16. YOU MUST SHOW WORK ON ALL PROBLEMS TO RECEIVE CREDIT!

2-1. On February 22, 2009 (the real Washington's Birthday!) you company bought office furniture for thirty five thousand dollars. What would be the dollar value of depreciation your company could take in the following years assuming they use MACRS:

a. 2008

b. 2010

c. 2011

d. 2016

e. 2017

17. 2-2: On Sept 30th, the Disney Corp had a Retained Earnings balance of $7,933 million. One year later it had jumped to $9,557 million. They sold no stock during the year but did pay $342 million in common dividends. Their DPS = $0.51. Given this information:

a. what must have been their net income for the year (8 points ) and b. how many shares of stock must be outstanding (only 2 points - yes this part is difficult)

18. The following 10 questions pertain to "Cline Custome Bikes" their income statement and balance sheet. Note I've provided the link to the Income Statement & Balance Sheet in this question is you haven't already downloaded it from Course Docs.

2-3-1:

What was their depreciation expense for 2000?

19. 2-3-2.

What were the current ratios for BOTH 1999 and 2000?

20. 2-3-3

Was their current ratio for year 2000 better or worse compared to 1999 - a one word answer please!

21. 2-3-4

What was their inventory turnover ratio of 2000?

22. 2.3.5

What was the average collection period ( year 2000) for accounts receivable?

23. 2-3-6

What was their marginal tax rate?

24. 2-3-7

How many shares of common stock did they issue (sell) in year 2000?

25. 2-3-8

What was their earnings per share?

26. 2-3-9

How much did they pay in preferred stock dividends?

27. 2-3-10

What was their "TIE" (times interest earned) ratio

28. 2-4. ABC Corp. provides you with the following data: Sales: $500,000; Operating profit: $300,000; Interest expense: $25,000; Net Income: $100,000; Common stock (par): $10,000; Paid-in capital in exces of par: $210,000; total number of common shares outstanding: 10,000.

a. Given the above (and asuming no flotation costs) what was the price of a share of common stock when it was sold? (8 points)

b. Assuming no preferred stock, what was the EPS? (2 points)

Bonus Question.

Attached (I hope) you will find a portion of the income sratement from Dover Downs (yes, the casino/hotel). Three years are presented 2007-2009. You will notice they have two line items for Revenue ("sales"), use the combined figure if you need it (for example, for 2009, Revenue would be $232,799,000 (note you add three zeros as the statement says at the top "in thousands").

Using the technique of "common-sized analysis" discuss how well or badly Dover Downs controlled two expense items: "Gaming" and "General & administrative". I need to see your calculations. Obviously your analysis is based upon the numbers!