Why is a company's cash burn rate significant for its survival?

A) It represents the speed with which the company is using up cash and how soon it will run out of cash in an adverse economic environment.

B) It is a signal of the ability of a startup company to raise cash from venture capitalists.

C) It indicates how quickly the company will run out of cash before it can pay all its debt obligations.

D) It measures the rate at which a company is investing in new products and how quickly it will generate additional revenue.

Develop THE FINANCIAL PLAN and PROPOSED COMPANY OFFERING part of the business plan. Include startup plus three years projections using the financial assumptions.

This section should include the following elements:

            THE FINANCIAL PLAN – (12)

Actual Income Statements and Balance Sheets.

Pro forma Income Statements.

Pro Forma Balance Sheets.

Pro Forma Cash Flow Analysis.

Breakeven Chart and Calculation.

Cost Control.

Highlights.

PROPOSED COMPANY OFFERING – (13)

Desired Financing.

Offering.

Capitalization.

Use of Funds.

Investor’s Return.

You are the CFO of a small startup company. You have just completed a six-month cash flow forecast and determined that the company will incur a one-month negative cash flow, two months from now. What specific policy actions can you undertake with your working capital accounts to help mitigate this expected shortfall?

Outline the specific working capital actions that you recommend taking to mitigate the cash flow problem.

make sure the action can be implemented in the period required.

9. a) You are an angel investor and you invested in a series of startups in the FinTech space. Two of your portfolio companies appear to have exactly the same target market. What would you advise?

b) One of your portfolio startups is not meeting its growth targets and is falling behind the expected month-on-month customer growth rate. Your investment is conditional on meeting growth targets and the quarterly tranches tied to these targets. The startup is also facing cash flow issues. What do you do?

can someone show the work to this question

Roger has a levered cost of equity of 0.18. He is thinking of investing in a project with upfront costs of $8 million, which pays $1 million per year for the next 8 years. He is going to borrow $2 million to offset the startup costs at a rate of 0.08. His tax rate is 0.3. He will repay this loan at the end of the project. What is the NPV of this project, using the FTE method?

You Answered

Correct Answer

-4,134,468 margin of error +/- 10,000

"Plant Assets"

Please respond to the following:

Imagine that you are the Chief Financial Officer (CFO) of a startup airline company. The executive management team has tasked you with making a recommendation about whether the company should buy or lease airplanes. Analyze the major pros and cons for leasing and buying assets. Based on your analysis, provide a recommendation to the executive team.

Compare and contrast the three (3) methods for depreciating plant assets. Recommend the method that maximizes profits for both a shorter period of time and a longer period of time.

9. a) You are an angel investor and you invested in a series of startups in the FinTech space. Two of your portfolio companies appear to have exactly the same target market. What would you advise?

b) One of your portfolio startups is not meeting its growth targets and is falling behind the expected month-on-month customer growth rate. Your investment is conditional on meeting growth targets and the quarterly tranches tied to these targets. The startup is also facing cash flow issues. What do you do?

A 28 year old female presents to the ER with upper right abdominal pain. She states her pain begins around abdomen and radiates to her right breast bone and upper back. She presents with nausea and vomiting x3 episodes, abdominal bloating, and flatulence. Her V/S are: TEMP 101.4°F, PR 92, BP 138/72, RR 20, O2 99% at room air. Patient is 5’3” and 181 lbs. with BMI of 32. Patient medical history: appendicitis with appendectomy 5/27/2020. MD wants to have lab work and diagnostic tools to determine if she is having cholelithiasis.

1. What lab work and/or diagnostic tests do you anticipate will be ordered to diagnose cholelithiasis?

1. What information is missing regarding head to toe assessment that you as the nurse should monitor and/or assess?

A 28 year old female presents to the ER with upper right abdominal pain. She states her pain begins around abdomen and radiates to her right breast bone and upper back. She presents with nausea and vomiting x3 episodes, abdominal bloating, and flatulence. Her V/S are: TEMP 101.4°F, PR 92, BP 138/72, RR 20, O2 99% at room air. Patient is 5’3” and 181 lbs. with BMI of 32. Patient medical history: appendicitis with appendectomy 5/27/2020. MD wants to have lab work and diagnostic tools to determine if she is having cholelithiasis.

1. What lab work and/or diagnostic tests do you anticipate will be ordered to diagnose cholelithiasis?

1. What information is missing regarding head to toe assessment that you as the nurse should monitor and/or assess?

Flounder Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December 31, 2020. The purchase price was $1,031,800 for 46,900 shares. Kulikowski Inc. declared and paid an $0.80 per share cash dividend on June 30 and on December 31, 2021. Kulikowski reported net income of $714,000 for 2021. The fair value of Kulikowski’s stock was $25 per share at December 31, 2021. Assume that the security is a trading security.

Prepare the journal entries for Flounder Inc. for 2020 and 2021, assuming that Flounder cannot exercise significant influence over Kulikowski. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

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Prepare the journal entries for Flounder Inc. for 2020 and 2021, assuming that Flounder can exercise significant influence over Kulikowski. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

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At what amount is the investment in securities reported on the balance sheet under each of these methods at December 31, 2021? What is the total net income reported in 2021 under each of these methods?

Villa Corporation (VC) is a private company that follows ASPE. The company’s policy is to report all cash flows arising from interest and dividends as operating activities. The company’s activities for the year ended December 31, 2020 included the following:

1. VC reported income before income taxes of $400,000. Income tax expense was $50,000.

2. Retained earnings increased by $340,000 for the year; the dividends payable account increased by $5,000.

3. Income taxes payable increased by 2,000 during the year.

4. Interest expense for the year was $20,000; the interest payable account increased by $12,000.

5. Accounts receivable decreased by $18,000 and accounts payable increased by $40,000 during the year.

6. Inventory increased by $14,000 during the year.

7. VC sold equipment with a net book value of $40,000 for $42,000 cash.

8. VC sold a long-term investment for $12,000; the book value of the investment was $15,000.

1. Depreciation expense for the year totaled $22,000.

10. VC recorded a goodwill impairment loss of $15,000 during the year.

11. VC acquired $200,000 in equipment by way of a $20,000 cash down payment and a $180,000 loan from its local bank.

Required:

1. Prepare the cash flows from operating activities section of the Cash Flow Statement for Villa Corporation for the year ended December 31, 2020 using the indirect method.       

2. For each activity described in this question that is not classified as an operating activity, explain how the activity and the related cash flow would be reported in Villa Hospitality’s Cash Flow Statement.

Cash Flow Statement (Partial)

For the Year Ended December 31, 2020 (Indirect Method)