Selected Data for Kris Corporation's Comparative Balance Sheets for Year

question 71

Multiple Choice

Selected data for Kris Corporation's comparative balance sheets for Year 1 and Year 2 are as follows:
$\begin{array}{lrr}\text { Assets } & \text { Year 1 } & \text { Year 2 }\\\hline \text { Cash } & \$ 100,000 & (\$ 50,000) \\\text { Accounts receivable (net) } & 50,000 & 100,000 \\\text { Inventory } & 100,000 & 250,000 \\\text { Equipment (net) } & \$ 300,000 & \underline{350,000} \\{\text { Total assets }} & \$ 550,000 & \$ 650,000\\\\\text { Liabilities and Equity }\\\text { Accounts payable } & \$ 150,000 & \$ 100,000 \\\text { Income taxes payable } & 80,000 & 30,000 \\\text { Bonds payable } & 100,000 & 80,000 \\\text { Common stock } & 100,000 & 200,000 \\\text { Retained earnings } & 120,000 & 240,000 \\\quad \text { Total liabilities and Equity } & \$ 550,000 & \$ 650,000\\\\\text { A brief income statement for Year } 2 \text { shows the }\\\text { following: }\\\text { Sales }&&\$900,000\\\text { Cost of goods sold } & \$ 500,000 \\\text { Operating expenses } & 100,000 \\\text { Depreciation } & 50,000 \\\text { Income tax expense } & 100,000&750,000 \\\text { Net Income }&&\$150,000\end{array}$
-How much cash did Barden collect from customers in Year 4? Assume all sales are on credit.

• A)$115,000
• B)$407,500
• C)$425,000
• D)$442,500

Understand the calculation and interpretation of net present value for new projects.

Comprehend the mechanics and financial impact of initial public offerings (IPOs) and rights offerings on a company.

Calculate the outcome of various financing options including IPOs, rights offerings, and Dutch auctions.

Analyze the impact of new financing methods on existing shareholders' equity and ownership percentage.

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Definitions:

Temperate Deciduous Forest

A biome characterized by four distinct seasons and deciduous trees that lose their leaves annually.

Tropical Zone

The Earth's region located between the Tropic of Cancer and the Tropic of Capricorn, characterized by warm temperatures year-round.

Broadleaf Evergreen

Trees or shrubs with wide leaves that remain green and do not shed during the year, often found in tropical and subtropical climates.

Wet Tropical

Climate or region characterized by high temperatures and high rainfall throughout the year, commonly found in areas near the equator.