Requirements for completing the Assignment:
Select a publicly traded company
Review the company’s latest annual report and calculate the company’s P/E ratio. Include your calculations and result in the assignment.
Conduct a written 500-750 word analysis of the company’s stock valuation: your objective is to determine whether the company’s stock is overvalued, using the P/E ratio and any other relevant information from your research.
A minimum of three references are required. Please, submit your calculations in the form of an Excel file
Category: Finance
Auditing Allnet’s financial statements.
Tana Thorne works in a public accounting firm and hopes to eventually be a partner. The management of Allnet Company invites Thorne to prepare a bid to audit Allnet’s financial statements. In discussing the audit fee, Allnet’s management suggests a fee range in which the amount depends on the reported profit of Allnet. The higher its profit, the higher will be the audit fee paid to Thorne’s firm.
Who are the parties potentially affected by this audit and the fee plan proposed?
What are the ethical factors in this situation? Explain.
Would you recommend that Thorne accept this audit fee arrangement? Why or why not?
What are some ethical considerations guiding your recommendation?
A company’s January 1, 2019 balance sheet report
A company’s January 1, 2019 balance sheet reported total assets of $150,000 and total liabilities of $60,000. During January 2019, the company completed the following transactions: (A) paid a note payable using $10,000 cash (no interest was paid); (B) collected a $9,000 accounts receivable; (C) paid a $5,000 accounts payable; and (D) purchased a truck for $5,000 cash and by signing a $20,000 note payable from a bank. The company’s January 31, 2019 balance sheet would report which of the following?
Total stockholders’ equity after the transactions
A company’s January 1, 2019 balance sheet reported total assets of $120,000 and total liabilities of $40,000. During January 2019, the following transactions occurred: (A) the company issued stock and collected cash totaling $30,000; (B) the company paid an account payable of $6,000; (C) the company purchased supplies for $1,000 with cash; (D) the company purchased land for $60,000, paying $10,000 with cash and signing a note payable for the balance. What is total stockholders’ equity after the transactions above?
Superior’s dividend declarations
Superior has provided the following information for its recent year of operation:
The common stock account balance at the beginning of the year was $20,000 and the year-end balance was $25,000.
The additional paid-in capital account balance increased $2,500 during the year. The retained earnings balance at the beginning of the year was $75,000 and the year-end balance was $91,000.
Net income was $26,000.
How much were Superior’s dividend declarations during its recent year of operation?
Warren’s total assets at the end of April
At the beginning of April, Warren Corporation’s assets totaled $240,000 and liabilities totaled $60,000. During April the following summarized transactions occurred:
Additional shares of stock were sold for $20,000 cash.
A building costing $95,000 was purchased using $10,000 cash and by signing an $85,000 long-term note payable.
Short-term investments costing $9,000 were purchased using cash.
$10,000 was paid to an employee as a loan; the employee signed a six-month note in exchange for the loan.
How much are Warren’s total assets at the end of April?
ABC’s total stockholders’ equity
ABC Company’s total stockholders’ equity at the beginning of the year was $200,000. During the year ABC reported the following:
Net loss of $30,000.
Stock issued in exchange for land totaling $80,000.
Collections of accounts receivable $40,000.
Dividends declared and paid totaling $2,000.
What is ABC’s total stockholders’ equity at the end of the year
The recording of the delivery van purchase
A company purchases a delivery van by paying $5,000 cash and by signing a $25,000 note payable. Which of the following correctly describes the recording of the delivery van purchase?
Pioneer’s total current assets
The Pioneer Company has provided the following account balances:
Cash $38,000;
Short-term investments $4,000;
Accounts receivable $48,000;
Supplies $6,000;
Long-term notes receivable $2,000;
Equipment $96,000;
Factory Building $180,000;
Intangible assets $6,000;
Accounts payable $30,000;
Accrued liabilities payable $4,000;
Short-term notes payable $14,000;
Long-term notes payable $92,000;
Common stock $180,000;
Retained earnings $60,000.
What are Pioneer’s total current assets?
Perform transaction analysis
Nike, Inc., with headquarters in Beaverton, Oregon, is one of the world’s leading manufacturers of athletic shoes and sports apparel. The following activities occurred during a recent year. The amounts are rounded to millions, except for par value.
a. Purchased additional buildings for $303 and equipment for $1,202; paid $432 in cash and signed a long-term note for the rest.
b. Issued 10 shares of $1 par value common stock for $695 cash.
c. Declared $1,159 in dividends to be paid in the following year.
d. Purchased additional short-term investments for $5,928 cash.
e. Several Nike investors sold their own stock to other investors on the stock exchange for $7,150.
f. Sold $2,423 in short-term investments for $2,423 in cash.
Required: For each of the events (a) through (f), perform transaction analysis and indicate the account, amount, and direction of the effect (+ for increase and for decrease) on the accounting equation. Check that the accounting equation remains in balance after each transaction.