1. Below is the financial data pertaining to Printcraft Inc.:

 

	2020	2021	2022
Accounts Payable	22,500	17,500	15,450
COGS	102,750	98,000	96,450
Beg. Inv	130,000	121,750	101,500
End. Inv	121,750	101,500	112,500

 

Instructions

Compute the accounts payable turnover ratio for 2022 (place solution in space below at up to 2 decimal places).

2.

Below is the financial data pertaining to Printcraft Inc.:

 

	2020	2021	2022
Accounts Payable	22,500	17,500	15,450
COGS	102,750	98,000	96,450
Beg. Inv	130,000	121,750	101,500
End. Inv	121,750	101,500	112,500

 

Instructions

Compute the accounts payable payment period for 2022 (use 365 days per year and place solution to 2 decimal places in space below).

3. 

Othello Corporation purchases Shakespeare Inc. for $3.5 M. Shakespeare has the following assets all recorded at cost:

Accounts Receivable               $  125,000

Inventory                                  $  350,000

Land                                         $  500,000

Building (net)                            $  350,000

Equipment (net)                       $    50,000

Total Assets                             $1,375,000

 

The fair value of the assets is $2,350,000 and Othello also assumes $600,000 of debt from Shakespeare.

 

Instructions

As Othello purchases Shakespeare, what is the value of the goodwill?(place value without $ sign in space below)

4. 

Pendulum Enterprises has a defined benefit plan. Employees receive a pension equal to 2% of the average of the highest 5 years of salary and based on years of service. On December 31 2020, the fair value of the pension assets in the plan is $10.7 M, although pension contributions were in excess of $12.5 M, and the estimated pension obligation is $12.3M.

 

By how much is the plan over or underfunded? (place answer without $ sign in the space below in millions of dollars at up to 2 decimal places)