Ringmeup Inc. had net income of $102,700 for the year ended December 31, 2019. At the beginning of the year, 36,000 shares of common stock were outstanding. On May 1, an additional 12,000 shares were issued. On December 1, the company purchased 4,500 shares of its own common stock and held them as treasury stock until the end of the year. No other changes in common shares outstanding occurred during the year. During the year, Ringmeup paid the annual dividend on the 7,000 shares of 4.30%, $100 par value preferred stock that were outstanding the entire year.

Required: Calculate basic earnings per share of common stock for the year ended December 31, 2019. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Yale Company manufactures hair brushes that sell at wholesale for $3 per unit. The company had no beginning inventory in the prior year. These data summarize the current and prior year operations:

Required:

1. Prepare an income statement for each year based on full costing.

2. Prepare an income statement for each year based on variable costing.

3. Prepare a reconciliation of the difference each year in the operating income resulting from using the full costing method and variable costing method.

A firm is considering a project with the following information:

• Project will require purchase of a machine for $92,101.00 that is MACRS depreciable over a five-year schedule. (no depreciation until end of year 1).
• Project will require immediate non-depreciable expenses of $25,021.00 TODAY (year 0).
• Project will have the following projected balance sheet values of NWC:

• Sales for the project will be $54,556.00 per year, with all other expenses (excluding depreciation) at 55.00% of sales.
• The tax rate for the firm is 34.00%, while the cost of capital is 10.00%

*assume project goes beyond two years

-What is the project cash flow for year 0?

-What is the project’s cash flow for year 1?

Yale Company manufactures hair brushes that sell at wholesale for $3 per unit. The company had no beginning inventory in the prior year. These data summarize the current and prior year operations:

Required:

1. Prepare an income statement for each year based on full costing.

2. Prepare an income statement for each year based on variable costing.

3. Prepare a reconciliation of the difference each year in the operating income resulting from using the full costing method and variable costing method.

You invest in a 5-year bond (par=$1,000) with a coupon rate of 6%. The interest is paid annually, and its YTM is 4%. If you sell the bond one year later, what is your holding period return?

You are evaluating a corporate bond issued by National Fishing League (NFL). The NFL bond is a 4-year bond with a par value of $1 million. Its interest (coupon) payments are based on the following schedule: $50,000 in year 1, $60,000 in year 2, $70,000 in year 3, and $80,000 in year 4. You estimate NFL’s current interest rate is 6%. What is the price of the bond (in $MM)?

Select a home for your parents or a relative that you can imagine buying on Jan 1. They have asked you to create a amortization table on excel assuming a 20% down payment, 30 year fixed rate of 5%. Make sure to include spinners so you can calculate your payment and how much interest you will pay with 5%, 6% and 7% with a 20 year loan. Include the excel spreadsheet. Determine the payment for the 5% 30 year loan, 5% 20 year loan and a 20 year 6% and 7% loan. In year 1, they want to know the total interest paid for each of the 5 scenarios. Also, provide the outstanding balance due for each scenarios at the end of the first year. What are your recommendations

PLEASE DO PROBLEM

A machine can be purchased for $60,000 and used for five years, yielding the following net incomes. In projecting net incomes, straight-line depreciation is applied, using a five-year life and a zero salvage value.

Compute the machine’s payback period (ignore taxes). (Round your intermediate calculations to 3 decimal places and round payback period answer to 3 decimal places.)

A Company is considering a new product line to supplement its range line. It is anticipated that the new product line will involve cash investment of $700,000 at time 0 and $1.0 million in year 1. After-tax cash inflows of $500,000 are expected in year 2, $300,000 in year 3, $700,000 in year 4, and $400,000 each year thereafter through year 10. Though the product line might be viable after year 10, the company prefers to be conservative and end all calculations at that time.

a. If the required rate of return is 15 percent, what is the net present value of the project? Is it acceptable?

b. What is its internal rate of return?

c. What would be the case if the required rate of return was 10 percent?

d. What is the project’s payback period?

The estimated project cost, sales, rent, selling price and production and selling costs of the product of a new project are given below. Compute the NPV and payback period of the project. Assume the costs are incurred at the beginning of the year, zero depreciation, no taxes, and discount rate as 10%, Show all calculations.

During the current year, Ron and Anne sold the following assets:

$30,000 of the gain is 25 percent gain (from accumulated depreciation on the property)

Ignore the Net Investment Income Tax.

Given that Ron and Anne have a taxable income of $400,000 (all ordinary) before considering the tax effect of their asset sales, what is their gross tax liability for 2016 assuming they file a joint return?