The following schedule of assets and liabilities relates to Kona Enterprises. Their year-end is 28 February. Income received in advance Input VAT Output VAT Prepaid expenses Accumulated depreciation: Equipment Equipment Fixed deposit (maturing on 31 May 2023) Savings account Bank overdraft Accrued expenses Accrued income Trade receivables Trading inventory Land and Buildings Mortgage loan: Vida Bank Trade payables 2022 2 000 3 000 6500 7500 30 000 90 000 40 000 13 500 0 16 000 9500 34 000 105 000 950 000 450 000 150 000 2023 1000 3 500 11 500 5 000 35 000 100 000 40 000 18 500 4 500 10 500 12 000 41 500 115 000 950 000 380 000 170 000
Q: Finance Lease: Net Advantage to Leasing Dunbar Corporation can purchase an asset for $34,000; the…
A: leasing can be a viable option for individuals and businesses who want to acquire assets without…
Q: When justifying a budget request (in narrative form), which of the following should be included in…
A: A budget request is a proposal submitted by an individual, department, or organization to secure…
Q: Premium for Financial Risk Ethier Enterprise has an unlevered beta of 1.0. Ethier is financed with…
A: Unlevered Beta = 1.0 Debt = 25%, Levered Beta = 1.2 Risk free rate = 4.50% Market risk premium = 6%…
Q: The company faces a 40% tax rate. What is the project's operating cash flow for the first year (t =…
A: NPV calculates the present value of cash inflows minus the present value of cash outflows. The…
Q: Suppose that Kittle Co. is a U.S. based MNC that is considering setting up a subsidiary in…
A: Expense represents the cost undertaken by a firm for running its operations and generating revenues.…
Q: ment for $55,000 with payments due at the end of the following questions. (Hint: See Table 19-1.)…
A: a. The initial lease liability is calculated as the present value of the lease payments, which is…
Q: Joel is considering putting a $4600 laptop purchase on his credit card, which has an interest rate…
A: Compound = monthly = 12 Present value = pv = $4600 Interest rate = r = 5.2 / 12 % Monthly Payment =…
Q: Your department is budgeting miscellaneous expenses for the next 5 years. Your best guess at the…
A: Current expenses = $14,500 Annual inflation rate = 3.9% MARR = 15% The expenses in then-current…
Q: The common stock of Royal Ranch House is selling for $19.17. The firm pays dividends that are…
A: FV = A * (1+r)n where , FV = future value A = current stock price r = growth rate n =time period.
Q: Boyd Enterprises is considering developing a new baseball souvenir for use in the new baseball…
A: NPV Net present Value is the Capital budgeting Technique used to calculate the profitability of the…
Q: Cash Accounts receivable (net) Inventory Plant assets (net) Accounts payable Bonds payable (15%)…
A: Ratio: It implies to a financial relationship between the quantities of two or more than two…
Q: Ursus, Incorporated, is considering a project that would have a eight-year life and would require a…
A: NPV represents the value generated by a project for the business in absolute profitability terms.
Q: Assume Hayworth corp. has an operating leverage of 4.06 and a financial leverage of 1.33. How much…
A: The ratio analysis refers to the understanding of a company’s performance based on the relationship…
Q: When Anthony first pitched a new product idea to his manager, it was very well received because he…
A: The difference between the current value of cash inflows and outflow of cash over a period of time…
Q: The following data were taken from a company’s latest financial statements: Annual sales $2,433,332…
A: Payables deferral period means number of days in which payment for accounts payable will be made.…
Q: You must analyze two projects, X and Y. Each project costs $1,000, and the firm’s WACC is 10%. The…
A: Project X : Initial cost = $1000 WACC = r = 10% Cash flow for years 1 = cf1 = $500 Cash flow for…
Q: A portfolio consisting of two assets has a correlation coefficient of 0.7. Another two-asset…
A: A portfolio is a collection of financial assets such as stocks, bonds, and cash equivalents, held by…
Q: Mr. Carlson's credit card was lost on a vacation. He did not notice it was gone for three days nd…
A: A credit card is a plastic card that allows the cardholder to borrow money from a financial…
Q: Only
A: To find the crossover point, we need to calculate the point at which the net present value (NPV) of…
Q: The WACC of Starbucks Corp (SBUX) is 8.7%. The Cost of Equity of Starbucks Corp (SBUX) is 9.3%. The…
A: WACC is the cost of capital, used by the firm when it deploys capital from different sources. When…
Q: Navel County Choppers, Incorporated, is experiencing rapid growth. The company expects dividends to…
A: When the company receives profits and distributes them among the shareholders. That share of profit…
Q: Use this information for this and the next 2 questions. HCB, Inc. is considering investing in a new…
A: ** As per guideline we can solve only one question at a time so kindly post the other questions…
Q: ABC Co. completed the following transactions during Year 1: 1. Issued 500 shares of $2 par Common…
A: Retained earnings and contributed capital are the two primary divisions of shareholders' equity. The…
Q: Haslam Homes is considering designing and marketing a concrete, yurt-based pre-fabricated home to…
A: Net present value is the modern method of capital budgeting that is used to determine the present…
Q: State one way in which the final accounts of a business serve as a major source of information for…
A: Final Accounts of a Business is the financial statement showing financial activity and analysis for…
Q: Calculate the Macaulay convexity of a ten-year 6% $1,000 bond having annual coupons and a redemption…
A: Convexity is a metric for the degree of the curve that exists between the price of bonds and their…
Q: What is the current price of a debenture with a $51, 800, 000 face value, a coupon rate of 9.2 %…
A: P0 = Price of the bond C = Semiannual coupon amount i.e. $2,382,800 ($51,800,000 * 0.092/2) r =…
Q: A company declares a dividend of 27 cents per share. Immediately prior to the declaration of the…
A: A sum of money distributed to investors from a company's profits. Although they can do so at any…
Q: QUESTIONS: A. What is the weighted average cost of capital for Orange Ltd? B. With reference to…
A: A. To calculate the weighted average cost of capital (WACC) for Orange Ltd, we need to determine the…
Q: Wonda Inc aims to acquire Ovaltime Ltd in the near future. As an analyst, you have compiled the…
A: To determine the number of shares to be issued by Wonda Inc, we need to calculate the exchange ratio…
Q: Assume that a person's income directly affects their purchasing power for a particular product. We…
A: 1. Per capita spending by per person = total new car salescurrent US population 2. John's per capita…
Q: Impossible Corporation just paid a dividend of $1.93 per share. The dividends are expected to grow…
A: Share price will be the present value of all future dividends.
Q: What equal amount of money did he put into his investment at the end of each year? $ 12,022 Carry…
A: Future value is the estimated value of current assets that is discounted at an assumed rate of…
Q: Question 1 Which of the following best represents how does a bank operates: O a. The bank regulates…
A: Bank is a financial institution that works as an intermediary between depositors and borrowers.
Q: Crocs designs, develops, and manufactures consumer products from specialty resins. The company's…
A: To perform quantitative analysis and evaluate a company's liquidity, leverage, growth, margins,…
Q: Suppose you recently paid $1000 for a new 30-year bond issued by AT&T. The interest ("coupon") rate…
A: Given a certain rate of return, present value (PV) is the current value of a future financial asset…
Q: Consider a put option on a stock that currently sells for £100, but may rise to £120 or fall to £80…
A: In an option market if investor expects that share price will increase in near future then he will…
Q: In a financial market a stock is traded with a current price of 50. Next period the price of the…
A: To calculate the price of a put option by risk-neutral valuation, we need to find the expected…
Q: 3.) Michael Perez has a total of $2000 on deposit with two savings institutions. One pays interest…
A: Let the deposit amount in a institution that pays 8% a year = a Therefore, deposit amount in a…
Q: Question 1 The payback period is often used to make capital budgeting decisions because it is…
A: Payback period is a capital budgeting technique which is used to determine number of years in which…
Q: Behavioural finance is arguably most useful in explaining asset prices when there are significant…
A: Behavioral finance assesses the psychology of investors to examine the decision-making of investors.…
Q: You are evaluating a project for your firm. The project will require an investment today of $750,000…
A: This pertains to capital budgeting. NPV and IRR are popular capital budgeting tools.
Q: Little Oil has outstanding 1 million shares with a total market value of $29 million. The firm is…
A: As per the Honor code of Bartleby we are bound to give the answer of first three sub part only,…
Q: I got A but I'm still confused, Do I need the expected return rate to get the answer? Or is there…
A: Total return=13% Risk-free rate=3% Market return=8% Required: Stock A's beta=?
Q: The estimated sales volume of product A is 30 000 units for july 2023 and 50 000 units for august…
A: Closing Inventory = opening inventory + production - sales .
Q: Which of the following best characterizes this firm's policy of financing assets? Restricted policy…
A: The term Of financial management is considered management of fundamentals and important decision .…
Q: stant Growth Model at time n What is the value of a 10 year, $1,000 par value bond issued by The…
A: Bond valuation is a technique to determine value of bond including discounted present value of…
Q: ssume that the market is strong form efficient. Which of the following wa rovide positive abnormal…
A: Strong form of efficient market hypothesis is one of the most important theorem in analysis of the…
Q: Complete the following table: (Use Table 15.1.) Note: Round your intermediate calculations and final…
A: Amortization is a form of finance used over a certain period of time to gradually reduce the book…
Step by step
Solved in 5 steps
- Prepare the income statements and balance sheets for years 2018 and 2019 for Thompson Company using the following information. The balance sheet numbers are at the end of year figures.Item20182019Accounts Payable120.0150.0Accounts Receivable150.0180.0Accumulated Depreciation330.0360.0Cash & Cash Equivalents10.012.0Common Stock150.0200.0Cost of Goods Sold750.0850.0Depreciation25.030.0Interest Expense30.033.0Inventory200.0180.0Long-term Debt150.0150.0Gross Plant & Equipment650.0780.0Retained Earnings208.5225.0Sales1,500.01,700.0SG&A Expenses500.0570.0Notes Payable51.567.0Tax Rate21%21%(2) Answer the following questions:(a) How much did Thompson Company spend in acquiring fixed assets in 2019?(b) How much dividend did Thompson Company pay out during 2019?(c) Using the end of year numbers, did the long-term solvency ratios improve or deteriorate from 2018 to 2019? Answer this question using at least two long-term solvency ratios.(d) Using the end of year numbers, did the asset…The accounting records of Nettle Distribution show the following assets and liabilities as of December 31,2018 and 2019.December 31 2018 2019Cash . . . . . . . . . . . . . . . . . . . . . . . . $ 64,300 $ 15,640Accounts receivable . . . . . . . . . . . 26,240 19,100Office supplies . . . . . . . . . . . . . . . . 3,160 1,960Office equipment . . . . . . . . . . . . . . 44,000 44,000Trucks . . . . . . . . . . . . . . . . . . . . . . . 148,000 157,000December 31 2018 2019Building . . . . . . . . . . . . . . . . . . . . . $ 0 $80,000Land . . . . . . . . . . . . . . . . . . . . . . . . 0 60,000Accounts payable . . . . . . . . . . . . . 3,500 33,500Note payable . . . . . . . . . . . . . . . . . 0 40,000Required1. Prepare balance sheets for the business as of December 31, 2018 and 2019. Hint: Report only total equityon the balance sheet and remember that total equity equals the difference between assets and liabilities.2. Compute net income for 2019 by comparing total equity amounts for these…Following are the current asset and current liability sections of the balance sheets for Freedom Inc. at January 31, 2020 and 2019 (in millions): Current Assets Cash Accounts receivable Inventories Total current assets Current Liabilities Note payable Accounts payable Other accrued liabilities Total current liabilities January 31, 2020 Working capital Current ratio 6 EL EL $ 21 $ 15 January 31, 2019 01/31/2020 01/31/2019 9 18 $ 25 Required: a. Calculate the working capital and current ratio at each balance sheet date. (Enter "Working capital" in millions of dollars (1.e.. 10,000,000 should be entered as 10). Round your "Current ratio" to 2 decimal places.) $12 b. Evaluate the firm's liquidity at each balance sheet date. Based on the working capital and current ratio measures, the firm has become more liquid over the 2-year period. O Based on the working capital and current ratio measures, the firm has become less liquid over the 2-year period. c. Assume that the firm operated at a loss…
- On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances:Accounts Debit CreditCash $ 25,100Accounts Receivable 46,200Allowance for Uncollectible Accounts $ 4,200Inventory 20,000Land 46,000Equipment 15,000Accumulated Depreciation 1,500Accounts Payable 28,500Notes Payable (6%, due April 1, 2022) 50,000Common Stock 35,000Retained Earnings…Below are the accounts of Jayden Services for the year ended December 31, 2019. Accounts Payable Accounts Receivable Capital Cash Inventories 100,000 Long-term Debt Notes Payable Notes Receivable Property and Equipment Supplics and other payments 140,000 1,840,000 1,000,000 450,000 300,000 100,000 100,000 550,000 100,000 Compute and answer the following questions. 1. How much is the total current asset of the entity? 2. How much is the total non-current assets of the entity? 3. How much is the total current liability of the entity? 4. How much is the total non-current liability of the entity? 5. How much is the total assets of the entity? 2.Below are the financial statements for the financial year 2020 and 2021. Statement of Financial Position as at January 31, 2019 and 2020 2021 2020 Current Assets Cash and cash balane:es 33,500 2,550 Account rocoivable 110.100 108,150 Inventories 17.000 7,140 Olher Teceivubles and prepaid experises 83,700 176.320 228.500 167,240 461,400 Fixod doposits with licenscd banks Total current assets 472,800 Properly, plant and cxquiprnenl 1,860,000 619,500 Total Assets 2,332,800 1,080,900 Current Liabilities Account Payables 60,400 27.410 Other payables and accriies expenses 65.600 56,390 Notes payables 27.800 46,800 Total current liabilities 153,800 130,600 Long term Liabilities Long term barrowings 490.500 144,700 Conveitible bonds 342.980 Hire purchase payables 106.920 76,600 Total long term liabilities 940,400 221,300 Shareholders' equity: Issued capital 253.500 201,000 Sharo promium 541.800 425.000 Retaincd carnings 443.300 103,000 Total liabilities and owners' equity 2,332,800 1,080,900
- On January 1, 2021, the general ledger of Tripley Company included the following sccount balances: Accounts Debit Credit $250, 0e 78,0ee Cash Accounts receivable Allowance for uncollectible accounts Inventory Building Accunulated depreciation Land $ 35,800 33,000 223,0ee 48, e00 248,6e0 Accounts payable Notes payable (8x, due in 3 years) 170, e00 216,e00 113,600 242, e00 Conmon stock Retained earnings Totals $816,680 $816, 600 The $33,000 beginning balance of inventory consists of 330 units, esch costing $100. During January 2021, the company had the following transsctions: January 2 Lent $58,000 to an employee by accepting a 6% note due in six Tonths. 5 Purchased 5,000 units of inventory on account for $550,eee ($110 cach) with terms 1/1e, n/30. 8 Returned 100 defective units of inventory purchased on January 5. 15 Sold 4,8ae units of inventory on account for $768,000 ($16e cach) with terms 2/10, n/30. 17 Customers returned 20e units sold on January 15. These units were initially…Flounder Associates Inc. reports the following account balances for the year ending June 30, 2025: Accounts payable Accounts receivable Cash and cash equivalents Goodwill Inventory Notes payable (due 2028) Interest payable Notes payable (due Jan. 2026) Property, plant, and equipment Accumulated depreciation Prepaid insurance Salaries and wages payable Bonds payable $24,000 36,000 17,800 130,000 82,000 104,000 4,900 12,000 540,000 107,000 10,810 13,400 300,000 Compute the company's (a) current ratio and (b) debt to assets ratio. (Round current ratio to 2 decimal places, e.g. 1.55:1 and debt to assets ratio to O decimal place, e.g. 55%.)Displayed here are the draft financial statements which have been prepared for Valerie’s business for the year ended 30 April 2021. Draft Statement of Financial Position as at 30 April 2021 Assets Non-current assets see point a. below Cost 90,000 Provision for depreciation 30,600 Net Book Value 59,400 Current assets Inventory To be advised Trade receivables 43,200 Cash 4,680 47,880 Total assets 107,280 Liabilities Current liabilities Trade payables 17,280 Non-current liabilities Bank loan 16,000 Total liabilities 33,280 Net assets 74,000 Owner’s interest Capital invested 24,000 Profit and Loss Reserve: Opening balance 34,720 Draft profit for the year…
- The following are the summarised financial information of Ting Ltd for the two financial years ended 31 October 2020 are as follows:2019 2020£ million £ millionEquity 2,460.8 1,732.8 Non-current liabilities (Loans) 640.0 800.0 Current liabilities 654.4 1,020.5 Non-current assets 2,804.8 2,367.2 Current assets 950.4 962.4 Revenue 1,601.6 1,509.6 Total expenses 1,444.0 1,492.8 Required:(a) Calculate the following financial ratios for the two years: 2019 and 2020:(i) Current ratio (ii) Capital gearing ratio (iii) Profit margin (b) Comment briefly on the ratios of the company, computed in part (a) over the two year period from 2019 to 2020. (c) Provide any two (2) recommendations on how the company may improve these ratios in the futur.Consider the following information taken from GER's financial statements: September 30(in thousands) 2020 2019 Current assets: Cash and cash equivalents $1,274 $6,450 Receivables 30,071 16,548 Inventories 31,796 14,072 Other current assets 4,818 2,620 Total current assets $67,959 $39,690 Current liabilities: Current portion of long-term debt $97 $3,530 Accounts payable 23,124 11,228 Accrued compensation costs 5,606 1,929 Accrued expenses 9,108 5,054 Other current liabilities 874 777 Total current liabilities $38,809 $22,518 Also, GER's operating cash flows were $11,255 and $13,736 in 2020 and 2019, respectively. Round your answers to two decimal places. 2. Calculate the quick ratios for 2020 and 2019. Quick Ratio 2020 ?? 2019 ?? 3. Calculate the cash ratios for 2020 and 2019. Cash Ratio 2020 ?? 2019 ?? 5. Conceptual Connection: What are some reasons why GER's…Prepare the Statement of Comprehensive Income as at: 28 February 2021.Embassy TradersPre-adjustment Trial Balance as at: 28 February 2021Debit CreditBalance Sheet Accounts SectionCapital 1 651 100Drawings 132 900Land and buildings 1 254 800Vehicles at cost 925 000Equipment 662 000Accumulated depreciation on vehicles 528 000Accumulated depreciation on equipment 369 000Fixed deposit: Bob-bank (9% p.a.) 200 000Trading inventory 152 000Debtors control 174 800Provision for bad debts 10 000Bank 127 800Creditors control 184 800Mortgage loan: Bob-bank (18% p.a.) 330 000Nominal Accounts SectionSales 2 075 000Cost of sales 795 000Sales returns 15 000Salaries and wages 586 000Bad debts 18 000Stationary 30 000Rates and taxes 58 000Motor expenses 32 000Advertising 23 000Telephone 44 000Electricity and water 66 000Bank charges 8 000Insurance 5 000Interest on mortgage loan 26 000Interest on fixed deposit 15 000Rent income 171 6005 334 500 5 334 500Adjustments and additional information1.Trading…