National City Bank has 646,749,650 shares of common stock outstanding that are currently selling for $37.55 per
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 fact that the priceearnings ratio for National 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 company had 100,000 shares of common stock outstanding on January 1. In addition, as of January 1, the company had issued 10,000 convertible preferred shares (cumulative, 5%, $100 par). These...
-
The company had 200,000 shares of common stock outstanding on January 1. In addition, as of January 1, the company had issued 5,000 convertible preferred shares (cumulative, 5%, $100 par). These...
-
The company had 200,000 shares of common stock outstanding throughout the year. In addition, as of January 1, the company had issued stock options that allowed employees to purchase 50,000 shares of...
-
Court Casuals has 100,000 shares of common stock outstanding as of the beginning of the year and has the following transactions affecting stockholders' equity during the year. May 18 Issues 25,000...
-
Compare the Target results in MBA 4-5 with those of Wal-Mart (WMT) shown in the chapter illustration. Comment on the differences Taken From MBA-4.5 Sales Cost of goods sold Gross profi Year 2 $72,618...
-
The following data are available for PFE Inc. for July 2023. Selling price $45 per unit Direct Materials $250,000 Direct Labor $175,000 Manufacturing overhead $200,000 Selling expense $4.75 per unit...
-
Explain why the sample variance formula is \[\sum_{i=1}^{N} \frac{\left(y_{i}-\bar{y} ight)^{2}}{N-1}\] instead of \[\sum_{i=1}^{N} \frac{\left(y_{i}-\bar{y} ight)^{2}}{N}\]
-
Maricopa Corporation is developing departmental overhead rates based on direct labor hours for its two production departmentsmolding and assembly. The molding department employs 20 people, and the...
-
On September 1 , 2 0 2 7 , Betty DeRose, Inc. received $ 5 4 , 0 0 0 cash from a customer as payment for services that will be performed over the next 3 0 months. On May 3 1 , 2 0 2 8 , Betty DeRose,...
-
Flurry, Inc., is expanding into China. The company must decide where to locate and how to finance the expansion. Identify the financial statement where these decision makers can find the following...
-
Refer to the preceding balance sheet and income statement for Greenfern Corporation for the fiscal year ended July 31, 2017. Use the DuPont identity to calculate the return on equity (ROE). In the...
-
Why is it not enough for an analyst to look at just the short-term and long-term debt on a firms balance sheet when assessing the firms fixed obligations?
-
The speed v of a transverse wave on a stretched wire is given by the expression v T where T is the tension in the wire. A length of wire is stretched between two fixed point. The tension in the wire...
-
You want to go on vacation to Bora Bora. Identify and explain the following: Which of the three types of planning will you use? Explain your decision. What is your main objective? Explain your...
-
What are the advantages and disadvantages of the formalistic, competitive and collegial management styles that foreign policy leaders use to organize their behavior?
-
nex cars for a total cost of $180,000. The cars generated expenses of $60,000 per year. The company uses MACRS depreciation and its marginal tax rate is income of $150,000 per year and incurred...
-
6. What is nodal tissue? 7. What is the function and location of the S-A node? 8. Explain the following abnormalities: tachycardia bradycardia fibrillation 9. What is a cardiac cycle? 10. Af what...
-
Give 2 examples of what journal entries Rite-Aid would have made in the description below. From a SEC Filing describing fraudulent accounting by Rite-Aid: Rite Aid systematically inflated deductions...
-
Calliope Corp. has outstanding 400 shares of common stock of which Yak, So, Day, and Ren each own 100 shares, or 25%. No stock is considered constructively owned by any of the shareholders under ...
-
According to a recent survey, 40% of millennials (those born in the 1980s or 1990s) view themselves more as spenders than savers. The survey also reveals that 75% of millennials view social...
-
Current Ratio What effect would the following actions have on a firms current ratio assume that net working capital is positive. a. Inventory is purchased. b. A supplier is paid. c. A short-term bank...
-
Current Ratio What effect would the following actions have on a firms current ratio assume that net working capital is positive. a. Inventory is purchased. b. A supplier is paid. c. A short-term bank...
-
Current Ratio and Quick Ratio In recent years, Dixie Co. has greatly increased its current ratio. At the same time, the quick ratio has fallen. What has happened? Has the liquidity of the company...
-
A couple obtained a $20,000 mortgage loan at an interest rate of 10.5% compounded monthly. (Original principal equals to PV of all payments discounted at the interest rate on the loan contract) (1)...
-
What strategies and tactics are employed to manage strategic risks and uncertainties, including geopolitical instability, supply chain disruptions, and emerging competitive threats, while preserving...
-
How do strategic planners integrate ethical considerations and sustainability imperatives into strategic planning processes, balancing short-term financial objectives with long-term societal and...
Study smarter with the SolutionInn App