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scoundrel [369]
3 years ago
6

The Endot Manufacturing Company, a manufacturer and wholesaler of widgets, has provided you with the following financial informa

tion. The Company has asked you to make an analysis of the firm’s financial condition. In addition to the information given below, you have been informed that the firm has no lease payments but has principal payments of $2 million per year on its Long-term debt. Endot uses a 365-day year in preparing its ratios. Endot has 5,000,000 common shares outstanding. Endot’s financial statements are as follows:Balance Sheet as of December 31, 2014 (Millions of Dollars)Cash 45Accounts Payable 45Marketable Securities 33Notes Payable 45Accounts Receivable 66Other Current Liabilities 21Inventory 159Total Current Liabilities 111Total Current Assets 303Total Long Term Liabilities 24Total Liabilities135Gross Fixed Assets 225Less Depreciation 78Common Stock 114Net Fixed Assets 147Retained Earnings 201Total Shareholder Equity 315Total Assets 450Total Liabilities and Equity 450Statement of Income and Expenses for Year Ended December 31, 2014 (Millions of Dollars)Net Sales 795.0Costs of Goods Sold 660.0Gross Profit 135.0Fixed Expense 73.5EBITDA 61.5Depreciation Expense 12.0EBIT 49.5Interest Expense 4.5EBT 45.0Taxes (40%) 18.0Net Income 27.0What was Endot's Quick (Acid Test) Ratio? a. 0.37 b. 1.30c. 1.73d. 2.00e. 2.73
Business
1 answer:
Katyanochek1 [597]3 years ago
3 0

Quick ratio = 1.30 (Option C)

<u>Explanation:</u>

Quick ratio or acid test ratio is calculated as follows:

(Cash plus marketable securities plus accounts receivable ) divide by total current liabilities

In our question, we have been given with the data:

Cash = 45 million

Marketable securities = 33 million, accounts receivable = 66 million, total current laibailities = 111 million

So, let us now put the given values in the above stated formula:

Quick ratio = ( 45 plus 33 plus 66) divide by 111

After calculating we get, 1.30

Therefore, the quick ratio is 1.30

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Goods Guys Foods established a trust fund that provides $125,000 in scholarships each year for needy students. The trust fund ea
antiseptic1488 [7]

Answer:

$1,724.138

Explanation:

Given:

Payment received each year = $125,000

Rate of return = 7.25 % = 0.0725

Present value = ?

Computation of Present value:

Present value = Payment received each year / Rate of return

= $125,000 / 0.0725

= $1724137.93

Present value = $1724137.93

Present value = $1,724,138 (approx)

Therefore, firm have to contribute  $1,724.138

5 0
3 years ago
If 7000 dollars is invested in a bank account at an interest rate of 7 per cent per year, Find the amount in the bank after 14 y
Harlamova29_29 [7]

Answer:

1. Interest compounded annually = $18,049.74

2. Interest compounded quarterly = $18,493.77

3. Interest compounded Monthly = $18,598.16

4. Interest compounded continuously = $18,651.19

Explanation:

First let me state the formula for compound interest:

The future value of a certain amount which is compounded is the total amount (Principal + interest) on the amount of money, after compound interests have been applied, and this is shown below:

FV = PV (1+\frac{r}{n} )^{n*t}

where:

FV = Future value

PV = Present value = $7,000

r = interest rate in decimal = 0.07

n = number of compounding periods per year

t = compounding period in years = 14

For interests compounded continuously, the Future value is given as:

FV = PV × e^{r*t}

where

e is a mathematical constant which is = 2.7183

Now to calculate each on the compounding periods one after the other:

1. Interest compounded annually:

here n (number of compounding periods annually) = 1

Therefore,

FV = 7,000 × (1+\frac{0.07}{1})^{14}

FV = 7,000 × 1.07^{14} = $18,049.74

2. Interest compounded quarterly:

here, n = 3 ( there are 4 quarters in a year)

FV = 7,000 × (1+\frac{0.07}{4} )^{4*14}

FV = 7,000 × 1.0175^{56} = $18,493.77

3. Interest compounded Monthly:

here n = 12 ( 12 months in a year)

FV = 7,000 × (1+\frac{0.07}{12} )^{12*14}

FV = 7,000 × 1.005833^{168} = $18,598.16

4. Interests compounded continuously:

FV = PV × e^{0.07 * 14}

FV = 7,000 × 2.66446 = $18,651.19

3 0
3 years ago
Mobile Homes reported the following in its financial statements for the year ended December​ 31, ​: 2018 2017 Income Statement N
kirill [66]

Answer:

Mobile Homes

Computation of:

1. Collections from customers

Beginning Accounts Receivable    $615

Net Sales                                       25,118

Less ending accounts receivable    798

Collections from customers   $24,935

2. Payments for merchandise inventory

Beginning Accounts Payable    1,364

Purchases                                18,725

Ending Accounts payable         1,547

Payments                             $18,542

3. Payments of other operating expenses:

Accrued liabilities:

beginning                      851

Operating expenses 4,632

Less ending                  938

Cash payments        4,545

4. Acquisition of property plant and equipment:

Beginning cost = $4,622

Ending cost =       $3,671

Acquisition =         $951

5. Amount of borrowing with:

a) Long-term liabilities:

Ending        $477

Beginning  $461

Borrowing    $16

b) A-one paying no long term liabilities:

Accrued Liabilities:

Ending        $938

Beginning   $851

Borrowing    $87

6. Payment of cash dividends:

Retained Earnings $3,784

Net Income                1,611

Total available       $5,395

Retained earnings  (5,021)

Dividends paid        $374          

Explanation:

a) Data and Calculations:

Mobile Homes Financial Statements for the years ended December​ 31:

                                               2018             2017

Income Statement

Net Sales Revenue              $ 25,118      $ 21,893

Cost of Goods Sold                18,074          15,501

Depreciation Expense                271              234

Other Operating Expenses    4,632           4,277

Income Tax Expense                530              482

Net Income                             $ 1,611           1,399

                                               2018             2017

Balance Sheet

Cash                                          21                 19

Accounts Receivable             798              615

Merchandise Inventory       3,483          2,832

Property, Plant, and

Equipment, net                   4,351          3,437

Accounts Payable                1,547          1,364

Accrued Liabilities                 938             851

Long-term Liabilities              477             461

Common Stock, no par         670             443

Retained Earnings              5,021           3,784

Property, plant, and equipment:

PPE net          4,351          3,437

Depreciation     271            234

Cost               4,622         3,671

Purchases:

Ending inventory        3,483

Cost of goods sold   18,074

Beginning inventory (2,832)

Purchases                 18,725

6 0
3 years ago
As the television industry has changed in the last few decades from just three major networks to a multiplicity of networks, one
Ket [755]

Answer:

The answer is narrower competitive scope.

Explanation:

In a narrow competitive scope, a business might choose a focus strategy which can be oriented to cost leadership or differentiation. When implementing a focus strategy, the company chooses to only produce goods or provide services to a certain segment of people. In a cost leadership strategy, the business might choose to engage on initiatives that would lead it to be identified from its ability to provide the lowest possible price for its target segment. When choosing a differentiation strategy instead, the company’s competitive advantage would be its ability to provide a wide range of products.

4 0
3 years ago
Assume that Jack and Hal and Sophia enter into an agreement for the sale of the restaurant. Hal and Sophia get a loan from the F
QveST [7]

Answer:

The best answer would be C. Fourth National Bank made an assignment.

Explanation:

The Fourth National Bank made an allocation of the loan as it was belonging to the Bank of North America stating that they got a loan.

6 0
3 years ago
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