Chapter_02

Chapter_02 - Chapter 2 Problems 1-27 Input boxes in tan...

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Chapter 2 Problems 1-27 Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green NOTE: Some functions used in these spreadsheets may require that the "Analysis ToolPak" or "Solver Add-in" be installed in Excel. To install these, click on "Tools|Add-Ins" and select "Analysis ToolPak and "Solver Add-In."
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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 Question 2 Input area: Sales $527,000 Costs 280,000 Depreciation expense 38,000 Interest expense 15,000 Tax rate 35% Cash dividends $48,000 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 $78,100
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Chapter 2 Question 3 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 Question 4 Input area: 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 5 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 6 Input area: Dec. 31, 2005 net fixed assets $4,200,000 Dec. 31, 2006 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 7 Input area: Long-term debt $60,000,000 Preferred stock 18,000,000 Common stock 25,000,000 Accumulated retained earnings 89,000,000 Capital surplus 49,000,000 New shares issued 10,000,000 Par value of stock 1 Value of new stock sold 26,000,000 New long-term debt issued 8,000,000 Net income 7,000,000 Dividends 4,000,000
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This note was uploaded on 12/14/2010 for the course FINC 311 taught by Professor Stanley,t during the Fall '08 term at Winthrop.

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Chapter_02 - Chapter 2 Problems 1-27 Input boxes in tan...

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