Determine financial statement amounts and prepare owner's equity statement. (LO 4, 5)

Financial statement information about four different companies is as follows.

Alpha CompanyBeta CompanyPsi CompanyOmega Company
January 1, 2017
Assets$ 80,000$ 90,000(g)$150,0 00
Liabilities  41,000(d)  80, 000(j)
Owner's equity(a)  40,000  49,000†‚ 90,000
December 31, 2017
Assets(b) 112,000 170,000(k)
Liabilities  60,000  72,000 (h) 100,000
Owner's equity  50,000(e)  82,000†‚151,000
Owner's equity changes in year
Additional investment(c)   8,000  10 ,000  15,000
Drawings  15,000(f)  12,000   10,000
Total revenues 350,000 410,000(i) 5 00,000
Total expenses 333,000 385,000 350, 000(l)
Instructions

(a)

Determine the missing amounts.

(Hint: For example, to solve for (a), Assets hyphen Liabilities equals Owner's equity equals dollar-sign Baseline 39,000.)

(b)

Prepare the owner's equity statement for Alpha Company.

(c)

Write a memorandum explaining the sequence for preparing financial statements and the interrelationship of the owner's equity statement to the income statement and balance sheet.

The silverside company is considering investing in two alternative projects: project 1 project 2 investment $500,000 $240,000 useful life (years) 8 7 estimated annual net cash inflows for useful life $120,000 $40,000 residual value $32,000 $10,000 depreciation method straightminusline straightminusline required rate of return 11% 8% what is the accounting rate of return for project 2? (round any intermediary calculations to the nearest dollar, and round your final answer to the nearest hundredth of a percent, x. xx%.)

Suppose that xtel currently is selling at $40 per share. you buy 500 shares using $15,000 of your own money, borrowing the remainder of the purchase price from your broker. the rate on the margin loan is 8%. a. what is the percentage increase in the net worth of your brokerage account if the price of xtel immediately changes to (a) $44; (b) $40; (c) $36? (leave no cells blank - be certain to enter "0" wherever required. negative values should be indicated by a minus sign. round your answers to 2 decimal places.) b. if the maintenance margin is 25%, how low can xtel’s price fall before you get a margin call? (round your answer to 2 decimal places.) c. how would your answer to requirement 2 would change if you had financed the initial purchase with only $10,000 of your own money? (round your answer to 2 decimal places.) d. what is the rate of return on your margined position (assuming again that you invest $15,000 of your own money) if xtel is selling after one year at (a) $44; (b) $40; (c) $36? (negative values should be indicated by a minus sign. round your answers to 2 decimal places.) e. continue to assume that a year has passed. how low can xtel’s price fall before you get a margin call? (round your answer to 2 decimal places.)

1. what is the lowest balance during this period? 2. lily just received her bank statement below. a. what does the bank think her ending balance is? b. how much more does the bank think lily has? c. what transactions are missing? 3. what is the danger of not balancing your bank account? lily’s bank statement deposits: 2/25 $35 2/26 $20 3/1 $256.32 checks: 2/24 ck #301 $25 2/26 #302 $150 debit card: 2/24 american eagle $75.48 2/25 chick fa la $4.67 2/27 mcdonalds $3.56 2/28 chevron $34.76 withdrawal: 2/27 $40 beginning balance $423.34 deposits $311.32 total debits $333.47 ending balance $401.19