Chapter 4: I have 15 question to do for homework, however, I’m a little confuse with these 2 question, can someone help me please? The following information for Decher Automotives covers the year ended 2012: Administrative expense ………………………………. $ 62,000 Dividend income ……………………………………… 10,000 Income taxes ………………………………………….. 100,000 Interest expense ………………………………………. 20,000 Merchandise inventory, 1/1 …………………………… 650,000 Merchandise inventory, 12/31 …………………………. 440,000 Flood loss (net of tax) ………………………………….. 30,000 Purchases ……………………………………………….. 460,000 Sales ……………………………………………………. 1,000,000 Selling expenses ………………………………………… 43,000 Required a. Prepare a multiple-step income statement. b. Assuming that 100,000 shares of common stock are outstanding, calculate the earnings per share before extraordinary items and the net earnings per share. c. Prepare a single-step income statement. Chapter 7: 7-1 Consider the following operating figures Net sales………………………………….$1,079,143 Cost and deductions: Cost of sales…………………………$792,755 Selling and administration…… …$264,566 Interest expense, net….. ……….. 5,059 1,066,691 $12,452 P 7-4 Kaufman Company’s balance sheet follows. Assets Current assets Cash $ 13,445 Short-term investments—at cost (approximate market) 5,239 Trade accounts receivable, less allowance of $1,590 88,337 Inventories—at lower of cost (average method) or market: Finished merchandise 113,879 Work in process, raw materials, and supplies 47,036 160,915 Prepaid expenses 8,221 Total current assets 276,157 Other assets: Receivables, advances, and other assets 4,473 Intangibles 2,324 Total other assets 6,797 Property, plant, and equipment: Land 5,981 Buildings 78,908 Machinery and equipment 162,425 247,314 Less allowances for depreciation 106,067 Net property, plant, and equipment 141,247 Total assets $424,201 Liabilities and Shareholders’ Equity Current liabilities: Notes payable $ 2,817 Trade accounts payable 23,720 Pension, interest, and other accruals 33,219 Taxes, other than income taxes 4,736 Income taxes 3,409 Total current liabilities 67,901 Long-term debt, 12% debentures 86,235 Deferred income taxes 8,768 Minority interest in subsidiaries 12,075 Total liabilities 174,979 Stockholders’ equity: Serial preferred 9,154 Common $5.25 par value 33,540 Additional paid-in capital 3,506 Retained earnings 203,712 249,912 Less cost of common shares in treasury 690 Total shareholders’ equity 249,222 Total liabilities and shareholders’ equity $424,201 Required a. Compute the debt ratio. b. Compute the debt/equity ratio. c. Compute the ratio of total debt to tangible net worth. d. Comment on the amount of debt that Kaufman Company has Chapter 9 P 9-1 McDonald Company shows the following condensed income statement information for the current year: Revenue from sales….. ………………..$ 3,500,000 Cost of products sold …………………..(1,700,000) Gross profit………………………………. 1,800,000 Operating expenses: Selling expenses…… …………………..$ 425,000 General expenses….. ………………..350,000 (775,000) Operating income….. ………………………1,025,000 Other income……. …………………………..20,000 Interest…… ………………………………….(70,000) Operating income before income tax……es 975,000 Taxes related to operations………………… (335,000) Income from operations…………………….. 640,000 Extraordinary loss (less applicable income taxes o…….f …………………………….$40,000) (80,000) Income before noncontrolling interest….. 560,000 Noncontrolling interest (loss)…….. ………(50,000) Net income ……………………………….$ 510,000 Required Calculate the degree of financial leverage. P9-4 The following data relate to Edger Company: 2011 2010 2009 Earnings per share $ 2.30 $ 3.40 2008 $ 4.54 Dividends per share $ 1.90 $ 1.90 $ 1.90 Market price, end of year $ 41.25 $ 35.00 $ 29.00 Net income $ 9,100,000 $ 13,300,000 $ 16,500,000 Total cash dividends $ 6,080,000 $ 5,900,000 $ 6,050,000 Order backlog at year-end $5,490,800,000 $4,150,200,000 $3,700,100,000 Net contracts awarded $2,650,700,000 $1,800,450,000 $3,700,100,000 Note: The stock was selling
