Question & Answer: ZYX Inc. shows the following balance sheet as of 12/31/2016 (in US $ millions): ZYX's financial office anticipates that the income statem…..

Preview I Screen Shot 2017-0.12 at 4.16.08 PM Screen Shot 2017-09-12 at 4.16.01 PM ZYX Inc. shows the following balance sheet as of 12/31/2016 0n US $ millions): ZYX Inc. shows the following balance sheet as of 12/31/2016 (in US $ millions) Assets Liabilities Cash & checking deposits 3 Short-term debt 10 Accounts receivable 4 Accounts payable6 Inventories &supplies 8 Mortgage debt 14 Vehicles Machinery & equipenent 16 Buildings & structures 24 Equity Total assets Assets Liabilities Cash & checking deposits 3 Short-term debt 10 Accounts receivable4 Accounts payable 12 Total debt 30 8 Mortgage debt 12 Total debt 16 24 Equity 67 Total liabilities 14 30 Inventories & supplies Vehicles Machinery & equipment Buildings & structures Total assets 37 67 Total liabilities 67 37 67 ZYXs financial office anticipates that the income statement from 1/1/2017 through 12/31/2017 vill show the following figures (US S million Total revenues (-) Cost of goods sold -) Operating expenses üncl, depreciation)10 -) Interest payments & other financial expenses 4 (-, Taxes ZYXs financial office anticipates that the income statement from 1/1/2017 through 12/31/2017 will show the following figures (US $ millions): (+) Total revenues (-) Cost of goods sold (-) Operating expenses (incl, depreciation)10 -) Interest payments & other financial expenses 4 G) Taxes If ZYXs financial office expectations are fulfilled, what will the value of the company total assets be as of 12/31/2017. (The possible answers are all in millions of US $.) 50 50 If, instead of what ZYXs financial office expects, the value of the companys total assets as of 12/31/2017 turns out to be US $65 million, what will the 2017 net income be instead? (Type your answer in millions of US S. Do not write the $ sign or needless zeros. If the net income is negative (a Tloss rather than a profit1, thern indscate it with a negative sign before the number typed in. If it is positive, do not type the positive sign-just the number)

ZYX Inc. shows the following balance sheet as of 12/31/2016 (in US $ millions): ZYX’s financial office anticipates that the income statement from 1/1/2017 through 12/31/2017 will show the following figures (US $ millions): If ZYX’s financial office expectations are fulfilled what will the value of the company’s total assets be as of 12/31/2017. (The possible answers are all in millions of US $.) ZYX Inc, shows the following balance sheet as of 12/31/2016 (in US $ millions): ZYX’s financial office anticipates that the income statement from 1/1/2007 through 12/31/2017 will show the following (US $ millions). If instead of what ZYX’s financial office expects the value of the company’s total assets as of 12/31/2017 turns out to be US $65 million, what will the 2017 net income be instead? (Type your answer in millions of US $. Do not write the $ sign of needless zeros. If the net income is negative a loss” rather than a “profit” lambda then indicate a with a negative sign before the number typed in. If it positive do not type the positive sign Just the number).

Expert Answer

What will the value of the company’s total assets be as of 12/31/2017 (Amount in millions?)

Solution:

Beginning Total Liabilities = $67 millions

Add: Current year Profit = $12 million*

Ending Total Liabilities = $79 million

Since the total asset are equal to total liabilities in balance sheet equation.

Total Assets as of 12/31/2017 = $79 millions

Note: The Total Assets as of 12/31/2017 value is only an expected figure, because the all information is not given to calculate full balance sheet value.

*Current Year Profit:

Total Revenues = $50

Less:

Cost of goods sold = ($22)

Operating Expenses = ($10)

Financial Expenses = ($4)

Taxes = ($2)

Net Profit = $12

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