Excel Solutions - Chapter 02

Excel Solutions - Chapter 02 - Chapter 2 Problems 1-26...

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Chapter 2 Problems 1-26 Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green
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Chapter 2 Question 1 Input area: Current assets $5,000 Net fixed assets 23,000 Current liabilities $4,300 Long-term debt 13,000 Output area: Balance sheet Current assets $5,000 Current liabilities $4,300 Net fixed assets 23,000 Long-term debt 13,000 Owner's equity 10,700 Total liabilities Total assets $28,000 +total equity $28,000 Owner's equity = Total assets +Total liabilities = $10,700 Net working capital = Current assets - Current liabilities = $700
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Chapter 2 Questions 2-4 Input area: Sales $527,000 Costs 280,000 Depreciation expense 38,000 Interest expense 15,000 Tax rate 35% Cash dividends $48,000 Common Stock 30,000 Output area: Income Statement Sales $527,000 Costs 280,000 Depreciation expense 38,000 EBIT 209,000 Interest expense $15,000 EBT $194,000 Taxes $67,900 Net income $126,100 Addition to retained earnings = Net income - Ca Earnings per share = Net income / Common sto Dividends per share = Cash dividends / Commo
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sh dividends = $78,100 ck outstanding = $4.20 on stock outstanding = $1.60
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Chapter 2 Question 5 Input area: Book value of net fixed assets $4,000,000 Book value of current liabilities 2,200,000 Net working capital $900,000 Market value of net fixed assets $3,200,000 Market value of current assets 2,800,000 Output area: Net working capital $900,000 Current liabilities 2,200,000 Book value of current assets $3,100,000 Book value of net fixed assets 4,000,000 Book value of total assets $7,100,000 Market value of current assets $2,800,000 Market value of net fixed assets 3,200,000 Market value of total assets $6,000,000
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Chapter 2 Questions 6,7 Input area: 2004 Taxable income $273,000 Taxable income 0 - 50,000 15% 50,001 - 75,000 25% 75,001 - 100,000 34% 100,001 - 335,000 39% 335,001 - 10,000,000 34% 10,000,001 - 15,000,000 35% 15,000,001 - 18,333,333 38% 18,333,334 + 35% Output area: Taxes: 15% $50,000 25% 25,000 34% 25,000 39% 173,000 34% 0 35% 0 38% 0 35% 0 $89,720 Average tax rate: $89,720 = 32.86% 273,000 The marginal tax rate is 39%.
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Chapter 2 Question 8 Input area: Sales $13,500 Costs 5,400 Depreciation Expense 1,200 Interest Expense 680 Tax rate 35% Output area: Income Statement Sales $13,500 Costs 5,400 Depreciation expense 1,200 EBIT 6,900 Interest expense $680 EBT $6,220 Taxes $2,177 Net income $4,043 Operating cash flow = EBIT + Depreciation - Taxes = $5,923.00
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Chapter 2 Question 9 Input area: Dec. 31, 2003 net fixed assets $4,200,000 Dec. 31, 2004 net fixed assets 4,700,000 Depreciation expense $925,000 Output area: Net capital spending = $1,425,000
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Chapter 2 Question 10 Input area: Dec. 31, 2003 Current assets $1,600 Dec. 31, 2003 Current liabilities 940 Dec. 31, 2004 current assets $1,720 Dec. 31, 2004 current liabilities 1,180 Output area: Additions to net working capital $(120)
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Chapter 2 Question 11 Input area: Dec. 31, 2003 Long-term debt $2,800,000 Dec. 31, 2004 Long-term debt $3,100,000 Interest expense $340,000 Output area: Cash flow to creditors $40,000
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Excel Solutions - Chapter 02 - Chapter 2 Problems 1-26...

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