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I need assistance with some corporate accounting homework

Customer Question

I need assistance with some corporate accounting homework questions, given outside of the text book. Could I send these to you for assistance? text is: Graham, J.R. & Smart, S.B. (2012).
Introduction to corporate finance (3rd ed.).Cincinnati, OH:South Western Cengage Learning Publishing.
Submitted: 10 months ago.
Category: Multiple Problems
Expert:  F. Naz replied 10 months ago.

Yes, please provide the details, thanks.

Customer: replied 10 months ago.
Relist: Other.
I do not like the credentials of the expert I was given.
Customer: replied 10 months ago.

How do I send you a word attachment?

Expert:  F. Naz replied 10 months ago.

You can upload data at www.mediafire.com or www.wikisend.com and provide me the link and also mention your deadline, thanks.

Customer: replied 10 months ago.

  1. 1. Bavarian Sausage, Inc. posted the following income statement:
































































Income Statement



Sales




$525,000



Cost of goods sold




215,000



Depreciation




65,000






Earnings before

interest and taxes





245,000



Interest expense



35,000







Net profit before

taxes





210,000



Taxes (@ 40%)




84,000






Net income




$126,000



What is Bavarian Sausage, Inc.’s operating cash flow?



  1. 2. Bavarian Sausage, Inc. posted the following balance sheet and income statement:



















































Balance Sheet



Cash



$ 50,000




Accounts Payable



$185,000



Accounts Receivable



125,000




Notes Payable



125,000



Inventories



225,000




Long-term debt



115,000



Net Plant and

Equipment




525,000




Common Stock




350,000






Retained earnings



150,000



Total Assets




$925,000




Total liabilities and

Stockholders’ Equity




$925,000

































































Income Statement



Sales




$525,000



Cost of goods sold




215,000



Depreciation




65,000






Earnings before

interest and taxes





245,000



Interest expense



35,000







Net profit before

taxes





210,000



Taxes (@ 40%)




84,000






Net income




$126,000



What is Bavarian Sausage, Inc.’s quick ratio?
What is Bavarian Sausage, Inc.’s net profit margin?
What is Bavarian Sausage, Inc.’s debt-equity ratio?
Calculate Bavarian Sausage, Inc.’s return on assets.
Calculate Bavarian Sausage, Inc.’s inventory turnover.
Calculate Bavarian Sausage, Inc.’s return on equity.

Consider the following working capital information for Full House Corporation:


























Year



2011



2012



Accounts Receivable



$ 0



$100



Inventory



$100



$100



Accounts Payable



$ 0



$ 50



What was the effect on free cash flow for the firm this past year?



  1. 3. Bavarian Sausage, Inc. posted the following balance sheet:



















































Balance Sheet



Cash



$ 50,000




Accounts Payable



$185,000



Accounts Receivable



125,000




Notes Payable



125,000



Inventories



225,000




Long-term debt



115,000



Net Plant and

Equipment




525,000




Common Stock




350,000






Retained earnings



150,000



Total Assets




$925,000




Total liabilities and

Stockholders’ Equity




$925,000



If Bavarian Sausage, Inc. has 100,000 shares outstanding, what is the book value per share?



  1. 4. Bavarian Sausage, Inc. posted the following income statement:
































































Income Statement



Sales




$525,000



Cost of goods sold




215,000



Depreciation




65,000






Earnings before

interest and taxes





245,000



Interest expense



35,000







Net profit before

taxes





210,000



Taxes (@ 40%)




84,000






Net income




$126,000



Bavarian Sausage, Inc. has 100,000 shares of common stock outstanding, but no preferred stock. The current price of Bavarian’s common stock is $15. What is the company’s P/E-ratio?



  1. 5. The 2011 tax schedule for corporate income is shown in the table below:



















































Taxable Income Over



Not Over



Tax Rate



$ 0



$ 50,000



15.00%



50,000



75,000



25.00%



75,000



100,000



34.00%



100,000



335,000



39.00%



335,000



500,000



34.00%



10,000,000



15,000,000



35.00%



15,000,000



18,333,333



38.00%



18,333,333



...............



35.00%



Pale Rider Corporation reports taxable income of $500,000 in 2011. What was their tax liability for the year? What was the average tax rate they paid for the year?



  1. 6. · Which statement best describes the capital structure decision process for a firm?






















a.



The firm finds the mix of debt and equity to maximize firm value.



b.



The firm purchases the mix of debt and equity to match the guidelines of the company charter.



c.



The firm finds the least expensive debt to finance its projects.



d.



The firm makes the necessary filings for an initial public offering.




  1. 7. · The effect of an increase in a firm’s accounts payable during the year, assuming that the current asset portion of the balance sheet remains the same, is






















a.



an outflow of cash.



b.



an inflow of cash.



c.



a decrease in the equity of the firm.



d.



neither an inflow nor an outflow of cash.




  1. 8. What is a basic guide for financial decision making?






















a.



Make decisions where the benefits exceed the costs.



b.



Make decisions where the average benefits exceed the average costs.



c.



Make decisions where the total benefits exceed the total costs.



d.



Make decisions where the average benefits exceed the fixed costs.


Expert:  F. Naz replied 10 months ago.

Hello

Please upload the relevant file on media fire or wiki send because here you have pasted the material which is not visible in an appropriate manner, thanks.

Expert:  F. Naz replied 10 months ago.

I am sending you the offer as well, please accept it so I can provide the answer, thanks.

Customer: replied 10 months ago.

Please cancel this request. I have solved on my own.

Expert:  F. Naz replied 10 months ago.

Okay take care.

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