Questions from Financial Accounting

Q: Take the role of an investment analyst at Cole Binder. It

Take the role of an investment analyst at Cole Binder. It is your job to recommend investments for your client. The only information you have is the following ratio values for two companies in the gra...

Q: Compute economic value added (EVA®) for Beecher Software. The

Compute economic value added (EVA®) for Beecher Software. The company’s cost of capital is 12%. Net income before taxes was $730 thousand, interest expense $403 thousand, beginning long-term debt $750...

Q: Breen, Inc., reported the following sales and net income amounts

Breen, Inc., reported the following sales and net income amounts: Show Breen’s trend percentages for sales and net income. Use 2013 as the base year.

Q: Crafton Software reported the following amounts on its balance sheets at December

Crafton Software reported the following amounts on its balance sheets at December 31, 2016, 2015, and 2014: Sales and profits are high. Nevertheless, Crafton is experienci...

Q: Carlton, Inc., and Lofton Corporation are competitors. Compare the

Carlton, Inc., and Lofton Corporation are competitors. Compare the two companies by converting their condensed income statements to common size. Which company earned more net income? Which company&a...

Q: The stockholders’ equity for Rightwell Corporation on June 16, 2017,

The stockholders’ equity for Rightwell Corporation on June 16, 2017, follows: On June 16, 2017, the market price of Rightwell common stock was $18 per share. Assume Rightwell decla...

Q: Examine the financial data of Peterson Corporation. /

Examine the financial data of Peterson Corporation. Show how to compute Peterson’s current ratio for each year 2014 through 2016. Is the company’s...

Q: Use the Gagnon, Inc., balance-sheet data to answer

Use the Gagnon, Inc., balance-sheet data to answer the following questions. 1. Compute Gagnon, Inc.’s, quick (acid-test) ratio at December 31, 2016, and 2015. 2. Use the comparativ...

Q: Use the Gagnon 2016 income statement that follows and the balance sheet

Use the Gagnon 2016 income statement that follows and the balance sheet from S13-6 to compute the following: a. Gagnon, Inc.’s, rate of inventory turnover and daysâ€...

Q: Use the financial statements of Gagnon, Inc., in S13-

Use the financial statements of Gagnon, Inc., in S13-6 and S13-7. 1. Compute the company’s debt ratio at December 31, 2016. 2. Compute the company’...