Accounts payable=45,000

Question

Accounts receivable=122,400
Accruals=13,500
Additional paid in capital=216,660
Cash=?
Common Stock @ par value=42,000
COGS=179,742.00
Depreciation expense=23,443.00
Interest expense=16,341.00
Inventories=115,200
Long-term debt=138,565.00
Net fixed assets=399,600
Notes payable=64,800
Operating expenses (excl. depr.)=69,194.00
Retained earnings=136,800
Sales=335,777.00
Taxes=18,556.00
What is the cash balance?

Answer 1

To calculate the cash balance, we can use the accounting equation:

\[ \text{Assets} = \text{Liabilities} + \text{Equity} \]

Here's how to break this down:

1. Calculate Total Assets

Total Assets consists of:

• Cash
• Accounts Receivable
• Inventory
• Net Fixed Assets

The equation can be rearranged to find Cash:

\[ \text{Cash} = \text{Total Assets} - (\text{Accounts Receivable} + \text{Inventory} + \text{Net Fixed Assets}) \]

2. Calculate Total Liabilities

Total Liabilities consists of:

• Accounts Payable
• Accruals
• Notes Payable
• Long-term Debt

3. Calculate Equity

Equity consists of:

• Common Stock
• Additional Paid-in Capital
• Retained Earnings

Let’s calculate these values step by step.

Total Assets Calculation

Given values:

• Accounts Receivable = $122,400
• Inventories = $115,200
• Net Fixed Assets = $399,600

Calculating Total Assets excluding Cash: \[ \text{Total Assets (without Cash)} = \text{Accounts Receivable} + \text{Inventories} + \text{Net Fixed Assets} \] \[ \text{Total Assets (without Cash)} = 122,400 + 115,200 + 399,600 = 637,200 \]

Total Liabilities Calculation

Given values:

• Accounts Payable = $45,000
• Accruals = $13,500
• Notes Payable = $64,800
• Long-term Debt = $138,565

Calculating Total Liabilities: \[ \text{Total Liabilities} = \text{Accounts Payable} + \text{Accruals} + \text{Notes Payable} + \text{Long-term Debt} \] \[ \text{Total Liabilities} = 45,000 + 13,500 + 64,800 + 138,565 = 261,865 \]

Total Equity Calculation

Given values:

• Common Stock @ par value = $42,000
• Additional Paid-in Capital = $216,660
• Retained Earnings = $136,800

Calculating Total Equity: \[ \text{Total Equity} = \text{Common Stock} + \text{Additional Paid-in Capital} + \text{Retained Earnings} \] \[ \text{Total Equity} = 42,000 + 216,660 + 136,800 = 395,460 \]

Final Calculation for Total Assets

Now we can use the accounting equation: \[ \text{Assets} = \text{Liabilities} + \text{Equity} \] \[ \text{Assets} = 261,865 + 395,460 = 657,325 \]

Calculate Cash Balance

Now we can find the Cash balance: \[ \text{Total Assets} = \text{Cash} + \text{Accounts Receivable} + \text{Inventories} + \text{Net Fixed Assets} \] \[ 657,325 = \text{Cash} + 637,200 \]

Now, solving for Cash: \[ \text{Cash} = 657,325 - 637,200 = 20,125 \]

Conclusion

The cash balance is: \[ \text{Cash} = $20,125 \]

Answer 2

What is the entry for the operating expense on a common-sized income statement?

Answer 3

In a common-sized income statement, each line item is expressed as a percentage of total revenue (sales). This allows for easy comparison across companies or periods by standardizing the figures.

To calculate the operating expense as a common-sized entry, you would use the following formula:

\[ \text{Common-Sized Operating Expense} = \left( \frac{\text{Operating Expenses}}{\text{Total Revenue}} \right) \times 100 \]

Given the data you provided:

• Operating Expenses (excluding depreciation): $69,194.00
• Sales (Total Revenue): $335,777.00

Calculation

1. Calculate the common-sized operating expense:

\[ \text{Common-Sized Operating Expense} = \left( \frac{69,194}{335,777} \right) \times 100 \]

2. Perform the calculation:

\[ \text{Common-Sized Operating Expense} = \left( 0.2056 \right) \times 100 \approx 20.56% \]

Conclusion

On a common-sized income statement, the entry for operating expenses would be approximately 20.56% of total revenue.

Answer 4

What is the return on assets (ROA)?

Answer 5

The Return on Assets (ROA) is a key financial metric that indicates how efficiently a company is using its assets to generate profit. It is calculated using the following formula:

\[ \text{ROA} = \left( \frac{\text{Net Income}}{\text{Total Assets}} \right) \times 100 \]

To calculate ROA, you'll first need to determine the Net Income and Total Assets.

Step 1: Calculate Net Income

Net Income can be calculated by subtracting total expenses from total revenues (sales). You can derive it using the provided information about sales, cost of goods sold (COGS), operating expenses, interest expense, and taxes.

Given:

• Sales (Total Revenue) = $335,777.00
• COGS = $179,742.00
• Operating Expenses (excluding depreciation) = $69,194.00
• Depreciation Expense = $23,443.00
• Interest Expense = $16,341.00
• Taxes = $18,556.00

Calculate Total Expenses:

\[ \text{Total Expenses} = \text{COGS} + \text{Operating Expenses} + \text{Depreciation Expense} + \text{Interest Expense} + \text{Taxes} \]

Calculating Total Expenses:

\[ \text{Total Expenses} = 179,742 + 69,194 + 23,443 + 16,341 + 18,556 = 307,276 \]

Now, calculate Net Income:

\[ \text{Net Income} = \text{Sales} - \text{Total Expenses} \] \[ \text{Net Income} = 335,777 - 307,276 = 28,501 \]

Step 2: Total Assets

We previously calculated Total Assets using:

\[ \text{Total Assets} = \text{Accounts Receivable} + \text{Inventories} + \text{Net Fixed Assets} + \text{Cash} \]

From earlier calculations:

• Cash = $20,125 (calculated previously)
• Accounts Receivable = $122,400
• Inventories = $115,200
• Net Fixed Assets = $399,600

Calculate Total Assets:

\[ \text{Total Assets} = 20,125 + 122,400 + 115,200 + 399,600 = 657,325 \]

Step 3: Calculate ROA

Now, plug in the values to calculate ROA:

\[ \text{ROA} = \left( \frac{28,501}{657,325} \right) \times 100 \]

Calculating ROA:

\[ \text{ROA} = 0.0434 \times 100 \approx 4.34% \]

Conclusion

The Return on Assets (ROA) is approximately 4.34%. This indicates that for every dollar of assets, the company generates about 4.34 cents in profit.

Answer 6

What is the return on equity (ROE)?

Answer 7

The Return on Equity (ROE) is a financial metric that measures a company's ability to generate profit from its shareholders' equity. It is calculated using the following formula:

\[ \text{ROE} = \left( \frac{\text{Net Income}}{\text{Shareholders' Equity}} \right) \times 100 \]

Step 1: Calculate Net Income

From our previous calculations, we determined:

• Net Income = $28,501

Step 2: Calculate Shareholders' Equity

Shareholders' Equity consists of Common Stock, Additional Paid-in Capital, and Retained Earnings. Based on the data you provided, we can calculate the total equity:

Given:

• Common Stock @ par value = $42,000
• Additional Paid-in Capital = $216,660
• Retained Earnings = $136,800

Calculating Shareholders’ Equity:

\[ \text{Shareholders' Equity} = \text{Common Stock} + \text{Additional Paid-in Capital} + \text{Retained Earnings} \]

\[ \text{Shareholders' Equity} = 42,000 + 216,660 + 136,800 = 395,460 \]

Step 3: Calculate ROE

Now plug in the values to calculate ROE:

\[ \text{ROE} = \left( \frac{28,501}{395,460} \right) \times 100 \]

Calculating ROE:

\[ \text{ROE} = 0.0721 \times 100 \approx 7.21% \]

Conclusion

The Return on Equity (ROE) is approximately 7.21%. This means that for every dollar of shareholders' equity, the company is generating approximately 7.21 cents in profit.

Answer 8

What is the entry for long-term debt on a common-sized balance sheet?

Answer 9

In a common-sized balance sheet, each line item is expressed as a percentage of total assets. This allows for the easy comparison of financial position across different companies or time periods, regardless of the size of those companies.

To calculate the entry for long-term debt as a common-sized entry on the balance sheet, you can use the following formula:

\[ \text{Common-Sized Long-Term Debt} = \left( \frac{\text{Long-Term Debt}}{\text{Total Assets}} \right) \times 100 \]

Given Values

From the information you provided:

• Long-Term Debt = $138,565
• Total Assets = $657,325 (calculated previously)

Calculation

1. Calculate the common-sized long-term debt:

\[ \text{Common-Sized Long-Term Debt} = \left( \frac{138,565}{657,325} \right) \times 100 \]

2. Perform the calculation:

\[ \text{Common-Sized Long-Term Debt} = 0.2105 \times 100 \approx 21.05% \]

Conclusion

On a common-sized balance sheet, the entry for long-term debt would be approximately 21.05% of total assets.

Answer 10

thank you soo much for help me on all those steps.

Answer 11

You're very welcome! I'm glad I could assist you with your questions. If you have any more queries or need help with anything else in the future, feel free to ask. Have a great day!