-What kind of financial information is a publically tradedcompany required to provide to its stockholders? Which financialstatement do you think provides the best information forinvestors?
-Differentiate (compare) among the information that is providedin each of the following financial statements: (1) balance sheet,(2) income statement, and (3) statement of cash flows.
-Discuss some of the limitations associated with performingratio (financial statement) analysis. What is the most importantingredient (input) in completing ratio analysis? Explain why.
-Robust Robots (RR) recently issued 100,000 shares of commonstock at $7 per share. The stock has a par value equal to $3 pershare. What amount of the $700,000 that RR raised should bereported in the “common stock at par” account, and what amountshould be reported in the “Paid-in capital” account?
-Crooked Golf's 2014 income statement shows that net income was$90,000, depreciation was $25,000, and taxes were $60,000. What wasCrooked Golf's net cash flow in 2014?
-HighTech Wireless just published its 2014 income statement,which shows net income equal to $240,000. The statement also showsthat operating expenses were $500,000 before includingdepreciation, depreciation was $100,000, and the tax rate was 40percent. If HighTech has no debt, what were its sales revenues in2014? What was its 2014 net cash flow?
-Credit Card of America (CCA) has a current ratio of 3.5 and aquick ratio of 3.0. If its total current assets equal $73,500, whatare CCA's (a) current liabilities and (b) inventory?
-At the end of the year, Wrinkle Free Laundry (WFL) had $150,000in total assets. (a) If WFL's total assets turnover was 2.0, whatwere its sales revenues? (b) If WFL's return on assets was 6percent, what were its net income and net profitmargin?
-The balance sheet for Panoramic Open Pictures (POP) shows$300,000 in total assets and $200,000 in total liabilities. POP'sreturn on assets (ROA) is 5 percent. Compute POP's (a) net incomefor the year and (b) its return on equity (ROE). POP has nopreferred stock.
-Legacy Cleaning has a debt ratio equal to 40 percent, totalassets equal to $750,000, return on assets (ROA) at 6 percent, andtotal assets turnover of 3.0. (a) If it has no preferred stock,what amount of common equity does Legacy have? (b) What is Legacy'snet profit margin?
