Question
24. Jones Co. invests $10,000 @ 10% per year, compounded annually for six years. 4 points The PV of 1 is .7903 and the amount
24. Jones Co. invests $10,000 @ 10% per year, compounded annually for six years. 4 points The PV of 1 is .7903 and the amount or future value of 1 is 1.7716. $_________
25. Jones Co. wants $25,000 in 6 years. The PV of 1 is .7903 and the amount of 1 is 1.7716. 4 points How much should he invest in Year 1? ____________
26. Assume you invest 1,000 each year for 5 years? How much will be in the fund on 12/31 Year 5? The FV of an annuity is 5.5256 and the PV of an annuity is 5.8019. 3 pts
$_________
28. The following is a comparative balance sheet for Top Ten Clothiers Inc. for the years 2016 and 2015: 14 points
Top Ten Clothiers Inc. Comparative Balance Sheet December 31, 2016 and 2015 | ||
|
|
|
Assets | 2016 | 2015 |
Cash .................................. | $ 43,000 | $ 240,000 |
Accounts receivable ................... | 390,000 | 210,000 |
Inventory ............................. | 360,000 | 450,000 |
Long-term investments ................. | 0 | 120,000 |
Total assets ........................ | $ 793,000 | $1,020,000 |
Liabilities and Equities |
|
|
Accounts payable ...................... | $ 150,000 | $ 240,000 |
Operating expenses payable ............ | 48,000 | 30,000 |
Bonds payable ......................... | 140,000 | 200,000 |
Common stock .......................... | 250,000 | 250,000 |
Retained earnings ..................... | 205,000 | 300,000 |
Total liabilities and equities ...... | $ 793,000 | $1,020,000 |
The income statement for the year ended December 31, 2016, follows:
Top Ten Clothiers Income Statement For the Year Ended December 31, 2016 | ||
|
|
|
Sales |
| $1,120,000 |
Cost of goods sold: |
|
|
Beginning inventory, January 1, 2016 | $ 450,000 |
|
Purchases ........................... | 660,000 |
|
Cost of goods available ............. | $1,110,000 |
|
Less ending inventory, December 31, 2016 ............................... | 360,000 | 750,000 |
Gross profit on sales ................. |
| $ 370,000 |
Operating expenses ... |
| 360,000 |
Operating income ...................... |
| $ 10,000 |
Other revenues and expenses: |
|
|
Loss on sale of long-term investment |
| (15,000) |
Net loss .............................. |
| $ (5,000) |
After paying cash dividends, the decrease in retained earnings totaled $95,000. Management is alarmed by the shrinkage in the company's cash position during 2016. Prepare a partial statement of cash flows for 2016 using the direct method.
Top Ten Clothiers Inc. Statement of Cash Flows For the Year Ended December 31, 2016 | ||
|
|
|
Cash flows from operating activities: |
|
|
Cash receipts from customers ......? |
| $ ,000 |
Cash payments for: |
|
|
Finished Goods Inventory ...... ? |
|
|
Operating expenses except 18,000 were in cash.. | ,000 | ,000 |
Net cash used in operating activities . |
| $ |
Sales .......................................... | $ ,000 |
Accounts Receivable, beginning ................. |
|
Accounts Receivable, ending .................... |
|
Cash collected from customers ................ | $ |
|
|
Purchases ...................................... | $ ,000 |
Accounts Payable, beginning .................... |
|
Accounts Payable, ending ....................... |
|
Cash payments for inventory .................... | $ ,000 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started