Based on the information for T. P. Jarmon Company for the year ended December 31, 2012: a.
Question:
a. How much is the firms net working capital and what is the debt ratio?
b. Complete a statement of cash flows for the period. Interpret your results.
c. Compute the changes in the balance sheets from 2011 to 2012. What do you learn about T. P. Jarmon from these computations? How do these numbers relate to the statement of cash flows?
Transcribed Image Text:
T. P. Jarmon Company Balance Sheet for 12/31/2011 and 12/31/2012 ASSETS 2011 2012 Cash Marketable securities Accounts receivable Inventory Prepaid rent Total current assets Net plant and equipment Total assets 15,000 6,000 42,000 51,000 $ 1,200 115,200 286,000 $401 200 LIABILITIES AND EQUITY 14,000 6,200 33,000 84,000 1100 $138,300 270,000 408 300 2011 2012 S 48,000 6,000 15,000 69,000 $160,000 $172,200 $401,200 57,000 Accounts payable Accruals Notes payable Total current liabilities Long-term debt Common stockholders' equity Total liabilities and equity 5,000 13,000 75,000 $150,000 $183,300 $408,300 T. P. Jarmon Company Income Statement for the Year Ended 12/31/2012 Sales Less cost of goods sold Gross profit Operating and interest expenses $600,000 460,000 $140,000 General and administrative $30,000 10,000 30,000 Interest Depreciation Total operating and interest expenses Earnings before taxes Taxes Net income available to common stockholders Cash dividends Change in retained earnings s 70,000 $ 70,000 27100 42,900 31,800 S 11,100
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 63% (19 reviews)
tr msoheightsourceauto col msowidthsourceauto br msodataplacementsamecell style17 msonumberformat 000 000 00220022 msostylenameComma 3 style18 msonumberformat00220022 00000220022 00000220022 00220022 ...View the full answer
Answered By
Joseph Mwaura
I have been teaching college students in various subjects for 9 years now. Besides, I have been tutoring online with several tutoring companies from 2010 to date. The 9 years of experience as a tutor has enabled me to develop multiple tutoring skills and see thousands of students excel in their education and in life after school which gives me much pleasure. I have assisted students in essay writing and in doing academic research and this has helped me be well versed with the various writing styles such as APA, MLA, Chicago/ Turabian, Harvard. I am always ready to handle work at any hour and in any way as students specify. In my tutoring journey, excellence has always been my guiding standard.
4.00+
1+ Reviews
10+ Question Solved
Related Book For
Foundations of Finance The Logic and Practice of Financial Management
ISBN: 978-0132994873
8th edition
Authors: Arthur J. Keown, John D. Martin, J. William Petty
Question Posted:
Students also viewed these Corporate Finance questions
-
The William B. Waugh Corporation is a regional Toyota dealer. The firm sells new and used trucks and is actively involved in the parts business. During the most recent year, the company generated...
-
Prepare a balance sheet and income statement for Belmond, Inc. from the following information. Inventory ............... $ 6,500 Common stock............. 45,000 Cash............... 16,550 Operating...
-
In Problem 3- 12, you were asked to prepare a statement of cash flows for Abrahams Manufacturing Company. Use the information given in the problem to compute the firms free cash flows and the...
-
A list of all of the raw materials needed to manufacture a job. Question 5 options: Bill of Materials Job costing Job cost record Question 6 (1 point) A system for assigning costs to products or...
-
On December 31, 2016, Mason Company made the following proper year-end adjusting entries: Required: 1. Prepare journal entries to record whatever reversing entries you think are appropriate. 2....
-
In April 2016, Vanessa bought 100 shares in Entagon plc at a cost of 5 per share. The company went into liquidation and Vanessa received a first distribution of 40p per share in July 2020. The shares...
-
Rafael Sanchez is about to begin his career as a financial investment representative with Strong Point Financial Services, a national company specializing in investment opportunities for individuals....
-
Discussion Problem: The Margo Manufacturing Company is performing an annual evaluation of one of its suppliers, the Mimi Company. Bo, purchasing manager of the Margo Manufacturing Company, has...
-
A light car is purchased on January 1 at a cost of $25,900. It is expected to serve for eight years and have a salvage value of $3,000. It is expected to be used for 96,000 miles over its eight-year...
-
1. Have you bought any products from Toms? Why did you choose Toms over alternatives? 2. The one-for-one model worked for Toms shoes because consumers could visualize a tangible impact and build a...
-
Given the information on page 90 for Pamplin Inc.: a. How much is the firms net working capital and what is the debt ratio? b. Complete a common- sized income statement, a common- sized balance...
-
Sandersen Inc. sells minicomputers. During the past year, the companys sales were $ 3 million. The cost of its merchandise sold came to $ 2 million, and cash operating expenses were $ 400,000;...
-
An IIR digital low-pass filter is required to meet the following specifications: Passband ripple (or peak-to-peak ripple): 0.5 dB Passband edge: 1.2 kHz Stopband attention: 40 dB Stopband edge: 2.0...
-
Since as early as the mid-1900s, impoverished citizens of Manila, Philippines have resided in informal settlements known as slums. The metro Manila area has several of these slums which houses much...
-
TASK: Our Challenge: Cooperation: I will choose to invest in and work with others to achieve success for both my team and myself. Write one way you have recently applied or adjusted your strengths to...
-
TASK: Think about one or two trends that are dramatically changing the hospitality workplace. Now, use this discussion to list these trends and explain how you will embrace change to cope...
-
You have read about a new Start-Up company called "Scott's Bots" that creates and markets robot vacuum cleaners that play music and operate with a voice command. (Sort of like an Amazon Echo glued to...
-
LingGalleries Howard Ling is a famous artistwith two galleries in Hawaii.Many of his paintings and prints are sold to tourists who visit Hawaii from Hong Kong and Japan. He paints 6 to 10 new...
-
In Problems 4576, solve each exponential equation. Express irrational solutions in exact form. ex+3 = x
-
Why do markets typically lead to an efficient outcome for buyers and sellers?
-
Bremmer Industries has a price/ earnings ratio of 16.29X. a. If Bremmers earnings per share are $ 1.35, what is the price per share of Bremmers stock? b. Using the price per share you found in part...
-
Ellies Electronics Incorporated has total assets of $ 63 million and total debt of $ 42 million. The company also has operating profits of $ 21 million with interest expenses of $ 6 million. a. What...
-
Callaway Concrete uses Economic Value Added as a financial performance measure. Callaway has $ 240 million in assets, and the firm has financed its assets with 37 percent equity and 63 percent debt...
-
Assignment 1 1. Write a program to implement the following formula for a -10 and b = 4; result = (a + 2b - 4ab)^4 // ^4 means to the power of 4 (1 mark) 2. Write a program to implement result = sin...
-
I have most of it done, I just need help fixing some things. import java.util.Scanner; public class Main { private String[] database; private Scanner input; public Main() { database = new...
-
Part 2 - WeatherMonitor Suppose you observe daily temperatures and want to know how hot each day is compared to recent days. That is, you want to: keep track of daily temperature values and know for...
Study smarter with the SolutionInn App