round 5

Complete the ten problems and label them to their assigned sections i.e. hw 1,2,3 ect

#1 Homework #1A

Evening Story Corporation has sales of $4,769,30; income tax of $358,082; the selling, general and administrative expenses of $203,035; depreciation of $367,838; cost of gold sold $2,769,410; and interest expense of $186,755. Calculate the amount of the firm’s gross profit

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 cost of goods sold and a 365-day year, calculate Days of Sales in Inventory (using cost of goods sold).

Round the answers to two decimal places

 

Balance Sheet December 31, 2014

 

Cash and marketable securities	$132,000	Accounts payable	$399,000
Accounts receivable	$311,000	Notes payable	$98,500
Inventories	$512,000	Accrued expenses	$89,300
Prepaid expenses	$11,300	Total current liabilities	$586,800
Total current assets	$966,300	Long-term debt	$799,400
Gross fixed assets	$2,104,000	Par value and paid-in-capital	$298,000
Less: accumulated depreciation	$398,000	Retained Earnings	$988,100
Net fixed assets	$1,706,000	Common Equity	1,286,100
Total assets	$2,672,300	Total liabilities and owner’s equity	$2,672,300

 

Income Statement, Year of 2014

Net sales (all credit)	$4,276,600.00
Less: Cost of goods sold	$3,292,982.00
Selling and administrative expenses	$349,000.00
Depreciation expense	$148,000.00
EBIT	$486,618.00
Interest expense	$49,600.00
Earnings before taxes	$437,018.00
Income taxes	$174,807.20
Net income	$262,210.80

Your Answer:

#3 Homework #2C (FV and PV of a Single Amount Non-Annually)

To what amount will the following investment accumulate?  $14,040, invested today for 23 years at 9.01 percent, compounded monthly.

Round the answer to two decimal places.

Your Answer:

#4 Homework #2D (FV and PV of Ordinary Annuity Annually)

What is the present value of the following annuity? $4,907 every year at the end of the year for the next 11 years, discounted back to the present at 16.52 percent per year, compounded annually?

Round the answer to two decimal places.

Your Answer:

#5 Homework #2E (PV of Mixed Stream)

You have been offered the opportunity to invest in a project that will pay $1,066 per year at the end of years one through three and $12,847 per year at the end of years four and five. If the appropriate discount rate is 17.1 percent per year, what is the present value of this cash flow pattern?

Round the answer to two decimal places.

Your Answer:

#6 Homework #3B (FV and PV of annuity non-annually)

What is the present value of the following annuity? $1,799 every quarter year at the end of the quarter for the next 14 years, discounted back to the present at 7.82 percent per year, compounded quarterly?

Round the answer to two decimal places.

Your Answer:

#7 Homework #3C (How much will each annual payment be (Using FV or PV))

A commercial bank will loan you $25,617 for 8 years to buy a car. The loan must be repaid in equal monthly payments at the end of the month. The annual interest rate on the loan is 14.07 percent of the unpaid balance. What is the amount of the monthly payments?

Round the answer to two decimal places.

Your Answer:

#8 Homework #4D (YTM annually, semi-annually)

What is the yield to maturity of a 30-year bond that pays a coupon rate of 7.54 percent per year, has a $1,000 par value, and is currently priced at $855? Assume annual coupon payments.

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

You should use Excel or financial calculator.

Your Answer:

#9 Homework #3E (Perpetuity, EAR, RRR)

Large-cap stocks had the nominal rates of return of 14.14 percent. The rate of inflation during the last year was 4.21 percent. What is the real rate of return for large-cap stocks?

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

Your Answer: