1. Calculate the future value of these deposits. Remember to total your answer. Assume end of year deposits.

Part a:

n          Deposit            Terms                          FVIF               $

1          $1000              5%, semi-annual

2          $1500              6%, monthly

3          $2000              8%, quarterly

4          $1000              12%, annual

5          $2000               8%, semi-annual

sset management ratios

Asset management ratios are used to measure how effectively a firm manages its assets, by relating the amount a firm has invested in a particular type of asset (or group of assets) to the amount of revenues the asset is generating. Examples of asset management ratios include the average collection period (also called the days sales outstanding ratio), the inventory turnover ratio, the fixed asset turnover ratio, and the total asset turnover ratio.

Consider the following case:

Crockett Electronics has a quick ratio of 2.00x, $29,475 in cash, $16,375 in accounts receivable, some inventory, total current assets of $65,500, and total current liabilities of $22,925. The company reported annual sales of $700,000 in the most recent annual report.

Over the past year, how often did Crockett Electronics sell and replace its inventory?

2.86x

39.18x

35.62x

8.01x

The inventory turnover ratio across companies in the electronics industry is 30.277x. Based on this information, which of the following statements is true for Crockett Electronics?

Crockett Electronics is holding less inventory per dollar of sales compared with the industry average.

Crockett Electronics is holding more inventory per dollar of sales compared with the industry average.

You are analyzing two companies that manufacture electronic toys—Like Games Inc. and Our Play Inc. Like Games was launched eight years ago, whereas Our Play is a relatively new company that has been in operation for only the past two years. However, both companies have an equal market share with sales of $700,000 each. You’ve collected company data to compare Like Games and Our Play. Last year, the average sales for all industry competitors was $1,785,000. As an analyst, you want to make comments on the expected performance of these two companies in the coming year. You’ve collected data from the companies’ financial statements. This information is listed as follows: (Note: Assume there are 365 days in a year.)

Data Collected (in dollars)

Using this information, complete the following statements to include in your analysis.

Risk premiums  In January 2016​, ​Anheuser-Busch issued an outstanding bond that pays a 3.2​% coupon​ rate, matures in January 2023​, and has a yield to maturity of 2.72​%. In January 2017​, Santander Holdings issued an outstanding bond that pays a 3.576​% coupon​ rate, matures in January 2023​, and has a yield to maturity of 3.346​%. a. Does the​ Anheuser-Busch bond sell at a​ premium, at​ par, or at a​ discount? How do you​ know? What about the Santander​ bond? b. Which bond would you guess has a higher​ rating? Why? c. Can you draw any conclusion about the shape of the yield​ curve, either now or when these bonds were first​ issued, from the information given in the​ problem? Why or why​ not?

6. Explain the various inputs to the present value of an annuity (i.e. C, r, t, and PVA). How is the value of the annuity impacted by each input?

Explain what happens to the value of a perpetuity over time, assuming the perpetuity has begun.

Explain what happens to the value of a growing perpetuity over time, assuming the growing perpetuity has begun.

Explain why the value today of a perpetuity that doesn’t start until sometime in the future is not simply C/r.

thank you.

You are saving for retirement. Starting this month, you will deposit $600 per month into a stock account that earns 9% interest. In ten years, you will begin depositing an additional $350 per month into a bond account that earns 6% interest. You expect interest rates to shift upwards 1.5% 20 years from now. This means, at that point, each of the accounts listed above will earn interest 1.5% higher than before. How much will you have when you retire if you plan to retire in 37 years?

Sara Sanders purchased 40 shares of Apple stock at $189.98 per share using the prevailing minimum initial margin requirement of 51 %.

She held the stock for exactly 6 months and sold it without any brokerage costs at the end of that period. During the 6​-month holding​ period, the stock paid $ 1.36 per share in cash dividends. Sara was charged 5.6 % annual interest on the margin loan. The minimum maintenance margin was 25 %

a. Calculate the initial value of the​ transaction, the debit balance​, and the equity position on​ Sara's transaction.

b. For each of the following share​ prices, calculate the actual margin​ percentage, and indicate whether​ Sara's margin account would have excess​ equity, would be​ restricted, or would be subject to a margin​ call:

​(1) $ 174.24

​(2) $ 206.97

(3) $ 121.09

c. Calculate the dollar amount of​ (1) dividends received and​ (2) interest paid on the margin loan during the 6​-month holding period.

d. Use each of the following sale prices at the end of the 6​-month holding period to calculate​ Sara's annualized rate of return on the Apple stock​ transaction:

​(1) $ 184.42

​(2) $ 194.59

​(3) $ 205.78

What is usually the largest forecasted cash flow of a capital budgeting analysis? Why

Blue Skies Equipment Company uses the aging approach to estimate bad debt expense at the end of each accounting year. Credit sales occur frequently on terms n/60. The balance of each account receivable is aged on the basis of three time periods as follows: (1) not yet due, (2) up to one year past due, and (3) more than one year past due. Experience has shown that for each age group, the average loss rate on the amount of the receivable at year-end due to uncollectibility is (a) 9 percent, (b) 12 percent, and (c) 35 percent, respectively.

At December 31, 2019 (end of the current accounting year), the Accounts Receivable balance was $49,900 and the Allowance for Doubtful Accounts balance was $1,000 (credit). In determining which accounts have been paid, the company applies collections to the oldest sales first. To simplify, only five customer accounts are used; the details of each on December 31, 2019, follow:

Required:

1. Compute the estimated uncollectiable amount for each age category and in total

Not yet Due______

Up to one year past due______

More than one year past due____

Total accounts recieveable___

2) Journal Entry

3)Partial Income Statement & Partial Balance sheet

*Show work*

St trucking just signed a $3.8 million contract. The contract calls for a payment of $1.1 million today, $1.3 million one year from today, and $1.4 million two years from today. What is the contract worth today at a discount rate of 8.0 percent? Please show how to work this problem in excel.

Time value of money calculations can be solved using a mathematical equation, a financial calculator, or a spreadsheet. Which of the following equations can be used to solve for the future value of an ordinary annuity?

PMT x {[(1 + r)nn – 1]/r}

PMT x {1 – [1/(1 + r)nn]}/r

PMT x {[(1 + r)nn – 1]/r} x (1 + r)

FV/(1 + r)n

1. Consider two investments:
   1. Invest $1000 and receive $110 at the end of each month for the next 10 months.
   2. Invest $1200 and receives $130 at the end of each month for the next 10 months.

If this were your money, and you want to earn at least 12% interest on your money, which investment would you make, if any? What nominal interest rate do you earn on each investment?

(show all equations)

Environmental Cost Report Verde Company reported operating costs of $27,000,000 as of December 31, 2015, with the following environmental costs: Testing for contamination $ 405,000 Inspecting products 378,000 Treating toxic waste 1,053,000 Obtaining ISO 14001 certification 756,000 Designing processes 378,000 Cleaning up oil spills 1,836,000 Maintaining pollution equipment 297,000 Cleaning up contaminated soil 3,429,000 Required: Hide 1. Prepare an environmental cost report, classifying costs by quality category and expressing each as a percentage of total operating costs. Round percentages to two decimal places, if rounding is required. For example, 5.79% would be entered as "5.79". Verde Company Environmental Cost Report For the Year Ended December 31, 2015 Environmental Cost Total Environmental Cost Percentage of Operating Costs Prevention costs: Obtaining ISO 14001 certification $ Designing processes $ % Detection costs: Testing for contamination $ Inspecting products % Internal failure costs: Treating toxic waste $ Maintaining pollution equipment % External failure costs: Cleaning up oil spills $ Cleaning up contaminated soil % Total quality costs $ %