Fin qestions 2 left to do please help due tonight

Jul 17th, 2013
Anonymous
Category:
Accounting
Price: $15 USD

Question description

1. Balance
Sheet Analysis

Complete the balance sheet and sales information in the table that follows for
Hoffmeister Industries using the following financial data:

Debt
ratio: 55%

Quick ratio: 0.95

Total assets turnover: 2.8

Days sales outstanding: 31 days*

Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 26%

Inventory turnover ratio: 5.0

* Calculation is based on a 365-day year.

Round your answers to the nearest whole dollar.

 

Balance
Sheet


 

Cash


 

 


 

 

Accounts
  payable


 

 


 

 

Accounts
  receivable


 

 


 

 

Long-term
  debt


 

 

$ 60,000
 


 

 

Inventories


 

 


 

 

Common stock


 

 


 

 

Fixed assets


 

 


 

 

Retained
  earnings


 

 

$ 97,500
 


 

 

Total assets


 

 

$ 300,000


 

 

Total
  liabilities and equity


 

 


 

 

Sales


 

 


 

 

Cost of goods
  sold


 

 


 


2. Corporate
After-Tax Yield

The Shrieves Corporation has $10,000 that it plans to invest in marketable
securities. It is choosing among AT&T bonds, which yield 8.5%, state of
Florida muni bonds, which yield 4% (but are not taxable), and AT&T
preferred stock, with a dividend yield of 7%. Shrieves's corporate tax rate is
35%, and 70% of the dividends received are tax exempt. Find the after-tax rates
of return on all three securities. Round your answers to two decimal places.

 


 

A-T rate of
  return on AT&T bond


 

 

%


 

 

A-T rate of
  return on Florida muni bonds


 

 

%


 

 

A-T rate of
  return on AT&T preferred stock


 

 

%


 





 

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