Paper Details
This exercise continues the Lawlor Lawn Service, Inc., situation from Exercise 23-38 of Chapter 23. Lawlor Lawn Service experienced sales of $500,000 and operating income of $65,000 for 2013. Total assets were $250,000 and total liabilities were $25,000 at the end of 2013. Lawlor?s target rate of return is 16% and WACC is 12%. Its 2013 tax rate was 32%.
Requirement
1. Calculate Lawlor?s profit margin for 2013.
Howard McGraw of Windsor opened First City Surveying Service. As his accountant, analyze the transactions listed and present to Howard the following information, in proper form:
1. The analysis of the transactions using the expanded accounting equation
2. A balance sheet showing the financial position of the firm before opening on May 1, 2013
3. An income statement for the month of May
4. A statement of owner?s equity for May 5. A balance sheet as of May 31, 2013
