bular form aces
PRACTICAL PROBLEMSTE
repare a chart showing Analysis of the following transactions in a Tabula
to Traditional Approach:
1. Rajasaheb started business with cash 85,000.
2. Goods Purchased for cash 5,000.
3. Sold goods on credit worth 6,000.
4. Cash deposited into Bank of Maharashtra * 12,000.
3. Interest received * 700 from Radhika.
6. Paid Rent 32,000 to landlord.
1. Bought goods on credit from Birajmohan 7,000.
8. Withdrew cash from bank 1,000 for office use.
9. Purchased computer 9,000 for cash.
10. Paid Mobile bill (office) * 500.
11. Sold old Mobile *2,000.
12. Received Rent 1,000 from tenant.
Answers
One of the hardest things to do (yet most important when building a database) is building the table structures properly. This process is known as normalization. A properly normalized database should never have just one table containing redundant information. Consider the following table:
Customer Address City State Zip Telephone
Jones 125 Main Street Jonestown NJ 08000 609-555-1244
Jones 125 Main Street Jonestown NJ 08000 609-555-7890
Smith 1542 Jones Hwy Laramie WY 82051 307-555-5412
Wilson 78 Smith Circle Jones CA 90000 451-555-8645
Answer:
Comprehensive Problem 1.
Mansfield Corporation (external funds requirement) (LO4) Mansfield Corporation had 2010 sales of $100 million. The balance sheet items that vary directly with sales and the profit margin are as follows:
Percent
Cash
5%
Accounts receivable
15
Inventory
20
Net fixed assets
40
Accounts payable
15
Accruals
10
Profit margin after taxes
10%
The dividend payout rate is 50 percent of earnings, and the balance in retained earnings at the end of 2010 was $33 million. Notes payable are currently $7 million. Long-term bonds and common stock are constant at $5 million and $10 million, respectively.
a. How much additional external capital will be required for next year if sales increase 15 percent? (Assume that the company is already operating at full capacity.)
b. What will happen to external fund requirements if Mansfield Corporation reduces the payout ratio, grows at a slower rate, or suffers a decline in its profit margin? Discuss each of these separately.
c. Prepare a pro forma balance sheet for 2011 assuming that any external funds being acquired will be in the form of notes payable. Disregard the information in part b in answering this question (that is, use the original information and part a in constructing your pro forma balance sheet).