Question

Problem 1: 
Plastics Inc. is a company that operates in four different divisions. The following information relating to each segment is available for 2013.
Sales revenue Cost of goods sold Operating expenses Total expenses Operating profit (loss) Identifiable assets
Bottles $ 65,000 $ 26,000 $8,000 $ 34,000 $31,000 $ 66,000 
Containers $ 95,000 $ 62,000 $ 48,000 $ 110,000 $ (15,000) $ 80,000 
Dollhouses $ 620,000 $ 353,000 $140,000 $ 493,000 $ 127,000 $ 640,000 
Silverware $18,000 $ 8,000 $ 6,500 $14,500 $3,500 $36,000 
Sales of segments Containers and Dollhouses included intersegment sales of $30,000 and $150,000, respectively.

Required
Determine which of the segments are reportable based on the following:
Revenue Test
Operating profit (loss) test
Identifiable assets test
Problem 2: 
The following information pertains to Walrus Inc.
Cash $60,000 
Accounts receivable 170,000
Inventory 100,000
Plant assets (net) 582,000
Total assets $912,000 
Accounts payable $110,000 
Accrued taxes and expenses payable 42,000
Long-term debt 120,000
Common stock ($10 par) 260,000
Paid-in capital in excess of par 50,000
Retained earnings 330,000
Total equities $912,000 
Net sales (all on credit) $2,000,000 
Cost of goods sold 1,400,000
Net income 120,000

Required:
Compute the following:
(Ignore Avg for balance sheet accounts)
(a) Current ratio
(b) Inventory turnover
(c) Receivables turnover
(d) Book value per share
(e) Earnings per share
(f) Debt to total assets
(g) Profit margin on sales
(h) Return on common stock equity



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  • CreatedSeptember 19, 2013
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