Question
Part A) Taffer's Rescue Bar, a recently renovated pub catering to corporate turnaround specialists, purchased its building 8 years ago at a cost of $76,000.
Part A) Taffer's Rescue Bar, a recently renovated pub catering to corporate turnaround specialists, purchased its building 8 years ago at a cost of $76,000. The building is currently valued at $207,000. Taffer's has other fixed assets that cost $52,000 and are currently valued at $76,000. To date, Taffer's has recorded a total of $75,000 in depreciation on the various assets. The company has current liabilities of $47,000 and net working capital of $34,000. What is the total book value of the assets of Taffer's Bar?
Part B) SOA Cycles is a Charming, CA based motorcycle shop. Their stock currently sells for $36.12 per share and the company earns $20.5 million in net income, which comes out to $2.64 per share. If they currently have $324 million in total shareholders' equity on the books, what is their market-to-book ratio? That is, how many times larger is the market value of the firm's equity than what they are stating on the books?
Part C) Marty Byrde's Laundry Service, located in the Lake of the Ozarks, had $25,146 in net fixed assets at the beginning of the year. During the year, the company purchased some new washing machines, which resulted in $5,214 in new net capital spending. The depreciation expense for the year was $4,090. What is the net fixed asset balance at the end of the year?
Part D) Drinkwitz Investments LLC (DI) is a manager of football arenas in the Columbia community. It has net income for the year of $11,500. At the beginning of the year, they had common stock of $85,400, paid-in surplus of $152,106, and accumulated retained earnings of $29,000. At the end of the year, DI had common stock of $101,532, paid-in capital of $172,264, and accumulated retained earnings of $40,500. DI does not pay dividends. What is the amount of the net new equity raised during the year?
*Please answer ALL parts to the question and show work* Thanks
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