high school graduates over the period 2000-2008.