Marigold Corporation was formed 5 years ago through a public subscription of common stock. Daniel Brown,...
Marigold Corporation was formed 5 years ago through a public
subscription of common stock. Daniel Brown, who owns 15% of the
common stock, was one of the organizers of Marigold and is its
current president. The company has been successful, but it
currently is experiencing a shortage of funds. On June 10, 2021,
Daniel Brown approached the Topeka National Bank, asking for a
24-month extension on two $35,020 notes, which are due on June 30,
2021, and September 30, 2021. Another note of $6,040 is due on
March 31, 2022, but he expects no difficulty in paying this note on
its due date. Brown explained that Marigold’s cash flow problems
are due primarily to the company’s desire to finance a $302,480
plant expansion over the next 2 fiscal years through internally
generated funds.
The commercial loan officer of Topeka National Bank requested the
following financial reports for the last 2 fiscal years.
|
Marigold Corporation |
||||
|---|---|---|---|---|
| Assets |
2021 |
2020 |
||
|
Cash |
$18,370 | $12,530 | ||
|
Notes receivable |
148,910 | 132,190 | ||
|
Accounts receivable (net) |
131,240 | 125,020 | ||
|
Inventories (at cost) |
105,170 | 50,210 | ||
|
Plant & equipment (net of depreciation) |
1,447,150 | 1,413,460 | ||
|
Total assets |
$1,850,840 | $1,733,410 | ||
| Liabilities and Owners’ Equity | ||||
|
Accounts payable |
$78,640 | $91,420 | ||
|
Notes payable |
76,080 | 61,660 | ||
|
Accrued liabilities |
8,810 | 8,340 | ||
|
Common stock (130,000 shares, $10 par) |
1,310,790 | 1,300,030 | ||
|
Retained earningsa |
376,520 | 271,960 | ||
|
Total liabilities and stockholders’ equity |
$1,850,840 | $1,733,410 | ||
| aCash dividends were paid at the rate of $1 per share in fiscal year 2020 and $2 per share in fiscal year 2021. | ||||
|
Marigold Corporation |
||||
|---|---|---|---|---|
|
2021 |
2020 |
|||
|
Sales revenue |
$3,001,980 | $2,700,330 | ||
|
Cost of goods solda |
1,538,400 | 1,427,160 | ||
|
Gross margin |
1,463,580 | 1,273,170 | ||
|
Operating expenses |
864,890 | 787,400 | ||
|
Income before income taxes |
598,690 | 485,770 | ||
|
Income taxes (40%) |
239,476 | 194,308 | ||
|
Net income |
$359,214 | $291,462 | ||
| aDepreciation charges on the plant and equipment of $100,330 and $101,800 for fiscal years ended March 31, 2020 and 2021, respectively, are included in cost of goods sold. | ||||
(a)
Compute the following items for Marigold Corporation.
(Round answers to 2 decimal places, e.g. 2.25 or
2.25%.)
| 1. | Current ratio for fiscal years 2020 and 2021. | |
|---|---|---|
| 2. | Acid-test (quick) ratio for fiscal years 2020 and 2021. | |
| 3. | Inventory turnover for fiscal year 2021. | |
| 4. | Return on assets for fiscal years 2020 and 2021. (Assume total assets were $1,694,120 at 3/31/19.) | |
| 5. | Percentage change in sales, cost of goods sold, gross margin, and net income after taxes from fiscal year 2020 to 2021. |
|
2020 |
2021 |
|||||||
|---|---|---|---|---|---|---|---|---|
| 1. |
Current ratio |
enter the ratio rounded to 2
decimal places
|
:1 | enter the ratio rounded to 2
decimal places
|
:1 | |||
| 2. |
Acid-test (quick) ratio |
enter the ratio rounded to 2
decimal places
|
:1 | enter the ratio rounded to 2
decimal places
|
:1 | |||
| 3. |
Inventory turnover |
enter the inventory turnover
rounded to 2 decimal places
|
times | |||||
| 4. |
Return on assets |
enter the return on assets in
percentages rounded to 2 decimal places
|
% | enter the return on assets in
percentages rounded to 2 decimal places
|
% | |||
| 5. |
Percent Changes |
Percent Increase |
|||
|---|---|---|---|---|---|
|
Sales revenue |
enter percentages rounded to
2 decimal places
|
% | |||
|
Cost of goods sold |
enter percentages rounded to
2 decimal places
|
% | |||
|
Gross margin |
enter percentages rounded to
2 decimal places
|
% | |||
|
Net income after taxes |
enter percentages rounded to
2 decimal places
|
% | |||
Homework Answers
Add Answer to:
Marigold Corporation was formed 5 years ago through a public
subscription of common stock. Daniel Brown,...
Flounder Corporation was formed 5 years ago through a public subscription of common stock. Daniel Brown,...
Flounder Corporation was formed 5 years ago through a public subscription of common stock. Daniel Brown, who owns 15% of the common stock, was one of the organizers of Flounder and is its current president. The company has been successful, but it currently is experiencing a shortage of funds. On June 10, 2018, Daniel Brown approached the Topeka National Bank, asking for a 24-month extension on two $35,020 notes, which are due on June 30. 2018. and September 30, 2018....
Concord Corporation was formed 5 years ago through a public subscription of common stock. Daniel Brown,...
Concord Corporation was formed 5 years ago through a public subscription of common stock. Daniel Brown, who owns 15% of the common stock, was one of the organizers of Concord and is its current president. The company has been successful, but it currently is experiencing a shortage of funds. On June 10, 2018, Daniel Brown approached the Topeka National Bank, asking for a 24-month extension on two $35,150 notes, which are due on June 30, 2018, and September 30, 2018....
Culver Corporation was formed 5 years ago through a public subscription of common stock. Daniel Brown,...
Culver Corporation was formed 5 years ago through a public subscription of common stock. Daniel Brown, who owns 15% of the common stock, was one of the organizers of Culver and is its current president. The company has been successful, but it currently is experiencing a shortage of funds. On June 10, 2018, Daniel Brown approached the Topeka National Bank, asking for a 24-month extension on two $35,320 notes, which are due on June 30, 2018, and September 30, 2018....
Sunland Corporation was formed 5 years ago through a public subscription of common stock. Daniel Brown,...
Sunland Corporation was formed 5 years ago through a public
subscription of common stock. Daniel Brown, who owns 15% of the
common stock, was one of the organizers of Sunland and is its
current president. The company has been successful, but it
currently is experiencing a shortage of funds. On June 10, 2018,
Daniel Brown approached the Topeka National Bank, asking for a
24-month extension on two $35,320 notes, which are due on June 30,
2018, and September 30, 2018....
Bradburn Corporation was formed 5 years ago through a public subscription of common stock. Daniel Brown,...
Bradburn Corporation was formed 5 years ago through a public
subscription of common stock. Daniel Brown, who owns 15% of the
common stock, was one of the organizers of Bradburn and is its
current president. The company has been successful, but it
currently is experiencing a shortage of funds. On June 10, 2018,
Daniel Brown approached the Topeka National Bank, asking for a
24-month extension on two $35,000 notes, which are due on June 30,
2018, and September 30, 2018....
Sarasota Corporation and Marigold Corporation, two companies of roughly the same size, are both involved in...
Sarasota Corporation and Marigold Corporation, two companies of
roughly the same size, are both involved in the manufacture of
shoe-tracing devices. Each company depreciates its plant assets
using the straight-line approach. An investigation of their
financial statements reveals the information shown below.
Sarasota Corp.
Marigold Corp.
Net income
$ 246,750
$ 331,500
Sales revenue
2,056,250
2,210,000
Total assets (average)
4,112,500
3,453,125
Plant assets (average)
2,840,000
1,874,000
Intangible assets (goodwill)
365,100
0
(a)
For each company, calculate these values: (Round return...
Problem 13-03A Condensed balance sheet and income statement data for Marigold Corporation are presented here. MARIGOLD...
Problem 13-03A Condensed balance sheet and income statement data for Marigold Corporation are presented here. MARIGOLD CORPORATION Balance Sheets December 31 2022 2021 Cash $ 32,000 $ 22,000 Accounts receivable (net) 52,000 47,000 Other current assets 95,000 100,000 Investments 60,000 75,000 Plant and equipment (net) 500,000 370,000 $739,000 $614,000 Current liabilities $ 87,000 $82,000 Long-term debt 150,000 90,000 Common stock, $10 par 325,000 315,000 Retained earnings 177,000 127,000 $739,000 $614,000 2020 $20,000 50,000 69,000 50,000 358,000 $547,000 $ 72,000 55,000...
Condensed balance sheet and income statement data for Marigold Corp. are presented as follows. Marigold Corp....
Condensed balance sheet and income statement data for Marigold Corp. are presented as follows. Marigold Corp. Balance Sheets December 31 Assets 2017 2016 Cash $ 30,210 $ 22,210 Receivables (net) 82,900 74,900 Other current assets 102,900 85,900 Long-term investments 62,000 60,000 Property, plant, and equipment (net) 522,900 482,900 Total assets $ 800,910 725,910 Liabilities and Stockholders’ Equity Current liabilities $ 77,210 $ 72,210 Long-term liabilities 92,900 102,900 Common stock 342,900 312,900 Retained earnings 287,900 237,900 Total liabilities and stockholders’ equity...
Problem 13-03A Condensed balance sheet and income statement data for Cheyenne Corporation are presented here. CHEYENNE...
Problem 13-03A
Condensed balance sheet and income statement data for Cheyenne
Corporation are presented here.
CHEYENNE CORPORATION
Balance Sheets
December 31
2022
2021
2020
Cash
$ 31,000
$ 21,000
$ 19,000
Accounts receivable (net)
51,000
46,000
49,000
Other current assets
97,000
102,000
71,000
Investments
62,000
77,000
52,000
Plant and equipment (net)
500,000
370,000
358,000
$741,000
$616,000
$549,000
Current liabilities
$ 86,000
$ 81,000
$ 71,000
Long-term debt
152,000
92,000
57,000
Common stock, $10 par
327,000
317,000
307,000
Retained earnings
176,000...
Problem 13-03A Condensed balance sheet and income statement data for Ayayai Corporation are presented here. AYAYAI...
Problem 13-03A
Condensed balance sheet and income statement data for Ayayai
Corporation are presented here.
AYAYAI CORPORATION
Balance Sheets
December 31
2022
2021
2020
Cash
$ 31,000
$ 21,000
$ 19,000
Accounts receivable (net)
51,000
46,000
49,000
Other current assets
92,000
97,000
66,000
Investments
57,000
72,000
47,000
Plant and equipment (net)
500,000
370,000
358,000
$731,000
$606,000
$539,000
Current liabilities
$ 86,000
$ 81,000
$ 71,000
Long-term debt
147,000
87,000
52,000
Common stock, $10 par
322,000
312,000
302,000
Retained earnings
176,000...
Flounder Corporation was formed 5 years ago through a public subscription of common stock. Daniel Brown, who owns 15% of the common stock, was one of the organizers of Flounder and is its current president. The company has been successful, but it currently is experiencing a shortage of funds. On June 10, 2018, Daniel Brown approached the Topeka National Bank, asking for a 24-month extension on two $35,020 notes, which are due on June 30. 2018. and September 30, 2018....
Concord Corporation was formed 5 years ago through a public subscription of common stock. Daniel Brown, who owns 15% of the common stock, was one of the organizers of Concord and is its current president. The company has been successful, but it currently is experiencing a shortage of funds. On June 10, 2018, Daniel Brown approached the Topeka National Bank, asking for a 24-month extension on two $35,150 notes, which are due on June 30, 2018, and September 30, 2018....
Culver Corporation was formed 5 years ago through a public subscription of common stock. Daniel Brown, who owns 15% of the common stock, was one of the organizers of Culver and is its current president. The company has been successful, but it currently is experiencing a shortage of funds. On June 10, 2018, Daniel Brown approached the Topeka National Bank, asking for a 24-month extension on two $35,320 notes, which are due on June 30, 2018, and September 30, 2018....
Sunland Corporation was formed 5 years ago through a public
subscription of common stock. Daniel Brown, who owns 15% of the
common stock, was one of the organizers of Sunland and is its
current president. The company has been successful, but it
currently is experiencing a shortage of funds. On June 10, 2018,
Daniel Brown approached the Topeka National Bank, asking for a
24-month extension on two $35,320 notes, which are due on June 30,
2018, and September 30, 2018....
Bradburn Corporation was formed 5 years ago through a public
subscription of common stock. Daniel Brown, who owns 15% of the
common stock, was one of the organizers of Bradburn and is its
current president. The company has been successful, but it
currently is experiencing a shortage of funds. On June 10, 2018,
Daniel Brown approached the Topeka National Bank, asking for a
24-month extension on two $35,000 notes, which are due on June 30,
2018, and September 30, 2018....
Sarasota Corporation and Marigold Corporation, two companies of
roughly the same size, are both involved in the manufacture of
shoe-tracing devices. Each company depreciates its plant assets
using the straight-line approach. An investigation of their
financial statements reveals the information shown below.
Sarasota Corp.
Marigold Corp.
Net income
$ 246,750
$ 331,500
Sales revenue
2,056,250
2,210,000
Total assets (average)
4,112,500
3,453,125
Plant assets (average)
2,840,000
1,874,000
Intangible assets (goodwill)
365,100
0
(a)
For each company, calculate these values: (Round return...
Problem 13-03A Condensed balance sheet and income statement data for Marigold Corporation are presented here. MARIGOLD CORPORATION Balance Sheets December 31 2022 2021 Cash $ 32,000 $ 22,000 Accounts receivable (net) 52,000 47,000 Other current assets 95,000 100,000 Investments 60,000 75,000 Plant and equipment (net) 500,000 370,000 $739,000 $614,000 Current liabilities $ 87,000 $82,000 Long-term debt 150,000 90,000 Common stock, $10 par 325,000 315,000 Retained earnings 177,000 127,000 $739,000 $614,000 2020 $20,000 50,000 69,000 50,000 358,000 $547,000 $ 72,000 55,000...
Problem 13-03A
Condensed balance sheet and income statement data for Cheyenne
Corporation are presented here.
CHEYENNE CORPORATION
Balance Sheets
December 31
2022
2021
2020
Cash
$ 31,000
$ 21,000
$ 19,000
Accounts receivable (net)
51,000
46,000
49,000
Other current assets
97,000
102,000
71,000
Investments
62,000
77,000
52,000
Plant and equipment (net)
500,000
370,000
358,000
$741,000
$616,000
$549,000
Current liabilities
$ 86,000
$ 81,000
$ 71,000
Long-term debt
152,000
92,000
57,000
Common stock, $10 par
327,000
317,000
307,000
Retained earnings
176,000...
Problem 13-03A
Condensed balance sheet and income statement data for Ayayai
Corporation are presented here.
AYAYAI CORPORATION
Balance Sheets
December 31
2022
2021
2020
Cash
$ 31,000
$ 21,000
$ 19,000
Accounts receivable (net)
51,000
46,000
49,000
Other current assets
92,000
97,000
66,000
Investments
57,000
72,000
47,000
Plant and equipment (net)
500,000
370,000
358,000
$731,000
$606,000
$539,000
Current liabilities
$ 86,000
$ 81,000
$ 71,000
Long-term debt
147,000
87,000
52,000
Common stock, $10 par
322,000
312,000
302,000
Retained earnings
176,000...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 11 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 11 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 11 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 11 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 11 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 11 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 11 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 11 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 11 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 11 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 11 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 11 months ago