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FIN 500 Midterm

FIN 500 Midterm

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Author: willi padro
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1)     (Working with the income statement)
At the end of its third year of operations, the Sandifer Manufacturing Co. had
$4,592,000 in revenues, $3,323,000 in cost of goods sold, $447,000
in operating expenses which included depreciation expense of $156,000,
and a tax liability equal to 34 percent of the firm's taxable income. What is the net income of the firm for the year?
Complete the income statement for Sandifer Manufacturing Co.: (Round to the nearest dollar.)
Revenues =

$

 
 

 
Less:

Cost of Goods Sold =

$

Equals:

Gross Profit =

$

Less:

Operating Expenses =

$

Equals:

Net Operating Income =

$

Less:

Interest Expense =

$

0

Equals:

Earnings before Taxes =

$

Less:

Income Taxes =

$

 
 
 

Equals:

Net Income =

$

Enter any number in the edit fields and then continue to the next question.
2)

 
 

Balance Sheet

2013

Cash and marketable securities

$490

Accounts receivable

5,970

Inventories

9,480

Current assets

15,940

Net property plant and equipment

                                  16,960

Total assets

$32,900

Accounts payable

$7,150

Short-term debt

6,840

Current liabilities

$13,990

Long-term liabilities

6,980

Total liabilities

20,970

Total owners' equity

11,930

Total liabilities and owners' equity

32,900

 
Income Statement

2013

Revenues

$29,960

Cost of goods sold

                            (19,950)

Gross profit

$10,010

Operating expenses

(7,950)

Net operating income

                              $2,060

Interest expense

(870)

Earnings before taxes

$1,190

Taxes

(433)

Net income

$757

 
 

 
 
 
 
 
 
 
 
 
 
 
 
The balance sheet and income statement for Carver Enterprises, Inc. are foundhere:
 
.
a. Prepare a common-size balance sheet for Carver Enterprises.
b. Prepare a common-size income statement for Carver Enterprises.
a. Prepare a common-size balance sheet for Carver Enterprises.
Complete the common-size balance sheet below: (Round to one decimal place.)
Common-Size Balance Sheet

2013

Cash and marketable securities

$

490

%

Accounts receivable

5,970

Inventories

9,480

Current assets

$

15,940

%

Net property plant and equipment

16,960

Total assets

$

32,900

%

Accounts payable

$

7,150

%

Short-term debt

6,840

Current liabilities

$

13,990

%

Long-term liabilities

6,980

Total liabilities

$

20,970

%

Total owners’ equity

11,930

Total liabilities and owners’ equity

$

32,900

%


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