BUSINESS COLLEGE

A firm has cash of 200,000, accounts receivable of 75,000, prepaid expenses of 12,500, accounts payable of $50,000, other current liabilities of 35,000, common stock of 375,000 and long term liabilities of 65,000. The firm also produced a profit of 20,000 during the last calendar year. What is the firm working capital?

Answers

Answer 1
Answer:

Answer:

$202,500

Explanation:

Working capital is the difference between current assets and current liabilities. Therefore, the formula for calculating working capital is as below.

Working capital = current assets- current liabilities

in this case

current assets =

cash     $200,000

account receivable      $75,000

prepaid expenses of       $12,500,

Total current assets   =      $287,500

current liabilities

accounts payable of   $50,000

other current liabilities of  $35,000

Total current liabilities = $85,000

working capital = $287,500 - $85,000

                          =$202,500

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Many different project life cycle models are used for different types of projects, such as information systems, improvement, research and development, and construction. Select one:True False
Mansfield Corporation granted 4,200 of its $2 par common shares to executives, subject to forfeiture if employment is terminated within three years. The common shares have a market price of $10 per share on the grant date of the restricted stock award. Ignoring taxes, what is the compensation expense pertaining to the restricted shares in the first full year after the grant?
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Which of the following is not an example of an unhealthy company culture?A. Insular inwardly-focused cultures.B. Change-resistant cultures.C. Unethical and greed-driven cultures.D. Politicized cultures.E. Hyper-adaptive cultures.

Answers

Answer: Option E

Explanation: Unhealthy company culture refers to negative environment within the organisation that affects all the members working in it. In simple words, it is the behavior of the organisation towards its various stake holders.

A hyper adaptive culture in an organisation depicts that the employees of the organisation have the ability to adjust in new situations, thus, the company could grab new opportunities better than others. This will result in competitive advantage to the company.

Hence, option D is an example of healthy company culture.

Dave Ryan is the CEO of Ryan's Arcade. At the end of its accounting period, December 31, Ryan's Arcade has assets of $632,000 and liabilities of $220,310. Using the accounting equation, determine the following amounts: a) Stockholders' equity as of December 31 of the current year. $ b) Stockholders' equity as of December 31 at the end of the next year, assuming that assets increased by $84,040 and liabilities increased by $17,800 during the year. $

Answers

Answer:

a) Stockholders' equity  = $411,690

b) Stockholders' equity  = $477,930

Explanation:

Accounting equation is defined as Assets = Liabilities + Equity.

a) If t the end of its accounting period, December 31, Ryan's Arcade has assets of $632,000 and liabilities of $220,310, the Stockholders' equity as of December 31 of the current year would be determined as follows:

$632,000 = $220,310 + Equity

Stockholders' equity  = $632,000 - $220,310

Stockholders' equity  = $411,690

b) If assets increased by $84,040 and liabilities increased by $17,800 during the next year, then Stockholders' equity would be determined as follows:

$632,000 + $84,040 = $220,310 + $17,800 + Equity

$716,040 = $238,110 + Equity

Stockholders' equity  = $477,930

Karen Moore is a new employee with Cars R Us. One of her first responsibilities as the new HR Director is to create an incentive program for the organization. Cars R Us specializes in selling and leasing mid-priced vehicles across the United States. The organization has locations in each state in the four main regions of the United States. Recently, however, employee performance has been declining along with the unfortunate decline of car sales.Before Ms. Moore creates an incentive program, she knows she will need to identify what is best practice for the industry, what the organization has done to reward the employees in the past as well as know what the financial constraints are to the new incentive program. Once completed, she will be able to implement a well-constructed incentive program established with the goals of increasing employee job satisfaction and performance as well as improve the companyâs financial position.
One of the first items on Ms. Mooreâs agenda is to identify the preferred method of earning rewards. In reviewing the results of a recent survey completed by more than 60 percent of the employees, she learns that the employees are competitive and are interested in group incentives programs as well as individual rewards.
Ms. Moore recommends Cars R Us include a _______ system that will provide all employees to receive a portion of the increase in productivity and effectiveness.
A. gainsharing
B. cost
C. equity
D. reduction
E. timesharing

Answers

Answer: A. gainsharing

Explanation:

A Gainsharing system is the one that Ms. Moore recommended because it involves providing employees with a portion of the increase in gains accrued from increased productivity and effectiveness.

Gainsharing ensures that employees are motivated to work harder for the company because they get a share if the company improves its productivity so they will have a vested interest in ensuring that the company becomes better.

Franklin, Inc., has an inventory turnover of 18.9 times, a payables turnover of 11.2 times, and a receivables turnover of 9.7 times. What is the company's cash cycle

Answers

Answer: Cash cycle =24.35 days

Explanation:

Cash cycle=Days in inventory+Days in receivables-Days in payables

Days in inventory=365/inventory turnover

=365/18.9

= 19.3121693 days

Days in receivables=365/receivables turnover

=365/9.7

=37.628866days

Days in payables=365/payables turnover

=365/11.2

=32.5892857 days

Therefore, Cash cycle=Days in inventory+Days in receivables-Days in payables

= 19.3121693 days+ 37.628866 days - -32.5892857days

=24.3517496days

Rounded up to 24.35 days

Final answer:

The cash cycle of Franklin, Inc., considering its inventory turnover, receivables turnover, and payables turnover, is approximately 24.35 days.

Explanation:

In order to calculate the cash conversion cycle for Franklin, Inc., we need to consider three aspects: Inventory turnover, payables turnover, and receivables turnover.

Firstly, we need to convert these turnovers into days. That's achieved by dividing 365 by the turnover ratio for each component.

The converted days for each component will be:

  • Inventory Days = 365 / Inventory Turnover = 365/18.9 ≈ 19.31 days
  • Receivables Days = 365 / Receivables Turnover = 365/9.7 ≈ 37.63 days
  • Payables Days = 365 / Payables Turnover = 365/11.2 ≈ 32.59 days

The Cash Conversion Cycle is then computed as follows: Cash Conversion Cycle = Inventory Days + Receivables Days - Payables Days = 19.31 + 37.63 - 32.59 ≈ 24.35 days

So, the cash cycle of Franklin, Inc. is approximately 24.35 days.

Learn more about Cash Conversion Cycle here:

brainly.com/question/36571330

Barkley’s Resort had 2,000 shares of $20 par value common stock outstanding. On June 1, Barkley’s purchased 200 shares of treasury stock at $21 per share and later reissued them for $22 per share. Which amount of profit from the reissuance will be reported?

Answers

Answer:

NONE

Explanation:

The treasury stock sales increase additional paid-in capital treasury stock. It do not generate net income the stokc are part of equity transactions. They cannot generate a gain, the differnece in value betwene cost and reissuance of the shares will be adjusted against additional paid-in capital Treasu Stock as state before.

Alpine Corporation reported the following information for fiscal 2017 and 2016. December 31 2017 2016
Operating assets $164,101 $153,211
Operating liabilities 120,785 114,836
Net cash flow from operations 46,709 39,540
Net operating profit after tax (NOPAT) 33,371 31,742
Discount factor 6.0% 6.0%

What are the company's free cash flows to the firm (FCFF) for 2017?

A. $28,430
B. $24,638
C. $28,907
D. $25,797
E. None of the above

Answers

Answer:

Option (A) is correct.

Explanation:

Net Operating assets in 2017:

= Operating assets - Operating liabilities

= $164,101 - $120,785

= $43,316

Net Operating assets in 2016:

= Operating assets - Operating liabilities

= $153,211 - $114,836

= $38,375

Increase in net operating assets:

= $43,316 - $38,375

= $4,941

Company's free cash flows to the firm (FCFF) for 2017:

= Net operating profit after tax 2017 - Increase in net operating assets

= $33,371 - $4,941

= $28,430
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