so will lead to an overemphasis on short-term profits at the expense of long-term profits.
Ch. 2: Questions 4 & 9( Questions and Problems section): Microsoft ® Excel ® template provided for Problem 4. Building an Income Statement [ LO1 ] Billy’ s Exterminators, Inc., has sales of $ 817,000, costs of $ 343,000, depreciation expense of $ 51,000, interest expense of $ 38,000, and a tax rate of 35 percent. What is the net income for this firm? 3. Dividends and Retained Earnings [ LO1 ] Suppose the firm in Problem 2 paid out $ 95,000 in cash dividends. What is the addition to retained earnings?
4. Per-Share Earnings and Dividends [ LO1 ] Suppose the firm in Problem 3 had 90,000 shares of common stock outstanding. What is the earnings per share, or EPS, figure? What is the dividends per share figure?
9. Calculating Additions to NWC [ LO4 ] The 2014 balance sheet of Steelo, Inc., showed current assets of $ 4,630 and current liabilities of $ 2,190. The 2015 balance sheet showed current assets of $ 5,180 and current liabilities of $ 2,830. What was the company’ s 2015 change in net working capital, or NWC?
• Ch. 3: Questions 4 & 7( Question and Problems section) 4. Calculating Inventory Turnover [ LO2 ] The Green Corporation has ending inventory of $ 417,381, and cost of goods sold for the year just ended was $ 4,682,715. What is the inventory turnover? The days’ sales in inventory? How long on average did a unit of inventory sit on the shelf before it was sold?
7. DuPont Identity [ LO4 ] If Roten Rooters, Inc., has an equity multiplier of 1.15, total asset turnover of 2.10, and a profit margin of 6.1 percent, what is its ROE?