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In its latest set of financials, a company presents thefollowing information regarding its

In its latest set of financials, a company presents thefollowing information regarding its

In its latest set of financials, a company presents thefollowing information regarding its income statement:

Total Sales/Revenues      $2,600,000

TaxExpense                   $ 120,000

AdminExpenses             $ 550,000

InterestExpense             $ 420,000

Cost of GoodsSold          $1,200,000

RentExpense                 $ 100,000

These 6 items are the only income statement entries provided bythe company. I want to calculate restate the income statementinformation provided above to include depreciation expense which Ibelieve the company has included in its COGS figure. Where can I goto get depreciation expense information to help complete myrestatement activities?

Select one:

a. Turn to the balance and focus on the difference betweenaccumulated depreciation at the start and at the end of theyear

b. Go to the corresponding cash flow statement for the period inquestion and assuming it is an indirect method cash flow statement,obtain the depreciation information from the operating activitiessection

c. Look to the notes to the financials for insight ondepreciation expense

d. All of the above may be useful to you in determining thedepreciation expense information you seek

e. The financials of this company are obviously riddled withshenanigans and false statements - find another company toanalyze

Coca-Cola stock is currently selling for just around $40 pershare. The current annual dividend is $1.32/share. The averageannual growth rate for Coca-Cola’s dividends and earnings hasaveraged right around 6% for the past several years and there is noreason to expect this rate to be any different going forward. If Irequire a 9% annualized rate of return for my investment in largecap stocks similar to Coca-Cola, then considering the informationprovided:

Select one:

a. I should buy Coca-Cola stock considering its currentprice

b. I should not buy the stock – it is over-priced by almost$18/share

c. I should not buy the stock – it is only worth $33/share

d. I should only buy this stock if its price falls to my currentvaluation of $36/share

e. There is insufficient information to make any valuejudgements on Coca-Cola

A company reports sales of $2,245,000 in its latest annualincome statement. The sales, however, are reported for a year thatconsists of 53 weeks. You want to project sales for the coming yearbased on the most recently reported year but you now need toconvert last year’s sales to a 52-week year. Once you haveconverted the 53-week year to a 52-week year, the sales for theprevious year will be restated to the following figure:

Select one:

a. $2,245,000 – no need to restate as the current figure isacceptable

b. Insufficient information provided

c. $2,202,642

d. $2,288,173

e. $2,033,208

In its latest set of financials, a company presents thefollowing information regarding its income statement:

Total Sales/Revenues    $2,600,000

TaxExpense                  $120,000

AdminExpenses           $550,000

InterestExpense           $420,000

Cost of Goods Sold       $1,200,000

RentExpense               $100,000

These are the only entries in the company's income statement. Iwant to calculate out the company’s approximate income tax so thatI can make some projections for the coming year. The approximatetax rate for the company using just the information provided iswhat figure?

Select one:

a. 16.0%

b. 35.0%

c. 4.6%

d. 36.4%

e. Insufficient information given to estimate

In its latest set of financials, a company presents thefollowing information regarding its income statement:

Total Sales/Revenues    $2,600,000

TaxExpense                  $120,000

AdminExpenses           $550,000

InterestExpense           $420,000

Cost of Goods Sold       $1,200,000

RentExpense               $100,000

Assuming these 6 items are the only income statement entriesprovided by the company, what is the bottom line net income for thecompany?

Select one:

a. $1,400,000

b. ($330,000)

c. $750,000

d. $210,000

e. None of the answers provided

Abhinav 03-Dec-2019

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