Chapter 07 Case Study Principles Of Finance

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You’ve collected the following information from your favorite financial website.
52-Week Price

 Stock (Div) Div
Yld %		 PE
Ratio		 Close
Price		 Net
Chg
Hi Lo
77.40 10.43    Palm Coal 0.36 2.6 6 13.90 –0.24
56.06 33.67    Lake Lead Grp 1.79 4.4 10 40.68 –0.01
130.93 69.50    SIR 2.00 2.2 10 88.97 3.07
50.24 13.95    DR Dime 0.80 5.2 6 15.43 –0.26
35.00 20.74    Candy Galore 0.32 1.5 28 ?? 0.18
Find the quote for the Lake Lead Group. Assume that the dividend is constant.
Requirement 1:
What was the highest dividend yield over the past year? (Do not round intermediate calculations.Round your answer to 2 decimal places (e.g., 32.16).)
Requirement 2:
What was the lowest dividend yield over the past year? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

 

 

You’ve collected the following information from your favorite financial website.

 

52-Week Price

 Stock (Div) Div
Yld %		 PE
Ratio		 Close
Price		 Net
Chg
Hi Lo
77.40 10.43    Palm Coal 0.36 2.6 6 13.90 –0.24
55.81 33.42    Lake Lead Grp 1.54 3.8 10 40.43 –0.01
130.95 69.60    SIR 2.10 2.4 10 88.99 3.07
50.24 13.95    DR Dime 0.80 5.2 6 15.43 –0.26
35.00 20.74    Candy Galore 0.32 1.5 28 ?? 0.18

 

According to your research, the growth rate in dividends for SIR for the next five years is expected to be 20.5 percent. Suppose SIR meets this growth rate in dividends for the next five years and then the dividend growth rate falls to 5.5 percent indefinitely. Assume investors require a return of 13 percent on SIR stock.

 

Requirement 1:
According to the dividend growth model, what should the stock price be today? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
Requirement 2:
Based on these assumptions, is the stock currently overvalued, undervalued, or correctly valued?

 

You’ve collected the following information from your favorite financial website.
52-Week Price

 Stock (Div) Div
Yld %		 PE
Ratio		 Close
Price		 Net
Chg
Hi Lo
78.5 10.54    Palm Coal 0.47 3.1 6 15.00 –0.24
55.81 33.42    Lake Lead Grp 1.54 3.8 10 40.43 –0.01
130.93 69.50    SIR 2.00 2.2 10 88.97 3.07
50.24 13.95    DR Dime 0.80 5.2 6 15.43 –0.26
35.00 20.74    Candy Galore 0.32 1.5 28 ?? 0.18
According to your research, the growth rate in dividends for Palm Coal for the previous 10 years has been 4.25 percent.
Required:
If investors feel this growth rate will continue, what is the required return for Palm Coal stock? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

 

You’ve collected the following information from your favorite financial website.
52-Week Price

 Stock (Div) Div
Yld %		 PE
Ratio		 Close
Price		 Net
Chg
Hi Lo
77.40 10.43    Palm Coal 0.36 2.6 6 13.90 –0.24
55.81 33.42    Lake Lead Grp 1.54 3.8 10 40.43 –0.01
130.93 69.50    SIR 2.00 2.2 10 88.97 3.07
50.33 14.04    DR Dime .89 5.7 6 15.52 –0.26
35.00 20.74    Candy Galore 0.32 1.5 28 ?? 0.18
According to your research, the growth rate in dividends for DR Dime for the previous 10 years has been –14 percent.
Required:
If investors feel this growth rate will continue, what is the required return for DR Dime stock? (Do not round intermediate calculations. Negative amount should be indicated by a minussign. Round your answer to 2 decimal places (e.g., 32.16).)

 

You’ve collected the following information from your favorite financial website.
52-Week Price

 Stock (Div) Div
Yld %		 PE
Ratio		 Close
Price		 Net
Chg
Hi Lo
77.40 10.43    Palm Coal .36 2.6 6 13.90 –0.24
55.81 33.42    Lake Lead Grp 1.54 3.8 10 40.43 –0.01
130.93 69.50    SIR 2.00 2.2 10 88.97 3.07
50.24 13.95    DR Dime .80 5.2 6 15.43 –0.26
36.60 20.90    Candy Galore 0.48 1.5 28 ?? 0.18
Requirement 1:
Using the dividend yield, calculate the closing price for Candy Galore on this day. (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
Requirement 2:
Assume the actual closing price for Candy Galore was $31.69. Your research projects a 4.25 percent dividend growth rate for Candy Galore. What is the required return for the stock using the dividend discount model and the actual stock price? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

 

 

 

 
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Intermediate Accounting Chapter 3 Homework

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The following is a December 31, 2016, post-closing trial balance for the Jackson Corporation.

 

  Account Title Debits Credits
  Cash 51,000
  Accounts receivable 45,000
  Inventories 86,000
  Prepaid rent 27,000
  Marketable securities (short term) 21,000
  Machinery 200,000
  Accumulated depreciation—machinery 22,000
  Patent (net of amortization) 90,000
  Accounts payable 13,500
  Wages payable 9,500
  Taxes payable 43,000
  Bonds payable (due in 10 years) 250,000
  Common stock 140,000
  Retained earnings 42,000
      Totals 520,000 520,000

 

Required:
Prepare a classified balance sheet for Jackson Corporation at December 31, 2016. (Amounts to be deducted should be indicated by a minus sign.)

 

Cone Corporation is in the process of preparing its December 31, 2016, balance sheet. There are some questions as to the proper classification of the following items:

 

 a. $67,000 in cash restricted in a savings account to pay bonds payable. The bonds mature in 2020.
 b. Prepaid rent of $41,000, covering the period January 1, 2017, through December 31, 2018.
 c. Note payable of $234,000. The note is payable in annual installments of $37,000 each, with the first installment payable on March 1, 2017.
 d. Accrued interest payable of $29,000 related to the note payable.
 e. Investment in marketable securities of other corporations, $114,000. Cone intends to sell one-half of the securities in 2017.

 

Required:
Prepare a partial classified balance sheet to show how each of the above items should be reported.

 

The current asset section of Guardian Consultant’s balance sheet consists of cash, accounts receivable, and prepaid expenses. The 2016 balance sheet reported the following: cash, $1,360,000; prepaid expenses, $420,000; noncurrent assets, $3,000,000; and shareholders’ equity, $3,100,000. The current ratio at the end of the year was 2.8 and the debt to equity ratio was 2.0.

 

Required:
Determine the following 2016 amounts and ratios: (Round your “The acid-test ratio” answer to 1 decimal place.)
The following is the ending balances of accounts at December 31, 2016, for the Vosburgh Electronics Corporation.
  Account Title Debits Credits
  Cash 103,000
  Short-term investments 218,000
  Accounts receivable 159,000
  Long-term investments 53,000
  Inventories 233,000
  Loans to employees 58,000
  Prepaid expenses (for 2017) 34,000
  Land 298,000
  Building 1,730,000
  Machinery and equipment 655,000
  Patent 170,000
  Franchise 58,000
  Note receivable 340,000
  Interest receivable 30,000
  Accumulated depreciation—building 638,000
  Accumulated depreciation—equipment 228,000
  Accounts payable 207,000
  Dividends payable (payable on 1/16/17) 28,000
  Interest payable 34,000
  Taxes payable 58,000
  Deferred revenue 78,000
  Notes payable 336,000
  Allowance for uncollectible accounts 26,000
  Common stock 2,072,000
  Retained earnings 434,000
        Totals 4,139,000 4,139,000

 

Additional information:
1. The common stock represents 1.5 million shares of no par stock authorized, 680,000 shares issued and outstanding.
2. The loans to employees are due on June 30, 2017.
3. The note receivable is due in installments of $68,000, payable on each September 30. Interest is payable annually.
4. Short-term investments consist of marketable equity securities that the company plans to sell in 2017 and $68,000 in treasury bills purchased on December 15 of the current year that mature on February 15, 2017. Long-term investments consist of marketable equity securities that the company does not plan to sell in the next year.
5. Deferred revenue represents customer payments for extended service contracts. Seventy five percent of these contracts expire in 2017, the remainder in 2018.
6. Notes payable consists of two notes, one for $118,000 due on January 15, 2018, and another for $218,000 due on June 30, 2019.
Required:
Prepare a classified balance sheet for Vosburgh at December 31, 2016. (Amounts to be deducted should be indicated by a minus sign.)
 
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Food Safety Worksheet

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  Title

ABC/123 Version X

 1
  Food Safety Worksheet

SCI/241 Version 7

 1

University of Phoenix Material

Food Safety Worksheet

Read each of the following scenarios.

Scenario 1:

Jeremiah went grocery shopping on a hot summer day. He bought food for an upcoming family BBQ; ground beef for hamburgers, a couple of steaks, and the ingredients for making potato salad.

When he left the store, he put his groceries in the trunk and stopped by the sports outlet store to pick up a Frisbee and croquet set. It took about 10 minutes at the sports store, and then Jeremiah headed home to prepare the food. He was concerned that it had been too hot in the car, but everything was still cold when he got home.

Jeremiah took the groceries home and put everything in the refrigerator. The meat fit well on the top shelf, right above the potato salad ingredients.

Later on, he got the groceries out to prep everything for the BBQ. He cooked the potatoes and used a sharp knife to trim some excess fat off of the raw steaks. Then he cut up the rest of the vegetables for the potato salad with the sharp knife on a cutting board.

Jeremiah formed the hamburger patties, seasoned the steaks, and finished making the potato salad. With only about 45 minutes to go before leaving for the BBQ, Jeremiah left everything sitting out on the counter while he showered and got ready.

When he arrived at the BBQ, he set the potato salad on the picnic table and went to grill the steaks and burgers. He cooked both to about medium doneness, meaning both were pink in the middle.

Jeremiah enjoyed one of the steaks he prepared and gave one to his cousin. The other family members enjoyed the burgers and potato salad; in fact, Jeremiah didn’t have a chance to try the salad. A couple of days after the BBQ, Jeremiah learned that everyone at the BBQ, with exception of himself and his cousin, experienced a bout of flu-like symptoms the following day.

Write 50- to 150-word responses to each of the following questions. Be clear and concise, use complete sentences, and explain your answers using specific examples.

1. Based on Scenario 1, what are the possible sources of food-borne illness?

2. Although Jeremiah did not get sick, there were several areas throughout Jeremiah’s day that could have led him to a serious case of food-borne illness. Point out these areas and briefly explain why they are of concern and what Jeremiah could have done differently.

3. Why is it safe for steak to be pink in the middle, but potentially dangerous for a hamburger not to be cooked all the way through?

Scenario 2:

After enjoying a delicious dinner of lasagna, Martha cleaned up the kitchen and left the covered tray of leftover lasagna on the counter to cool. Since the lasagna was so dense and thick, it took about 4 hours for it to feel cool enough to go into the fridge for the night. The next day, Martha served leftover lasagna for lunch. She heated the lasagna thoroughly and it was finished.

Within about 2–3 hours, everyone who ate the lasagna developed stomach cramps, fever, and nausea; most eventually started vomiting. The illness was pretty awful, but thankfully relatively short-lived.

Write 50- to 150-word responses to each of the following questions. Be clear and concise, use complete sentences, and explain your answers using specific examples.

1. How could this illness have been prevented?

2. Based on the incubation period and symptoms of the illness, what is the most likely microorganism responsible for this illness?

3. Describe the temperature danger zone.

4. How could Martha have sped up the cooling process of the lasagna?

5. If the leftover lasagna was thoroughly reheated, (which it was), how did it still lead to food-borne illness?

Scenario 3:

Sally was making marinated shish-kabobs to grill for dinner. She made a beautiful marinade and then cut up the raw chicken on a cutting board. She put the chunks of chicken in the marinade and let it sit on the counter for about 3 hours until it was time to cook.

While the chicken was marinating, Sally prepared the vegetables. She cut them using the same cutting board and knife; she rinsed both off with warm water between cutting the chicken and the vegetables.

Once the chicken had marinated, Sally put the chicken and vegetables on skewers to be grilled. She also started rice in the rice cooker to go with the shish-kabobs.

As the shish-kabobs were grilling, Sally put the marinade in a serving dish for extra sauce to put over the rice.

Several hours later, Sally and her family members all developed nausea, vomiting, diarrhea, fever, headache, and abdominal pain.

Write 50- to 150-word responses to each of the following questions. Be clear and concise, use complete sentences, and explain your answers using specific examples.

1. What could be the cause of Sally and her family members’ illness?

2. How could this illness have been prevented?

Copyright © XXXX by University of Phoenix. All rights reserved.

Copyright © 2013 by University of Phoenix. All rights reserved.

 
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Accounting Chap 5

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Palisade Creek Co. is a merchandising business that uses the perpetual inventory system . The account balances for Palisade Creek Co. as of May 1, 2018, are as follows: Assume all accounts have normal balances.

110 Cash $ 83,600
112 Accounts receivable 233,900
115 Inventory 624,400
116 Estimated returns inventory 28,000
117 Prepaid insurance 16,800
118 Store supplies 11,400
123 Store equipment 569,500
124 Accumulated depreciation-store equipment 56,700
210 Accounts payable 96,600
211 Salaries payable —
212 Customers refunds payable 50,000
310 Common stock 100,000
311 Retained earnings 585,300
312 Dividends 135,000
313 Income summary —
410 Sales 5,069,000
510 Cost of goods sold 2,823,000
520 Sales salaries expense 664,800
521 Advertising expense 281,000
522 Depreciation expense —
523 Store supplies expense —
529 Miscellaneous selling expense 12,600
530 Office salaries expense 382,100
531 Rent expense 83,700
532 Insurance expense —
539 Miscellaneous administrative expense 7,800

1. During May, the last month of the fiscal year, the following transactions were completed:

Record the following transactions on page 20 of the journal. Refer to the Chart of Accounts for exact wording of account titles.

May 1 Paid rent for May, $5,000.
  3 Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000.
  4 Paid freight on purchase of May 3, $600.
  6 Sold merchandise on account to Korman Co., terms 2/10, n/30, FOB shipping point, $68,500. The cost of the goods sold was $41,000.
  7 Received $22,300 cash from Halstad Co. on account.
  10 Sold merchandise for cash, $54,000. The cost of the goods sold was $32,000.
  13 Paid for merchandise purchased on May 3.
  15 Paid advertising expense for last half of May, $11,000.
  16 Received cash from sale of May 6.
  19 Purchased merchandise for cash, $18,700.
  19 Paid $33,450 to Buttons Co. on account.
  20 Paid Korman Co. a cash refund of $13,230 for returned merchandise from sale of May The invoice amount of the returned merchandise was $13,500 and the cost of the returned merchandise was $8,000.

Record the following transactions on page 21 of the journal. Refer to the Chart of Accounts for exact wording of account titles.

May 20 Sold merchandise on account to Crescent Co., terms 1/10, n/30, FOB shipping point, $110,000. The cost of the goods sold was $70,000.
  21 For the convenience of Crescent Co., paid freight on sale of May 20, $2,300.
  21 Received $42,900 cash from Gee Co. on account.
  21 Purchased merchandise on account from Osterman Co., terms 1/10, n/30, FOB destination, $88,000.
  24 Returned of damaged merchandise purchased on May 21, receiving a credit memo from the seller for $5,000.
  26 Refunded cash on sales made for cash, $7,500. The cost of the merchandise returned was $4,800.
  28 Paid sales salaries of $56,000 and office salaries of $29,000.
  29 Purchased store supplies for cash, $2,400.
  30 Sold merchandise on account to Turner Co., terms 2/10, n/30, FOB shipping point, $78,750. The cost of the goods sold was $47,000.
  30 Received cash from sale of May 20 plus freight paid on May 21.
  31 Paid for purchase of May 21, less return of May 24.

 
 
 
2. Post the journal to the general ledger, extending the month-end balances to the appropriate balance columns after all posting is completed. In this problem, you are not required to update or post to the accounts receivable and accounts payable subsidiary ledgers.
3. Prepare an unadjusted trial balance. Accounts with zero balances can be left blank.
4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete (5) and (6).

A. Inventory on May 31, $570,000
B. Insurance expired during the year, $12,000
C. Store supplies on hand on May 31, $4,000
D. Depreciation for the current year, $14,000
E. Accrued salaries on May 31:

  Sales salaries, $7,000
  Office salaries, $6,600

  Total accrued salaries: $13,600

 

 
F. The adjustment for customer returns and allowances is $60,000 for sales and $35,000 for cost of goods sold.

 
5. Enter the unadjusted trial balance on a 10-column end-of-period spreadsheet (work sheet), and complete the spreadsheet.
6.
A. Journalize the adjusting entries. Record the adjusting entries on Page 22 of the journal.*
B. Post the adjusting entries.

 
7. Prepare an adjusted trial balance. Accounts with zero balances can be left blank.
 
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