Praven Company Income Statement For the Year Ended December

Customer Question

Praven Company

Income Statement
For the Year Ended December 31, Year 2
(dollars in thousands)

Sales (all on account). . . . . . . . . . . . . . . . . . . . .
Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . .
Gross margin. . . . . . . . . . . . . . . . . . . . . . . . . . .
Selling and administrative expense . . . . . . . . . .
Net operating income . . . . . . . . . . . . . . . . . . . . .
Interest expense . . . . . . . . . . . . . . . . . . . . . . . .
Net income before taxes . . . . . . . . . . . . . . . . . . .
Income taxes (30%) . . . . . . . . . . . . . . . . . . . . . .
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$1,700
1,190
510
200
310
40
270
81
$ 189

Dividends during Year 2 totaled $89 thousand, of which $18

thousand were preferred dividends. The market price of a share of

common stock on December 31, Year 2 was $130.

Compute the following for Year 2:

1. Book value per share

2. Working capital

3. Current ratio

4. Acid-test ratio

5. Accounts receivable turnover

6. Average collection period

7. Inventory turnover

8. Average sale period

9. Times interest earned

10. Debt-to-equity ratio

11. Porter Company has provided the following data for the second

Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $300,000

Fixed manufacturing overhead. . . . . . . . . . . . . .

Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Fixed selling expense . . . . . . . . . . . . . . . . . . . . .

Variable manufacturing overhead . . . . . . . . . . .

Variable administrative expense. . . . . . . . . . . . .

Direct materials . . . . . . . . . . . . . . . . . . . . . . . . .

Fixed administrative expense . . . . . . . . . . . . . . .

Variable selling expense . . . . . . . . . . . . . . . . . . . $ 49,750

Assume that direct labor is a variable cost and that there were

55,000

72,500

46,250

41,000

48,000

51,500

44,500

What is the total contribution margin of Porter Company for the

12. Jatry Corporation’s budgeted sales are $300,000, its

budgeted variable expenses are $210,000, and its

budgeted fixed expenses are $60,000. What is the

company’s break-even in dollar sales amount?

13. Superior Industries’ sales budget shows quarterly sales for the

Sales

(units)

8,000

First . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000

Second . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Third . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,000

Fourth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,000

Company policy is to have a finished goods inventory at the

end of each quarter equal to 20% of the next quarter’s sales.

How much should the budgeted production for the second

14. The following information is available on Company A:

Sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Net operating income . . . . . . . . . . . . . . . . .

Stockholders’ equity . . . . . . . . . . . . . . . . . .

Average operating assets. . . . . . . . . . . . . . .
Minimum required rate of return . . . . . . . .

$900,000

$ 36,000

$100,000

$180,000
15%

5

What is Company A’s residual income amount?

15. Nordstrand Company’s net income last year was
$36,000. Changes in selected balance sheet accounts for
the year appear below:

Increases

(Decreases)

Accounts receivable . . . . . . . . . . . . . . . . . . . . . $ (7,000)

Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (5,000)

Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . $ 3,000
Credit balances:

Accumulated depreciation . . . . . . . . . . . . . . . .
Accounts payable . . . . . . . . . . . . . . . . . . . . . .
Accrued liabilities . . . . . . . . . . . . . . . . . . . . . .
Taxes payable . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred taxes . . . . . . . . . . . . . . . . . . . . . . . . .

Based solely on this information, the net cash provided by

operations under the indirect method on the state-
ment of cash flows would be how much?

Submitted: 694 days and 20 hours ago.

Category: Finance

Value: $30

Status: CLOSED

Expert: BusinessTutor replied 694 days and 20 hours ago.

Hello

I am working on the question, but I wanted to make sure you understand that you need to click the accept button so that experts get paid. Please confirm

Expert: BusinessTutor replied 694 days and 20 hours ago.

Please click on the following link for the solution:

http://www.box.net/shared/oybbexaq88

P.S. If you like my services, please feel free to direct your future posts to me specifically by typing "ForCustomer/strong>" at the beginning of your post. Should you choose to do this, please try to allow me 48 hours before the deadline. If you need to meet me online for a timed assignment, please advise me of the date and time (EST) you want me to meet you here and I will. Please make sure you take the length (and number) of the questions into consideration when making your offer to avoid delays in providing solutions.

Thank you

Customer replied 694 days and 20 hours ago.

Am not understanding these. I had number one to 15 and they do not match. Ihave tried going through it but cannot understand. For instance question one they want

1. Book value per share,

Give me the the answer down here

2. Working capital,

Give me the answer here and and continue with the same to question 15. I paid initially and did not get my request fullfilled thus am being refunded and was asked to post the questions again. Kindly do these for me ASAP am late.

Expert: BusinessTutor replied 694 days and 20 hours ago.

You have made a deposit into your JA account, that amount stays in your JA until you get a solution and click accept, and only when you click Accept do experts get paid, I just want you to confirm you understand that because I see that someone had once answered one of your questions, but you never accepted the solution

Now, what I have sent you is the answer to the first question only as I had the solution ready, may be that is why you were confused; I can work on the others but I need to know your deadline please.

Customer replied 694 days and 19 hours ago.

Well that is fine with me , was just wondering why am getting one answer. I was a new user thus took me time to understand how these works. After you finish with all the questions i will surely click on the green button. I need the questions worked on before 5/20/11.

Expert: BusinessTutor replied 694 days and 19 hours ago.

I will post the solutions in a couple of hours. I posted the solution to the first question only because I missed reading the other questions. I got distracted and just posted the solution.

Expert: BusinessTutor replied 694 days and 2 hours ago.

Hello Denis

Sorry about the earlier confusion, please click on the following link for the full solutions:

http://www.box.net/shared/094fykjr1g

P.S. If you like my services, please feel free to direct your future posts to me specifically by typing "ForCustomer/strong>" at the beginning of your post. Should you choose to do this, please try to allow me 48 hours before the deadline. If you need to meet me online for a timed assignment, please advise me of the date and time (EST) you want me to meet you here and I will. Please make sure you take the length (and number) of the questions into consideration when making your offer to avoid delays in providing solutions.

Thank you

Customer replied 693 days and 21 hours ago.

Was just going through the questions and noticed there was no answer for ,

13. Superior Industries' sales budget shows quarterly sales for the

next year as follows:

Quarter

First . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000

Second . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Third . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,000

Fourth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,000

Company policy is to have a finished goods inventory at the

end of each quarter equal to 20% of the next quarter's sales.

How much should the budgeted production for the second

quarter be?

href="http://www.justanswer.com/finance/50jil-praven-company-income-statement-for-year-ended-december.html,000

Accepted Answer

Expert: BusinessTutor replied 693 days and 21 hours ago.

That is very strange! On the document I have, the solution is there, but on the one I uploaded it is not!! really strange

Anyway:

Units produced = Ending inventory + Units sold - Beginning inventory
= (12,000 x 20%) + 8,000 - (8,000 x 20%)
= 2,400 + 8,000 - 1,600 = 8,800

Regards,

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Category:	Finance
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Answered:	5/19/2011

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Customer replied 693 days and 21 hours ago.

Thanks i have five questions for you will add $ 9.00 pliz can you assist, and do i need to go ahead and accept the answer or do after you accept the next questions?

Expert: BusinessTutor replied 693 days and 21 hours ago.

Please click accept on this post and then make a new post for the new question, but $9 for 5 questions is too low, you can still make the new post and I will check the questions and tell you how much would be fair

Thank you

Customer replied 693 days and 20 hours ago.

Here are the questions,

(A.)Financial statements for Larkins Company appear below:

Larkins Company
Statement of Financial Position
December 31, Year 2 and Year 1
(dollars in thousands)

	Year 2	Year 1
Current assets: Cash and marketable securities Accounts receivable, net Inventory Prepaid expenses Total current assets Noncurrent assets: Plant & equipment, net	$180 210 130 50 570 1,540	$180 180 120 50 530 1,480
Total assets	$2,110	$2,010

Current liabilities:
Accounts payable
Accrued liabilities
Notes payable, short term
Total current liabilities
Noncurrent liabilities:
Bonds payable
Total liabilities
Stockholders' equity:
Preferred stock, $20 par, 10%
Common stock, $10 par
Additional paid-in capital--common stock
Retained earnings
Total stockholders' equity
Total liabilities & stockholders' equity

$100
60
90
250

480
730

120
180
240
840
1,380
$2,110

$130
60
120
310

500
810

120
180
240
660
1,200
$2,010

Larkins Company
Income Statement
For the Year Ended December 31, Year 2
(dollars in thousands)

Sales (all on account)
Cost of goods sold
Gross margin
Selling and administrative expense
Net operating income
Interest expense
Net income before taxes
Income taxes (30%)
Net income

$2,760
1,930
830
330
500
50
450
135
$315

Dividends during Year 2 totaled $135 thousand, of which $12 thousand were preferred dividends. The market price of a share of common stock on December 31, Year 2 was $150.

(1) Larkins Company's book value per share at the end of Year 2 was closest to:

(2). Larkins Company's dividend payout ratio for Year 2 was closest to:

B. Financial statements for Larkins Company appear below:

Larkins Company
Statement of Financial Position
December 31, Year 2 and Year 1
(dollars in thousands)

	Year 2	Year 1
Current assets: Cash and marketable securities Accounts receivable, net Inventory Prepaid expenses Total current assets Noncurrent assets: Plant & equipment, net	$180 210 130 50 570 1,540	$180 180 120 50 530 1,480
Total assets	$2,110	$2,010

Current liabilities:
Accounts payable
Accrued liabilities
Notes payable, short term
Total current liabilities
Noncurrent liabilities:
Bonds payable
Total liabilities
Stockholders' equity:
Preferred stock, $20 par, 10%
Common stock, $10 par
Additional paid-in capital--common stock
Retained earnings
Total stockholders' equity
Total liabilities & stockholders' equity

$100
60
90
250

480
730

120
180
240
840
1,380
$2,110

$130
60
120
310

500
810

120
180
240
660
1,200
$2,010

Larkins Company
Income Statement
For the Year Ended December 31, Year 2
(dollars in thousands)

Sales (all on account)
Cost of goods sold
Gross margin
Selling and administrative expense
Net operating income
Interest expense
Net income before taxes
Income taxes (30%)
Net income

$2,760
1,930
830
330
500
50
450
135
$315

Dividends during Year 2 totaled $135 thousand, of which $12 thousand were preferred dividends. The market price of a share of common stock on December 31, Year 2 was $150.

(a)Larkins Company's return on total assets for Year 2 was closest to:

(b) Larkins Company's earnings per share of common stock for Year 2 was closest to

C . Cridwell Company's selling and administrative expenses for last year totaled $210,000. During the year, the company's prepaid expense account balance increased by $18,000, and accrued liabilities increased by $12,000. Depreciation charges for the year were $24,000. Based on this information, selling and administrative expenses adjusted to a cash basis under the direct method on the statement of cash flows would be ?

D. Brittman Corporation makes three products that use the current constraint-a particular type of machine. Data concerning those products appear below:

	IP	NI	YD
Selling price per unit	$183.57	$207.74	$348.15
Variable cost per unit	$144.42	$155.04	$269.50
Minutes on the constraint	2.90	3.40	5.50

Assume that sufficient constraint time is available to satisfy demand for all but the least profitable product. Up to how much should the company be willing to pay to acquire more of the constrained resource?

Expert: BusinessTutor replied 693 days and 15 hours ago.

Hi denis

As I have advised you above, when you have a new set of questions, please post them as a new post. I am not sure how long I would be online so I will post the solutions here, but for future posts, if you have a new set of questions please make a new post:

http://www.box.net/shared/b1i7b2cu9m

Please read the following carefully:

If you like my services, please feel free to direct your future posts to me specifically by typing "ForCustomer/strong>" at the beginning of your post. Should you choose to do this, please try to allow me 48 hours before the deadline. If you need to meet me online for a timed assignment, please advise me of the date and time (EST) you want me to meet you here and I will. Please make sure you take the length (and number) of the questions into consideration when making your offer to avoid delays in providing solutions.

Thank you

Customer replied 689 days and 21 hours ago.

Well i had a flu and was just resting after taking medication, i did not see the two questions that i asked on the answers posted ie,

3.Larkins Company's dividend yield ratio on December 31, Year 2 was closest to

4.Larkins Company's price-earnings ratio on December 31, Year 2 was closest to

Lastly you said you will tell me the cost after going through the questions. In future i will be starting new threads for new question.

Expert: BusinessTutor replied 689 days and 20 hours ago.

All questions were answered denis, please download the document and you will see that all questions have been answered.

P.S. I believe that $5 per question is fair so that would be $25. You can add this amount as a bonus

Thank you

40686.7159043171

Customer replied 688 days ago.

Well when am trying to accept the answer am being charges a total of $30.00 again so i did not agree. It shows tha i had initially accepted the answer on the previous thread. Am not seeing the bonus button neither advise further.

Expert: BusinessTutor replied 688 days ago.

I am not sure how it looks from the student's side, but I will contact customer service and see if they can guide you on how to do that, or deduct the $25. In any case, there is only $5 difference between the $30 and the $25 bonus, you can simply click accept and then deduct the $5 from your next post. I do not think that $5 is the problem.

Thank you

Customer replied 687 days and 23 hours ago.

I only have 25.00 on my account now, contact customer care then revert.

Expert: BusinessTutor replied 687 days and 22 hours ago.

ok denis, bonus has been processed

Thank you

Customer replied 687 days and 21 hours ago.

That's fine

Expert: BusinessTutor replied 687 days and 19 hours ago.

I will close this post. please do not respond here so that it does not get reopened. For future posts, please make a new post and type "For BusinessTutor" at the beginning of the question and advise your deadline

Thank you

Customer replied 355 days and 18 hours ago.

1. Solve the inequality |2x - 4| < 10. Write the solution in interval notation and graph it.
2. Solve the inequality -2 (3 + x) < 4x + 4 < 8x. Give the result in set notation and graph it.
3. Solve the inequality |5x + 10| ≥ 15. Write the solution in interval notation and graph it.
4. Aunt Jane's Pies had a tent at the county fair. Unfortunately their cash register broke, so they have no receipts. They know from counting their left over paper plates that they made 413 sales. They know from the cash box that they made $2,243. If they only sell two kinds of items at the fair tent, a piece of pie for $4 and pie á là mode for $7, help them figure out how many of each kind they sold.

5. Solve the system of equations 2x - 2y - 2z = 3, x + 4y - z = 2, and -2x - 8y + 2z = -4.

6. Are the two equations -6 + y = 2x and 2y - 4x = 12 dependent?

7. Solve the inequality . Give the result in set notation and graph it.

8. Solve the system of equations y = 0.6x + 0.2 and 3x + 5y = 4.

9. Consider two ships, one on a course described by the equation 0.6x + 0.3y = 2.1 and the other on a course described by the equation -0.3x + 0.1y = -1.8. Which of the following sentences best describes the possibility of a collision?

10. Solve the equation |x| = 7.

11. Solve the system of equations x + y + z = 9, -x + y + z = 1, and x - y - z = 5.

12. When solving the system of equations 6x + 2y = -1 and -x + 10y = 5 by Cramer's Rule, what are the values of D, D_x, and D_y?

13. Which of the following phrases correctly describes the graph of the system of equations and y = 2 - x?

14. Find the value of the expression -|-18|.

15. Solve the inequality 4 < -z - 4 < 11. Give the result in set notation and graph it.

16. Choose the correct ways to fill in the blanks in the following sentence.
To solve a system of equations using the matrix method, use __________ to transform the augmented matrix into one with __________, then proceed to back-substitute.

17. Solve the inequality -6 ≤ 6x < 24. Give the result in set notation and graph it.

18. Which of these radical expressions simplifies to x?

19. Expand and simplify. Assume y ≥ 0.

20. .

21. Combine like radicals in .

22. Rationalize the denominator of .

23. Compute the value of .

24. Simplify .

25. Simplify assuming the variables represent non-negative numbers.

26. Which expression has the same value as 25½?

27. If the hypotenuse of a right triangle is 6m and one side is 4m, what is the length of the other side?

28. Which of these expressions simplifies to ?

29. What best describes the triangle whose corners are located at the points (1, 1), (2, 2), and (0, 16)?

30. Solve for x.

31. Simplify by rationalizing the denominator.

32. Simplify (6 - i)(2 + i).

33. Which of these points is 5 units away from the point (6, -1)?

34. What is the result of performing partial fraction decomposition on the rational function ?

35. Which of the following functions is a stretched version of f(x) = x³ + 6x + 1?

36.

37. Compute when f(x) = -2x² + 4.

38. The solution set for 4x² - 3x - 1 ≥ 0 is which of these?

39. Which is a correct setup for the partial fraction decomposition of ?

40. Which of the following is the solution set for the inequality ?

41. Choose the one true statement about .

42. Choose the one true statement about .

43. Find all roots of x³ + 2x² + 2x + 1. Hint: Find the rational one(s) first.

44. Solve 2^x = 5^x2 for x.

45. Which of the following is not a property of logarithms?

46. A falling object has velocity 37(1 - e^-0.4t) meters per second after t seconds of free fall. Which of the following statements is true?

47. How many roots does x⁶ = 3x⁵ + 1 have?

48. If 2 - i is a root of 3x³ - 11x² + 11x + 5, then what are its other roots?

49. On which interval does the Intermediate Value Theorem guarantee that the polynomial x⁴ + 7x² - 9x - 1 has a root?

50. If 1 and -6 are two of the roots of 6x⁴ + 31 x³ - 33x² - 16x + 12, then what are the other two?

51. Why do we use the Intermediate Value and Bisection Theorems to find only the irrational roots of polynomials?

52. A population of 2000 snakes is released into a marshland and grows according to the formula P = 2000 1.5^t, where t is the number of months after the release. Find the population 10 months after the release.

53. Write in terms of ln a, ln b, and ln c. You may assume that all variables are positive.

54. Which of these is the result of (x⁵ - x³ + 2x² - 9x + 5) ÷ (x + 2)?

55. Evaluate .

56. Find the point (x, y) on the parabola y = 9 - x² such that the shaded rectangle in the figure below has area 20 square units.

57. Solve ln t = log 50 for t.

58. Which of the following is the conclusion you can draw using Descartes' Rule of Signs applied to 2x⁴ - 6x³ + x² + 7x - 4?

59. Which of these is the remainder when 4x⁴ - 5x³ + 9 is divided by x - 3?

60. Simplify .

61. Which of the following is a reason for why the trace function on a graphing calculator can sometimes be better than the Bisection Theorem for finding roots?

62. If a cubic polynomial has roots -5 and 6 - 2i, what is its third root?

63. Which of the following is a correct description of the expression log_bx?

64. Which of the following is equal to log₆(t + 1) - log₆(t² - 1)?

65. Which are upper and lower bounds for the real roots of 3x⁴ - 2x³ + x - 9 = 0?

Expert: BusinessTutor replied 355 days and 18 hours ago.

Hello

I am sorry I cannot help with that. Please make a new post in the Math category and list your questions there

Thank you

Customer replied 355 days and 17 hours ago.

could you kindly foward it to the math section for me?

Expert: BusinessTutor replied 355 days and 17 hours ago.

Unfortunately no, you need to make a new post in the Math category then copy and paste the questions there

Customer replied 230 days and 21 hours ago.

I have 22 Finance investment question can you help?

Expert: BusinessTutor replied 230 days and 21 hours ago.

Hi denis, you need to make a new post and post the questions so that I can tell you if I can help. When you make the new post, please type "For BusinessTutor" at the beginning of the post and advise your deadline as well as the name of the book you are using: Title, author's name, and edition

Thank you

Customer replied 230 days and 21 hours ago.

I do not have any text book at the moment, can you check this link and advise if you can assist before i create a new post.

http://www.mediafire.com/view/?nad0woaqb7moarr

Customer replied 230 days and 21 hours ago.

Business Tutor,

Did you see my replies?

Expert: BusinessTutor replied 230 days and 18 hours ago.

Yes, I am sorry I got distracted as I was helping someone with a timed assignment. I apologize I cannot help with these

Customer replied 230 days and 16 hours ago.

Thanks.

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Praven Company Income Statement For the Year Ended December

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