explain how the balance sheet, income statement and statement of cash flow interrelated. What ties them together
In: Finance
23 years old, makes $14 per hour (8hour), works for 5 days a week. Please use this information for the following questions. The answer to number 6 is $1,095,657.55 and The answer to number 5 is $80,620.37
7.How much do you need to save per month (at the end of each month) in an investment earning 7% per year now to reach the amount in Question 6 by age 65? Assume you have no money now in the investment.
8.Then How much do you need to save per month (at the END of each month AND calculate the BEGINNING of each month) in an investment earning 7% per year now to reach the amount in Question 6 by age 65? Assume you have no money now in the investment.
10.Calculate the amount you need at age 65 to retire to receive a perpetuity of 80% of Age 65 Salary (Question 5) income per year forever. You will invest this amount at 4% interest and receive your first perpetuity payment at Age 66.
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An investor has a choice between four investments. The profitability of the investments depends upon the market. The payoff table is given below for different market conditions.
| State of Nature | |||
| Investment | Market Increases | Market Stays the Same | Market Decreases |
| A | 100,000 | 70,000 | 20,000 |
| B | 70,000 | 30,000 | -20,000 |
| C | 40,000 | 25,000 | -10,000 |
| D | 30,000 | 30,000 | 30,000 |
A market economist has stated that there is a 20% chance that the market will stay the same, a 50% chance that the market will decrease, and a 30% chance that the market will increase. If a market economist is 100% correct, compute expected value with perfect information (EVwPI).
Group of answer choices
9,000
59,000
54,000
5,000
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Please, I need it with 30 minutes
"Machine A costs $24,000 to purchase and is worth $8,000 in 4 years at the end of its service life. Machine B costs $14,000 to purchase and is worth $2,000 in 3 years at the end of its service life. Assume that these machines are needed for 12 years (required service period). Each machine can be repurchased at the same price in the future, and assume the annual maintenance cost of each machine is negligible. Use 10% annual interest rate. What is the Present Total Cost of the machine that should be purchased? Enter your answer as a positive number."
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PLEASE, I need it within 30 minutes.
A clothing retailer plans to automate its payroll processing by using a scanner that identifies which clerks sold which item. Management is excited about this system because it can connect directly to the company's existing computer system. The new automated system will save $14,200 a year in labor. The new system will cost $40,000 to build and test prior to operation. Operating cost will be $2,600 per year. The system has 6 years useful life. The expected net salvage value of the system is estimated at $2,500. If the company's interest rate is 10%, in what year does the DISCOUNTED payback occur for this project? Assume year-end cash flows, and enter your answer as an integer."
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Why is it that showing a “profit” doesn’t always indicate that all is well with an enterprise?What other factors are critical for an enterprise’s success over the long term?
In: Finance
The current price of a stock is $32, and the annual risk-free rate is 5%. A call option with a strike price of $29 and with 1 year until expiration has a current value of $6.40. What is the value of a put option written on the stock with the same exercise price and expiration date as the call option? Do not round intermediate calculations. Round your answer to the nearest cent.
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Black-Scholes Model
Use the Black-Scholes model to find the price for a call option with the following inputs: (1) current stock price is $28, (2) strike price is $37, (3) time to expiration is 2 months, (4) annualized risk-free rate is 5%, and (5) variance of stock return is 0.36. Do not round intermediate calculations. Round your answer to the nearest cent.
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Briefly compare the Exist Multiple Method vs. the Perpetuity Growth Method.
What is the weakness of both methods?
Would you use one of these methods for a "quick" analysis of the target's value?
In: Finance
would you please show the work
Assuming a normal distribution for the returns on investment, if the mean return is 12% and the standard deviation of returns is 6%, what is the probability of earning 0% or less?
The returns on two stock have a correlation of 0.50. One stock’s returns have a variance of 100%2 while the other has a variance of 81%2 . What is the covariance between the stocks’ returns?
A portfolio is comprised of $400 invested in stock A, which has an expected return of 10%, and $300 invested in stock B, which has an expected return of 15%. What is the expected return on the portfolio?
A portfolio is construct of 40% in the market portfolio and 60% in the risk-free asset. If the return on the Market portfolio is 10%, the return on the risk-free asset is 3%, and the standard deviation of the market portfolio’s returns is 20%. What are the return and standard deviation of returns of the portfolio?
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What is the difference between the reported Vol of 770 and Int of 39884 for the AAPL 210 CALL option? Make sure to explain Vol and Int.
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Entrepreneurs' stories usually tell us about challenges faced and overcome. What is fascinating if you hear enough stories is that there are some strategies that are used again and again. Knowing these strategies can help you achieve your own entrepreneurial dreams. What are these strategies?
In: Finance
|
Comprehensive Ratio Analysis The Jimenez Corporation's forecasted 2020 financial statements follow, along with some industry average ratios. Jimenez Corporation: Forecasted Balance Sheet as of December 31, 2020
Calculate Jimenez's 2020 forecasted ratios, compare them with the industry average data, and comment briefly on Jimenez's projected strengths and weaknesses. Assume that there are no changes from the prior period to any of the operating balance sheet accounts. Do not round intermediate calculation. Round your answers to two decimal places.
So, the firm appears to be -Select-badlywellItem 27 managed. |
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| Continue without saving |
In: Finance
Using the Du Pont method, evaluate the effects of the following
relationships for the Butters Corporation.
a. Butters Corporation has a profit margin of 6
percent and its return on assets (investment) is 22.25 percent.
What is its assets turnover? (Round your answer to 2
decimal places.)
b. If the Butters Corporation has a
debt-to-total-assets ratio of 40.00 percent, what would the firm’s
return on equity be? (Input your answer as a percent
rounded to 2 decimal places.)
c. What would happen to return on equity if the
debt-to-total-assets ratio decreased to 25.00 percent?
(Input your answer as a percent rounded to 2 decimal
places.)
The balance sheet for Stud Clothiers is shown next. Sales for
the year were $3,200,000, with 75 percent of sales sold on
credit.
|
STUD CLOTHIERS |
|||||
|
Assets |
Liabilities and Equity |
||||
|
Cash |
$ |
25,000 |
Accounts payable |
$ |
247,000 |
|
Accounts receivable |
351,000 |
Accrued taxes |
97,000 |
||
|
Inventory |
251,000 |
Bonds payable (long-term) |
136,000 |
||
|
Plant and equipment |
423,000 |
Common stock |
100,000 |
||
|
Paid-in capital |
150,000 |
||||
|
Retained earnings |
320,000 |
||||
|
Total assets |
$ |
1,050,000 |
Total liabilities and equity |
$ |
1,050,000 |
Compute the following ratios: (Use a 360-day year. Do not
round intermediate calculations. Round your answers to 2 decimal
places. Input your debt-to-total assets answer as a percent rounded
to 2 decimal places.)
In: Finance
Frantic Fast Foods had earnings after taxes of $1,190,000 in
20X1 with 399,000 shares outstanding. On January 1, 20X2, the firm
issued 27,000 new shares. Because of the proceeds from these new
shares and other operating improvements, earnings after taxes
increased by 24 percent.
a. Compute earnings per share for the year 20X1.
(Round your answer to 2 decimal places.)
b. Compute earnings per share for the year 20X2.
(Round your answer to 2 decimal places.)
Prepare an income statement for Franklin Kite Co. Take your
calculations all the way to computing earnings per share.
(Round EPS answer to 2 decimal places.)
|
Sales |
$ |
1,630,000 |
|
Shares outstanding |
171,000 |
|
|
Cost of goods sold |
630,000 |
|
|
Interest expense |
21,000 |
|
|
Selling and administrative expense |
45,000 |
|
|
Depreciation expense |
34,000 |
|
|
Preferred stock dividends |
82,000 |
|
|
Taxes |
110,000 |
|
Elite Trailer Parks has an operating profit of $285,000. Interest
expense for the year was $30,500; preferred dividends paid were
$28,900; and common dividends paid were $36,800. The tax was
$68,500. The firm has 21,600 shares of common stock
outstanding.
a. Calculate the earnings per share and the common
dividends per share for Elite Trailer Parks. (Round your
answers to 2 decimal places.)
b. What was the increase in retained earnings for
the year?
Quantum Technology had $726,000 of retained earnings on December
31, 20X2. The company paid common dividends of $32,600 in 20X2 and
had retained earnings of $503,000 on December 31, 20X1.
a. How much did Quantum Technology earn during
20X2?
b. What would earnings per share be if 46,400
shares of common stock were outstanding? (Round your answer
to 2 decimal places.)
Botox Facial Care had earnings after taxes of $340,000 in 20X1
with 200,000 shares of stock outstanding. The stock price was
$74.80. In 20X2, earnings after taxes increased to $378,000 with
the same 200,000 shares outstanding. The stock price was
$83.00.
a. Compute earnings per share and the P/E ratio
for 20X1. (The P/E ratio equals the stock price divided by earnings
per share.) (Do not round intermediate calculations. Round
your final answers to 2 decimal places.)
b. Compute earnings per share and the P/E ratio
for 20X2. (Do not round intermediate calculations. Round
your final answers to 2 decimal places.)
c. Why did the P/E ratio change? (Do not
round intemediate calculations. Input your answers as percents
rounded to 2 decimal places.)
Stilley Corporation had earnings after taxes of $590,000 in 20X2
with 250,000 shares outstanding. The stock price was $46.10. In
20X3, earnings after taxes declined to $265,000 with the same
250,000 shares outstanding. The stock price declined to
$32.30.
a. Compute earnings per share and the P/E ratio
for 20X2. (Do not round intermediate calculations. Round
your final answers to 2 decimal places.)
b. Compute earnings per share and the P/E ratio
for 20X3. (Do not round intermediate calculations. Round
your final answers to 2 decimal places.)
The Rogers Corporation has a gross profit of $724,000 and
$283,000 in depreciation expense. The Evans Corporation also has
$724,000 in gross profit, with $48,400 in depreciation expense.
Selling and administrative expense is $243,000 for each
company.
a. Given that the tax rate is 40 percent, compute
the cash flow for both companies.
b. Calculate the difference in cash flow between
the two firms.
In: Finance