Zigs Industries had the following operating results for 2011: sales = $28,560; cost of goods sold = $19,460; depreciation expense = $5,020; interest expense = $2,340; dividends paid = $1,150. At the beginning of the year, net fixed assets were $16,980, current assets were $5,800, and current liabilities were $3,280. At the end of the year, net fixed assets were $20,360, current assets were $7,360, and current liabilities were $3,900. The tax rate for 2011 was 30 percent

Zigs Industries had the following operating results for 2011: sales = $28,560; cost of goods sold = $19,460; depreciation expense = $5,020; interest expense = $2,340; dividends paid = $1,150. At the beginning of the year, net fixed assets were $16,980, current assets were $5,800, and current liabilities were $3,280. At the end of the year, net fixed assets were $20,360, current assets were $7,360, and current liabilities were $3,900. The tax rate for 2011 was 30 percent.

 

a.	What is net income for 2011?

 

Net income

$

 

b.	What is the operating cash flow for 2011?

 

Operating cash flow

$

c.	What is the capital spending for 2011?

 

Capital spending

$

d.	What is the change in net working capital for 2011?

 

Change in net working capital

$

e.	What is the cash flow from assets for 2011? (Negative amount should be indicated by a minus sign.)

Cash flow from assets

$

  


Explanation:

a.

Income Statement
Sales	$	28,560
Cost of goods sold		19,460
Depreciation		5,020
EBIT	$	4,080
Interest		2,340
Taxable income	$	1,740
Taxes (30%)		522
Net income	$	1,218

  
b.

OCF	= EBIT + Depreciation − Taxes
	= $4,080 + 5,020 − 522 = $8,578

c. 

Net capital spending	=NFAend − NFAbeg + Depreciation
	= $20,360 − 16,980 + 5,020 = $8,400

d.

Change in NWC	= NWCend − NWCbeg
	= (CAend − CLend) − (CAbeg − CLbeg)
	= ($7,360 − 3,900) − ($5,800 − 3,280)
	= $3,460 − 2,520 = $940

e.

CFA	= OCF − Change in NWC − Net capital spending
	= $8,578 − 940 − 8,400 = −$762

The cash flow from assets can be positive or negative, since it represents whether the firm raised funds or distributed funds on a net basis. In this problem, even though net income and OCF are positive, the firm invested heavily in both fixed assets and net working capital; it had to raise a net $762 in funds from its stockholders and creditors to make these investments.

 
  

Prepare a 2011 balance sheet for Cornell Corp. based on the following information: cash = $139,000; patents and copyrights = $630,000; accounts payable = $217,500; accounts receivable = $112,500; tangible net fixed assets = $1,650,000; inventory = $299,000; notes payable = $160,000; accumulated retained earnings = $1,254,000; long-term debt = $857,000.

Prepare a 2011 balance sheet for Cornell Corp. based on the following information: cash = $139,000; patents and copyrights = $630,000; accounts payable = $217,500; accounts receivable = $112,500; tangible net fixed assets = $1,650,000; inventory = $299,000; notes payable = $160,000; accumulated retained earnings = $1,254,000; long-term debt = $857,000. (Be sure to list the accounts in order of their liquidity.)

 

CORNELL COP. Balance Sheet
Assets
Cash	$
Accounts receivable
Inventory
Current assets	$
Tangible net fixed assets
Intangible net fixed assets
Total assets	$
Liabilities
Accounts payable	$
Notes payable
Current liabilities	$
Long-term debt
Total liabilities	$
Common stock
Accumulated retained earnings
Total liabilities & owners' equity	$

Explanation:

Total liabilities and owners’ equity is:

TL & OE = CL + LTD + Common stock + Retained earnings

Solving for this equation for equity gives us:

Common stock = $2,830,500 − 1,234,500 − 1,254,000 = $342,000

You are given the following information for Calvani Pizza Co.: sales = $43,000; costs = $21,600; addition to retained earnings = $9,500; dividends paid = $900; interest expense = $4,000; tax rate = 35 percent. Calculate the depreciation expense.

You are given the following information for Calvani Pizza Co.: sales = $43,000; costs = $21,600; addition to retained earnings = $9,500; dividends paid = $900; interest expense = $4,000; tax rate = 35 percent. Calculate the depreciation expense. (Do not round intermediate calculations and round your final answer to nearest whole dollar amount.)

 

Depreciation expense

$

Explanation:

The solution to this question works the income statement backwards. Starting at the bottom:

Net income = Dividends + Addition to retained earnings = $900 + 9,500 = $10,400

Now, looking at the income statement:

EBT − EBT × Tax rate = Net income

Recognize that EBT × Tax rate is simply the calculation for taxes. Solving this for EBT yields:

EBT = NI / (1 − Tax rate) = $10,400 / (1 − 0.35) = $16,000

Now you can calculate:

EBIT = EBT + Interest = $16,000 + 4,000 = $20,000

The last step is to use:

EBIT = Sales − Costs − Depreciation

$20,000 = $43,000 − 21,600 − Depreciation

Solving for depreciation, we find that depreciation = $1,400

Escuchar e identificar WBLM E. Descripción: El cuarto de Ignacio First click PLAY to hear the Vocabulario útil and look at the drawings. Then click PLAY to hear Ignacio describe his room. Click on the image that best matches his description. Vocabulario útil la vista view dejo I leave la cama bed

Escuchar e identificar
WBLM E. Descripción: El cuarto de Ignacio

First click PLAY to hear the Vocabulario útil and look at the drawings. Then click PLAY to hear Ignacio describe his room. Click on the image that best matches his description.


Vocabulario útil
la vista view
dejo I leave
la cama bed                                      

Luisa is making a list of things that she will need for her classes this semester. First, click PLAY for La lista to listen to the list of possible items. Then click PLAY for Habla Luisa and listen carefully to Luisa's list. Indicate if she needs the items (Sí) nor not (No). For each item that Luisa needs, write the number (in digits) in the textbox. For items she doesn't need, write a dash (-) in the textbox.

Luisa is making a list of things that she will need for her classes this semester. First, click PLAY for La lista to listen to the list of possible items. Then click PLAY for Habla Luisa and listen carefully to Luisa's list. Indicate if she needs the items (Sí) nor not (No). For each item that Luisa needs, write the number (in digits) in the textbox. For items she doesn't need, write a dash (-) in the textbox.

Don’t be distracted by unfamiliar vocabulary; concentrate instead on the words that you do know. ¡OJO! Not all items on the list will be mentioned. Hint: If a noun ends in -s, it is plural.

La lista

Habla Luisa.

Cosas	Necesario/a?	¿Cuántos o cuántas?
bolígrafo(s)	Sí	3
calculadora(s)	Sí	1
cuaderno(s)	Sí	5
diccionario(s)	No	-
lápiz (lápices)	Sí	1
libro(s) de texto	Sí	7
mochila(s)	Sí	1
papel(es)	No	-
pizarrón blanco (pizarrones blancos)	No	-

The ages of a sample of Canadian tourists flying from Toronto to Hong Kong were: 31, 23, 57, 41, 52, 14, 77, 51, 34, 40 (Round range to nearest whole number and standard deviation to 2 decimal places.) a. Compute the range. Range b. Compute the standard deviation. Standard deviation Explanation: a. The range is the difference between the largest and smallest value or 63, found by 77 – 14. b. The sample mean is 13.80, found by 138/10 where 2formula50.mml = 42.00 The differences between each value and the mean are: -11.0, -19.0, 15.0, -1.0, 10.0, -28.0, 35.0, 9.0, -8.0 and -2.0, respectively. Their squares are 121.00, 361.00, 225.00, 1.00, 100.00, 784.00, 1,225.00, 81.00, 64.00, and 4.00. The sum of the squares is 2,966.0. So the sample variance is 329.556, found by 2,966.0/9 and the sample standard deviation is the square root of that number or 18.1537.

The ages of a sample of Canadian tourists flying from Toronto to Hong Kong were: 31, 23, 57, 41, 52, 14, 77, 51, 34, 40 (Round range to nearest whole number and standard deviation to 2 decimal places.)

a.	Compute the range.

Range

b.	Compute the standard deviation.

Standard deviation

Explanation:

a.

The range is the difference between the largest and smallest value or 63, found by 77 – 14.

b.

The sample mean is 13.80, found by 138/10 where  = 42.00

The differences between each value and the mean are: -11.0, -19.0, 15.0, -1.0, 10.0, -28.0, 35.0, 9.0, -8.0 and -2.0, respectively. Their squares are 121.00, 361.00, 225.00, 1.00, 100.00, 784.00, 1,225.00, 81.00, 64.00, and 4.00. The sum of the squares is 2,966.0. So the sample variance is 329.556, found by 2,966.0/9 and the sample standard deviation is the square root of that number or 18.1537.

The demand for the video games provided by Mid-Tech Video Games Inc. has exploded in the last several years. Hence, the owner needs to hire several new technical people to keep up with the demand. Mid-Tech gives each applicant a special test that Dr. McGraw, the designer of the test, believes is closely related to the ability to create video games. For the general population, the mean on this test is 100. Below are the scores on this test for the applicants.

The demand for the video games provided by Mid-Tech Video Games Inc. has exploded in the last several years. Hence, the owner needs to hire several new technical people to keep up with the demand. Mid-Tech gives each applicant a special test that Dr. McGraw, the designer of the test, believes is closely related to the ability to create video games. For the general population, the mean on this test is 100. Below are the scores on this test for the applicants.

95

113

88

93

119

88

111

92

102

9

The president is interested in the overall quality of the job applicants based on this test.

a.	Compute the mean and the median scores for the 10 applicants. (Round your answers to 1 decimal place.)

Mean
Median

b.	What would you report to the president?

Applicants are not better than regular people.

Explanation:

a.

The mean is the total divided by the number of values. Add the values and divide by 10. So, the mean equals 91.0 found by 910/ 10.

To find the median, sort the values and identify the midpoint. The sorted values are: 9, 88, 88, 92, 93, 95, 102, 111, 113 and 119. So the median is the average of the fifth and sixth or (93 + 95)/2 = 94.0.

b.

Since the mean for the general population is 100, these applicants are not better than regular people.