Open Question: How can I make my thesis statement more direct or better?

Argo Sales Corporation has in recent years maintained the following relationships among the data on its financial statements:

Gross profit margin 40%
Net profit margin 10%
Rate of selling expenses to net sales 20%
Accounts receivable turnover 8 times per year
Inventory turnover 6 times per year
Quick-asset composition: 8% cash, 32% marketable securities, 60% accounts receivable
Acid-test ratio (Quick ratio) 2-to-1
Current ratio: 3-to-1
Asset turnover: 2 per year
Ratio of total assets to intangible assets 20-to-1
Ratio of accumulated depreciation to gross property, plant and equipment : 1-to-3
Ratio of accounts receivable to accounts payable: 1.5-to-1
Ratio of working capital to stockholders’ equity: 1-to-1.6
Debt/Equity ratio: 1-to-2

The corporation had a net income of $120,000 for 2004, which resulted in earnings of $5.20 per share of common stock. No common or preferred shares were sold or bought back during 2004. The corporation does not have minority share of earnings, equity income or non-recurring items. Additional information includes the following:


Capital stock authorized, issued (all in 1970), and outstanding:
Common, $10 per share per share, issued at 10% premium.
Preferred, 6% nonparticipating, $100 per share par value, issued at a 10% premium.
Market value per share of common at December 31, 2004: $78.
Preferred dividends paid in 2004: $3,000.
Times interest earned in 2004: 33.

The amounts of the following were the same at December 31, 2004, as at January 1, 2004: inventory, accounts receivable, 5% bonds payable – due 2013, total assets and total stockholders’ equity.

Assuming there is no income tax expense and specific depreciation expense, but still need the accumulated depreciation for balance sheet.

Administration expense, accrued expense payable and prepaid expenses are all backed in numbers.

All purchases and sales were on account. Assume the company uses direct write-off method to account for uncollectible accounts.

Required: Prepare in good form the balance sheet and income statement for the year ending December 31, 2004. Please show all calculations.


Please I need help in figuring out the operating income, interest expense, administrative expense on the income statement

Balance sheet: I got stuck on the gross receivables part and others. Please tell if what I have already done is correct and how to find the rest stuff.

income statement i came up with
Sales
$1,200,000
COGS
720,000
Gross Profit 480,000
Operating expenses
Selling expenses $240,000
Adminstrative expenses
EBIT

Interest expense
Net income $120,000

Balance sheet
Assets


Cash

48,000
Market Securities
192,000
Gross A/R

150,000
Allowance for doubtful accounts
Net A/R

360,000
Inventories
120,000
Prepaid expenses

Total current assets
Gross property, plant & equipment
Accumulated Depreciation

Net Fixed Assets

Total Assets
600,000
Liabilities


Accounts Payable

Accrued Expenses

Current portion of LTD

Total Current Liabilities


Bonds payable 5%

Total Liabilities




945,000
Owners Equity

Preferred Stock

Common Stock
135,000
Additional paid-in capital
225,000
Retained Earnings
1,413,000
Total Owners equity
117,000
Total liabilities and owners equity

1,890,000 PLEASE DON"T POSTED STUPID ANSWER COMMENTS LIKE "oh thats easy" if you haven't read the whole problem and solved it out for yourself before answering. And if you do post such comments please explain how you worked out the problem. >> full story

Open Question: What would you say are the strong and weak points of catalogs, tv commercials and text messaging?

Direct Marketing is the thing of the century. >> full story

Open Question: How can I make my thesis statement more direct or better?

I want to write a research paper over the fast food industry's targeted marketing towards children and how that has contributed to the childhood obesity epidemic.

It would go along the lines of something like this:

In the United States, the current childhood obesity epidemic is caused largely in part due to the fast food industry's use of targeted advertising towards children and the extremely unhealthy preperation of most of their food.

Thats the basic idea.
Any ideas on how to make it better and stronger. >> full story


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