Accounting 557 W7-Hw-Question

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 | | |