RFT Corporation 2018 Statement of comprehensiveincome ($ in millions) Sales $10,850 Costs of goodssold $8,410 Depreciation $190 EBIT $2,250 Interest $165 EBT $2,085 Taxes $710 Net income $1,375Dividends paid $300 Addition to retained earnings $1,075 RFT Corporation Statement of financial positionYears ended 2017 and 2018 ($ in millions) 2017 2018 2017 2018 Cash $980 $960 Accountspayable $950 $730 Accounts rec. $950 $880 Notespayable $40 $150 Inventory $2,120 $1,750 Total $990 $880 Total $5,050 $3,590 Long-term debt $2,225 $100Fixed assets $1,700 $2,540 Common stock $2,030 $3,570 Retained earnings $505 $1,580 Total assets $5,750 $6,130 Total liabilities and Owner's equity $5,750$6, 130 During 2018, the quick ratio: Question 22options: Increased. Decreased. Remained constant.Changed, but the direction of the change cannot bedetermined. None of the choices are correct.

Part 2: Explanation:Step 1: Calculate the quick ratio for 2017 and 2018.The quick ratio is…

Answered: RFT Corporation 2018 Statement of…

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)

10th Edition

ISBN:9781337902571

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter3: Financial Statements, Cash Flow, And Taxes

Section: Chapter Questions

Problem 19SP

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Global Corp. initially projected the 2019 income statement shown in the table E. Suppose that in 2019, Global launched an aggressive marketing campaign that boosted 2019 sales further by 14.1%. However, their operating margin fell from 5.56% to 4.49% Suppose that they had no other income, interest expenses were unchanged, and taxes were the same percentage of pretax income (26%) as in 2018. a. What was Global's EBIT in 2019? b. What was Global's income in 2019? c. If Global's P/E ratio (18.0) and number of shares outstanding (3.6 million) remained unchanged, what was Global's share price in 2019? a. What was Global's EBIT in 2019? Global's EBIT was $ million. (Round to two decimal places.) b. What was Global's income in 2019? Net income was $ million. (Round to two decimal places.) c. If Global's P/E ratio (18.0) and number of shares outstanding (3.6 million) remained unchanged, what was Global's share price in 2019? Global's share price in 2019 was $. (Round to the nearest cent.)
JUST DEW IT CORPORATION2017 and 2018 Balance Sheets Assets Liabilities and Owners' Equity 2017 2018 2017 2018 Current assets Current liabilities Cash $ 10,150 $ 10,350 Accounts payable $ 74,500 $ 61,250 Accounts receivable 27,100 27,250 Notes payable 48,500 49,250 Inventory 62,900 63,500 Total $ 123,000 $ 110,500 Total $ 100,150 $ 101,100 Long-term debt $ 59,400 $ 64,900 Owners' equity Common stock and paid-in surplus $ 80,000 $ 80,000 Fixed assets Retained earnings 171,750 192,700 Net plant and equipment $ 334,000 $ 347,000 Total $ 251,750 $ 272,700 Total assets $ 434,150 $ 448,100 Total liabilities and owners' equity $ 434,150 $ 448,100 Based on the balance sheets given for Just Dew It, calculate the following…
Balance Sheets At December 31 2018 2017 2018 2017 Liabilities: Accounts payable 29,400 Income taxes payable 61,710 Bonds payable 56,400Total liabilities Assets: Cash Accounts receivable Merchandise inventory Long-term investments Equipment Acc. depreciation Total assets $ 24,640 $ 23,040 32,180 73,125 55,900 175,500 145,500Equity: (33,550) (31.200) Common stock $327.795 $284.850 APIC $65,000 $ 40,380 10,725 10,200 48.750 66.000 $124,475 $116,580 96,000 9,000 63.270 $203.320 $168.270 Total liabilities and equity $327.795 $284.850 117,000 13,000 73,320 Retained earnings Total equity Eddy Inc. Income Statement For Year Ended December 31, 2018 $240,000 Sales Cost of goods sold Depreciation expense Other operating expenses Interest expense Other gains (losses): Loss on sale of equipment $80,900 29,400 48,000 2,000 (160,300) (8,400) 71,300 27,650 $ 43.650 Income before taxes Income taxes expense Net income
Financial information for Powell Panther Corporation is shown below: Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 2018 Sales $ 1,625.0 $ 2017 1,300.0 Operating costs excluding depreciation and amortization 1,300.0 1,105.0 EBITDA $ 325.0 $ 195.0 Depreciation and amortization 39.0 31.0 Earnings before interest and taxes (EBIT) $ 286.0 $ 164.0   Interest 36.0 29.0 Earnings before taxes (EBT) $ 250.0 $ 135.0   Taxes (40%) 100.0 54.0 Net income $ 150.0 $ 81.0 Common dividends $ 135.0 $ 65.0 Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Dollars) 2018 Assets Cash and equivalents $ 23.0 $ 2017 18.0 Accounts receivable 164.0 143.0 Inventories 343.0 312.0   Total current assets $ 530.0 $ 473.0 Net plant and equipment 390.0 312.0 Total assets $ 920.0 $ 785.0 Liabilities and Equity…
Windswept, Inc.2017 Income Statement($ in millions) Net sales $ 11,000 Cost of goods sold 8,200 Depreciation 395 Earnings before interest and taxes $ 2,405 Interest paid 110 Taxable income $ 2,295 Taxes 689 Net income $ 1,606    Windswept, Inc.2016 and 2017 Balance Sheets($ in millions) 2016 2017 2016 2017 Cash $ 420 $ 445 Accounts payable $ 2,060 $ 2,005 Accounts rec. 1,210 1,110 Long-term debt 1,120 1,580 Inventory 1,980 1,820 Common stock 3,460 3,190 Total $ 3,610 $ 3,375 Retained earnings 700 950 Net fixed assets 3,730 4,350 Total assets $ 7,340 $ 7,725 Total liab. & equity $ 7,340 $ 7,725 What were the total dividends paid for 2017?
Financial information for Powell Panther Corporation is shown below: Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 2018 2017 Sales $ 1,800.0 $ 1,500.0 Operating costs excluding depreciation and amortization 1,395.0 1,275.0 EBITDA $ 405.0 $ 225.0 Depreciation and amortization 43.0 39.0 Earnings before interest and taxes (EBIT) $ 362.0 $ 186.0   Interest 40.0 33.0 Earnings before taxes (EBT) $ 322.0 $ 153.0   Taxes (40%) 128.8 61.2 Net income $ 193.2 $ 91.8 Common dividends $ 174.0 $ 73.0 Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Dollars) 2018 2017 Assets Cash and equivalents $ 23.0 $ 18.0 Accounts receivable 248.0 225.0 Inventories 396.0 360.0   Total current assets $ 667.0 $ 603.0 Net plant and equipment 429.0 390.0 Total assets $ 1,096.0 $ 993.0 Liabilities and Equity Accounts…
Assets Current assets Cash Accounts receivable Inventory Total Total assets Sales Cost of goods sold Depreciation Taxable income Taxes (23%) Earnings before interest and taxes Interest paid Net income SMOLIRA GOLF CORPORATION 2021 Income Statement Dividends Retained earnings Fixed assets Net plant and equipment $465,700 $ 521,583 Total Cash, beginning of the year Operating activities 2020 $35,685 $39,032 28.936 43,152 $58,136 $111,120 Net cash from operating activities Investment activities SMOLIRA GOLF CORPORATION 2020 and 2021 Balance Sheets 2021 18,451 4,000 Cash, end of year Net cash from investment activities Financing activities Net cash from financing activities SMOLIRA GOLF CORPORATION Statement of Cash Flows For 2021 $ 523,836 $ 632,703 Total liabilities and owners' equity Liabilities and Owners' Equity Current liabilities $ 24,000 39,144 Accounts payable Notes payable Other Long-term debt Owners' equity Common stock and paid-in surplus Accumulated retained earnings Prepare…
PARROTHEAD ENTERPRISES 2020 and 2021 Partial Balance Sheets Assets 2020 2021 Liabilities and Owners’ Equity 2020 2021 Current assets $ 1,278 $ 1,403 Current liabilities $ 566 $ 613 Net fixed assets 5,057 6,120 Long-term debt 2,760 2,939 PARROTHEAD ENTERPRISE 2021 Income Statement Sales $ 15,874 Costs 7,243 Depreciation 1,435 Interest paid 436 a. What is owners' equity for 2020 and 2021? b. What is the change in net working capital for 2021? c-1. In 2021, Parrothead Enterprises purchased $2,640 in new fixed assets. How much in fixed assets did the company sell? c-2. In 2021, Parrothead Enterprises purchased $2,640 in new fixed assets. What is the cash flow from assets for the year? The tax rate is 24 percent. d-1. During 2021, Parrothead Enterprises raised $564 in new long-term debt. How much long-term debt must Parrothead Enterprises have paid off during the year? d-2. During 2021, Parrothead Enterprises raised $564 in new…
Financial information for Powell Panther Corporation is shown below: Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 2018 2017 Sales $ 3,900.0 $ 3,000.0 Operating costs excluding depreciation and amortization 2,925.0 2,550.0 EBITDA $ 975.0 $ 450.0 Depreciation and amortization 90.0 69.0 Earnings before interest and taxes (EBIT) $ 885.0 $ 381.0 Interest 86.0 66.0 Earnings before taxes (EBT) $ 799.0 $ 315.0 Taxes (40%) 319.6 126.0 Net income $ 479.4 $ 189.0 Common dividends $ 431.0 $ 151.0 Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Dollars) 2018 2017 Assets Cash and equivalents $ 38.0 $ 30.0 Accounts receivable 432.0 360.0 Inventories 819.0 630.0 Total current assets $ 1,289.0 $ 1,020.0 Net plant and equipment 897.0 690.0 Total assets $ 2,186.0 $ 1,710.0 Liabilities and Equity…
Assets Current assets Net fixed assets INCOME STATEMENT, 2022 (Figures in $ millions) Revenue Cost of goods sold Depreciation Interest expense 2021 $ 101 2022 $ 195 910 1,010 $ 2,005 1,085 405 251 Req A and B Req C and D BALANCE SHEET AT END OF YEAR (Figures in $ millions) Liabilities and Shareholders' Equity Current liabilities Long-term debt Req E Complete this question by entering your answers in the tabs below. a&b. What is shareholders' equity in 2021 and 2022? c&d. What is net working capital in 2021 and 2022? e. What are taxes paid in 2022? Assume the firm pays taxes equal to 21% of taxable income. f. What is cash provided by operations during 2022? g.Net fixed assets increased from $910 million to $1,010 million during 2022. What must have been South Sea's gross investment in fixed assets during 2022? Answer is complete but not entirely correct. h. If South Sea reduced its outstanding accounts payable by $46 million during the year, what must have happened to its other current…
WESTON ENTERPRISES 2019 and 2020 Partial Balance Sheets Assets Liabilities and Owners’ Equity 2019 2020 2019 2020 Current assets $ 1,248 $ 1,305 Current liabilities $ 568 $ 600 Net fixed assets 5,777 6,023 Long-term debt 3,228 3,489 WESTON ENTERPRISES 2020 Income Statement Sales $ 17,529 Costs 5,203 Depreciation 1,532 Interest paid 708 a. What was owners' equity for 2019 and 2020? (Do not round intermediate calculations.) b. What was the change in net working capital for 2020? (Do not round intermediate calculations.) c-1. In 2020, the company purchased $3,110 in new fixed assets. How much in fixed assets did the company sell? (Do not round intermediate calculations.) c-2. In 2020, the company purchased $3,110 in new fixed assets. What was the cash flow from assets for the year? The tax rate is 25 percent. (Do not round intermediate calculations.) d-1. During 2020, the company raised $772 in new…
2018 2017 Sales $3,125.0 $2,500.0 Operating costs excluding depreciation 2,500.0 2,125.0 Depreciation and amortization 75.0 60.0 Earnings before interest and taxes $550.0 $315.0 Less Interest 67.0 54.0 Pre-tax income $483.0 $261.0 Taxes (40%) 193.2 104.4 Net income available to common stockholders $289.8 $156.6 Common dividends $261.0 $125.0 Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars) 2018 2017 Assets Cash $40.0 $35.0 Short-term investments 16.0 13.0 Accounts receivable 360.0 300.0 Inventories 690.0 575.0 Total current assets $1,106.0 $923.0 Net plant and equipment 750.0 600.0 Total assets $1,856.0 $1,523.0 Liabilities and Equity Accounts payable $270.0 $225.0 Accruals 260.0 200.0 Notes payable 63.0 50.0 Total current liabilities $593.0 $475.0

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