Problem 1:
Plastics Inc. is a company that operates in four different divisions. The following information relating to each segment is available for 2013.
|
Sales revenue
|
Cost of goods sold
|
Operating expenses
|
Total expenses
|
Operating profit (loss)
|
Identifiable assets
|
|
Bottles
|
$ 65,000
|
$ 26,000
|
$8,000
|
$ 34,000
|
$31,000
|
$ 66,000
|
|
Containers
|
$ 95,000
|
$ 62,000
|
$ 48,000
|
$ 110,000
|
$ (15,000)
|
$ 80,000
|
|
Dollhouses
|
$ 620,000
|
$ 353,000
|
$140,000
|
$ 493,000
|
$ 127,000
|
$ 640,000
|
|
Silverware
|
$18,000
|
$ 8,000
|
$ 6,500
|
$14,500
|
$3,500
|
$36,000
|
Sales of segments Containers and Dollhouses included intersegment sales of $30,000 and $150,000, respectively.
Required:
Determine which of the segments are reportable based on the following:
Revenue Test
Operating profit (loss) test
Identifiable assets test
Problem 2:
The following information pertains to Walrus Inc.
|
Cash
|
$60,000
|
|
Accounts receivable
|
170,000
|
|
Inventory
|
100,000
|
|
Plant assets (net)
|
582,000
|
|
Total assets
|
$912,000
|
|
Accounts payable
|
$110,000
|
|
Accrued taxes and expenses payable
|
42,000
|
|
Long-term debt
|
120,000
|
|
Common stock ($10 par)
|
260,000
|
|
Paid-in capital in excess of par
|
50,000
|
|
Retained earnings
|
330,000
|
|
Total equities
|
$912,000
|
|
Net sales (all on credit)
|
$2,000,000
|
|
Cost of goods sold
|
1,400,000
|
|
Net income
|
120,000
|
Required:
Compute the following:
(ignore Avg for balance sheet accounts)
(a) Current ratio
(b) Inventory turnover
(c) Receivables turnover
(d) Book value per share
(e) Earnings per share
(f) Debt to total assets
(g) Profit margin on sales
(h) Return on common stock equity.