Questions
Please compute the following ratios using 237.65b market cap (if needed) Asset turnover Operating profit margin...

Please compute the following ratios

using 237.65b market cap (if needed)

Asset turnover

Operating profit margin

Long-term debt to equity ratio

Current ratio

The Home Depot, Inc. Balance Sheet
All numbers in thousands
Period Ending 1/29/17 1/31/16
Current Assets
Cash And Cash Equivalents 2,538,000 2,216,000
Short Term Investments - -
Net Receivables 2,029,000 1,890,000
Inventory 12,549,000 11,809,000
Other Current Assets 608,000 569,000
Total Current Assets 17,724,000 16,484,000
Long Term Investments - -
Property Plant and Equipment 21,914,000 22,191,000
Goodwill 2,093,000 2,102,000
Intangible Assets - -
Accumulated Amortization - -
Other Assets 1,235,000 1,196,000
Deferred Long Term Asset Charges - -
Total Assets 42,966,000 41,973,000
Current Liabilities
Accounts Payable 11,212,000 10,531,000
Short/Current Long Term Debt 1,252,000 427,000
Other Current Liabilities 1,669,000 1,566,000
Total Current Liabilities 14,133,000 12,524,000
Long Term Debt 22,349,000 20,789,000
Other Liabilities 1,855,000 1,965,000
Deferred Long Term Liability Charges 296,000 379,000
Minority Interest - -
Negative Goodwill - -
Total Liabilities 38,633,000 35,657,000
Stockholders' Equity
Misc. Stocks Options Warrants - -
Redeemable Preferred Stock - -
Preferred Stock - -
Common Stock 88,000 88,000
Retained Earnings 35,519,000 30,973,000
Treasury Stock -40,194,000 -33,194,000
Capital Surplus 9,787,000 9,347,000
Other Stockholder Equity -867,000 -898,000
Total Stockholder Equity

4,333,000

6,316,000
The Home Depot, Inc. Income Statement
All numbers in thousands
Revenue 1/29/17 1/31/16
Total Revenue 94,595,000 88,519,000
Cost of Revenue 62,282,000 58,254,000
Gross Profit 32,313,000 30,265,000
Operating Expenses
Research Development - -
Selling General and Administrative 17,132,000 16,801,000
Non Recurring - -
Others 1,754,000 1,690,000
Total Operating Expenses - -
Operating Income or Loss 13,427,000 11,774,000
Income from Continuing Operations
Total Other Income/Expenses Net 36,000 166,000
Earnings Before Interest and Taxes 13,463,000 11,940,000
Interest Expense 972,000 919,000
Income Before Tax 12,491,000 11,021,000
Income Tax Expense 4,534,000 4,012,000
Minority Interest - -
Net Income From Continuing Ops 7,957,000 7,009,000
Non-recurring Events
Discontinued Operations - -
Extraordinary Items - -
Effect Of Accounting Changes - -
Other Items - -
Net Income
Net Income 7,957,000 7,009,000
Preferred Stock And Other Adjustments - -
Net Income Applicable To Common Shares 7,957,000 7,009,000
The Home Depot, Inc. Cash Flow
All numbers in thousands
Period Ending 1/29/17 1/31/16
Net Income 7,957,000 7,009,000
Operating Activities, Cash Flows Provided By or Used In
Depreciation 1,973,000 1,863,000
Adjustments To Net Income 267,000 100,000
Changes In Accounts Receivables -138,000 -181,000
Changes In Liabilities 654,000 1,151,000
Changes In Inventories -769,000 -546,000
Changes In Other Operating Activities -161,000 -23,000
Total Cash Flow From Operating Activities 9,783,000 9,373,000
Investing Activities, Cash Flows Provided By or Used In
Capital Expenditures -1,621,000 -1,503,000
Investments - 144,000
Other Cash flows from Investing Activities 38,000 -1,623,000
Total Cash Flows From Investing Activities -1,583,000 -2,982,000
Financing Activities, Cash Flows Provided By or Used In
Dividends Paid -3,404,000 -3,031,000
Sale Purchase of Stock -6,662,000 -6,772,000
Net Borrowings 2,274,000 4,012,000
Other Cash Flows from Financing Activities -78,000 4,000
Total Cash Flows From Financing Activities -7,870,000 -5,787,000
Effect Of Exchange Rate Changes -8,000 -111,000
Change In Cash and Cash Equivalents 330,000 604,000

In: Finance

Please calculate the following ratios: Market value added Market to book ratio Return on Asset The...

Please calculate the following ratios:

Market value added

Market to book ratio

Return on Asset

The Home Depot, Inc. Cash Flow
All numbers in thousands
Period Ending 1/29/17 1/31/16
Net Income 7,957,000 7,009,000
Operating Activities, Cash Flows Provided By or Used In
Depreciation 1,973,000 1,863,000
Adjustments To Net Income 267,000 100,000
Changes In Accounts Receivables -138,000 -181,000
Changes In Liabilities 654,000 1,151,000
Changes In Inventories -769,000 -546,000
Changes In Other Operating Activities -161,000 -23,000
Total Cash Flow From Operating Activities 9,783,000 9,373,000
Investing Activities, Cash Flows Provided By or Used In
Capital Expenditures -1,621,000 -1,503,000
Investments - 144,000
Other Cash flows from Investing Activities 38,000 -1,623,000
Total Cash Flows From Investing Activities -1,583,000 -2,982,000
Financing Activities, Cash Flows Provided By or Used In
Dividends Paid -3,404,000 -3,031,000
Sale Purchase of Stock -6,662,000 -6,772,000
Net Borrowings 2,274,000 4,012,000
Other Cash Flows from Financing Activities -78,000 4,000
Total Cash Flows From Financing Activities -7,870,000 -5,787,000
Effect Of Exchange Rate Changes -8,000 -111,000
Change In Cash and Cash Equivalents 330,000 604,000
The Home Depot, Inc. Income Statement
All numbers in thousands
Revenue 1/29/17 1/31/16
Total Revenue 94,595,000 88,519,000
Cost of Revenue 62,282,000 58,254,000
Gross Profit 32,313,000 30,265,000
Operating Expenses
Research Development - -
Selling General and Administrative 17,132,000 16,801,000
Non Recurring - -
Others 1,754,000 1,690,000
Total Operating Expenses - -
Operating Income or Loss 13,427,000 11,774,000
Income from Continuing Operations
Total Other Income/Expenses Net 36,000 166,000
Earnings Before Interest and Taxes 13,463,000 11,940,000
Interest Expense 972,000 919,000
Income Before Tax 12,491,000 11,021,000
Income Tax Expense 4,534,000 4,012,000
Minority Interest - -
Net Income From Continuing Ops 7,957,000 7,009,000
Non-recurring Events
Discontinued Operations - -
Extraordinary Items - -
Effect Of Accounting Changes - -
Other Items - -
Net Income
Net Income 7,957,000 7,009,000
Preferred Stock And Other Adjustments - -
Net Income Applicable To Common Shares 7,957,000 7,009,000

The Home Depot, Inc. Balance Sheet
All numbers in thousands
Period Ending 1/29/17 1/31/16
Current Assets
Cash And Cash Equivalents 2,538,000 2,216,000
Short Term Investments - -
Net Receivables 2,029,000 1,890,000
Inventory 12,549,000 11,809,000
Other Current Assets 608,000 569,000
Total Current Assets 17,724,000 16,484,000
Long Term Investments - -
Property Plant and Equipment 21,914,000 22,191,000
Goodwill 2,093,000 2,102,000
Intangible Assets - -
Accumulated Amortization - -
Other Assets 1,235,000 1,196,000
Deferred Long Term Asset Charges - -
Total Assets 42,966,000 41,973,000
Current Liabilities
Accounts Payable 11,212,000 10,531,000
Short/Current Long Term Debt 1,252,000 427,000
Other Current Liabilities 1,669,000 1,566,000
Total Current Liabilities 14,133,000 12,524,000
Long Term Debt 22,349,000 20,789,000
Other Liabilities 1,855,000 1,965,000
Deferred Long Term Liability Charges 296,000 379,000
Minority Interest - -
Negative Goodwill - -
Total Liabilities 38,633,000 35,657,000
Stockholders' Equity
Misc. Stocks Options Warrants - -
Redeemable Preferred Stock - -
Preferred Stock - -
Common Stock 88,000 88,000
Retained Earnings 35,519,000 30,973,000
Treasury Stock -40,194,000 -33,194,000
Capital Surplus 9,787,000 9,347,000
Other Stockholder Equity -867,000 -898,000
Total Stockholder Equity 4,333,000

6,316,000

In: Finance

Exercise 11-47 Preparing the Statement of Cash Flows The comparative balance sheets for Beckwith Products Company...

Exercise 11-47
Preparing the Statement of Cash Flows

The comparative balance sheets for Beckwith Products Company are presented below.

2019 2018
Assets:
    Cash $ 36,950 $ 25,000
    Accounts receivable 75,100 78,000
    Inventory 45,300 36,000
    Property, plant, and equipment 256,400 153,000
    Accumulated depreciation 38,650 20,000
Total assets $375,100 $272,000
Liabilities and Equity:
    Accounts payable $13,100 $11,000
    Interest payable 11,500 8,000
    Wages payable 8,100 9,000
    Notes payable 105,000 90,000
    Common stock 100,000 50,000
    Retained earnings 137,400 104,000
Total liabilities and equity $375,100 $272,000

Additional Information:

  1. Net income for 2019 was $58,400.
  2. Cash dividends of $25,000 were declared and paid during 2019.
  3. During 2019, Beckwith issued $50,000 of notes payable and repaid $35,000 principal relating to notes payable.
  4. Common stock was issued for $50,000 cash.
  5. Depreciation expense was $18,650, and there were no disposals of equipment.

Required:

1. Prepare a statement of cash flows (indirect method) for Beckwith Products for 2019. Use a minus sign to indicate any decreases in cash or cash outflows.

Beckwith Products Company
Statement of Cash Flows
For the Year Ended December 31, 2019
Cash flows from operating activities:
Net income $fill in the blank e34b3e0bafd0fdb_2
Adjustments to reconcile net income to net cash flow from operating activities:
Depreciation expense $fill in the blank e34b3e0bafd0fdb_4
Decrease in accounts receivable fill in the blank e34b3e0bafd0fdb_6
Increase in inventory fill in the blank e34b3e0bafd0fdb_8
Increase in accounts payable fill in the blank e34b3e0bafd0fdb_10
Increase in interest payable fill in the blank e34b3e0bafd0fdb_12
Decrease in wages payable fill in the blank e34b3e0bafd0fdb_14 fill in the blank e34b3e0bafd0fdb_15
Net cash provided by operating activities $fill in the blank e34b3e0bafd0fdb_16
Cash flows from investing activities:
Equipment purchase $fill in the blank e34b3e0bafd0fdb_18
Net cash used for investing activities fill in the blank e34b3e0bafd0fdb_19
Cash flows from financing activities:
Cash received from issuance of notes $fill in the blank e34b3e0bafd0fdb_21
Repayment of long-term liabilities fill in the blank e34b3e0bafd0fdb_23
Cash received from stock issue fill in the blank e34b3e0bafd0fdb_25
Payment of dividends fill in the blank e34b3e0bafd0fdb_27
Net cash provided by financing activities fill in the blank e34b3e0bafd0fdb_28
Net increase (decrease) in cash $fill in the blank e34b3e0bafd0fdb_30
Cash, 1/1/2019 fill in the blank e34b3e0bafd0fdb_31
Cash, 12/31/2019 $fill in the blank e34b3e0bafd0fdb_32

Feedback

1. Use proper form with company name, statement title, and date. Complete three sections for cash flows; operating, investing and financing.
For operating activities, start with net income and consider any noncash items as well as gains or losses. Next, analyze the changes in the balance sheet accounts to determine their effect on cash. (Remember to restate the fundamental accounting equation in terms of changes, separate the cash and noncash assets, and isolate the change in cash.)
Finally, total to determine the net cash flow for operating assets.
For investing activities, analyze the balance sheet changes and additional information for items that may be classified as an investing activity. Make T-accounts for any changes and determine if there was an associated inflow or outflow of cash for each account affected.
For financing activities, analyze the balance sheet changes and additional information for items that may be classified as a financing activity. Make T-accounts for any changes and determine if there was an associated inflow or outflow of cash for each account affected.

2. Compute the following cash-based performance measures:

  1. Free cash flow
  2. Cash flow adequacy (Note: Assume that the average amount of debt maturing over the next 5 years is $85,000.)

Round ratio to two decimal places. Enter negative values as negative numbers.

Free cash flow $
Adequacy ratio


In: Accounting

Brazil nut price rises – a case study of demand and supply Food prices often rise...

Brazil nut price rises – a case study of demand and supply

Food prices often rise or fall with good or bad harvests or because of a change in demand. A recent example is the price of brazil nuts, which by May this year had risen over 60% on European markets.

Part of the reason for the price rise has been on the demand side. Consumption of brazil nuts has increased as more people switch to healthier diets. This includes the purchase of the nuts themselves and as part of healthier snack foods. With supply being relatively inelastic, any rise in demand tends to have a relatively large effect on price.

A more acute reason is on the supply side. There has been a very poor harvest of brazil nuts. The nuts are grown largely in the Amazon basin which has been hit by drought linked to the El Niño effect. This, however, is only a temporary effect and future harvests should increase again as rainfall returns to normal. However, in the longer term, rainfall patterns may change with the effects of global warming.

The price rise in the UK has also be aggravated by the depreciation of the pound since the Brexit vote, which has fallen some 13% against the dollar since June 2016. A rise in the dollar price of brazil nuts has thus led to an even bigger rise in their sterling price.

Requirements:

1) Explain the specific supply conditions that have affected the price of brazil nuts in 2017.

2) Why did prices rise ahead of the change in supply?

3) How has the size of the price rise been affected by the price elasticity of demand for brazil nuts?

4) What determines the price elasticity of demand for brazil nuts? Explain in detail

In: Economics

QUESTION 44 Historically, Russia’s international identity can be described as a. strongly influenced by Sufi Islam...

QUESTION 44

Historically, Russia’s international identity can be described as

a.

strongly influenced by Sufi Islam and Turkish culture.
b.

uncertain as to whether it was truly a part of Europe.
c.

strongly influenced by Confucianism’s spread from China.
d.

uncertain as to whether it was part of Asia or the Mediterranean.

1 points   

QUESTION 45

Which of the following represents a core component of Confucianism?

a.

equality of wealth
b.

elimination of hierarchy
c.

elevation of the people’s will
d.

meritocracy

1 points   

QUESTION 46

Gorbachev’s reforms in the 1980s relied on the policies of glasnost and perestroika, or

a.

political openness and economic restructuring.
b.

economic reform and increased competition with the West.
c.

multiparty elections and constitutional reform.
d.

demilitarization and federalism.

1 points   

QUESTION 47

As they came into power in 2009 the Democratic Party of Japan promised voters to

a.

expand public works.
b.

weaken the iron triangle.
c.

maintain corporate welfare.
d.

end support of agriculture.

1 points   

QUESTION 48

Deng Xiaoping introduced the “household responsibility system,” which referred to

a.

expanding urban housing.
b.

expanding the welfare state.
c.

privatizing farming.
d.

imposing a strict birth control policy.

1 points   

QUESTION 49

Which of the following statements about the United Kingdom’s relationship with the European Union is accurate?

a.

The United Kingdom is a full EU member and has adopted the euro as its currency.
b.

The United Kingdom is a transitional member of the EU, with membership conditional on acceptance of the single currency.
c.

In the recent referendum known as “Brexit,” UK citizens voted to leave the EU.
d.

Until recently, people living in the United Kingdom have been fully supportive of membership in the EU.

In: Economics

Hot & Cold and Caldo Freddo are two European manufacturers of home appliances that have merged....

Hot & Cold and Caldo Freddo are two European manufacturers of home appliances that have merged. Hot & Cold has plants in France, Germany, and Finland, where Caldo Freddo has plants in the United Kingdom and Italy. The European market is divided into four regions: North, East, West, and South. Plant capacities (millions of units per year), annual fixed costs (millions of euros per year), regional demand (millions of units), and variable production and shipping costs (euros per unit) are listed in the following table.

Variable Production and Shipping Costs

North

East

South

West

Capacity

Annual Fixed Cost

Hot & Cold

France

100

110

105

100

50

1000

Germany

95

105

110

105

50

1000

Finland

90

100

115

110

40

850

Demand are in million units per year

Demand

30

20

20

35

Variable Production and Shipping Costs

North

East

South

West

Capacity

Annual Fixed Cost

Caldo Freddo

U.K.

105

120

110

90

50

1000

Italy

110

105

90

115

60

1150

Demand are in million units per year

Demand

15

20

30

20

Each appliance sells for an average price of 300 euros. All plants are currently treated as profit centers, and the company pays taxes separately for each plant. Tax rates in the various countries are as follows: France, 0.25; Germany, 0.25; Finland, 0.3; UK 0.2; Italy, 0.35.

  1. Before the merger, what is the optimal network for each of the two firms if their goal is to minimize costs? What is the optimal network if the goal is to maximize after-tax profits?

In: Accounting

Suppose Boeing Corporation exported a Boeing 787 to British Airway and billed £20 million payable in...

Suppose Boeing Corporation exported a Boeing 787 to British Airway and billed £20 million payable in one year (i.e., Boeing has a £20 million receivable in one-year). The money market rates, foreign exchange rates, and option prices are given as follows:

The U.S. one-year interest rate: 2% per annum

The U.K. one-year interest rate: 3.5% per annum

The spot exchange rate: $1.32/£

One-year forward rate: $1.2985/£

Call option: exercise rate: $1.31, premium: $0.015/£

Put option: exercise rate: $1.31, premium: $0.02/£

(1) Money Market Hedge: Show money market hedge strategy (i.e., through borrowing/lending) that Boeing can use to hedge this transaction exposure. Be sure to include the following.

(a)State which currency Boeing should borrow and calculate how much it should borrow.

(b) State the transactions needed to be done and the cash flows at t=0 and t=12 (i.e., today and one-year from today) by constructing a cash flow table.

(2) Option Market Hedge:

(a) Should Boeing use a Call or a Put to hedge this exposure?

(b) How much net USD will Boeing receive with an option hedge?

(3) Suppose Boeing’s analyst predicts that the exchange rate between USD and UK pound in 1 year is between $1.32/£ and $1.33/£. (To receive full credit, you need to answer the questions qualitatively and quantitatively.)

  1. At which exchange rate will Boeing be indifferent between Money Market Hedge and Option Market Hedge?
  2. If the analyst’s prediction is correct, among the Forward Market Hedge, Money Market Hedge, and Option Market Hedge, which one is preferable and why?

In: Finance

1. Boeing just signed a contract to sell a Boeing 787 aircraft to British Airways. British...

1. Boeing just signed a contract to sell a Boeing 787 aircraft to British Airways. British Airways will be billed £26 million which is payable in one year. The current spot exchange rate is $1.40/£ and the one-year forward rate is $1.43/£. The annual interest rate is 6.0% in the U.S. and 5.0% in UK. The premium for a one-year put or call option with the exercise rate of $1.43/£ is 1%. Boeing is concerned with the volatile exchange rate between the dollar and the pound and would like to hedge exchange exposure. Four alternatives are available to Boeing to manage the exposure: 1) remain unhedged; 2) hedge in the forward market; 3) hedge in the money market; or 4) hedge in the options market. (Show all work)

(a) What action does Boeing need to take for each hedging alternative?

(b) Calculate the future dollar proceeds of the sale to British Airway under the four alternatives if the spot exchange rate becomes $1.45/£ in one year.

(c) Calculate the future dollar proceeds of the sale to British Airway under the four alternatives if the spot exchange rate becomes $1.40/£ in one year.

(d) At what future spot exchange do you think Boeing will be indifferent between the option and money market hedge?

(e) At what future spot exchange do you think Boeing will be indifferent between the option forward hedge?

(f) At what future spot exchange do you think Boeing will be indifferent between the forward and money market hedge?

(g) Illustrate the future dollar proceeds of the sale to British Airway under the four alternatives.

Need hlep with question A to G

In: Finance

PROBLEM 5: FOREIGN CURRENCY (20 MARKS TOTAL) Use the information here for answering questions 1 to...

PROBLEM 5: FOREIGN CURRENCY (20 MARKS TOTAL)

Use the information here for answering questions 1 to 3 on this page.

On 1 April 2020, Winton Ltd, an Australian entity, places an order for GBP £200,000 of inventory with Austen plc, a UK supplier. On the same date, Winton Ltd enters into a forward exchange contract with the bank to buy GBP £200,000, to be settled on 31 July 2020. The goods are shipped FOB London on 1 May 2020 and are paid for on 31 July 2020. Winton Ltd has a reporting date of 30 June.

The following exchange rates are applicable.

       Spot rate            Forward rate for 31/7/20
1 April 2020          A$1 = 0.63 GBP               A$1 = 0.61 GBP
1 May 2020          A$1 = 0.67 GBP               A$1 = 0.64 GBP
30 June 2020       A$1 = 0.62 GBP               A$1 = 0.60 GBP
31 July 2020         A$1 = 0.59 GBP               A$1 = 0.59 GBP

Q1: Complete the table showing the movement and the change in value of the hedged item

Type text or numbers as appropriate in the following table. Enter numbers as numerals only. Use a negative symbol '-' in front of your number where appropriate to indicate a loss. Enter a 0 if you do not need to enter data in that field.

Q2: Complete the table showing the movement and the change in value of the hedging instrument

Type text or numbers as appropriate in the following table. Enter numbers as numerals only. Use a negative symbol '-' in front of your number where appropriate to indicate a loss or a liability. Enter a 0 if you do not need to enter data in that field.

Q3: Provide the journal entries for Winton Ltd to reflect the above transactions

In: Accounting

Scot plc is planning to invest in Ghana and because it is risky to invest there...

Scot plc is planning to invest in Ghana and because it is risky to invest there the company will require an after-tax return of at least 20 per cent on the project.
Market research suggests that cash flows from the project in the local currency (the Ghana cedi) will be as follows:
Year 1 2 3 4 5
GHS000 250 450 550 650 800
The current exchange rate is GHS6.7.00/£1; in subsequent years it is expected to be:
Year 1 2 3 4 5
GHS/£ 7.00 6.9 7.1 7.3 8.00
The project will cost GHS600,000 to set up, but the Ghanaian government will pay GHS600,000 to Scot plc for the business at the end of the five-year period. It will also lend Scot plc the GHS250,000 required for initial working capital at the advantageous rate of 6 per cent per year, to be repaid at the end of the five-year period.
Scot plc will pay Ghanaian tax on the after-interest profits at the rate of 20 per cent, while UK tax is payable at the rate of 30 per cent per year. All profits are remitted at the end of each year. There is a double taxation treaty between the two countries. Tax in both countries is paid in the year in which profits arise.
(a) Calculate the net present value of the project and advise on its acceptability.
(b) Discuss the possible problems that might confront a company making the type of decision facing Scot plc.
(b)
i. Discuss the various methods governments use to impose exchange controls on multinational companies
ii. Discuss four ways multinational companies can overcome these exchange controls.

please try to complete my question because my question was not complete ..you didnt answer all

In: Accounting