23

Round 20

#1HOMEWORK #1A (Financial statements)

Killer Whale, Inc. has the following balance sheet statement items: total current liabilities of $647,087; net fixed and other assets of $1,041,590 total assets of $3,290,900; and long-term debt of $822,061. What is the amount of the firm's current assets?

Your Answer

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

Reversing Rapids Co. purchases an asset for $140,084. 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 year 4 for $13,508.

Calculate After-Tax Cash Flow at disposal. Round the answer to two decimals.

Your Answer:

#3 QUIZ

Calculate the expected return on stock of money saver inc:

State of the economy Probability of states Percentage returns

Economic recession 21% 6.1%

teady economic growth 50%% 4.6%

Boom please calculate it -3.7%

Round the answer to two decimal places in percentage form

Your Answer

#6Homework #4G (Bonds Quotes)

Assume that today's date is April 15, 2015. Fresh Bakery Inc. bond is an annual-coupon bond. Par value of the bond is $5,000.

How much you will pay for the bond if you purchased the bond today?  The answer should be calculated to two decimal places

 

Company	Price	Coupon Rate	Maturity Date	YTM	Current Yield	Rating
Fresh Bakery	131.213	6.459	04-15- 2023	-	-	AA

Your Answer:

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

American Bacon Inc. financial statements are presented in the table below.

           Based on the information in the table, and using a 365-day year, calculate the average collection period (also called Days of Sales in Receivables or Number of Days of Credit).

Round the answers to two decimal places

Balance Sheet December 31, 2010

Cash and marketable securities	$102,000	Accounts payable	$287,000
Accounts receivable	$299,000	Notes payable	$61,200
Inventories	$628,000	Accrued expenses	$51,900
Prepaid expenses	$10,300	Total current liabilities	$400,100
Total current assets	$1,039,300	Long-term debt	$415,000
Gross fixed assets	$1,502,000	Par value and paid-in-capital	$376,000
Less: accumulated depreciation	$312,000	Retained Earnings	$1,038,200
Net fixed assets	$1,190,000	Common Equity	1,414,200
Total assets	$2,229,300	Total liabilities and owner’s equity	$2,229,300

Income statement, Year of 2010

Net sales (all credit)	$6,387,700.00
Less: Cost of goods sold	$4,726,898.00
Selling and administrative expenses	$345,000.00
Depreciation expense	$148,000.00
EBIT	$1,167,802.00
Interest expense	$50,600.00
Earnings before taxes	$1,117,202.00
Income taxes	$446,880.80
Net income	$670,321.20

 

Your Answer:

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

You purchased 250 shares of General Motors stock at a price of $86.79 two years ago. You sold all stocks today for $84.28. During this period the stock paid dividends of $3.87 per share. What is your annualized holding period return (annual percentage rate)?

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

Your Answer: