I’m working on a Management question and need guidance to help me study.
1)
Intro
You’ve collected the following information about a company:
| Assets | Liabilities and Equity | |||
| Cash | 10,000 | Accounts payable | 17,000 | |
| Marketable securities | 2,000 | Notes payable | 6,000 | |
| Accounts receivable | 4,000 | Current liabilities | ||
| Inventory | 31,000 | Long-term debt | 95,000 | |
| Current assets | Total liabilities | |||
| Machines | 34,000 | Paid-in capital | 20,000 | |
| Real estate | 80,000 | Retained earnings | ||
| Fixed assets | Equity | |||
| Total assets | Total liab. & equity | |||
QUESTIONS
– What is total equity?
– What is retained earnings?
2)
Intro
Emily Lim owns and runs an ice cream parlor in San Diego. Last year, she had sales of $430,000 and an average tax rate of 26%. She spent $43,000 on ingredients, $21,500 on utilities, and $77,400 to rent the premises.
Emily has a few employees and paid them $86,000 in wages in total. She also paid herself a salary of $64,500 and spent $43,000 to pay for employee benefits.
A few years ago, Emily borrowed money to buy the ice making equipment. Last year, she paid $21,500 in interest on that loan. Depreciation for the equipment was $12,900.
QUESTIONS
– What was net income for the year?
3)
Intro
A company has $14,500,000 in taxable income. Consider the following corporate marginal tax rates:
| Taxable income ($) | Tax rate | |
| 0- | 50,000 | 15% |
| 50,001- | 75,000 | 25% |
| 75,001- | 100,000 | 34% |
| 100,001- | 335,000 | 39% |
| 335,001- | 10,000,000 | 34% |
| 10,000,001- | 15,000,000 | 35% |
| 15,000,001- | 18,333,333 | 38% |
| 18,333,334+ | 35% | |
QUESTIONS
– What is the total tax bill for the company, i.e., how much does the company have to pay in taxes (in $)?
4)
Intro
Below is the balance sheet for Northern Comfort Company for December 31 of 2019 and 2020.
| 2019 | 2020 | 2019 | 2020 | |||
| Cash | 950 | 1,100 | Accounts payable | 2,850 | 3,300 | |
| Accounts receivable | 2,850 | 3,300 | Current liabilities | 2,850 | 3,300 | |
| Inventory | 2,850 | 3,300 | Long-term debt | 5,700 | 6,600 | |
| Current assets | 6,650 | 7,700 | Total liabilities | 8,550 | 9,900 | |
| Net fixed assets | 12,350 | 14,300 | Equity | 10,450 | 12,100 | |
| Total assets |
19,000 |
22,000 | Total liab. & equity | 19,000 | 22,000 |
The income statement for 2020 is also given:
| Amount | |
| Sales | 52,800 |
| Cost | 29,040 |
| Depreciation | 7,920 |
| EBIT | 15,840 |
| Interest | 5,280 |
| EBT | 10,560 |
| Taxes | 3,274 |
| Net income | 7,286 |
QUESTIONS
– What was the operating cash flow for 2020?
– What was the change in net working capital?
– What was net capital spending in 2020?
– What was the cash flow from assets for 2020?
5)
Intro
Below is the balance sheet for Trinity Motors Company for December 31 of 2019 and 2020.
| 2019 | 2020 | 2019 | 2020 | |||
| Cash | 900 | 1,000 | Accounts payable | 2,700 | 3,000 | |
| Accounts receivable | 2,700 | 3,000 | Current liabilities | 2,700 | 3,000 | |
| Inventory | 2,700 | 3,000 | Long-term debt | 5,400 | 6,000 | |
| Current assets | 6,300 | 7,000 | Total liabilities | 8,100 | 9,000 | |
| Net fixed assets | 11,700 | 13,000 | Equity | 9,900 | 11,000 | |
| Total assets |
18,000 |
20,000 | Total liab. & equity | 18,000 | 20,000 |
The income statement for 2020 is also given:
| Amount | |
| Sales | 48,000 |
| Cost | 26,400 |
| Depreciation | 7,200 |
| EBIT | 14,400 |
| Interest | 4,800 |
| Taxes | 2,400 |
| Net income | 7,200 |
| Dividends | 6,480 |
QUESTIONS
– What was the cash flow from assets in 2020?
– What was the cash flow to creditors in 2020?
– What was the cash flow to stockholders in 2020?
6)
Intro
You’ve collected the following information about a company:
| Assets | Liabilities and Equity | |||
| Cash | 12,000 | Accounts payable | 19,000 | |
| Marketable securities | 2,000 | Notes payable | 6,000 | |
| Accounts receivable | 6,000 | Current liabilities | ||
| Inventory | 38,000 | Long-term debt | 95,000 | |
| Current assets | Total liabilities | |||
| Machines | 34,000 | Paid-in capital | 20,000 | |
| Real estate | 80,000 | Retained earnings | ||
| Fixed assets | Equity | |||
| Total assets | Total liab. & equity | |||
QUESTIONS
– What are total assets?
– What is total equity?
– What is retained earnings?
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