The comparative statements of Lucille Company are presented here. LUCILLE COMPANY Income Statements For the Years Ended December 31 2012 2011 Net sales $1,899,175 $1,759,135 Cost of goods sold 1,067,175 1,014,635 Gross profit 832,000 744,500 Selling and administrative expenses 508,635 487,635 Income from operations 323,365 256,865

Problem 13-2A

 

The comparative statements of Lucille Company are presented here.

LUCILLE COMPANY Income Statements For the Years Ended December 31
		2012		2011
Net sales		$1,899,175		$1,759,135
Cost of goods sold		1,067,175		1,014,635
Gross profit		832,000		744,500
Selling and administrative expenses		508,635		487,635
Income from operations		323,365		256,865
Other expenses and losses
Interest expense		23,181		21,181
Income before income taxes		300,184		235,684
Income tax expense		93,181		74,181
Net income		$ 207,003		$ 161,503

 

LUCILLE COMPANY Balance Sheets December 31
Assets		2012		2011
Current assets
Cash		$ 60,100		$ 64,200
Short-term investments		74,000		50,000
Accounts receivable		126,435		111,435
Inventory		127,181		116,681
Total current assets		387,716		342,316
Plant assets (net)		659,726		531,026
Total assets		$1,047,442		$873,342
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable		$ 168,635		$154,035
Income taxes payable		44,681		43,181
Total current liabilities		213,316		197,216
Bonds payable		230,726		210,726
Total liabilities		444,042		407,942
Stockholders’ equity
Common stock ($5 par)		290,000		300,000
Retained earnings		313,400		165,400
Total stockholders’ equity		603,400		465,400
Total liabilities and stockholders’ equity		$1,047,442		$873,342

All sales were on account. Net cash provided by operating activities for 2012 was $235,950. Capital expenditures were $136,690, and cash dividends were $59,003.

Compute the following ratios for 2012. (Round all answers to 2 decimal places, e.g. 1.83 or 12.61%.)

(a)		Earnings per share		$
(b)		Return on common stockholders’ equity			%
(c)		Return on assets			%
(d)		Current ratio			:1
(e)		Receivables turnover			times
(f)		Average collection period			days
(g)		Inventory turnover			times
(h)		Days in inventory			days
(i)		Times interest earned			times
(j)		Asset turnover			times
(k)		Debt to total assets			%
(l)		Current cash debt coverage			times
(m)		Cash debt coverage			times
(n)		Free cash flow		$

 

 

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Project – Financial Statement and Accounting Policy Disclosures The project can be completed individually or by a group (formed voluntarily by two partners). Each group only needs to submit one copy of the report. Each group should work independently. Copying or any form of plagiarism, once detected, will result in zero grade for the report grade. Due dates:  Identify a partner and a company you would like to follow by November 9th.  The final report is due by 20 nov  The report need to be thoroughly written, typed, and single spaced using an essay format. Project Requirements: Obtain the most recent copy (year 2011 or 2012) of the annual report (Form 10-k) from a merchandize company (e.g., Target, Gap, Best Buy, Dillard’s, Macys’, etc). Annual report can be easily located in a company’s website (such as: investor relationship – financial information – annual reports). For example: http://investor.shareholder.com/dillards/financials.cfm 1. Submit hard copies of the company’s Income statement and Balance sheet. 2. Who is the company’s independent auditor? Has the company got an unqualified (clear) opinion from its auditor? 3. What are the asset classifications contained in the company’s balance sheet? 4. What is the ending number of the following Balance sheet items?  Total assets  Current assets  Net realizable value of accounting receivable (if any)  Inventories  Current liabilities  Total shareholder’s equity  Retained earnings 5. Compute the current ratio (Total current assets/Total current liabilities), and explain the ratio. 6. What is the par value of the company’s common stock? How many shares of common stock are authorized, issues, and outstanding at the end of 2009? 7. What is the amount of the following income statement items for 2009?  Revenue (net)  Gross margin  Operating income  Income tax expense  Net income  Earning per share (undiluted) 8. Did the company have any discontinued operations and/or extraordinary items? If so, how the company reported these items in the income statement? 9. Identify the following items (Notes to the financial statements, check for significant accounting policies and item descriptions): a. The definition of cash equivalents. b. The company’s inventory valuation method. c. The company’s depreciation method. d. The company’s policy on estimating bad debt expenses.

 

Project – Financial Statement and Accounting Policy Disclosures

 

The project can be completed individually or by a group (formed voluntarily by two partners). Each group only needs to submit one copy of the report. Each group should work independently. Copying or any form of plagiarism, once detected, will result in zero grade for the report grade.  

 

Due dates:

• Identify a partner and a company you would like to follow by November 9^th.
• The final report is due by 20 nov
• The report need to be thoroughly written, typed, and single spaced using an essay format.

 

Project Requirements:

Obtain the most recent copy (year 2011 or 2012) of the annual report (Form 10-k) from a merchandize company (e.g., Target, Gap, Best Buy, Dillard’s, Macys’, etc). Annual report can be easily located in a company’s website (such as: investor relationship – financial information – annual reports). For example: http://investor.shareholder.com/dillards/financials.cfm

 

1.     Submit hard copies of the company’s Income statement and Balance sheet.

2. Who is the company’s independent auditor? Has the company got an unqualified (clear) opinion from its auditor?
3. What are the asset classifications contained in the company’s balance sheet?
4. What is the ending number of the following Balance sheet items?
• Total assets
• Current assets
• Net realizable value of accounting receivable (if any)
• Inventories
• Current liabilities
• Total shareholder’s equity
• Retained earnings
5. Compute the current ratio (Total current assets/Total current liabilities), and explain the ratio.
6. What is the par value of the company’s common stock? How many shares of common stock are authorized, issues, and outstanding at the end of 2009?
7. What is the amount of the following income statement items for 2009?
• Revenue (net)
• Gross margin
• Operating income
• Income tax expense
• Net income
• Earning per share (undiluted)
8. Did the company have any discontinued operations and/or extraordinary items? If so, how the company reported these items in the income statement?
9. Identify the following items (Notes to the financial statements, check for significant accounting policies and item descriptions):

a.      The definition of cash equivalents.

b.     The company’s inventory valuation method.

c.      The company’s depreciation method.

d.     The company’s policy on estimating bad debt expenses.

walmart comany selected for this work 2011 (i posted tutorial 28 Nov 2012) Pl reconsider then purchase it

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Indirect Approach Type of Message Bad News or Refusal Opening (Buffer) Stay neutral. Open with appreciation, assurance, cooperation, or a pleasant aspect of the situation. Explanation Give the reasons first. Decision The decision should be clear but can be implied. If implied, make it clear by what you state in the explanation and counter proposal. Counter Proposal Offer an alternative whenever possible. Close End with a good-will message and/or action request if offering a counter proposal. Tips Use the right voice. Use the “I/we” voice or passive voice. Be careful of phrases such as “You claim …” or “You state …” Be clear, but not blatant. Don’t put the decision in a paragraph by itself. You can put it at the end of the explanation paragraph. If the explanation is short, you can sandwich the decision in the middle of a paragraph that includes the explanation, decision, and counter proposal. Reframe. Rather than focusing on what you can’t do, focus on what you can do. Use a neutral subject line in emails and memos. Don’t slap them in the face with the bad news. Don’t be impersonal. Avoid form letters, form postcards, form emails. Send a personally-addressed message. Scenario: You have just cancelled a series of seminars which you have asked a particular instructor to participate in. You must now write her and let her know that her session has been cancelled. BigDeal Auto Ž 753 Atuo Dr. Phone: 555-333-8534 Moon Valley ST 12345 www.BigDeal.com August 31, 20XX Cindy Crawfordson Event Planner Xylon Corporation PO Box 1212 Biz City ST 98765 Dear Mike, I appreciate getting your letter concerning your recent visit. However after investigating thoroughly, I would like to help clarify a few points. First I am rather shocked of how quickly you are willing to throw such a fantastic dealership away. I have news for you Mike; this is the best dealership with the best people, with the best service after the sale anywhere. Our customers are treated better than any business treats their customers. Just because we couldn’t do your figures does not mean that we are wrong and certainly not worth discarding. Secondly, we thought we were doing you a service quoting the bottom dollar. All of our customers who have bought from us previously enjoyed this treatment. We didn’t want to play the game of starting high. We thought we had earned your trust enough so we wouldn’t need to play that game. If you want us to play games with you, please tell us up front and we will mark ours way up and then discount down so you feel like you have won. Third, you honestly believe we would have quoted you a figure with 3000 dollars left in it? come on Mike, how would you have felt about us, buying from us before and you being able to beat our deal by 3000 dollars from another dealer? By your way you want to do business puts us in a no win situation. Tell us where we can possibly win with you. Mark up our vehicle so we can give it up later, with the possibility of you leaving and being able to beat those figures by another dealer is ludicrous. Mike, buying a vehicle should mean so much more than price. In today’s market, I believe vary strongly in where you buy your vehicle is also where you service your vehicle. You should never have to miss out on our service. Our preferred customer program is worth over 2000 dollars that you don’t pay one extra cent for. And with our guaranteed price beater, you will simply pay more than you need to and miss out on the best Service Department in town if you buy elsewhere. To summarize, Mike, you are an intelligent buyer, to quote you “the offer on both vehicles was close to what I was expecting.” When we quote a previous customer, we want to offer the best deal first, not making the customer fight for their best deal. You buying form us previously earned the right not to fight. I suspect if we would have quoted 3000 dollars over what you expected, we would have a bigger problem. Would you have thought we were treating you fairly being so much higher than you anticipated? Thanks Mike for your feedback. We want to sell you again and take care of you after the sale. We will beat any deal and service you like no other. I’m sorry our price quote didn’t have 3000 dollars mark up, sometimes bottom line means bottom line. Thanks, I want your business Sincerely, Lola Lake Lola Lake, General Manager

 

Indirect Approach	Type of Message
	Bad News or Refusal
Opening (Buffer)	Stay neutral.  Open with appreciation, assurance, cooperation, or a pleasant aspect of the situation.
Explanation	Give the reasons first.
Decision	The decision should be clear but can be implied.  If implied, make it clear by what you state in the explanation and counter proposal.
Counter Proposal	Offer an alternative whenever possible.
Close	End with a good-will message and/or action request if offering a counter proposal.

 

Tips

Use the right voice.
	Use the “I/we” voice or passive voice.  Be careful of phrases such as “You claim …” or  “You state …”
Be clear, but not blatant.
	Don’t put the decision in a paragraph by itself.  You can put it at the end of the explanation paragraph.  If the explanation is short, you can sandwich the decision in the middle of a paragraph that includes the explanation, decision, and counter proposal.
Reframe.
	Rather than focusing on what you can’t do, focus on what you can do.
Use a neutral subject line in emails and memos.
	Don’t slap them in the face with the bad news.
Don’t be impersonal.
	Avoid form letters, form postcards, form emails.  Send a personally-addressed message.

 

Scenario: You have just cancelled a series of seminars which you have asked a particular instructor to participate in.  You must now write her and let her know that her session has been cancelled.

 

BigDeal Auto Ž

753 Atuo Dr.                                                                                                    Phone: 555-333-8534

Moon Valley  ST  12345                                                                                  www.BigDeal.com

 

August 31, 20XX

 

Cindy Crawfordson

Event Planner

Xylon Corporation

PO Box 1212

Biz City ST  98765

 

Dear Mike,

 

I appreciate getting your letter concerning your recent visit.  However after investigating thoroughly, I would like to help clarify a few points.

 

First I am rather shocked of how quickly you are willing to throw such a fantastic dealership away.  I have news for you Mike; this is the best dealership with the best people, with the best service after the sale anywhere.  Our customers are treated better than any business treats their customers.  Just because we couldn’t do your figures does not mean that we are wrong and certainly not worth discarding.

 

Secondly, we thought we were doing you a service quoting the bottom dollar.  All of our customers who have bought from us previously enjoyed this treatment.  We didn’t want to play the game of starting high.  We thought we had earned your trust enough so we wouldn’t need to play that game.  If you want us to play games with you, please tell us up front and we will mark ours way up and then discount down so you feel like you have won.

 

Third, you honestly believe we would have quoted you a figure with 3000 dollars left in it?  come on Mike, how would you have felt about us, buying from us before and you being able to beat our deal by 3000 dollars from another dealer?  By your way you want to do business puts us in a no win situation.  Tell us where we can possibly win with you.  Mark up our vehicle so we can give it up later, with the possibility of you leaving and being able to beat those figures by another dealer is ludicrous.

 

Mike, buying a vehicle should mean so much more than price.  In today’s market, I believe vary strongly in where you buy your vehicle is also where you service your vehicle.  You should never have to miss out on our service.  Our preferred customer program is worth over 2000 dollars that you don’t pay one extra cent for.  And with our guaranteed price beater, you will simply pay more than you need to and miss out on the best Service Department in town if you buy elsewhere.

 

To summarize, Mike, you are an intelligent buyer, to quote you “the offer on both vehicles was close to what I was expecting.”  When we quote a previous customer, we want to offer the best deal first, not making the customer fight for their best deal.  You buying form us previously earned the right not to fight.  I suspect if we would have quoted 3000 dollars over what you expected, we would have a bigger problem.  Would you have thought we were treating you fairly being so much higher than you anticipated?

 

Thanks Mike for your feedback.  We want to sell you again and take care of you after the sale.  We will beat any deal and service you like no other.  I’m sorry our price quote didn’t have 3000 dollars mark up, sometimes bottom line means bottom line.

 

Thanks, I want your business

 

Sincerely,

Lola Lake

Lola Lake,

General Manager

 

 

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Mordue Corporation keeps careful track of the time required to fill orders. Data concerning a particular order appear below: Hours Wait time ……….. 20.7 Process time ……….. 1.7 Inspection time ……… 0.1 Move time ………….. 2.4 Queue time……………. 6.7 The manufacturing cycle efficiency (MCE) was closest to: 0.15 0.05 0.53 0.16

Mordue Corporation keeps careful track of the time required to fill orders. Data concerning a particular order appear below:

                              Hours

Wait time ……….. 20.7

Process time ……….. 1.7

Inspection time ……… 0.1

Move time ………….. 2.4

Queue time……………. 6.7

The manufacturing cycle efficiency (MCE) was closest to:

 

0.15

 

0.05

 

0.53

 

0.16

        

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Niemiec Corporation keeps careful track of the time required to fill orders. The times recorded for a particular order appear below: Hours Move time ……….. 2.6 Wait time ………… 13.3 Queue time ………… 8.5 Process time ……….. 1.5 Inspection time ………. 0.2 The manufacturing cycle efficiency (MCE) was closest to: 0.96 0.12 0.06 0.20

Niemiec Corporation keeps careful track of the time required to fill orders. The times recorded for a particular order appear below:

                              Hours

Move time ……….. 2.6

Wait time …………  13.3

Queue time ………… 8.5

Process time ……….. 1.5

Inspection time ………. 0.2

The manufacturing cycle efficiency (MCE) was closest to:

 

0.96

 

0.12

 

0.06

 

0.20

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Botelho Corporation keeps careful track of the time required to fill orders. Data concerning a particular order appear below: Hours Wait time…………………………………..18.3 Process time ……………………………….. 1.9 Inspection time ……………………………. 0.3 Move time …………………………………….. 3.7 Queue time ……………………………………… 8.9 The delivery cycle time was: 12.6 hours 3.7 hours 30.9 hours 33.1 hours

Botelho Corporation keeps careful track of the time required to fill orders. Data concerning a particular order appear below:

                Hours
Wait time…………………………………..18.3
Process time ……………………………….. 1.9
Inspection time ……………………………. 0.3
Move time …………………………………….. 3.7
Queue time ……………………………………… 8.9
The delivery cycle time was:
 
•    12.6 hours

•    3.7 hours

•    30.9 hours

•    33.1 hours


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Division B had an ROI last year of 15%. The division's minimum required rate of return is 10%. If the division's average operating assets last year were $450,000, then the division's residual income for last year was: • $22,500 • $37,500 • $67,500 • $45,000

Division B had an ROI last year of 15%. The division's minimum required rate of return is 10%. If the division's average operating assets last year were $450,000, then the division's residual income for last year was:

 

·        $22,500

 

·        $37,500

 

·        $67,500

 

·        $45,000

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Last year a company had stockholder's equity of $160,000, net operating income of $16,000 and sales of $100,000. The turnover was 0.5. The return on investment (ROI) was: • 7% • 10% • 8% • 9%

Last year a company had stockholder's equity of $160,000, net operating income of $16,000 and sales of $100,000. The turnover was 0.5. The return on investment (ROI) was:

 

·        7%

 

·        10%

 

·        8%

 

·        9%

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