QuestionQuestion

The initial equity capital of Toys 4 Tots, Inc. (T4T) consisted of 10 million Shares sold at $ 0.25 Par Value Per Share. The company has been in business for a year and has earned Net Income of $ 500,000, paid $ 100,000 in Dividends, and retained the balance. T4t issued 1 million Shares of Stock last week at $ 0.60 Per Share. Based upon this please compute the following ending balances for T4T.

a. Total Par Value
b. Total Additional Paid In Capital
c. Total Common Stockholders Equity
d. Total Book Value Per Share
e. Price/Earnings Ratio

The financial planning committee of Nickel News, Co. has projected a Growth Rate of 8% for both Sales and Operating Costs for the upcoming year. No external capital will be required, and currently prevailing Interest Rates and Tax Rates are not expected to change.

                                                                   Nickel News Company
                                                                      Income Statement
                                                             For the (Current)Year Ended ___

                                     Sales …..................................................... $ 240,000,000
                                     Operating Costs …....................................    113,000,000
                                     Operating Income …................................ $ 127,000,000
                                     Interest Expense …..................................       27,000,000
                                     Pre-Tax Income …................................... $ 100,000,000
                                     Income Taxes ….......................................       33,000,000
                                     Net Income …........................................... $ 67,000,000

Preferred Stock Dividends for the current year totaled $ 10,000,000. Common Stock Dividends for the current year totaled $ 16,000,000. If management is expected to give Common Stockholders an 8% increase in Dividends Per Share, calculate the rate at which Retained Earnings will grow for the upcoming year.

A firm issues a 1 month Note to a borrower. The Loan Amount is $2,000,000 and the Annual Interest Rate is 18%.   Based upon this scenario:

a. Please give the borrower's journal entry upon receipt of the loan.
b. Please describe how and why the borrower's Statement of Cash Flow is impacted by the transaction journalized in Part a.
c. Please give the lender's journal entry at the time the loan is repaid.
d. Please describe how and why the lender's Statement of Cash Flow is impacted by the transaction journalized in Part c.

Solution PreviewSolution Preview

This material may consist of step-by-step explanations on how to solve a problem or examples of proper writing, including the use of citations, references, bibliographies, and formatting. This material is made available for the sole purpose of studying and learning - misuse is strictly forbidden.

Finance Problems
    $15.00 for this solution

    PayPal, G Pay, ApplePay, Amazon Pay, and all major credit cards accepted.

    Find A Tutor

    View available Finance Tutors

    Get College Homework Help.

    Are you sure you don't want to upload any files?

    Fast tutor response requires as much info as possible.

    Decision:
    Upload a file
    Continue without uploading

    SUBMIT YOUR HOMEWORK
    We couldn't find that subject.
    Please select the best match from the list below.

    We'll send you an email right away. If it's not in your inbox, check your spam folder.

    • 1
    • 2
    • 3
    Live Chats