Under US GAAP ABC Company has provided the following information related to its investment in marketable equity securities: MARKETABLE VALUES COST. YEAR 2 YEAR 1 Trading $150,000. $155,000. $100,000 Available for sale $150,000. 130,000. $120,000 Based on the above information provided, what amount should ABC Company report in earnings Year 2?
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- Hello! look at the attached images and answer: (a) Calculate ratios for the year ended 31 December 2021 (showing your workings) for Primrose Plc, equivalent to those provided above. i. Return on year-end capital employed ii. Net asset turnover iii. Gross profit margin iv. Net profit margin v. Current ratio vi. Closing inventory holding period vii. Trade receivables’ collection period viii. Trade payables’ payment period ix. Dividend yield x. Dividend cover (b) Analyse the financial performance and position of Primrose Plc for the year ended 31 December 2021 compared to 31 December 2020. (c) Explain the uses and the general limitations of ratio analysis. Thanks a lot!The following data are taken from the books of a dealer in securities: How mu ch is the outputtax using 12% rate? Share held as inventory Share held as investment Selling price 3,000,000 2,000,000 Acquisition cost 1,000,000 1,500,000 Oth er Income 200,000The following was reported by Church Financial in its December 31, 2024, financial statements: Investments at FVTPL, December 31, 2023 Investments at FVTPL, December 31, 2024. Investment income or (loss) Additional information: 1. 2. 3. $13,400 18,300 (600) The investments at FVTPL are investments in equity securities held for trading purposes. Investment income or loss consists of: holding gain on the FVTPL investments of $3,100, and loss on sale of the FVTPL investments of $3,700. The carrying amount of the FVTPL investment sold was $4,900.
- Solar Solutions began operations on January 1, 2015, and is now in its sixth year of operations. It is a retail sales company with a large amount of online sales. The adjusted trial balance as of December 31, 2020 appears below, along with prior year balance sheet data and some additional transaction data for 2020. SOLAR SOLUTIONS Adjusted Trial Balance 12/31/2020 2020 2019 Account Title Adjusted Trial Balance Post-Closing Trial Balance $ 125,600 Debit Credit 35,000 6,000 Debit Credit Cash Accounts Receivable Prepaid Insurance Inventory Office Equipment Machinery & Tools |Accumulated Depreciation Accounts Payable Salaries Payable Sales Tax Payable Note Payable-Long Term Common Stock, $10 par Retained Earnings $ 122,200 125,600 55,000 35,000 15,600 5,000 6,000 47,000 46,000 15,600 21,000 63,000 47,000 (16,000) $ 234,200 59,000 21,000 21,000 16,000 11,200 16,800 2,600 2,700 2,000 31,000 4,000 22,100 240,000 160,000 28,600 28,600 Dividends 10,000 Sales Revenue 235,000 Cost of Goods Sold…10. The following information relates to the Smith Company for 2021: $ 1,600 Cash dividend declared for 2021 Retained earnings, January 1, 2021 Net income for 2021 4,680 1,920 Retained earnings, December 31, 2021 ? What was the December 31, 2021, balance of retained earnings? a. $4,360 b. $4,680 c. $5,000 d. $8,200 11. The method of valuation under the US GAAP is 1. accounts receivable at net realizable value. 2. short-term marketable securities at fair value. 3. inventories at current cost if current cost is higher than historical cost. a. b. C. d. 1 and 2 2 and 3 1 and 3 1, 2, and 3Consider this simplified balance sheet for Geomorph Trading: Current assets Long-term assets $ 110 510 Net working capital $ 620 a. Debt-equity ratio b Long-term debt-to-capital ratio C. d. Current ratio a. What is the company's debt-equity ratio? (Round your answer to 2 decimal places.) b. What is the ratio of total long-term debt to total long-term capital? (Round your answer to 2 decimal places.) c. What is its net working capital? d. What is its current ratio? (Round your answer to 2 decimal places.) Current liabilities Long-term debt Other liabilities Equity $ 65 275 80 200 $ 620
- The following information was available for the year ended December 31, 2022 Dividende per share Earnings per share Market price per share at year and 1.35 Required: a. Calculate the price/earrings ratio for 2022. Note: Round your answer to 2 decimal places. b. Calculate the dividend payout ratio for 2022 Note: Round your percentage answer to 2 decimal places (La, 9.1234 should be entered as c. Calculate the dividend yield for 2022. Note: Round your percentage answer to 2 decimal places (.a., 0.1234 should be entered as 12.34) Price/Eaming ratio b. Dividend payout ratio c. Dividend yieldRequired:a. Calculate the following ratios for Sweets plc for 2021 and 2020, showing the formulas and workings:4- Net profit margin5- Asset turnover6- Stock holding days7- Debtors collection period8- Current ratio9- Gearing ratio10- Interest coverReference is made to the 2022 Balance Sheet of Tram-Ropes limited. Tram-Ropes Limited Balance Sheet 2022 Cash Acc. Receivable Marketable securities Inventories Fixed Assets Total Assets i. 1,000,000.00 ii. 12,000,000.00 3,000,000.00 7,500,000.00 26,500,000.00 50,000,000.00 Accounts Payable Notes Payable Long-term Debt Common stock Preferred Stock Total Liabilities and Equity 8,000,000.00 8,500,000.00 20,000,000.00 7,500,000.00 6,000,000.00 Additional Information: The Long-Term debt consists of 8% annual coupon bonds, with 15 years to maturity and are currently selling for 95% of par. The company's common shares which have a book value of $20 per share are currently selling at $25 per share. 50,000,000.00
- Requirement 1. Compute these ratios: Working Capital Current Debt-to- Ratio Cash Ratio Debt Ratio Equity Ratio Round ratios to two 14.44 212400 7.73 decimal places or format as percentages or Accounts Days Sales currency as appropriate. Inventory Days Sales in Gross ProfitReceivable in Turnover Inventory Percentage Turnover Receivables 2019 Total Assets = Rate of Rate of Asset Return on Return on Turnover Stockholders' Earnings Total Assets Ratio Equity Per Share 2019 SHE = Price/ Earnings *Current Stock Price is Dividend $10.00 per share Ratio* Dividend Yield Payout Dividend per share= Requirement 2. Based on the ratios computed above, analyze the company's ability to pay its debts (both current and long term). Refer to at least 3 specific ratios in your analysis. Requirement 3: Based on the ratios computed above, analyze the company's management of inventory. Refer to at least 2 specific ratios in your analysis. Requirement 4: Based on the ratios computed above, analyze the company's…1. Information on the Black PLC fixed income investment portfolio is the following (in EUR): Company A Company B Company C Classification Available for sale Held to maturity Held to maturity Cost 35 000 40 000 53 000 Market value, 31 Dec 2013 39 000 38 000 52 000 Market value, 31 Dec 2014 38 000 37 000 55 000 What is the balance sheet carrying value of the Black PLC investment portfolio as 31.12.2014? The balance sheet carrying value of Black Inc.'s investment portfolio would be higher if which of the securities had been reclassified as held for trading security? Explain why. 2. Cellphone Inc. acquires 50% of Battery AG in 2014 and needs to record investment on its balance sheet. Year ending 2014 Cellphone Inc Battery AG Revenue 1700 1350 EBIT 153 135 Net Income 75 68 Total Assets 1421 1283 Shareholders' equity 735 706 Under which accounting method (full consolidation, proportionate consolidation, equity method) profit margin of Cellphone…Reference is made to the 2022 Balance Sheet of Tran-Ropes limited. Tram-Ropes Limited Balance Sheet 2022 Cash Acc. Receivable Marketable securities Inventories Fixed Assets Total Assets 1,000,000.00 ii. 12,000,000.00 3,000,000.00 7,500,000.00 26,500,000.00 50,000,000,00 Accounts Payable Notes Payable Long-term Debt Common stock Preferred Stock Total Liabilities and Equity 8,000,000.00 8,500,000.00 20,000,000.00 7,500,000.00 6,000,000.00 50,000,000.00 Additional Information: 1. The Long-Term debt consists of 8% annual coupon bonds, with 15 years to maturity and are currently selling for 95% of par. The company's common shares which have a book value of $20 per share are currently selling at $25 per share. iii. iv. V. Preferred shares have a book value of $100 per share. These shares are currently selling at $120 per share and pays dividends of 6% per annum on book value. The dividend growth rate is expected to be 3%, and dividend for 2823 is projected to be $5.00 per share. The…
