Kansas Wesleyan University BUSINESS FINANCE (BUSA405) - Fall 2011 TOPIC 2: A Review of Accounting ‘TOPIC OUTLINE ident, unertnd, nd {CTIVELY and EFFICIENTLY manage ap organizations fnnea esoucos so rps and go, ‘Accountants, and tho financial stater purpose and goals. ‘Good information is the foundation of good decisions and good results. infrmaton a ow met of Retained Ines to eganiztions success. sand Sixtement of Cah can be applied to baling succesful sou that yo have read the assigned sed on this assumption. Ifyou do NOT ur sd partner or stedy group OR contactYour Name _ BUISNESS FINANCE ~ FALL 2011 TOPIC 2: A Review of Accounting HOMEWORK PROBLEMS 2-1 m0 2) FA frm had the following acount nd finan date for 205, Seine Fitted $a receivable Preerred sock dividends 18 Number of common shares innit or 206, ~ Cast oF goods wT Totaloper expenses 600 The fm'seamings ‘818195 3) ss16 cy-s2mt osuJa ta for 2005 4/44 Siem hod the fllowing accounts and i Coat oT goods so ‘S107 Preferred stock dividends 16 Tacrate 0% Number ofcommen shares 1.000, utstandin ‘The firms earnings per share rounded othe nearest cont for 2005 was 14) $030 8) sust 3058 0302, Tableat (See Table 21) D)si9a6t03 585.895, 8) #Noves payable or CEE in 2005 was (See Table 21) 08 Dysavare 9) Net feed assets for CEE in 2008 were (See Table 23) eamings balances of $50.00) ae $400.00, respectively in 205, The frm pa dividends in 205 of. 12) 2A corporation had a year en 200 resin earrings balance of $220,000. The firm reported net profits ater taxes of 850,00 in 2008 and paid dividends in 2005 f $30,000. The e's retained earnings balance a yearend 2005 was riginally cost $10,000 is being depreciated using 2 5-year normal reovery14) FUndler MACRS, an ase which originally cost 100,000 & beng depreciated using a 10-year normal recovery period, The depreciation expense in year‘Tables ‘Ruff Sandpaper Co. ‘Balance Sheets For the Yeas Ended 2002 and 2003 2005 m2 0 oo 20 200 1200 1000 2000 i8i0 (see Tablea) 18) #Common stock dividends paid in 2008 amounted to 5) $100 B)si50 oso sso 18) Inflows of ands for 208 totaled _ (See Table1) '8) $950 fined aces wort (See Table 31)21) Fhe firm's cashflow from operations (See Table31) 4) S150 ory of $3000, then the inventory turnover day your,BUSINESS FINANCE (BUSA405) Topic 2: A Review of Accounting IN-CLASS PROBLEMS ndeseloped 20,000 | 7,7007060"] 736,000 "700,000‘What wre se sale fo 2007? A 200,000 2.500000 © 2.660.000 B. 2700.00 ‘Toa equity or 20077 A 668008 3. 675.000 58400 D. 698.00 ‘Wat isthe Beginning ofthe Year Reinod Earnings? A ason0 87.000 © 549.000 D. 351.000 ‘Whats the current rato for 2007 base on te end of year nabs? (Round tthe pares x3) An La6 B18 cist Dey Whats he inventory tumover for 2007 based oo the er of yest antes? (Roun 1 the nearest 444) A 800) 3.930 100) D. 1050, ‘Wash iveatry umove in days based om he answer tthe shove gucton? (Round woth eae whole day nde 4360 day you A Bday B. sodas . 3dys Di. a2 days What isthe aocouns recevables turnover for 2007 based on the endef year nubers? (Round othe nearest 44) A800 950 C1000 D. 1030 ‘Wha she accounts receivables turpover ia day base on teaser othe bose question? (Roun 10 Ue nearest ©. dys D. a2days C26 D. 34628 ‘Whats the operasing profit margin percent (Round to the Paes 245) Nose 3.942% 95% D. 900% What he eur on les percent for 2007 salon th god of ear umber? (Round othe nearest x5) AAO Baa C455 De am. Jats be Teal Ase Toe tr 207 a cal fer names oud te esta) Arias BL C168 ‘Whats he Retuen on Ass percent for 2007 based on he nd of year numbers? (Roo the nearest 2.08% A 725% Bo Tale C165 D. 1.90% ‘Wha sth return on Total Equity perce! fe 2007 base on the end of year numbers? (Round othe neat a) AU tas B 15.95% 16358, D. 7st$4.0 gin DB. $4.000 oss300 is ng $3,200 | $2,200 $2,000 | $1,800 $2,900 | $2,800 ‘38,200 | $6,800 ‘$29,500 | $28,100 $14,700 | $13,400 $44,000 | $48,000 '$23,000 | $21,800 ‘$1,600 | $1,500, $2,800 | $2,200 ‘$200 $300 $4,600 | $4,000 35,000 | $5,000 $5,000 | $5,000 $9,600 | $9,000 '$10,000 | $10,000 30 30 '$10,000 | $10,000 $2,800 T '$23,000 | $21,000 The firma 0 0% tx rae© 1580 ‘What were the fms NET Cash Flows ftom Operations? © $2500 source 51200 source AV HoOsouce™-B. $100uee C200 sure What was the fn’ EDIT? A 32200 B. 32380 © $2500 ‘Wa was he firs Net Operating Pris after Tate (NOPAT) for 20062 AS s100 B.SL6H0 © 81,760 wu 's Operating Cash Flows (OCF) for 2006? A 8 $050 C. $3240 What waste fms Free Cash lo (FCF) for 2006? As20 B si00 © ss80 $2.50 ue $1200 06 S200 ue 31200 sum