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    Ch01 Problems

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    Seema Kiran
    The balance sheet shows the company's assets, liabilities, and equity for 2013 and 2012. Total assets increased from $1.5 million in 2012 to $2.9 million in 2013, driven primarily by increases in accounts receivable, inventories, and fixed assets. Total liabilities also increased from $1 million to $1.7 million over this period. Retained earnings increased the company's total equity from $0.5 million to $0.7 million. The income statement shows revenues increased from $3.4 million to $6 million from 2012 to 2013, while net income decreased from $88,000 to a loss of $160,000 over the same period.

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    Ch01 Problems

    Uploaded by

    Seema Kiran
    98 views1 page
    The balance sheet shows the company's assets, liabilities, and equity for 2013 and 2012. Total assets increased from $1.5 million in 2012 to $2.9 million in 2013, driven primarily by increases in accounts receivable, inventories, and fixed assets. Total liabilities also increased from $1 million to $1.7 million over this period. Retained earnings increased the company's total equity from $0.5 million to $0.7 million. The income statement shows revenues increased from $3.4 million to $6 million from 2012 to 2013, while net income decreased from $88,000 to a loss of $160,000 over the same period.

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    The balance sheet shows the company's assets, liabilities, and equity for 2013 and 2012. Total assets increased from $1.5 million in 2012 to $2.9 million in 2013, driven primarily by increases in accounts receivable, inventories, and fixed assets. Total liabilities also increased from $1 million to $1.7 million over this period. Retained earnings increased the company's total equity from $0.5 million to $0.7 million. The income statement shows revenues increased from $3.4 million to $6 million from 2012 to 2013, while net income decreased from $88,000 to a loss of $160,000 over the same period.

    Copyright:

    © All Rights Reserved
    Download as TXT, PDF, TXT or read online from Scribd
    Download as txt, pdf, or txt
    98 views1 page

    Ch01 Problems

    Uploaded by

    Seema Kiran
    The balance sheet shows the company's assets, liabilities, and equity for 2013 and 2012. Total assets increased from $1.5 million in 2012 to $2.9 million in 2013, driven primarily by increases in accounts receivable, inventories, and fixed assets. Total liabilities also increased from $1 million to $1.7 million over this period. Retained earnings increased the company's total equity from $0.5 million to $0.7 million. The income statement shows revenues increased from $3.4 million to $6 million from 2012 to 2013, while net income decreased from $88,000 to a loss of $160,000 over the same period.

    Copyright:

    © All Rights Reserved
    Download as TXT, PDF, TXT or read online from Scribd
    Download as txt, pdf, or txt
    of 1

    Balance Sheet:

    Assets
    Cash
    Accounts Receivable
    Inventories
    Total Current Assets

    2013
    7,282
    632,160
    1,287,360
    1,926,802

    Gross Fixed Assets


    Less: Depreciation
    Net Fixed Assets

    1,202,360
    263,160
    939,790

    Total Assets

    2,866,592

    2012
    57,600
    351,200
    715,200
    1,124,000
    491,000
    146,200
    344,800
    1,468,800

    Liabilities and Equity


    2013
    2012
    Accts payable
    544,160
    Notes payable
    636,808
    Accruals
    489,600
    Total Current Liabilities
    1,650,568
    81,600

    145,600
    200,000

    Long-term debt

    723,432

    323,432

    Common stock
    Retained earnings
    Total Equity

    460,000

    Total L & E
    Income statement
    Sales
    COGS
    Other expenses
    EBITDA
    Depr. & Amort.
    EBIT
    Interest Exp.
    EBT
    Taxes
    Net income

    136,000
    4

    460,000
    32,592
    492,592

    203,768
    663,768

    2,866,592
    2013

    1,468,800
    2012

    6,034,000
    5,528,000
    519,988
    (13,988)
    116,960
    (130.948)
    136,012
    (266,960)
    (106,784)
    (160,176)

    3,432,000
    2,864,000
    358,672
    209,328
    18,900
    190,428
    43,828
    146,600
    58,640
    87,960

    Other data
    No. of shares
    EPS
    DPS
    Stock price
    Lease pmts

    100,000
    -1.602
    0.11
    2.25
    40,000

    100,000
    0.88
    0.22
    8.50
    40,000

    1. Little Books Inc. recently reported net income of $3 million. Its operating
    income
    Income Statement
    (EBIT) was $6 million, and the company pays a 40 percent
    tax rate. What was the company's interest expense for the year? [Hint: Divide
    $3 million by (1 - T) = 0.6 to find taxable income.]

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