Presented below is information related to starr company. 1. net income [including a discontinued operations gain (net of tax) of $84,000] $258,500 2. capital structure a. cumulative 5% preferred stock, $100 par, 6,100 shares issued and outstanding $610,000 b. $10 par common stock, 74,000 shares outstanding on january 1. on april 1, 40,000 shares were issued for cash. on october 1, 16,000 shares were purchased and retired. $1,000,000 c. on january 2 of the current year, starr purchased oslo corporation. one of the terms of the purchase was that if oslo net income for the following year is $244,000 or more, 50,000 additional shares would be issued to oslo stockholders next year. oslo’s net income for the current year was $2,600,000. 3. other information a. average market price per share of common stock during entire year $30 b. income tax rate 30%

Miko willingly admits that she is not an accountant by training. she is concerned that her balance sheet might not be correct. she has provided you with the following additional information. 1. the boat actually belongs to miko, not to skysong, inc.. however, because she thinks she might take customers out on the boat occasionally, she decided to list it as an asset of the company. to be consistent, she also listed as a liability of the corporation her personal loan that she took out at the bank to buy the boat. 2. the inventory was originally purchased for $27,500, but due to a surge in demand miko now thinks she could sell it for $39,600. she thought it would be best to record it at $39,600. 3. included in the accounts receivable balance is $11,000 that miko loaned to her brother 5 years ago. miko included this in the receivables of skysong, inc. so she wouldn’t forget that her brother owes her money. (b) provide a corrected balance sheet for skysong, inc.. (hint: to get the balance sheet to balance, adjust stockholders’ equity.) (list assets in order of liquidity.)

What is the present value of the following cash flow stream at a rate of 12.0%? years: 0 1 2 3 4| | | | |cfs: $0 $1,500 $3,000 $4,500 $6,000a. $9,699b. $10,210c. $10,747d. $11,284e. $11,849

Our uncle has $300,000 invested at 7.5%, and he now wants to retire. he wants to withdraw $35,000 at the end of each year, starting at the end of this year. he also wants to have $25,000 left to give you when he ceases to withdraw funds from the account. for how many years can he make the $35,000 withdrawals and still have $25,000 left in the end? a. 14.21b. 14.96c. 15.71d. 16.49e. 17.32