The following data (in millions) were adapted from recent financial statements of CVS Health Corporation (CVS)

1. Compute the accounts receivable turnover for Years 1 and 2. Round to one decimal place.

2. Compute the number of days' sales in receivables for Years 1 and 2. Assume there are 365 days in the year, and round to the nearest day.

3. Compute the inventory turnover for Years 1 and 2. Round to one decimal place.

4. Compute the number of days' sales in inventory for Years 1 and 2. Assume there are 365 days in the year, and round to the nearest day.

5. Compute the return on sales for Years 1 and 2. Round to one decimal place.

6. All of the following are true regarding the accounts receivable and inventory analyses for CVS except:

The management of receivables and inventories remained approximately the same in Years 1 and 2.

The days' sales in inventory has decreased from year 1 to year 2, which is an unfavorable change.

The days' sales in receivables increased from year 1 to year 2, which is an unfavorable change.

The inventory turnover increased from year 1 to year 2 which caused the days' sales in inventory to decrease.

Choose the correct answer:

Calculate the ATCF of the following investment (no ROR or NPV calculation is needed), considering a capital lease with following conditions:

Annual lease payments of $250,000 from year 1 to year 4

Effective annual interest rate of 6% for the borrowed money

Asset would yield the annual revenue of $350,000 for four years (from year 1 to year 4)

Asset would have operating cost of $50,000 for year 1 to 4

The asset can be depreciated based on MACRS 3-year life depreciation with the half year convention (table below) over four years (from year 1 to year 4)

Salvage value of $400,000 at the end of the 4th year

Income tax 40%

Please calculate and include the lease principleand interest calculations.

2) A firm is undertaking a project with the following details provided.

• The project costs $2 million and has a five-year service life.
• It generates revenues of $600,000 annually.
• The project is classified under a 7-year property under the MACRS rule.
• At the end of the fifth year, any assets held for the project will be sold. The expected salvage value will be 15% of the initial $2M project cost.
• The firm will finance 30% of the project money from an outside source with an annual interest rate of 12%. The firm is required to repay the loan with five equal annual payments.
• The firm’s tax rate is 21%
• MARR is 17%.
• Given the information,
  • Determine the end of year cash flows for years 0 through 5
  • Compute the Net Present Worth for this 5-year project

Year 0_________________

Year 1_________________

Year 2_________________

Year 3_________________

Year 4_________________

Year 5_________________

NPW____________________

The table shows the investment projected net cash inflows of the two projects over the coming 5 years.

Initial investment of $500000 and discount rate at 18% per year under each project.

Discount factors for Year 1 to Year 5 as follows:

1. Find the payback period in years for each project. (please show step clearly)
2. Finish an evaluation for project A and project B using net present value at the above discount rate for year 1 to year 5.
3. Which one of projects is the best investment for the business? Explain your reason clearly.

You would like to vacation in Hawaii for one week each year.
You can buy a time share for a vacation home in Hawaii for $18,500 today and a maintenance fee of $600 per year starting next year. You expect to sell the time share in 10 years for $15,000 .
Alternatively you can just pay for the week vacation each year (starting next year). Each year will cost you $1,500 .

If your investments earn 5% per year (compounded annually) which alternative is cheaper and by how much in present value terms?
Time Share Pay each year

Group of answer choices

Buy the time share it will save you $2,459

Pay each year it will save you $2,252

Pay each year it will save you $2,342

Pay each year it will save you $2,506

Now assume that Temp Force's dividend is expected to experience nonconstant growth of 30% from year 0 to Year 1, 25% from Year 1 to Year 2, and 15% from Year 2 to Year 3. After Year 3, dividends will grow at a constant rate of 6%. What is the stocks intrinsic value under these conditions? What are the expected dividend yield and capital gains yield during the first year? What are the expected dividend yield and capital gains yield during the fourth year (from Year 3 to Year 4)?

The following financial statements relate to Whinchat plc, which operates a wholesale carpet business:

Income statements for the year ended 31 March Year 12 and Year 13

*    All sales and purchases are made on credit.

Balance sheets as at 31 March Year 12 and Year 13

1. Calculate the operating profit margin of Whinchat plc as at 31 March Year 12 and as at 31 March Year 13.
2. Calculate the gross profit margin of Whinchat plc as at 31 March Year 12 and as at 31 March Year 13.
3. Calculate the inventory turnover period of Whinchat plc as at 31 March Year 12 and as at 31 March Year 13.
4. Calculate the current ratio of Whinchat plc as at 31 March Year 12 and as at 31 March Year 13.
5. Calculate the acid test ratio of Whinchat plc as at 31 March Year 12 and as at 31 March Year 13.
6. Calculate the gearing ratio of Whinchat plc as at 31 March Year 12 and as at 31 March Year 13.
7. Calculate the interest cover ratio of Whinchat plc as at 31 March Year 12 and as at 31 March Year 13.

Suppose a life insurance company sells a ​$260 comma 000260,000 ​one-year term life insurance policy to a 2424​-year-old female for ​$350350. The probability that the female survives the year is 0.9996410.999641. Compute and interpret the expected value of this policy to the insurance company. The expected value is ​$nothing. ​(Round to two decimal places as​ needed.) Which of the following interpretation of the expected value is​ correct? A. The insurance company expects to make an average profit of ​$31.8131.81 on every 24 dash year dash old24-year-old female it insures for 1 month. B. The insurance company expects to make an average profit of ​$349.87349.87 on every 24 dash year dash old24-year-old female it insures for 1 year. C. The insurance company expects to make an average profit of ​$256.66256.66 on every 24 dash year dash old24-year-old female it insures for 1 year. D. The insurance company expects to make an average profit of ​$23.3323.33 on every 24 dash year dash old24-year-old female it insures for 1 month.

Dexter Industries purchased packaging equipment on January 8 for $236,000. The equipment was expected to have a useful life of three years, or 5,700 operating hours, and a residual value of $19,400. The equipment was used for 2,280 hours during Year 1, 1,767 hours in Year 2, and 1,653 hours in Year 3.

Required:

1. Determine the amount of depreciation expense for the three years ending December 31, Year 1, Year 2, Year 3, by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the three years by each method.

Note: For all methods, round the answer for each year to the nearest whole dollar.

2. What method yields the highest depreciation expense for Year 1?

3. What method yields the most depreciation over the three-year life of the equipment?

East Point Retail, Inc., sells professional women's apparel through company-owned retail stores. Recent financial information for East Point is provided below (all numbers in thousands).

Assume the apparel industry average return on total assets is 8.0%, and the average return on stockholders’ equity is 15.0% for the year ended April 2, Year 3.

a. Determine the return on total assets for East Point for fiscal Years 2 and 3. Round to one decimal place.

b. Determine the return on stockholders' equity for East Point for fiscal Years 2 and 3. Round to one decimal place.