9.The following are the balance sheet and profit and
loss account of Sundara products limited as on
31st December 2015.
Profit and Loss Account
To Opening Stock 1,00,000 By Sales 8,50,000
Purchases 5,50,000 Closing Stock 1,50,000
Direct Expenses 15,000
To Admn. Expenses 50,000
Office exp 1,50,000 Non-Operating Income
15,000
Interest Expenses 50,000
Income tax 50,000
Net Profit 50,000
----------- -----------
10,15,000 10,15,000
------------------------------------------------------------------------------------------
Balance Sheet as on 31st December 2015
Liabilities Rs. Assets Rs.
Equity Share Capital Land & Buildings
1,50,000
(2000 @ 100) 2,00,000 Plant & Machinery
1,00,000
5%Preference capital 50,000 Goodwill 30,000
Reserves 1,00,000 Stock in Trade 1,50,000
Debentures 1,50,000 A/C Receivables 1,00,000
Current Liabilities 1,50,000 Short term
investment1,20,000
P&L A/C Balance 50,000 Cash & Bank
50,000
---------- ----------
7,00,000 7,00,000
Note: a) On 1st Jan 2015, the Company is having
Account receivables of 95,000.
b) Assume 20% sales are cash sales.
Required:
1)Working capital (2) Return on investment (3)
Interest coverage ratio 4) Current Ratio 5) operating profit ratio
6) Debt Equity Ratio 7) Earnings per share 8)If Company has a PE
Ratio is quoting at 12 times, what would be the Market Price of the
share? (9) Stock Turnover ratio (time & days) (10) Receivable
turnover ratio (time and Day).
In: Accounting
You have been promoted to Assistant Director of your Laboratory Department. One of your first assignments is to prepare a recommendation for the replacement of one of your Coulter Counters.
Your Department Director has asked that you work with the Financial staff in preparing this recommendation. Upon contacting the financial staff they tell you that their department has lost a number of analysts and ask if you could help in preparing the analysis since you are a recent graduate of SHU. You tell them that you are well versed in Capital Decision making and would be able to complete the analysis for them and submit to your Department Director.
You decide to prepare a Net Present Value Analysis and begin the discussions with your staff. They emphasize to you the importance of replacing the existing equipment due to quality and safety concerns for the patient. You first plan on completing a Time Line and from the discussion with the staff plan on incorporating the following assumptions in your analysis:
Assumptions to use:
Time Line for 5 years
Initial cost of equipment $3000000
Additional volume from increased efficiency 1000 test per month
Average reimbursement per test is $50
Cost of supplies will be reduced by $2000 per month
The existing equipment is fully depreciated
The only other expense is the depreciation for the new equipment and it is a non cash item
The financial staff tells you to use 5% as your Cost of Capital
What would be the NPV for your analysis?
What would be your recommendation to your Director based on both your quantitative analysis and also qualitative issues?
In: Finance
| Number | Year | Gross Income | Price Index | Adjusted Price Index | Real Income |
| 1 | 1991 | 50,599 | 136.2 | 1.362 | 37150.51 |
| 2 | 1992 | 53,109 | 140.3 | 1.403 | 37853.88 |
| 3 | 1993 | 53,301 | 144.5 | 1.445 | 36886.51 |
| 4 | 1994 | 56,885 | 148.2 | 1.482 | 38383.94 |
| 5 | 1995 | 56,745 | 152.4 | 1.524 | 37234.25 |
| 6 | 1996 | 60,493 | 156.9 | 1.569 | 38555.13 |
| 7 | 1997 | 61,978 | 160.5 | 1.605 | 38615.58 |
| 8 | 1998 | 61,631 | 163.0 | 1.630 | 37810.43 |
| 9 | 1999 | 63,297 | 166.6 | 1.666 | 37993.40 |
| 10 | 2000 | 66,531 | 172.2 | 1.722 | 38635.89 |
| 11 | 2001 | 67,600 | 177.1 | 1.771 | 38170.53 |
| 12 | 2002 | 66,889 | 179.9 | 1.799 | 37181.21 |
| 13 | 2003 | 70,024 | 184.0 | 1.840 | 38056.52 |
| 14 | 2004 | 70,056 | 188.9 | 1.889 | 37086.29 |
| 15 | 2005 | 71,857 | 195.3 | 1.953 | 36793.14 |
The data from Exhibit 3 is also in the Excel file income.xls on the course website. Use Excel, along with this file, to determine Mrs. Bella’s real income for the last fifteen years. Do this by first converting each price index from percent by dividing by 100. Then, divide gross income by your converted (adjusted) price index. Using Excel, find the mean, median, standard deviation, and variance of her past real income. Explain the meaning of these statistics. Can you use mean income to forecast future earnings? Take into account both statistical and non-statistical considerations.
In: Math
Oriole, Inc. began work in 2018 on a contract for $21420000.
Other data are as follows:
2018 2019
Costs incurred to date $9180000 $14150000
Estimated costs to complete $6120000 0
Billings to date $7060000 $21300000
Collections to date $5060000 $18150000
If Oriole uses the percentage-of-completion method, the gross profit to be recognized in 2018 is
In: Accounting
25.65% is Google’s Long Term Assets as % of Total Assets 2018.
70.82% is Walmart’s Long Term Assets as % of Total Assets 2018.
-What are the possible reasons for the difference in Long Term Assets value between the two companies?
-Which company has the stronger asset turnover in 2018? What does Asset turnover indicate?
In: Accounting
Automotive antifreeze consists of ethylene glycol,
CH2(OH)CH2(OH),a non volatile non electrolyte. Calculate the
boiling point and freezing point of a 25.0 mass % solution of
ethylene glycol in water.
(for water, Kb= 0.51 degrees Celsius c/m, Kf =1.86 degrees c/m;
molar mass of C2H6O2 = 62.1 g/mol)
In: Chemistry
Non-financial performance indicators (400 words)
Comment on non-financial performance indicator of United Utilities Group PLC (UU).
http://financials.morningstar.com/balance-sheet/bs.html?t=UU.®ion=gbr&culture=en-US
In: Finance
1. China has over $1 trillion dollars in ‘non-performing loans’. Define ‘non-performing
loans’ and tell how they are handled in the USA.
2. Again, you have read about China’s non-performing loans. What other 3 factors would you look at to validate (confirm) the idea that that the currency will soon be devalued.
3. The interest rate now used globally as the basis for loans has an acronym called ____________ . What does this acronym stand for? ___________________________________________
In: Finance
In Chapter 11 we discussed diversifiable vs. non-diversifiable (i.e., "Systematic") risk.
A diversified portfolio reduces non-systematic (i.e., "diversifiable") risk.
But, what if I do not diversify, and therefore hold some portion of diversifiable risk that I have not reduced through diversification? I am taking more risk, and I need more return to compensate me for the additional risk.
But, will the marketplace compensate me for the additional risk I am taking? Will assets be priced such that I can comfortably take the additional risk and get paid for it?
In: Finance
In: Finance