The Year 2 income statement of Company A reports sales of $20,110,000, cost of goods sold of $12,450,000, and net income of $1,860,000. Balance sheet information is provided in the following table.

COMPANY A
Balance Sheets December 31, Year 2 and Year 1
Year 2 Year 1
Assets
Current assets:
Cash $ 780,000 $ 900,000
Accounts receivable 1,700,000 1,160,000
Inventory 2,140,000 1,600,000
Long-term assets 4,980,000 4,380,000
Total assets $ 9,600,000 $ 8,040,000
Liabilities and Stockholders' Equity
Current liabilities $ 2,008,000 $ 1,808,000
Long-term liabilities 2,472,000 2,548,000
Common stock 2,000,000 1,960,000
Retained earnings 3,120,000 1,724,000
Total liabilities and stockholders' equity $ 9,600,000 $ 8,040,000

Calculate the five profitability ratios listed above for Company A.

Jagjit company designs and builds retaining walls for individual customers. on august 1, there were two jobs in process: job 93 with a beginning balance of $8,650, and job 94 with a beginning balance of $7,270. jagjit applies overhead at the rate of $9 per direct labor hour. direct labor wages average $16 per hour. data on august costs for all jobs are as follows:

The u.s. stock market has returned an average of about 9% per year since 1900. this return works out to a real return (i.e., adjusted for inflation) of approximately 6% per year. if you invest $100,000 and you earn 6% a year on it, how much real purchasing power will you have in 30 years?

If a firm plans to issue new stock, flotation costs (investment bankers' fees) should not be ignored. there are two approaches to use to account for flotation costs. the first approach is to add the sum of flotation costs for the debt, preferred, and common stock and add them to the initial investment cost. because the investment cost is increased, the project's expected return is reduced so it may not meet the firm's hurdle rate for acceptance of the project. the second approach involves adjusting the cost of common equity as follows: . the difference between the flotation-adjusted cost of equity and the cost of equity calculated without the flotation adjustment represents the flotation cost adjustment. quantitative problem: barton industries expects next year's annual dividend, d1, to be $1.90 and it expects dividends to grow at a constant rate g = 4.3%. the firm's current common stock price, p0, is $22.00. if it needs to issue new common stock, the firm will encounter a 6% flotation cost, f. assume that the cost of equity calculated without the flotation adjustment is 12% and the cost of old common equity is 11.5%. what is the flotation cost adjustment that must be added to its cost of retaine