Match each of the definitions in #1-5 with one of the following Business Organiz
ID: 2331435 • Letter: M
Question
Match each of the definitions in #1-5 with one of the following Business Organization structures:
Corporation
General Partnership
Limited Partnership
Limited Liability Company
Sole Proprietorship
Formed by >=2 individuals (or entities), some, but not all, with unlimited liability:
Formed by >=2 individuals (or entities), each with unlimited liability:
Easiest to form and the most common business entity:
A distinct legal entity treated as a legal “person”:
Entity operates like a partnership and all owners have limited liability:
For questions #6-18, refer to the following financial information for Gannon Insurance.
YOU MUST SHOW ALL CALCULATIONS TO EARN CREDIT.
2016 2017
BALANCE SHEETS:
Accounts Receivable520,000620,000
Fixed Assets, net 410,000 510,000
Total Assets1,355,0001,580,000
Liabilities and Equity:
Accounts Payable350,000$375,000
Long-term Debt500,000625,000
Common Stock50,00075,000
Retained Earnings 455,000 505,000
Total Liabilities and Equity1,355,0001,580,000
INCOME STATEMENT:
Revenue 3,500,000
Cost of Goods Sold 2,275,000
General and Administrative 515,000
Depreciation Expense 120,000
Earnings Before Interest and Taxes 590,000
Interest Expense 40,000
Pretax Net Income 550,000
Income Taxes 167,000
Net Income 383,000
What was Gannon’s total current assets at the end of 2017?
What was Gannon’s net working capital at the end of 2017?
What was Gannon’s shareholders’ equity at book value at the end of 2017?
An appraiser recently valued Gannon’s fixed assets at $600,000 and determined that $40,000 of their accounts receivable was noncollectible. Based on only this information and the balance sheet above, what was the market value of Gannon’s shareholders’ equity at the end of 2017?
Assuming that Gannon did not buy back or redeem any of its shares, how much new common stock did it issue in 2017?
How much dividends did Gannon pay out to its shareholders in 2017?
What was Gannon’s effective annual average tax rate in 2017?
If Gannon had 18,000 shares of common stock outstanding throughout 2017, what was its Earnings per Share (EPS) in 2017?
Assuming that Gannon didn’t dispose of any of its fixed assets, how much new capital spending did it incur in 2017?
What was Gannon’s Operating Cash Flow (OCF) in 2017?
What was Gannon’s investment in net working capital for 2017?
What was Gannon’s Cash Flow to Creditors in 2017?
What was Gannon’s Cash Flow to Stockholders in 2017?
For questions #19-20, assume that a corporation’s pretax net income is taxable (Federal + State) based on 21% of the first $300,000, 30% of the next $400,000, and 34% of anything beyond that.
YOU MUST SHOW ALL CALCULATIONS TO EARN CREDIT:
If the company made $1,000,000, what is the corporation’s average tax rate?
If the company made $800,000, what is the corporation’s marginal tax rate?
Explanation / Answer
Per Chegg guidelines, please post independent questions separately. Thank you,
Definition Business Organization structure A distinct legal entity treated as a legal person: Corporation Formed by >= 2 individuals (or entities), each with unlimited liability: General Partnership Formed by >= 2 individuals (or entities), some, but not all, with unlimited liability: Limited Partnership Entity operates like a partnership and all owners have limited liability: Limited Liability Company Easiest to form and the most common business entity: Sole Propreitorship