Refer to the preceding balance sheet and income statement for Greenfern Corporation for the fiscal year ended
Question:
Greenfern Corporation recently filed the following financial statements with the SEC.
Financial StatementsFinancial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Greenfern Corporation Income Statement for the Fiscal Year Ended July 31, 2017 $ 73,236 Net sales Cost of products sold Gross profit Selling, general, and administrative expenses Depreciation Operating income (loss) Interest expense Earning (loss) before income taxes 52,092 $ 21,144 9,333 1,060 $ 10,751 649 10,102 Income taxes 3,536 $ 6,566 Net earnings (loss) Greenfern Corporation Balance Sheet as of July 31, 2017 Liabilities and Equity: Accounts payable Accrued and other liabilities Assets: Cash and marketable securities $ 9,118 $ 6,379 5,663 Accounts receivable 7,844 Taxes payable Debt due within one year Inventory 8,900 4,821 Deferred income taxes 878 10,778 Prepaid expenses and other 2,803 Total current liabilities $27,641 $29,543 Total current assets Property, plant, and equipment, 62,467 Long-term debt 24,280 6,903 Deferred income taxes at cost Less: Accumulated depreciation Net property, plant, and 22,196 Other non current liabilities 5,608 Total liabilities Common stock $64,432 $40,271 3,667 equipment Net goodwill and other intangible assets 17,985 16,270 Retained earnings Total stockholders' equity $21,652 Total liabilities and stockholders' Total assets $86,084 $86,084 equity
Step by Step Answer:
The current ratio of just over 1 tells us that Greenferns c...View the full answer
Fundamentals of Corporate Finance
ISBN: 978-1119371403
4th edition
Authors: Robert Parrino, David S. Kidwell, Thomas Bates
Related Video
Depreciation of non-current assets is the process of allocating the cost of the asset over its useful life. The cost of the asset includes the purchase price, any additional costs incurred to bring the asset to its current condition and location, and any other costs that are directly attributable to the asset. The useful life of the asset is the period over which the asset is expected to be used by the company. To calculate the depreciation, companies use different methods such as straight-line, declining-balance, sum-of-the-years\'-digits, units-of-production, and group depreciation. The chosen method will depend on the type of asset, the company\'s accounting policies, and the accounting standards that are applicable. The straight-line method allocates an equal amount of the asset\'s cost over its useful life, while the declining-balance method calculates depreciation at a fixed rate, typically double the straight-line rate, but the amount of depreciation decreases over time. The sum-of-the-years\'-digits method is similar to the declining-balance method, but the rate of depreciation is calculated using a fraction that is based on the useful life of the asset. It\'s important to note that the depreciation expense will be recorded on the company\'s income statement and the accumulated depreciation will be recorded on the company\'s balance sheet. This will decrease the value of the asset on the balance sheet over time.
Students also viewed these Business questions
-
The 2001 balance sheet and income statement for the Lewis Company are shown below. Lewis Company: Income Statement for December 31, 2001 (Thousands of Dollars)...
-
The 2009 balance sheet and income statement for the Woods Company are shown here: Woods Company: Income Statement for the Year Ending December 31, 2009 ($ thousands)...
-
The Garcia Industries balance sheet and income statement for the year ended 2005 are as follows: Income Statement (in Millions of Dollars) Net sales ............... $100.0 Cost of sales...
-
Consider the valve failure data in Example 7.6. Set up a one-sided CUSUM chart for monitoring and detecting an increase in failure rate of the valve. Assume that the target value of the mean time...
-
Your sister operates Harbor Ready Parts Company, an online boat parts distributorship that is in its third year of operation. The income statement is shown below and was recently prepared for the...
-
Foreman Inc. issued $800,000 of 20-year, 10% bonds on January 1, 2017 at 102. Interest is payable semi-annually on July 1 and January 1. The company uses the straight-line method of amortization for...
-
A \(10 \mathrm{mph}\) wind is blowing directly into an open \(3 \mathrm{ft} \times 5 \mathrm{ft}\) window, which is mounted in a room's \(8 \mathrm{ft}\) high by \(12 \mathrm{ft}\) wide wall. If the...
-
Allocation to accomplish smoothing OHara Corporation estimated its overhead costs would be $24,000 per month except for January when it pays the $72,000 annual insurance premium on the manufacturing...
-
TBA, Inc., manufactures and sells concrete block for residential and commercial building. In preparation for a master budget for the 2023, management gathers the following information. Quarterly...
-
Business has been good for Keystone Control Systems, as indicated by the four-year growth in earnings per share. The earnings have grown from $1.00 to $1.63. a. Use Appendix A at the back of the text...
-
The equity multiplier for Spiff y Corporation is 1.75, its EBIT return on assets (EROA) is 0.07, and the value of its equity is $850,000. What is the value of Spiff ys total assets? What is the value...
-
Refer to the preceding balance sheet and income statement for Greenfern Corporation for the fiscal year ended July 31, 2017. Calculate the following ratios: a. Inventory turnover b. Days sales...
-
Using the LexisNexis Academic Sources option to do the following: a. Find the source that contains the San Jose Mercury News newspaper and perform a keyword search for apple and Dutch sandwich with...
-
The Affordable Care Act originally included a requirement for everyone to carry health insurance. In the context of the RS model of adverse selection, what effect does mandating health insurance have...
-
Suppose that a commercial bank has $100 million of assets and that its capital consists of $10 million of equity. In addition, the bank's return on assets is 1 percent. Calculate the return on equity...
-
How the governmental policy process informs the development, implementation, and assessment of policy within the realm of health care.
-
Use your observations and the information in your field guide to predict the identity of each shark. What challenges do you face when making your predictions?
-
1. As an Austrian-Thai company, Red Bull has done a remarkable job of positioning itself internationally by coming across as a local company in every country where Red Bull is sold. Would you be more...
-
A balanced fully differential circuit displays only odd-order nonlinearity. Use SPICE to verify this fact for the op amp in the example in Section 12.6.1. (a) Either use SPICE to find the distortion...
-
Which internal control principle is especially diffi cult for small organizations to implement? Why?
-
Accounting Values versus Cash Flows in Problem 19, suppose Raines Umbrella Corp. paid out $30,000 in cash dividends. Is this possible? If spending on net fixed asset and net working capital was zero,...
-
Calculating Cash Flows Brewer industries had the following operating results for 2007: sales = $15,200; cost of goods sold = $11,400; depreciation expense = 2,700; interest expense $520; dividends...
-
Calculating Cash Flows Consider the following abbreviated financial statements for Parrot head Enterprises: a. What is owners?? equity for 2006 and 2007? b. What is the change in net working capital...
-
Go into depth about the topic: Do women in the workplace still have to tolerate sexual harassment to advance or maintain their job positions? Why or why not? THE SCENARIO: You are human resource...
-
A pile group consists of nine friction piles in clay soil (see Figure 10-40). The diameter of each pile is 16 in., and the embedded length is 30 ft each. Center-to-center pile spacing is 4 ft. Soil...
-
Honest to Goodness Merchandising was registered as a Single Proprietorship by May Mendoza, the owner in the Department of Trade and Industry. Selected transactions for the month of July, 2019 are...
Study smarter with the SolutionInn App