Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
8. This question is based on the information provided in the abbreviated year-end Income Statement and abbreviated year-end Balance Sheet for NMC Corporation shown below.
NMC Corporation Income Statement for the Calendar Year (January 1 - December 31)
Thousands of dollars (except stock price, earnings per share, and dividends per share)
Net sales
$3000
Cost and expenses:
$2734
EBIT
$266
Less interest expense:
$66
Earnings before taxes
$200
Taxes
$80
Net income before preferred dividends
$120
Dividends to preferred stockholders
$8
Net income available to common stock holders
$112
Per share common stock:
Stock Price
$26.50
Earnings per share
$2.24
Dividends per share
$1.84
NMC Corporation Balance Sheet (Average of beginning and end of year)
Assets (thousands of dollars)
Liabilities and Equity (thousands of dollars)
Cash
$50
Accounts payable
$60
Market securities
$0
Notes payable
$100
Accounts receivable
$350
Accrued Wages
$10
Inventories
$300
Accrued Taxes
$130
Total Current Assets:
$700
Total Current Liabilities:
Net plant and equipment:
$1300
Total Long Term Debt:
$800
Total Stock Holder’s Equity:
$900
Total Assets:
$2000
Total liabilities and equity:
8a. Calculate the NMC financial ratios contained in the following table
Financial Ratios
NMC Values
Industry Values
Current Ratio
2.5 times
Quick (Acid) Ratio
1.0 times
Total Debt to Total Assets
40%
Return on Assets (ROA)
9%
Price/Earnings Ratio
12.5 times
8b. Compare your results to the industry ratios and describe what NMC should do to improve its position in the market.
Compute the break-even point in units and dollars and determine the variable cost per haircut and the total monthly fixed costs.
Journalize and post the adjusting entries at January 31 - Determine the ending balance in each of the accounts
A single production process converts a single raw material into 5,000 kg of joint product A and 5,000 kg of joint product B at a total cost of $100,000.
Indicate what accounts are debited or credited - The company uses a perpetual inventory system. All prepayments are initially recorded in permanent accounts.
Company entries of Accounts with tds deducted/receivable company entries with s.tax recd/paid journal entries with TDS, S.Tax
question 1martinez plastics company makes just two product lines plastic casings for pens and plastic casings for cell
Human rights groups, environmental activists, and other interest groups concerned with unethical business practices have often conducted publicity campaigns against various corporations that those groups feel have engaged in unethical practices.
List and describe the four perspectives of the Balanced Scorecard and what steps would you encourage him or her to take in order to successfully implement and use the Scorecard?
Slosh expects to have $18,000 in fixed expenses next year. What would Slosh's total dollar sales have to be next year to generate a profit of $90,000?
Analyse the applicable accounting standards to determine the reporting requirements under each accounting standard.
Discuss unethical behavior that can result if the wrong performance measures are used to tie performance measures to compensation.
Products Gamma and Delta are joint products. The joint production cost of the products is $800. Gamma has a market value of $500 at the split-off point.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd