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(Analyzing liquidity) (Related to Checkpoint 4.1 on page 87 ) Apex Fabricating, Inc., manufactures fenders and...
(Analyzing liquidity) (Related to Checkpoint 4.1 on page 87 ) Apex Fabricating, Inc., manufactures fenders and other after-market body panels for older automobiles. At the close of last year, the firm had $10,381,800 in current assets and $4,152,720 in current liabilities. The company’s managers want to increase its inventory, which will be financed using short-term debt. How much can the firm increase its inventory, financing it with short-term borrowing, without its current ratio falling below 2.0 (assuming all other current assets and current liabilities remain constant)?
Solutions
jeff jeffy answered 2 hours agoRelated Solutions
3–14. (Analyzing the cash flow statement) (Related to Checkpoint 3.3) Google, Inc. (GOOG), is one of...
3–14. (Analyzing the cash flow statement) (Related
to Checkpoint 3.3) Google, Inc. (GOOG),
is one of the most successful internet firms, and it experienced
very rapid growth in revenues from 2011 through 2014. The cash flow
statements for Google, Inc., spanning the period are as
follows:
(US$ millions)
12/31/2014
12/31/2013
12/31/2012
12/31/2011
Net income
$ 14,444
$ 12,920
$ 10,737
$ 9,737
Depreciation
3,523
2,781
1,988
1,396
Amortization
1,456
1,158
974
455
Deferred taxes
(104)
(437)
(266)
343
Noncash items...
(Related to Checkpoint 11.1 and Checkpoint 11.4) (Calculating NPV, PI, and IRR) Fijisawa, Inc. is considering...
(Related to Checkpoint 11.1 and Checkpoint 11.4) (Calculating
NPV, PI, and IRR) Fijisawa, Inc. is considering a major
expansion of its product line and has estimated the following cash
flows associated with such an expansion. The initial outlay would
be $11 comma 300 comma 000, and the project would generate cash
flows of $1 comma 150 comma 000 per year for 20 years. The
appropriate discount rate is 6.8 percent.
a. Calculate the NPV.
b. Calculate the PI.
c. Calculate...
(Related to Checkpoint 4.3) (Analyzing Profitability) In 2016, the Allen Corporation had sales of $68 million,...
(Related to Checkpoint 4.3) (Analyzing Profitability) In
2016, the Allen Corporation had sales of $68 million, total assets
of $43 million, and total liabilities of $16 million. The interest
rate on the company's debt is 5.5 percent, and its tax rate is 35
percent. The operating profit margin is 12 percent.
a. Compute the firm's 2016 net operating income and net
income.
b. Calculate the firm's operating return on assets and return
on equity. (Hint: You can assume that interest...
(Related to Checkpoint 4.3) (Analyzing Profitability) In 2016, the Allen Corporation had sales of $ 66million,...
(Related to Checkpoint 4.3)
(Analyzing Profitability) In 2016, the Allen
Corporation had sales of
$ 66million, total assets of $ 50 million, and total
liabilities of 21million. The interest rate on the company's debt
is 5.6percent, and its tax rate is 35percent. The operating profit
margin is 14 percent.
a. Compute the firm's 2016 net operating
income and net income.
b. Calculate the firm's operating return on
assets and return on equity. (Hint: You can assume that interest
must be...
(Related to Checkpoint 9.3) (Bond valuation) Pybus, Inc. is considering issuing bonds that will mature in...
(Related to Checkpoint 9.3) (Bond valuation) Pybus, Inc. is
considering issuing bonds that will mature in 17 years with an
annual coupon rate of 11 percent. Their par value will be $1 comma
000, and the interest will be paid semiannually. Pybus is hoping
to get a AA rating on its bonds and, if it does, the yield to
maturity on similar AA bonds is 11.5 percent. However, Pybus is
not sure whether the new bonds will receive a...
(Related to Checkpoint 4.3) (Analyzing Profitability) In 2016. the Allen Corporation had sales of $62 million, total assets of $48 million, and total
(Related to Checkpoint 4.3) (Analyzing Profitability) In 2016. the Allen Corporation had sales of $62 million, total assets of $48 million, and total liabilities of S22 million. The interest rate on the company's debt is 6.1 percent. and its tax rate is 35 percent. The operating profit margin is 14 percent. a. Compute the firm's 2016 net operating income and net income.b. Calculate the firm's operating return on assets and return on equity.
?(Related to Checkpoint? 9.3)???(Bond valuation)???Pybus, Inc. is considering issuing bonds that will mature in 18 years...
?(Related to Checkpoint? 9.3)???(Bond valuation)???Pybus, Inc.
is considering issuing bonds that will mature in 18 years with an
annual coupon rate of 9 percent. Their par value will be ?$1000?,
and the interest will be paid semiannually. Pybus is hoping to get
a AA rating on its bonds? and, if it? does, the yield to maturity
on similar AA bonds is 7 percent. ? However, Pybus is not sure
whether the new bonds will receive a AA rating. If they...
(Related to Checkpoint 15.1) (Calculating debt ratio) Webb Solutions, Inc. has the following financial structure:...
(Related to Checkpoint 15.1) (Calculating debt
ratio) Webb Solutions, Inc. has the following financial
structure:
Accounts payable
$490,000
Short-term debt
240,000
Current liabilities
$730,000
Long-term debt
731,000
Shareholders' equity
493,000
Total
$1,954,000
a. Compute Webb's debt ratio and
interest-bearing debt ratio.
b. If the market value of Webb's equity
is
$2 comma 039 comma 0002,039,000
and the value of the firm's debt is equal to its book value,
assuming excess cash is zero, what is thedebt-to-enterprise-value
ratio for Webb?...
Cannington Inc. designs, manufactures, and markets personal computers and related software. Cannington also manufactures and distributes...
Cannington Inc. designs, manufactures, and markets personal
computers and related software. Cannington also manufactures and
distributes music players (cPod), mobile phones (cPhone), and
smartwatches (Cannington Watch) along with related accessories and
services, including online distribution of third-party music,
videos, and applications. The following information was taken from
a recent annual report of Cannington: Property, Plant, and
Equipment (in millions): Current Year Preceding Year Land and
buildings $569,240 $330,159 Machinery, equipment, and internal-use
software 540,778 426,930 Other fixed assets 688,780 518,008...
Cannington Inc. designs, manufactures, and markets personal computers and related software. Cannington also manufactures and distributes...
Cannington Inc. designs, manufactures, and markets personal
computers and related software. Cannington also manufactures and
distributes music players (cPod), mobile phones (cPhone), and
smartwatches (Cannington Watch) along with related accessories and
services, including online distribution of third-party music,
videos, and applications. The following information was taken from
a recent annual report of Cannington:
Property, Plant, and Equipment (in
millions):
Current Year
Preceding Year
Land and buildings
$494,500
$286,810
Machinery, equipment, and internal-use software
469,775
370,875
Other fixed assets
598,345
449,995 ...
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