Can you please help me with my homework?
Here are some tasks where I need help with can you please help me with them ?
EXERCISE 1-5 Evaluating Short-Term Liquidity EXERCISE 1-6 Evaluating Risk and Capital Structure EXERCISE 1-7 Evaluating Efficiency and Profitability EXERCISE 1-8 Evaluating Profitability Refer to the information in Exercise 1-3 about Mixon Company. The company's income state- ments for the years ended December 31, 2006 and 2005 show the following: 2006 2005 Sales ...... Cost of goods sold Other operating expenses Interest expense Income taxes... Total costs and expenses Net income Earnings per share $410,225 208,550 11,100 8,525 EXERCISE 2-9 Historical Cost versus Fair Value $672,500 (638,400) $34,100 $ 2.10 $344,500 133,980 12,300 7,845 Required: For the years ended December 31, 2006 and 2005, assume all sales are on credit and then compute the following: (a) collection period, (b) accounts receivable turnover, (c) inventory turnover, and (d) days' sales in inventory. Comment on the changes in the ratios from 2005 to 2006. Refer to the information in Exercises 1-3 and 1-5 about Mixon Company. Compare the long-term risk and capital structure positions of the company at the end of 2006 and 2005 by computing the following ratios: (a) total debt ratio and (b) times interest earned. Comment on these ratio results. Common stock market price, December 31, 2006 Common stock market price, December 31, 2005 Annual cash dividends per share in 2006 Annual cash dividends per share in 2005 Refer to the financial statements of Mixon Company in Exercises 1-3 and 1-5. Evaluate the effi- ciency and profitability of the company by computing the following: (a) net profit margin, (b) total asset turnover, and (c) return on total assets. Comment on these ratio results. Refer to the financial statements of Mixon Company in Exercises 1-3 and 1-5. The following additional information about the company is known: $15.00 14.00 0.60 0.30 On January 1, Year 1, you are considering the purchase of $10,000 of Colin Company's 8% bonds. The bonds are due in 10 years, with interest payable semiannually on June 30 and effective December 31. Based on your analysis of Colin, you determine that a 6% (required) interest rate is appropriate. Required: a. Compute the price you will pay for the bonds using the present value model (round the answer to the nearest dollar). b. Recompute the price in a if your required rate of return is 10%. c. Describe risk and explain how it is reflected in your required rate of return. To help evaluate the profitability of the company, compute the following for 2006 and 2005: (a) return on common stockholders' equity, (b) price-earnings ratio on December 31, and (c) divi- dend yield. Some financial statement users criticize the timeliness of annual financial statements. Required: a. Explain why summary information in the income statement is not new information when the annual report is issued. $530,000 b. Describe the types of information in the income statement that are new information to financial statement users when the annual report is issued. (498,625) $31,375 $1.93 Required: a. Discuss the conceptual differences between historical cost and fair value. b. Discuss the merits and demerits of the two alternative measurement models. Accrual accounting requires estimates of future outcomes. For example, the reserve for bad debts is a forecast of the amount of current receivables that will ultimately prove uncollectible. Financial statements are inexorably moving to a model where all assets and liabilities will be mea- sured on the basis of fair value rather than historical cost. Required: Identify and explain three reasons why accounting information might deviate from the underly- ing economic reality. Cite examples of transactions that might give rise to each of the reasons. EXERCISE 1-14 Valuation of Bonds (semiannual interest) EXERCISE 2-3 Timeliness of Financial Statements c. What types of assets (or liabilities) more readily lend themselves to fair value measurements? Can we visualize a scenario where all assets are measured using fair value? d. What are the likely effects of adopting the fair value model on reported income? EXERCISE 2-12 Accrual Accounting Measurement Error EXERCISE 1-5 Evaluating Short-Term Liquidity EXERCISE 1-6 Evaluating Risk and Capital Structure EXERCISE 1-7 Evaluating Efficiency and Profitability EXERCISE 1-8 Evaluating Profitability Refer to the information in Exercise 1-3 about Mixon Company. The company's income state- ments for the years ended December 31, 2006 and 2005 show the following: 2006 2005 Sales ...... Cost of goods sold Other operating expenses Interest expense Income taxes... Total costs and expenses Net income Earnings per share $410,225 208,550 11,100 8,525 EXERCISE 2-9 Historical Cost versus Fair Value $672,500 (638,400) $34,100 $ 2.10 $344,500 133,980 12,300 7,845 Required: For the years ended December 31, 2006 and 2005, assume all sales are on credit and then compute the following: (a) collection period, (b) accounts receivable turnover, (c) inventory turnover, and (d) days' sales in inventory. Comment on the changes in the ratios from 2005 to 2006. Refer to the information in Exercises 1-3 and 1-5 about Mixon Company. Compare the long-term risk and capital structure positions of the company at the end of 2006 and 2005 by computing the following ratios: (a) total debt ratio and (b) times interest earned. Comment on these ratio results. Common stock market price, December 31, 2006 Common stock market price, December 31, 2005 Annual cash dividends per share in 2006 Annual cash dividends per share in 2005 Refer to the financial statements of Mixon Company in Exercises 1-3 and 1-5. Evaluate the effi- ciency and profitability of the company by computing the following: (a) net profit margin, (b) total asset turnover, and (c) return on total assets. Comment on these ratio results. Refer to the financial statements of Mixon Company in Exercises 1-3 and 1-5. The following additional information about the company is known: $15.00 14.00 0.60 0.30 On January 1, Year 1, you are considering the purchase of $10,000 of Colin Company's 8% bonds. The bonds are due in 10 years, with interest payable semiannually on June 30 and effective December 31. Based on your analysis of Colin, you determine that a 6% (required) interest rate is appropriate. Required: a. Compute the price you will pay for the bonds using the present value model (round the answer to the nearest dollar). b. Recompute the price in a if your required rate of return is 10%. c. Describe risk and explain how it is reflected in your required rate of return. To help evaluate the profitability of the company, compute the following for 2006 and 2005: (a) return on common stockholders' equity, (b) price-earnings ratio on December 31, and (c) divi- dend yield. Some financial statement users criticize the timeliness of annual financial statements. Required: a. Explain why summary information in the income statement is not new information when the annual report is issued. $530,000 b. Describe the types of information in the income statement that are new information to financial statement users when the annual report is issued. (498,625) $31,375 $1.93 Required: a. Discuss the conceptual differences between historical cost and fair value. b. Discuss the merits and demerits of the two alternative measurement models. Accrual accounting requires estimates of future outcomes. For example, the reserve for bad debts is a forecast of the amount of current receivables that will ultimately prove uncollectible. Financial statements are inexorably moving to a model where all assets and liabilities will be mea- sured on the basis of fair value rather than historical cost. Required: Identify and explain three reasons why accounting information might deviate from the underly- ing economic reality. Cite examples of transactions that might give rise to each of the reasons. EXERCISE 1-14 Valuation of Bonds (semiannual interest) EXERCISE 2-3 Timeliness of Financial Statements c. What types of assets (or liabilities) more readily lend themselves to fair value measurements? Can we visualize a scenario where all assets are measured using fair value? d. What are the likely effects of adopting the fair value model on reported income? EXERCISE 2-12 Accrual Accounting Measurement Error
