The Bandon Pine Corporation's purchases from suppliers in a quarter are equal to 70 percent of the next quarter's forecast sales. The payables period is 60 days. Wages, taxes, and other expenses are 25 percent of sales, and interest and dividends are $127 per quarter. No capital expenditures are planned. Projected quarterly sales are: 01 02 03 04 Sales $1,140 $1,290 $1,380 $ 1,590 Sales for the first quarter of the following year are projected at $1,260. Calculate the company's cash outlays by completing the following: Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Payment of accounts Wages, taxes, other expenses Long-term financing expenses (interest and dividends) Total Q1 Q2 Q3 Q4
Q: The Wildcat Oil Company is trying to decide whether to lease or buy a new computer- assisted…
A: Cost of Equipment is $6,300,000Lease Payments is $1,700,000The life of the Equipment is 5 yearsTax…
Q: Turnbull Co, is considering a project that requires an initial investment of $570,000. The firm will…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Spherical Manufacturing recently spent $19 million to purchase some equipment used in the…
A: Net present value is one of the best methods of evaluating a project wherein the project is accepted…
Q: Smith and T Co. is expected to generate a free cash flow (FCF) of $7,625.00 million this year (FCF,…
A: Here,ParticularsValuesFree cash flows in year 1 $ 7,625.00Growth rate for next two…
Q: ABC Company Limited looking to invest in one of the proposed projects. The cost of that project is…
A: IRR is also known as Internal rate of Return. It is a capital budgeting technique which helps in…
Q: Explaining mortgage rates a. Compare the rate paid by a homeowner on a 30-year mortgage to the…
A: Interest rates for house loans, specifically those for the amount borrowed to buy or refinance a…
Q: Anastasia wants to invest $1.5M. Based on her income she is currently in the 33% tax bracket for…
A: Businesses apply capital budgeting tools to assess and decide which long-term projects or assets to…
Q: Your firm successfully issued new debt last year, but the debt carries covenants. Specifically, you…
A: Quick ratio can be referred as the ratio that helps in measuring the company's ability to pay off…
Q: Speedy Delivery Systems can buy a piece of equipment that is anticipated to provide an 6 percent…
A: Weighted Average Cost of Capital or WACC= (Cost of equity* weight of equity) +(cost of debt* Weight…
Q: A call option on Canadian dollar has a strike (exercise) price of $0.75 per CAD. The present CAD…
A: The intrinsic value of a call option is the difference between the current market price of the…
Q: The McDaniel family is purchasing a home, and their mortgage. The home costs $156,000 and they have…
A: First we need to use loanbsp;loan amotorization formula below to calculate monthly payment. where…
Q: Find the convexity of a seven-year maturity, 6.6% coupon bond selling at a yield to maturity of…
A: Bond convexity is a measure of the curvature or non-linearity of the relationship between a bond's…
Q: Problem 9-11 (Algo) Future value [LO9-2] If you invest $10,000 per period for the following number…
A: The term "future value" typically refers to the value of an investment or amount of money at a…
Q: What is the investor's annual return assuming no mezzanine loan? What is the investor's annual…
A: In financial terms, a loan is a sum of money that is borrowed from a lender with the agreement that…
Q: Emperor's Clothes Fashions can invest $5.28 million in a new plant for producing invisible makeup.…
A: Net Present Value (NPV) is calculated as the difference between the present value of cash inflows…
Q: Bonds in Brazil have an annual interest rate of 6%. The Brazilian currency, the real (R), is…
A: According to the interest rate parity the spot exchange rate and forward exchange rate must be in…
Q: Wendell's Donut Shoppe is investigating the purchase of a new $33,000 donut-making machine. The new…
A: Capital budgeting refers to the process of allocating capital to projects that generate returns for…
Q: A coupon-paying government bond B with a face (par) value of 876 euros makes annual coupon payments…
A: Certainly, let's go through the step-by-step calculations:Step 1: Calculate the annual coupon…
Q: The Caldwell Herald newspaper reported the following story: Frank Ormsby of Caldwell is the state's…
A: Given data,Total money in week's grand prize=$1.34 millionNumber of installments=20Amount per…
Q: (a) The price of a European put on XYZ stock that matures in six months and has a strike price of…
A: To find the price of the European call on XYZ stock, we can utilize put-call parity. Put-call parity…
Q: Assume a corporation has earnings before depreciation and taxes of $145,000, depreciation of…
A: Earnings before depreciation and taxes = $145,000Depreciation =$35,000Tax rate = 30%
Q: As a result of a slowdown in operations, Tradewind Stores is offering employees who have been…
A: Cash paid today = $109,000Cash paid after one year = $109,000Annual cash payments = $30,000Discount…
Q: The Minock Group, a nonprofit organization that does not pay taxes, is considering buying laboratory…
A: NPV=−Initial Investment+ΣGiven:Initial Investment: $5,000,000Annual Cash Savings: $950,000 (for 7…
Q: Quantitative Problem: Bellinger Industries is considering two projects for inclusion in its capital…
A: MIRR is modified form of IRR in which it is assumed that reinvestment rate and finance rate are not…
Q: A company issues GHS 1,000,000 12% debentures of par value of GHS 100 each. The debentures are…
A: There is an inverse relation between the interest rate and the prices. If the prices are higher then…
Q: 91 which of the rofowing activities is a loan processor permitted to perform without requiring…
A: (a) Discussion on loan features: In most cases, borrowers and lenders will work together to…
Q: Required: A hedge fund with $0.7 billion of assets charges a management fee of 3% and an incentive…
A: Assets under management = $700 millionIncentive fees = 20%Management fees = 3%Money market return =…
Q: A European company plans to purchase raw materials from the United States for its manufacturing…
A: Futures Contracts: Financial derivatives used to hedge or speculate on the future price of…
Q: You were recently hired by Scheuer Media Inc. to estimate its cost of capital. You obtained the…
A: Cost of Equity:cost of equity is the minimum required rate of return that is expected to be earned…
Q: We are examining a new project. We expect to sell 6, 100 units per year at $75 net cash flow apiece…
A: NPV is also known as Net Present Value.. It is a capital budgeting technique which helps in decision…
Q: You have a credit card that has a balance of $8930 at an APR of 16.49%. You plan to pay $400 each…
A: The objective of this question is to determine how many months it will take to pay off a credit card…
Q: The Gecko Company and the Gordon Company are two firms whose business risk is the same but that have…
A: Capital Gains Growth Rate (g)= After-Tax Return - Dividend Yield*(1-Tax Rate)= 16% - 7%*(1-.40)=…
Q: In the table below is some information about Garneau Inc. and Strathcona Inc.: Garneau $8,000,000…
A: Financial risk :- Debt brings financial risk since the company is obligated to make interest…
Q: a. What is the NPV of the project? b. Is using the IRR rule reliable for this project? Explain. c.…
A: Net present value is determined by deducting the initial investment from the current value of cash…
Q: Dunbar Inc has an overall (composite) WACC of 10%, which reflects the cost of capital for its…
A: Risk refers to the potential for loss or failure in an investment or business venture. It is an…
Q: A company is considering two mutually exclusive expansion plans. Plan A requires a $41 million…
A: The difference between the current value of cash inflows and outflow of cash over a period of time…
Q: What is the project NPV?
A: Net present value is determined by deducting the initial investment from the current value of cash…
Q: Ten annual returns are listed in the following table: (Click on the following icon in order to copy…
A: The arithmetic average return represents the average profit or loss on an investment over time,…
Q: The Carter Corporation, a firm in the 25% marginal tax bracket, with a 15% required rate of return…
A: Net Present Value is calculated as the difference between the present value of cash inflow and cash…
Q: SW Company provides the Equity & Liability Information below for analysis. SW Company had net Income…
A: Equity returns in terms of percentage can be found by dividing the net income by the amount of…
Q: Stag Corp. will pay dividends of $ 4.75, $5.25, $5.75, and $7 for the next four years. Thereafter,…
A: Dividend for Year 1 = d1 = $4.75Dividend for Year 2 = d2 = $5.25Dividend for Year 3 = d3 =…
Q: Explain how the credit analyst's focus will differ from the investment analyst's focus. What do each…
A: To perform quantitative analysis and evaluate a company's liquidity, leverage, growth, margins,…
Q: AFW Industries has 211 million shares outstanding and expects earnings at the end of this year of…
A: Total dividends to be paid= $740 million x 0.64= $473.6 millionExpected dividend per share (D1)=…
Q: A company is reviewing an investment proposal in a project involving a capital outlay of GHS…
A: To evaluate the potential of a project, the cash flows are first discounted at the company's pre-tax…
Q: What is the annual operating free cash flow if operating revenues increase by $1.2 million,…
A: Operating Cash flow is the amount which is earned by the investor from the project. It is the net…
Q: You are given the following information concerning three portfolios, the market portfolio, and the…
A: PortfolioRpσpBpX12.00%29.00%1.25Y11.00%24.00%1.1Z8.00%14.00%0.75Market10.00%19.00%1Risk-free4.00%0.0…
Q: Poulsen Industries is analyzing an average-risk project, and the following data have been developed.…
A: Net Present Value is used to evaluate the investment and financing decisions that involve cash flows…
Q: Compute the nominal annual rate of interest compounded monthly at which $475 paid at the beginning…
A: Nominal interest rate is the plain interest rate without considering impact of compounding on the…
Q: Delia Landscaping is considering a new 4 -year project. The necessary fixed assets will cost…
A: NPV is also known as Net Present Value.. It is a capital budgeting technique which helps in decision…
Q: Given that Prestige Appliances Ltd. records sales of Rs. 5.20 crores, possesses total assets worth…
A: ROE and ROA are the profitability ratios and ROE shows the profit on equity and ROA show profit on…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 3 images
- The Bandon Pine Corporation's purchases from suppliers in a quarter are equal to 70 percent of the next quarter's forecast sales. The payables period is 60 days. Wages, taxes, and other expenses are 15 percent of sales, and interest and dividends are $95 per quarter. No capital expenditures are planned. Projected quarterly sales are shown here: Q1 Q2 Q3 Q4 Sales $2,130 $2,430 $2,130 $1,830 Sales for the first quarter of the following year are projected at $2,460. Calculate the company's cash outlays by completing the following: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Payment of accounts Wages, taxes, other expenses Long-term financing expenses (interest and dividends) Total X Answer is complete but not entirely correct. $ $ Q1 1,491.00 $ 319.50 95.00 2,122.50 $ Q2 1,561.00 $ 364.50 95.00 2,020.50 $ Q3 1,351.00 $ 319.50 95.00 1,765.50 $ Q4 1,575.00 X 274.50 95.00 1,994.50 xThe Bandon Pine Corporation's purchases from suppliers in a quarter are equal to 60 percent of the next quarter's forecast sales. The payables period is 60 days. Wages, taxes, and other expenses are 40 percent of sales, and interest and dividends are $114 per quarter. No capital expenditures are planned. Projected quarterly sales are: Sales Q1 $ 1,500 Q2 Q3 04 $ 1,650 $ 1,710 $ 1,950 Sales for the first quarter of the following year are projected at $1,620. Calculate the company's cash outlays by completing the following: Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Payment of accounts Wages, taxes, other expenses Long-term financing expenses (interest and dividends) Total Q1 Q2 Q3 Check my work Q4The Bandon Pine Corporation's purchases from suppliers in a quarter are equal to 60 percent of the next quarter's forecast sales. The payables period is 60 days. Wages, taxes, and other expenses are 25 percent of sales and interest and dividends are $95 per quarter. No capital expenditures are planned. Here are the projected quarterly sales: Q1 az 03 Q4 Sales $1,860 $2,160 $1,860 $1,560 Sales for the first quarter of the following year are projected at $2,190. Calculate the company's cash outleys by completing the following: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Payment of accounts Wages, taxes, other expenses Long-term financing expenses (interest and dividends) Q1 Q2 Q3 Q4
- The Bandon Pine Corporation's purchases from suppliers in a quarter are equal to 65 percent of the next quarter's forecast sales. The payables period is 60 days. Wages, taxes, and other expenses are 35 percent of sales and interest and dividends are $80 per quarter. No capital expenditures are planned. Here are the projected quarterly sales: Q1 Q2 Q3 Q4 Sales $2,040 $2,340 $2,040 $1,740 Sales for the first quarter of the following year are projected at $2,370. Calculate the company's cash outlays by completing the following: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Payment of accounts Wages, taxes, other expenses Long-term financing expenses (interest and dividends) Total Q1 Q2 Q3 Q4The Thakor Corporation's purchases from suppliers in a quarter are equal to 65 percent of the next quarter's forecasted sales. The payables period is 60 days. Wages, taxes, and other expenses are 25 percent of sales, and interest and dividends are $95 per quarter. No capital expenditures are planned. Projected quarterly sales are: Q1 Q2 Q3 04 Sales $2,370 $2,670 $2,370 $2,070 Sales for the first quarter of the following year are projected at $2,700. Calculate the company's cash outlays by completing the following: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Payment of accounts Wages, taxes, other expenses Long-term financing expenses (interest and dividends) Total Q1 Q2 Q3 Q4The Bandon Pine Corporation's purchases from suppliers in a quarter are equal to 70 percent of the next quarter's forecasted sales. The payables period is 60 days. Wages, taxes, and other expenses are 20 percent of sales, and interest and dividends are $90 per quarter. No capital expenditures are planned. Projected quarterly sales are: 01 02 Sales $ 2,340 $ 2,640 Sales for the first quarter of the following year are projected at $2,670. Calculate the company's cash outlays by completing the following: Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Payment of accounts Wages, taxes, other expenses Long-term financing expenses (interest and dividends) Total 04 $ 2,040 Q1 Q2 Q3 Q4
- The MacDonald Corporation’s purchases from suppliers in a quarter are equal to 60 percent of the next quarter’s forecast sales. The payables period is 60 days. Wages, taxes, and other expenses are 40 percent of sales, and interest and dividends are $124 per quarter. No capital expenditures are planned. Projected quarterly sales are: Q1 Q2 Q3 Q4 Sales $1,230 $1,380 $1,470 $1,680 Sales for the first quarter of the following year are projected at $1,350. Calculate the company’s cash outlays by completing the following: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)Lewellen Products has projected the following sales for the coming year: 01 02 03 04 Sales $940 $1,020 $980 $1,080 Sales in the year following this one are projected to be 20 percent greater in each quarter a. Calculate payments to suppliers assuming that the company places orders during each quarter equal to 30 percent of projected sales for the next quarter. Assume that the company pays immediately. What is the payables period in this case? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. Calculate payments to suppliers assuming a 90-day payables period. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c. Calculate payments to suppliers assuming a 60-day payables period. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) a. b. Payment of accounts Payment of accounts Payment of accounts 01 02 Q3 Q4JoAnn Manufacturing has projected the following sales for the coming year: Sales $25,847.50 C$25,182.50 $22,604.17 Q1 $23,560.83 Q2 $ 54,750 $ 61,850 Q3 The company places orders each quarter that are 35 percent of the following quarter's sales and has a 30-day payables period. What is the payment of accounts for the third quarter? $70,050 Q4 $75,750
- Limitless Styles has a 45 day accounts payable period. The firm has expected sales of $900, $1,200, $1,900, and $2,600, respectively, by quarter for the next calendar year. The cost of goods sold for a quarter is equal to 70% of the next quarter sales. The firm has a beginning payables balance of $600 as of quarter one. What is the amount of the projected cash disbursements for accounts payable for Quarter 3 of the next year? Assume that a year has 360 days. A)$1,195 B)$1,085 C)$1,575Company has estimated sales (in millions) for the next four quarters as follows: Q1 Q2 Q3 Q4Sales 150 180 245 280Sales for the first quarter of the year after this one are projected at 340 million. Accounts receivable at the beginning of the year were 70 million. Company has a 30-day collection period.Purchases from suppliers in a quarter are equal to 45 percent of the next quarter’s forecast sales, and suppliers are normally paid in 36 days. Wages, taxes, and other expenses run about 25 percent of sales. Interest and dividends are 40 million per quarter.Company plans a major capital outlay in the second quarter of 80 million. Finally, the company started the year with a 64 million cash balance and wishes to maintain a 35 million minimum balance.What is Ending Short term debt of the company in 2nd quarter?Air corporation has the following projected sales: P958,450.00 (October) P1,001,515.00 (November) P1,200,000.00 (December). Air corporation collects 50% of the month's sales in the month of sales, 35% in the month following sale, and 15% in the second month following the sale. What would be the cash collection in December? A) P143,767.50 B) P2,294,298.00 P1,837,730.00 P2,201,515.00