Refer to the CVS annual report on its website to answer the following questions.

1. Does CVS use a classified balance sheet?

2. Did CVS’s debt to equity ratio change from 2010 to 2011? (Round to the nearest tenth of a percent.)

3. What is the contributed capital for 2011? How does contributed capital compare with retained earnings?

Write each of the following items, using capital letters where they are needed.

EXAMPLE: horseshoe mountain Horseshoe Mountain

Carson city

The net investment flow of a giant conglomerate, which is the rate of capital formation, is projected to be $t \sqrt{2 t^2+1}$ million dollars per year $t$ years from now. Find the accruement on the company's capital stock after $2$ years; that is, compute

$$\int_0^2 t \sqrt{2 t^2+1} d t$$

Finding operating and free cash flows Consider the following balance sheets and selected data from the income statement of Keith Corporation.

b. Calculate the firm’s operating cash flow (OCF) for the year ended December 31, 2015, using Equation 4.3.

Write each of the following items, using capital letters where they are needed.

EXAMPLE: horseshoe mountain Horseshoe Mountain

the great lakes

Terrific Comfort Specialists, Inc., reported the following stockholders’ equity on its balance sheet at June 30, 2012:

$$\begin{array}{lr} \textbf{TERRIFIC COMFORT SPECIALISTS, INC.}\\ \textbf{Stockholders’ Equity}\\ \textbf{June 30, 2012}\\ \hline \text{Paid-in Capital:}&\\ \quad\text{Preferred stock, 5\\\%, ? par, 650,000 shares authorized, 280,000 shares issued}&\$ 1,400,000\\ \quad\text{Common stock, par value \$1 per share, 5,000,000 shares authorized,}&\\ \quad\quad\text{1,350,000 shares issued and outstanding}&1,350,000\\ \quad\text{Paid in capital in excess of par—common}&2,400,000\\ \quad\quad\text{Total paid-in capital}&5,150,000\\ \text{Retained earnings}&12,300,000\\ \text{Total stockholders’ equity}&\$ 17,450,000\\ \end{array}$$

Requirements

1. Identify the different issues of stock that Terrific has outstanding.
2. What is the par value per share of Terrific’s preferred stock?
3. Make two summary journal entries to record issuance of all the Terrific stock for cash. Explanations are not required.
4. No preferred dividends are in arrears. Journalize the declaration of a $600,000 dividend at June 30, 2012. Use separate Dividends payable accounts for preferred and common. An explanation is not required.

If a company has to pay interest of 14% on long-term debt, then its cost of capital is 14%. Do you agree? Explain.

Malesherbes Company’s adjusted trial balance on June 30, 2014, contains the following accounts and balances: C. Fondren, Capital, $12,750; C. Fondren, Withdrawals,$580; Service Revenue, $6,300; Rent Expense,$900; Wages Expense, $1,050; Utilities Expense,$300; and Telephone Expense, $90. Prepare an income statement and statement of owner’s equity for the month of June.

Choose the word or phrase that is closest in meaning to the word in capital letters.

PONDER
(A) weigh down
(B) conquer
(C) explain
(D) think

Air Supply issued $6 million of 9%, 10-year convertible bonds at 101. The bonds are convertible into 24,000 shares of common stock. Bonds that are similar in all respects except that they are nonconvertible, currently are selling at 99 (that is, 99% of face amount). What amount should Air Supply record as equity and how much as a liability when the bonds are issued?

GAAP classifies items on the balance sheet in one of the following ways: Asset (A) Liability (L) Shareholders’ equity (SE) Item that would not appear on the balance sheet as conventionally prepared under GAAP. (N/A) Using the abbreviations, indicate the appropriate classification of each of the following items. If you can find no basis in the chapter for giving an answer, then speculate. m. Good credit standing

The following financial statement information is from five separate companies.

Required

1. Answer the following questions about Company V.

a. What is the amount of equity on December $31, 2018$?

b. What is the amount of equity on December $31, 2019$?

c. What is the net income or loss for the year $2019$?

2. Answer the following questions about Company W.

a. What is the amount of equity on December $31, 2018$?

b. What is the amount of equity on December $31, 2019$?

c. What is the amount of liabilities on December $31, 2019$?

3. Compute the amount of owner investments for Company X during $2019$.

4. Compute the amount of assets for Company Y on December $31, 2019$.

5. Compute the amount of liabilities for Company Z on December $31, 2018$.

Suppose Pfizer declares a 200,000 common stock dividend (par $0.05) when the market value of a share is$20.00. Which one of the following statements is true? a. The common stock account increases by $10,000.
b. Additional paid-in capital decreases by$3.99 million.
c. Retained earnings increases by $4 million.
d. Additional paid-in capital increases by$4 million.

You are given the rate of investment d l / d t. Find the capital accumulation over a five-year period by evaluating the definite integral Capital accumulation $=\int_0^5 \frac{d I}{d t} d t$ where $t$ is the time in years. $\frac{d I}{d t}=500 \sqrt{t+1}$