round 9

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

#1 Homework #1A

Garden Pro Corporation has sales of $4,930,220; income tax of $544,540; the selling, general and administrative expenses of $291,453; depreciation of $339,136; cost of goods sold of $2,505,390; and interest expense of $182,578. Calculate the firms net income

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 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, 2015

Cash and marketable securities	$187,000	Accounts payable	$217,000
Accounts receivable	$498,000	Notes payable	$51,500
Inventories	$799,000	Accrued expenses	$58,300
Prepaid expenses	$19,300	Total current liabilities	$326,800
Total current assets	$1,503,300	Long-term debt	$215,400
Gross fixed assets	$1,978,000	Par value and paid-in-capital	$128,000
Less: accumulated depreciation	$478,000	Retained Earnings	$2,333,100
Net fixed assets	$1,500,000	Common Equity	2,461,100
Total assets	$3,003,300	Total liabilities and owner’s equity	$3,003,300

Income Statement, Year of 2015

Net sales (all credit)	$5,386,600.00
Less: Cost of goods sold	$3,716,754.00
Selling and administrative expenses	$329,000.00
Depreciation expense	$138,000.00
EBIT	$1,202,846.00
Interest expense	$39,600.00
Earnings before taxes	$1,163,246.00
Income taxes	$465,298.40
Net income	$697,947.60

Your Answer:

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

Stephen plans to purchase a car 2 years from now. The car will cost $59,495 at that time. Assume that Stephen can earn 4.13 percent (compounded monthly) on his money. How much should he set aside today for the purchase?

Round the answer to two decimal places.

Your Answer:

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

What is the present value of the following annuity? $2,786 every half year at the beginning of the period for the next 8 years, discounted back to the present at 18.10 percent per year, compounded semiannually.

Round the answer to two decimal places.

Your Answer:

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

You plan to buy the house of your dreams in 16 years. You have estimated that the price of the house will be $112,350 at that time. You are able to make equal deposits every month at the end of the month into a savings account at an annual rate of 5.70 percent, compounded monthly. How much money should you place in this savings account every month in order to accumulate the required amount to buy the house of your dreams? 

Round the answer to two decimal places.

Your Answer:

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

Fresh Fruit, Inc. has a $1,000 par value bond that is currently selling for $788. It has an annual coupon rate of 10.71 percent, paid semiannually, and has 30-years remaining until maturity. What would the annual yield to maturity be on the bond if you purchased the bond today and held it until maturity?

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: