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Ch04HWSol(6th)

# Ch04HWSol(6th) - Chapter 4 HW Assignment E4-3 5 7 13 P4-6 9...

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Chapter 4 HW Assignment: E4-3, 5, 7, 13; P4-6, 9, 10, 12, 13, 22 Solutions E4-3 1. I 9. I and SE 2. SE 10. I, B, and SE 3. N 11. I 4. B 12. B and SE 5. B 13. I 6. B and SE 14. SE 7. SE 15. SE 8. I E4-5 a. Gross profit: Sales revenue \$81,000 Service revenue 23,000 Rental revenue 50,000 Total revenue \$154,000 Cost of goods sold 36,000 Gross profit \$118,000 b. Operating expenses: General and administrative \$12,000 Selling 28,000 Operating expenses \$ 40,000 c. Income from operations: Gross profit \$118,000 Operating expenses 40,000 Income from operations \$ 78,000 d. Pretax income: Income from operations \$78,000 Interest expense 7,500 Pretax income \$ 70,500 e. Net income: Pretax income \$70,500 Income tax expense 20,000 Net income \$ 50,500 f. Earnings per share: Net income \$50,500 ÷ 20,000 shares = \$2.53 Chapter 4 HW Solutions Page 1

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E4-7 a. Primary source of revenue: transporting passengers. b. Percentage of revenue from transporting passengers: (\$8,984 ÷ \$9,744 = 0.92) 92% c. Largest expenses: Salaries and employee costs, fuel, and purchasing capacity from ExpressJet. d. Revenue from transporting passengers: \$8,984,000,000 e. Revenue from other operating activities: \$760,000,000 f. Nonoperating income: \$178,000,000 g. Operating loss: \$229,000,000 h. Nonoperating expense: \$389,000,000 i. \$363,000,000 loss E4-13 Marvelous Enterprises Balance Sheet April 30 Assets Current assets: Cash \$ 10,360 Accounts receivable 14,700 Merchandise inventory 12,480 Supplies 3,570 Prepaid insurance 1,100 Total current assets \$ 42,210 Property, plant and equipment: Land \$ 45,000 Buildings 50,000 Accumulated depreciation (13,100 ) Total property, plant and equipment \$ 81,900 Other assets: Copyrights and trademarks \$ 5,000 Patents 3,300 Total other assets \$ 8,300 Total assets \$132,410 Chapter 4 HW Solutions Page 2
Liabilities: Current liabilities: Accounts payable \$ 17,000 Wages payable 17,700 Notes payable, current portion 14,200 Total current liabilities \$ 48,900 Long-term liabilities: Long-term notes payable 33,000 Total liabilities \$ 81,900 Stockholders’ Equity: Contributed capital \$ 38,770 Retained earnings* 11,740 Total stockholders’ equity \$ 50,510 Total liabilities and stockholders’ equity \$132,410 *Retained earnings, March 31 + revenues – expenses – dividends = Retained earnings, April 30. = \$8,400 + \$26,000 – (\$15,050 + \$1,100 + \$1,060 + \$550 + \$900 + \$1,300 + \$1,500) –

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Ch04HWSol(6th) - Chapter 4 HW Assignment E4-3 5 7 13 P4-6 9...

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