round 22

Round 20

#1HOMEWORK #1A (Financial statements)

Garden Pro Corporation has sales of $4,057,990; income tax of $474,863; the selling, general and administrative expenses of $253,320; depreciation of $397,663; costs of goods sold of $2,506,240; and interest expense of $187,649. Calculate the firms net income?

Your Answer

#2Homework #7E (After-Tax cash flow from selling the old asset)

Reversing Rapids Co. purchases an asset for $156,341. This asset qualifies as a five-year recovery asset under MACRS. The five-year expense percentages for years 1, 2, 3, and 4 are 20.00%, 32.00%, 19.20%, and 11.52% respectively. Reversing Rapids has a tax rate of 30%. The asset is sold at the end of four years for $10,596.

 Calculate tax credit on disposal. (The answer should be entered as positive value). Round the answer to two decimals.

Your Answer:

#3 QUIZ

Try to determine the required rate of return of king farm corporation’s common stock. The firms beta is 1.82. the rate on a 10 year treasury bond is 3.63 percent, and the market risk premium is 6.53 percent.

Round the answer to two decimal places in percentage form

Your Answer

#6Homework #4G (Bonds Quotes)

Assume that today's date is February 15, 2015. Robin Hood Inc. bond is an annual-coupon bond. Par value of the bond is $1,000.  Calculate the bond's current yield.

  Round the answers to two decimal places in percentage form. (Write the percentage sign in the "units" box).

Company	Price	Coupon Rate	Maturity Date	YTM	Current Yield	Rating
Robin Hood	133.814	7.612	2-15- 2029	-	?	D

Your Answer:

#4Homework #1C (Operating Cycle and Cash Conversion Cycle ratios)

a)      Canadian Bacon Inc. financial statements are presented in the table below.

            Based on the information in the table, and using a 365-day year, calculate Average Credit Sales per Day.

 Round the answers to two decimal places

Balance Sheet December 31, 2012

Cash and marketable securities	$198,000	Accounts payable	$288,000
Accounts receivable	$469,000	Notes payable	$65,000
Inventories	$577,000	Accrued expenses	$84,000
Prepaid expenses	$15,700	Total current liabilities	$437,000
Total current assets	$1,259,700	Long-term debt	$237,000
Gross fixed assets	$1,954,000	Par value and paid-in-capital	$199,000
Less: accumulated depreciation	$476,000	Retained Earnings	$1,864,700
Net fixed assets	$1,478,000	Common Equity	2,063,700
Total assets	$2,737,700	Total liabilities and owner’s equity	$2,737,700

 

Income Statement, Year of 2012

Net sales (all credit)	$7,546,600.00
Less: Cost of goods sold	$6,112,746.00
Selling and administrative expenses	$349,000.00
Depreciation expense	$145,000.00
EBIT	$939,854.00
Interest expense	$49,500.00
Earnings before taxes	$890,354.00
Income taxes	$356,141.60
Net income	$534,212.40

Your Answer:

#5Homework #5E (HPR, Annualized holding period return, Effective annual rate on investment)

Sarah purchased 100 shares of General Electric stock at a price of $56.35 three months ago. She sold all stocks today for $54.83. During the year the stock paid dividends of $3.75 per share. What is Sarah’s holding period return

Round the answers to two decimal places in percentage form. (Write the percentage sign in the "units" box)

Your Answer: