Access Intel Inc. finanical statements and answer questions in a Word document. Indicate the page number of the report where the answer was found. Show ALL caluculations, step by step. Any sources used for answers should be noted. Please do not ask to do this unless you have Accounting experience.
2. The three elements of the fraud triangle are a perceived pressure, a perceived opportunity, and rationalization.
The following data applies to Crunch Cookie Company:
Income Statement
Sales: $1,000,000
Operating Expenses: (626,000)
EBIT: 374,000
Interest: (24,000)
EBT: 350,000
Taxes @40%: (140,000)
Net Income: 210,000
Year Net Income Per Share
1988 $210,000 3.50
1987 195,000 3.25
1986 180,000 3.00
1985 167,000 2.75
1984 155,000 2.60
1983 143,500 2.40
1982 132,500 2.20
Assets
Current $300,000
Fixed $600,000
Total $900,000
Liabilities and Owners’ Equity
Bonds ($1000 par) $300,000
Common Stock ($20par) $300,000
Retained Earnings $300,000
Total $900,000
Bond Price $687 Common Stock Price $54
Common Stock costs $5 per share to issue, floatation cost for bonds is 5% and the bonds have ten years to maturity. Assume the growth rate in earnings and dividends to be constant over time and the payout rate to be the same as in the previous year.
A. What is the expected earnings and expected retained earnings for 1989?
B. What is Crunch’s weighted average cost of capital with retained earnings? Without retained earnings?
C. At what level of total financing will the WACC increase?
D. In order to estimate the weighted average cost of capital we need to make certain assumptions. What are these assumptions and explain why we need to make them.
Any excess of cost over book value is attributable to inventory (worth $12,500 more than cost), to equipment (worth $25,000 more than book value), and to goodwill. FIFO is used for inventories. The equipment has a remaining life of four years, and straight-line depreciation is used. On January 1, 2012, Peanut held merchandise acquired from Salt for $20,000. During 2012, Salt sold merchandise to Peanut for $40,000, $10,000 of which was still held by Peanut on December 31, 2012. Salt usual gross profit is 50%.
On January 1, 2011, Peanut sold equipment to Salt at a gain of $15,000. Depreciation is being computed using the straight-line method, a 5-year life, and no salvage value. The following trial balances were prepared for the Peanut and Salt companies for December 31, 2012:
Required
Complete the worksheet for consolidated financial statements for the year ended December 31, 2012. Include any necessary determination and distribution of excess schedule and income distribution schedules.
Required:
For each of the foregoing transactions, explain how financial statement elements will be affected and how the results of the transactions and events should be reported in each company’s year- end financial statements.
Compute the company current ratio for 2014, 2015, and 2016. What is the trend and what does this suggest about the company?
4. At the beginning of 2017, Lee Delivery Company applied to your bank for a $ 50,000 short- term loan to expand the business. The vice- president of the bank asked you to review the information and make a recommendation on lending the funds based solely on the results of the current ratio. What recommendation would you make to the bank vice- president about lending the money to Lee Delivery Company?
Heathrow issues $2,900,000 of 9%, 15-year bonds dated January 1, 2011, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $3,549,590. Required: 1. Prepare the January 1, 2011, journal entry to record the bonds’ issuance. (Omit the “$” sign in your response.) Date General Journal Debit Credit Jan. 1 2(a) For each semiannual period, compute the cash payment. (Omit the “$” sign in your response.) Cash payment $ 2(b) For each semiannual period, compute the the straight-line premium amortization. (Round your answer to the nearest dollar amount. Omit the “$” sign in your response.) Amount of premium amortized $ 2(c) For each semiannual period, compute the the bond interest expense. (Omit the “$” sign in your response.) Bond interest expense $ 3. Determine the total bond interest expense to be recognized over the bonds’ life. (Omit the “$” sign in your response.) Total bond interest expense $ 4. Prepare the first two years of an amortization table using the straight-line method. (Omit the “$” sign in your response.) Semiannual Period-End Unamortized Premium Carrying Value 1/01/2011 $ $ 6/30/2011 12/31/2011 6/30/2012 12/31/2012 5. Prepare the journal entries to record the first two interest payments. (Omit the “$” sign in your response.) Date General Journal Debit Credit June 30 Dec. 31
Academicpapers.net is a pioneering academic writing service with a customer base comprising of thousands of students. We have hundreds of expert writers aboard working in collaboration with a diligent quality assurance team.
Phone: +1 (940) 905 5542