round 2 Math
nelson860
round_2.docx
Complete the ten problems and label them to their assigned sections i.e. hw 1,2,3 ect
#1 Homework #1A
Advantage First Corporation has sales of $4,795,380: income tax of $475,253; the selling, general and administrative expenses of $256,064; depreciation of $308,114; cost of goods sold of $2,772,090; and interest expense of $195,382. What is the amount of the firm’s EBIT?
Your answer?
#2 Homework #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 Day’s Cost of Goods Sold.
Round the answers to two decimal places
Balance Sheet December 31, 2011
|
Cash and marketable securities |
$143,000 |
Accounts payable |
$278,000 |
|
Accounts receivable |
$354,000 |
Notes payable |
$87,000 |
|
Inventories |
$672,000 |
Accrued expenses |
$65,000 |
|
Prepaid expenses |
$12,500 |
Total current liabilities |
$430,000 |
|
Total current assets |
$1,181,500 |
Long-term debt |
$284,000 |
|
Gross fixed assets |
$1,675,000 |
Par value and paid-in-capital |
$228,000 |
|
Less: accumulated depreciation |
$500,000 |
Retained Earnings |
$1,414,500 |
|
Net fixed assets |
$1,175,000 |
Common Equity |
1,642,500 |
|
Total assets |
$2,356,500 |
Total liabilities and owner’s equity |
$2,356,500 |
Income Statement Year of 2011
|
Net sales (all credit) |
$3,136,600.00 |
|
Less: Cost of goods sold |
$2,195,620.00 |
|
Selling and administrative expenses |
$345,000.00 |
|
Depreciation expense |
$146,000.00 |
|
EBIT |
$449,980.00 |
|
Interest expense |
$45,300.00 |
|
Earnings before taxes |
$404,680.00 |
|
Income taxes |
$161,872.00 |
|
Net income |
$242,808.00 |
Your Answer:
#3 Homework #2C (FV and PV of a Single Amount Non-Annually)
If you invest $19,607 today at an interest rate of 3.89 percent, compounded daily, how much money will you have in your savings account in 22 years?
Round the answer to two decimal places.
Your Answer:
#4 Homework #2D (FV and PV of Ordinary Annuity Annually)
For the next 6 years, you decide to place $835 in equal year-end deposits into a savings account earning 12.92 percent per year. How much money will be in the account at the end of that time period?
Round the answer to two decimal places.
Your Answer:
#5 Homework #2E (PV of Mixed Stream)
You have just purchased an investment that generates the following cash flows for the next four years. You are able to reinvest these cash flows at 13.9 percent, compounded annually.
End of year 1. $656 2. $1,137 3. $4,220 4. $2,793
What is the present value of this investment if 13.9 percent per year is the appropriate discount rate?
Round the answer to two decimal places.
Your Answer:
#6 Homework #3A (FV and PV of annuity due annually)
You have accumulated some money for your retirement. You are going to withdraw $92,787 every year at the beginning of the year for the next 21 years starting from today. How much money have you accumulated for your retirement? Your accounts pays you 3.48 percent per year, compound annually. To answer this question you have to find the present value of these cash flows.
Round the answer to two decimal places
Your Answer
#7 Homework #3B (FV and PV of annuity non-annually)
A car dealership offers you no money down on a new car. You may pay for the car for 3 years by equal monthly end-of-the-month payments of $581 each, with the first payment to be made one month from today. If the discount annual rate is 6.30 percent compounded monthly, what is the present value of the car payments?
Round the answer to two decimal places.
Your Answer:
#8 Homework #3C (How much will each annual payment be (Using FV or PV))
Big Brothers, Inc. borrows $244,968 from the bank at 4.14 percent per year, compounded annually, to purchase new machinery. This loan is to be repaid in equal annual installments at the end of each year over the next 8 years. How much will each annual payment be?
Round the answer to two decimal places.
Your Answer:
#9 Homework #4D (YTM annually, semi-annually)
A few years ago, Spider Web, Inc. issued bonds with a 12.03 percent annual coupon rate, paid semiannually. The bonds have a par value of $1,000, a current price of $1,079, and will mature in 20 years. What would the annual yield to maturity be on the bond if you purchased the bond today?
Round the answer to two decimal places in percentage form. (Write the percentage sign in the "units" box)
You should use Excel or financial calculator.
Your Answer:
#10 Homework #3E (Perpetuity, EAR, RRR)
Assume that the inflation rate during the last year was 1.34 percent. US government T-bills had the nominal rates of return of 4.80 percent. What is the real rate of return for a T-bill?
Round the answer to two decimal places in percentage form. (Write the percentage sign in the "units" box)
Your Answer:
