# 1. You need a kidney replacement and thus you will be paying for

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Request for Rsaikmaro Accounting Questions 2 .docx 1. You need a kidney replacement and thus you will be paying for it. The doctor offers you two options to pay: \$4000 in 4 years or \$6500 in 10 years. The current discount rate is 8%. Which payment option would you prefer? A. \$4000 in 4 years B. \$10000 in 10 years C. Both are the same 2. Below I show information from United Therapeutics Corporation’s 10-K’s. 2009 2008 Revenue 357,870 BLANK Cost of product 40,890 BLANK Net income 19,462 BLANK Accounts Receivable 28,311 50,626 Inventory 14,372 26,360 Accounts Payable 20,334 18,750 How long does it take United Therapeutics to sell its inventory and collect cash? (a) about 215 days (b) about 222 days (c) about 287 days (d) Don’t know where you are getting these numbers from but we need more 3. Use the following data taken from Boston Scientific Corporation’s (ticker symbol BSX) annual financial report filed with the SEC for the next two questions. All data are in millions. 20×1 20×0 balance sheet for the year ending 12/31/X1 12/31/X021/12 Current assets 4,061 5,452 Liabilities & equity: Current liabilities 3,022 3,233 Long-term liabilities 9,854 10,732 Equity 14,199 13,174 Total liabilities + equity 27,075 27,139 partial income statement for the year Revenue 8,188 8,050 Gross profit 5,612 5,581 Net income 1,025 2,036 4. Calculate BSX’s ROA for 20X1 [express the ROA as 3 decimal digits rather than as a percentage, so 0.123 not 12.3%. don’t round so both 0.1236 and 0.1234 should be 0.123] ROA: Du Pont analysis analyzes the ROA into two multiplicative ratios. Calculate the values for those ratios for 20X1. Fill in the values below. Express as 3 decimal digits without rounding. (a) Name of ratio: Calculated value of ratio: (b) Name of ratio: Calculated value of ratio: 5. Here are some data extracted from the equity and earnings per share sections from Tenet Healthcare Corporation’s quarterly filings with the SEC. All dollar figures (other than earnings per share figures) are in millions. ction) as of 6/30/X7 12/31/X6 26 25 Additional paid-in capital 4,391 4,372 Accumulated deficit (retained earnings) -2,743 -2,610 -1,479 195 -1,479 308 Common stock, \$0.05 par value; authorized 1,050,000,000 shares; 530,253,825 shares issued at June 30, 20X7 and 527,384,164 shares issued at December 31, X6 Less common stock in treasury, at cost, 56,811,675 shares at June 30, X7 and 56,811,675 shares at December 31, X6 Total stockholders equity Extracts from Tenet Healthcare Corporation’s Income Statement Earnings per common share For the Six Months Ending 6/30/20X7 For the Six Months Ending 6/30/20X6 -0.06 -0.95 Tenet paid no dividends in the period. Which of the following statements should not be inferred about Tenet Healthcare’s first six months of 20X7 from this information? (a) Tenet had no material issues of treasury stock for the period. (b) Tenet had a loss of \$133M for the period. (c) Tenet issued some new stock in the first 6 months of 20X7. (d) Tenet’s net loss in the first half of 20X7 was larger than its net loss for the same period of 20X6 6. Use the following equity section of Wellpoint’s balance sheet for the next two questions (note that 20×2 column is to the right of the 20X1 column): Equity Section of Balance Sheet Wellpoint, Inc. [all \$ amounts in thousands] for the year ending: 12/31/X1 Common stock, par value \$0.01, shares authorized 300,000,000; shares issued and outstanding: 147,050,143 and 152,758,150 at year end 12/31/X1 and 12/31/X2 1,497 12/31/X2 Additional paid-in capital 1,638,162 2,050,457 Retained earnings 2,315,254 3,250,483 Accumulated other comprehensive income (loss) 21,784 127,439 Total shareholders’ equity 3,976,697 5,429,949 Total liabilities and shareholders’ equity \$11,470,631 \$14,788,678 1,570 Calculate the 12/31/X2 book value per share of Wellpoint Inc. “Accumulated other comprehensive income(loss)” is a kind of retained earnings. Round your answer to the nearest cent,