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    Assignment 1 Fall 2017

    Uploaded by

    YaseenTamer
    This document contains 3 questions for a financial accounting assignment. Question 1 provides income statements, balance sheets, and a statement of retained earnings for Technia Inc. and asks to prepare a statement of cash flows. Question 2 provides financial information for Philagem Inc. and asks to calculate earnings per share and the amount that will go to retained earnings based on a common stock dividend. Question 3 asks the student to select a public company based on their name and analyze financial statements and ratios for that company.

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    Assignment 1 Fall 2017

    Uploaded by

    YaseenTamer
    122 views3 pages
    This document contains 3 questions for a financial accounting assignment. Question 1 provides income statements, balance sheets, and a statement of retained earnings for Technia Inc. and asks to prepare a statement of cash flows. Question 2 provides financial information for Philagem Inc. and asks to calculate earnings per share and the amount that will go to retained earnings based on a common stock dividend. Question 3 asks the student to select a public company based on their name and analyze financial statements and ratios for that company.

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    This document contains 3 questions for a financial accounting assignment. Question 1 provides income statements, balance sheets, and a statement of retained earnings for Technia Inc. and asks to prepare a statement of cash flows. Question 2 provides financial information for Philagem Inc. and asks to calculate earnings per share and the amount that will go to retained earnings based on a common stock dividend. Question 3 asks the student to select a public company based on their name and analyze financial statements and ratios for that company.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    122 views3 pages

    Assignment 1 Fall 2017

    Uploaded by

    YaseenTamer
    This document contains 3 questions for a financial accounting assignment. Question 1 provides income statements, balance sheets, and a statement of retained earnings for Technia Inc. and asks to prepare a statement of cash flows. Question 2 provides financial information for Philagem Inc. and asks to calculate earnings per share and the amount that will go to retained earnings based on a common stock dividend. Question 3 asks the student to select a public company based on their name and analyze financial statements and ratios for that company.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 3

    FINC2101

    Assignment 1
    Due Sunday 1 October , 2017

    Question (1)
    The income statement for the year ended December 31, 2000, the balance sheets for December
    31, 2000 and 1999 and the statement of retained earnings for the year ended December 31, 2000
    for Technia Inc. are given here.

    Prepare the Statement of Cash Flows for the company.

    Income Statement
    Technica, Inc.
    For the year ended December 31,2000

    Sales revenues $600,000


    Less: Cost of Goods Sold 460,000
    Gross Profits $140,000
    Less: Operating Expenses

    General and administrative $30,000


    expenses

    Depreciation expense 30,000


    Total Operating Expenses 60,000
    Operating profits $80,000
    Less: Interest Expense 10,000
    Net Profits before taxes $70,000
    Less: taxes 27,100
    Earnings available for $42,900
    common stock holder
    Earnings per share $2.15
    Balance Sheet
    Technica,Inc.
    December 31
    Assets 2000 1999
    Cash $15,000 16,000
    Marketable Securities 7,200 8,000
    Accounts Receivable 34,100 42,200
    Inventories 82,000 50,000
    Total Current Assets 138,300 116,200
    Land and Buildings 150,000 150,000
    Machinery and equipment1 200,000 190,000
    Furniture and fixtures 54,000 50,000
    Other 11,000 10,000
    Total gross fixed assets 415,000 400,000
    Less: Accumulated 145,000 115,000
    depreciation
    Net fixed Assets 270,000 285,000
    Total Assets $408,300 $401,200

    Liabilities and Stock


    Holders Equity
    Accounts Payable 57,000 49,000
    Notes Payable 13,000 16,000
    Accruals 5,000 6,000
    Total Current Liabilities 75,000 71,000
    Long term debt 150,000 160,000
    Stock holders equity
    Common stock equity (shares 110,200 120,000
    outstanding:19,500 in 2000,
    and 20,000 in 1999)
    Retained Earnings 73,100 50,200
    Total Stock holders equity 183,300 170,200
    Total Liabilities and Owner 408,300 401,200
    Equity

    Statement of Retained Earnings


    Technica, Inc.
    For the year ended December 31,2000
    Retained Earnings balance (Jan 1, 2000) 50,200
    Plus: Net profits after taxes (for 2000) 42,900
    Less: Cash dividend (paid during 2000) (20,000)
    Retained Earnings balance (Dec 31, 2000) $73,100
    Question (2)
    Philagem, Inc., ended 2009 with a net profit before taxes of $218,000. The company is subject to
    a 40% tax rate and must pay $32,000 in preferred stock dividends before distributing any
    earnings on the 85,000 shares of common stock currently outstanding.
    a. Calculate the companys 2009 Earnings Per Share (EPS).
    b. If the firm paid common stock dividend of $0.8 per share how many dollars will
    go to retained earnings.

    Question (3)
    The purpose of this question is to familiarize you with real corporations financial statements. You
    are to select a US listed public corporation whose name starts with the first letter of your name.
    The following are the requirements of this exercise:

    a. Go to finance.yahoo.com or Morningstar.and go to the page with financial information on


    your company. What is the current stock price of the company? What is its market
    capitalization (price x number of shares outstanding)? Obtain the financial statements of the
    firm.
    b. From the balance sheet of the company, what is the value of the following:
    a. Total Assets
    b. Total Liabilities
    c. Retained Earnings
    d. Long Term Debt
    c. From the income statement, what is the value of the following:
    a. Total Sales
    b. Gross Profit
    c. Total Operating Expenses
    d. Net Income
    e. Tax rate that the company pays
    d. From the statement of cash flows, what is the value of the following:
    a. Net change in Cash and marketable securities
    b. Cash provided by operating activities
    e. Using all of the previous values and others:
    a. Analyze the companys liquidity, profitability, debt, activity and market ratios.
    Use two financial ratios under each category.
    b. Select five of the financial ratios and compare them to the industry averages

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