BÀI TẬP CHƯƠNG 2 + 3

Bài 1:

CAP Inc. and NOW Inc. start up with $1,000 cash and $1,000 common stock. Each year
the companies receive total revenues of $1,500 cash and pay cash expenses, excluding an
equipment purchase, of $500. At the beginning of operations, each company spends $900
to purchase equipment. CAP estimates the equipment will have a useful life of three
years and an estimated salvage value of $0 at the end of the three years. NOW estimates a
much shorter useful life and expenses the equipment immediately. The companies have
no other assets and make no other assets purchases during the three years period. Assume
the companies pay no dividends, earn zero interest on cash balances, have a tax rate of
30%, and use the same accounting method for financial and tax purposes.

1. Which company reports higher net income over the three years? Total cash flow?
Cash from operations?
2. Based on ROE and net profit margin, how do the two companies’ profitability
compare?
3. Why NOW Inc. report change in cash of $70 in year 1 while CAP Inc. reports total
change in cash of ($110)?

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Bài 2: (EPS)

ABC’s common stock account in a current year showed the following:

1-Jan Outstanding shares at the beginning of the year 9,000

1-Jul Shares issued 3,000

1-Oct Shares repurchased for the treasury 2,000

In the current year, the following information is available

Net income $1,000,000
 Details of convertible securities outstanding:

Convertible preferred shares outstanding 2,000

Dividend/preferred share $10

(each preferred share is convertible into five shares of common stock)

Convertible bonds, $100 face value per bond $80,000

(8% coupon, each bond is convertible into 25 shares of common stock)

Corporate tax rate 40%

4. Calculate average number of common shares outstanding (basic)

5. Compute Basic EPS?
6. Compute Diluted EPS?

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Bài 3: (long-term contract)

Assume that ABC Construction Corp. has a contract to build a bridge and the estimated
time to complete the project is 3 years with an estimated cost of $15,000.

Year 2008 2009 2010

Cost incurred $5,000 $2,000 $8,000

1. The outcome for the contract is reliably estimated: $20,000. Determine ABC’s
revenue and net income for each year.
2. Suppose that the outcome is not reliably estimated at the beginning of the contract.
Determine ABC’s revenue and net income for each year under U.S.GAAP and
IFRS (value of the contract: $20,000)

Đáp án:

1. Revenue: 6,667 – 2,667 – 10,667 -> các bạn tự tính profit. Sr anh chế đề số hơi lẻ.
 2. Revenue: IFRS: 5000 – 2000 – 13000. Profit: 0 – 0 – 7000.
USGAAP: Revenue: 0 – 0 – 20,000. Expense: 0 – 0 – 15,000.
Profit: 0 – 0 – 5,000.

Bài 4: (LIFO and FIFO)

Use the inventory data in the following figure to calculate the COGS and ending
inventory under FIFO, LIFO and weighted average cost methods?

January 1 (beginning inventory) 2 units $2 per unit

January 7 purchase 3 units $3 per unit
January 12 sale 4 units
January 19 purchase 5 units $5 per unit
January 29 sale 3 units
Đáp án:

FIFO: COGS: $23 and Ending inventory: $15

LIFO: COGS: $26 and Ending inventory: $12

Weighted-average: COGS: $24.2 and Ending inventory: $13.8

Bài 5: (installment sales)

Assume that XYZ Property Corp. sells a piece of land for $10,000. The original cost of
the land was $8,000. Collections received by XYZ for the sales are as follows:

Year 2005 2006 2007 2008 Total

Collections $3,500 $3,000 $2,000 $1,500 $10,000

Determine XYZ’s profit under the these assumptions:

1. Collectibility is highly certain.

2. Collectibility cannot be reasonably estimated
3. Collectibility is highly uncertain
Đáp án:

1. Revenue (2005) = $10,000 and Cost (2005) = $8,000 -> profit = $2,000
2. reasonably estimated

Year 2005 2006 2007 2008 Total

Revenue $3,500 $3,000 $2,000 $1,500 $10,000
Cost $2,800 $2,400 $1,600 $1,200 $8,000
Profit 700 600 400 300 2000
3. highly uncertain

Year 2005 2006 2007 2008 Total

Revenue $3,500 $3,000 $2,000 $1,500 $10,000
Cost $3,500 $3,000 $1,500 0 $8,000
Profit 0 0 500 1500 2000

Bài 6: (balance sheet)

The non-controlling or minority interests found in the equity section of the balance sheet
are best described as the equity interests:
A. Held by the corporation in other entities that it does not control, but has significant
influence.
B. Of minority shareholders in subsidiaries that have been consolidated.
C. Of minority shareholders of the corporation who have significant influence, but
not control.
Đáp án: B
 BÀI TẬP CHƯƠNG 4 CHƯƠNG 5

Bài 1:

The following data are available on a company:

Metric ($ millions)

Total assets 145

Total revenues 282

Total expenses 241

Research and development expenses 12

Under a common-size analysis, the value used for research and development expenses is:
(percentage)

Bài 2:

The following data is available on two companies that operate in the same industry:

Metric ($ millions) Company X Company Y

Sales 11.2 14.5

Cost of goods sold 5.7 7.7

Administration costs 1.9 2.2

Interest expense 0.3 0.7

Research and development expenses 1.5 1.7

Which of the following statements is most appropriate? Better margin performance will
be reported by:

A. Company Y at the gross margin level and Company X at the operating margin
level.
 B. Company Y at both the gross margin and operating margin levels.
C. Company X at the gross margin level and Company Y at the operating margin
level.

Bài 3:
The following data are available on a company:

Metric

Working capital $60 million

Non-current assets $235 million

Equity $170 million

Current ratio 1.75

The company’s financial leverage is? (working capital = current assets – current
liabilities – tiếng Việt: vốn lưu động)

Bài 4:

The Lucky company uses direct method to prepare its statement of cash flows and wants
your assistance in computing the total cash paid to suppliers of inventory during the year
2016. The company presents you the following information about its inventory, accounts
payable and cost of goods sold for the year 2016:

Inventory on January 1, 2016: $40,000

Inventory on December 31, 2016: $75,000

Accounts payable on January 1, 2016: $22,000

Accounts payable on December 31, 2016: $35,000

Cost of goods sold for the year 2016: $350,000

Calculate total cash paid to suppliers of inventory by Lucky company during the year
2016.
Bài 5:

The Meta company uses indirect method for preparing its statement of cash flows. It
reported a net income of $100,000 for the year 2016.

During the year 2016, the working capital accounts were changed as follows:

Increase in accounts receivable: $22,000

Increase in accounts payable: $18,600

Increase in inventory: $14,800

Decrease in non-trade notes payable: $30,000

Increase in available for sale securities: $32,000

The depreciation expense was $34,000 for the year 2016.

Compute net cash provided (used) by operating activities using indirect method.

Bài 6

The following data are available on a company:

Current Year (¥ millions)

Cash 114

Inventory 462

Marketable securities (at fair value) 23

Property, plant, and equipment (net) 677

Receivables 231

Current liabilities 390

Liquidity Ratios in Prior Year

 Current Year (¥ millions)

Cash ratio 0.37

Current ratio 2.19

Quick ratio 0.97

The value of the company’s liquidity ratio that decreased the most in the current year,
compared with the prior year, is the? (absolute value base)

Bài 7:

Selected Income Statement Data for the Year Ended 31 August ($ thousands)

2013 2012

Sales revenue 100,000 95,000

Cost of goods sold 47,000 47,500

Depreciation expense 4,000 3,500

Net Income 11,122 4,556

Selected Balance Sheet Data as of 31 August ($ thousands)

2013 2012

Current Assets

Cash and investments 21,122 25,000

Accounts receivable 25,000 13,500

Inventories 13,000 8,500

 2013 2012

Total current assets 59,122 47,000

Current liabilities

Accounts payable 15,000 15,000

Other current liabilities 7,000 9,000

Total current liabilities 22,000 24,000

The cash collected from customers in 2013 is:

Bài 8:

A company has recorded an expense for interest costs that have not yet been paid as of
the balance sheet date. On the balance sheet, they are best reported as:
A. deferred expenses.
B. accounts payable.
C. accrued expenses.
Bài 9

A portion of a company’s balance sheet appears in the following table (euros in millions):

Cash 4,000

Marketable securities 17,000

Accounts receivable 225,000

Inventory 229,000

Total current assets 475,000

 Cash 4,000

Current liabilities 339,000

The company’s quick ratio is?
Đáp án

Bài 1.
4.2%
12/282 = 4.2% do “Research and development expenses” là Expense và nằm trong
Income Statement
Bài 2.
C.
Gross margin = Gross profit / Revenue = (Revenue – COGS) / Revenue. Gross margin X
= 49% > Y = 47%
Operating margin = Revenue – COGS – Administrative cost – Selling cost - Research
and development expenses. Gross margin Y = 20% > X = 19%.
Bài 3.
2.2
Current asstes / current liabilities = 1.75
Current assets – current liabilities = 60
 Current assets = 140 => total assests = 375 / equity = leverage = 2.2
Bài 4.
372
Cash paid = COGS + increase in inventory – increase in payable
Bài 5:
Cash provided = 100,000 – 20,000 + 18,600 – 14,800 + 34,000 = 115,800
The changes in Decrease in non-trade note payable (reported in CFI) and Increase in
available for sale securities (reported in CFF) have not been considered in above
computation
Bài 6:
Current ratio is.
Current ratio: 2.13 ( - 0.06)
Cash ratio: 0.35 ( - 0.02)
Quick ratio: 0.94 (- 0.03)
Bài 7:
$88,500
cash collected from customers = revenue – increase in receivables
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Bài 8:
C.
Accrued expenses, also known as accrued liabilities, have been recognized on a
company’s income statement but have not been paid as of the balance sheet date. Unpaid
interest costs are an example of an accrued expense.
A is incorrect because deferred expenses refer to payments that have been made
but will not be reported as an expense until a future accounting period.
B is incorrect because accounts payable are amounts that a company owes its
vendors for purchases of goods and services that have already been delivered. They
represent the unpaid amount of the company’s purchase on credit as of the balance sheet
date.
Bài 9:
0.73
(Cash + marketable securities + receivables) / current liabilities