Finance Answers

Bae Inc. has the following income statement. How much net operating profit after taxes (NOPAT) does the firm have?

Sales
$2,000.00
Costs
1,200.00
Depreciation
100.00
EBIT
$ 700.00
Interest expense
200.00
EBT
$ 500.00
Taxes (35%)
175.00
Net income
$ 325.00

Ans. a) $370.60 b) $390.11 c)$410.64 d)$432.25 e)$455.00

an estimate of the demand function for household furniture produced the following results: F= 0.0036Y1.08RR0.16p-0.48 r(2)=0.996 where

Prepare a report to be presented by the vice-president at the board of directors’ meeting to be held in April 2011. The report must include the following:

a.An explanation of THREE (3) ways in which ratios may be used to interpret the financial statements of an organisation.

b.A caution statement containing the limitations of using ratios to evaluate the performance of an organisation

Find the total amount that must be repaid on the following note described.
$8,563 borrowed at 15.5% simple interest
What is the total amount to be repaid 3 years, 125 days later? (Round your answer to the nearest cent.)

Mother Zeta has two types of deposits. Deposits of both the magnitude of the first two deposits. The first deposit rate 10% p.a. and 12% second deposit. If the total interest earned from the two deposits of Rp 33.4 million a year, how much of each deposit?

Tia saving of Rp 2,000,000 on January 1, 2010 at a bank which provides a simple interest of 9% p.a. If she expects to have savings amounting to Rp 4,000,000 for travel and shopping to Singapore in the new year January 1, 2011, how much savings she had deposited again on July 1, 2010?

On January 1, 2010, Mr. Amat, small traders, wanted to expand the grocery store. For that purpose he borrowed money from a bank ABC is Rp 1,000,000 with interest at 16%. On April 1, 2010, he paid back the loan of Rp 350,000, later on August 1, 2010 he paid Rp 200,000, and on October 1, 2010 amounted to Rp 400,000. How the rest of the payment must he completed on January 1, 2011, if the interest is calculated daily?

John buys a video game for $300. After using it for 2 years, he expects to sell it for
$20. If i = 10%, the annual worth in dollars is
Answer
a. 20 (F/P, 10%, 2) - 300(A/P, 10%, 2)
b. 280 + 10% of 300.
c. 20 (F/A, 10%, 2) - 300(P/A, 10%, 2)
d. 300(P/A, 10%, 2) - 20 (F/A, 10%, 2)

Northwest Financial Services was organized on April 1 of the current year. On April 2,
Northwest prepaid $4,500 to the city for taxes (license fees) for the next 12 months and
debited the prepaid taxes account. Northwest is also required to pay in January an annual tax (on property) for the previous calendar year. The estimated amount of the property tax for the current year (April 1 to December 31) is $21,375.
a. Journalize the two adjusting entries required to bring the accounts affected by the
two taxes up to date as of December 31, the end of the current year.
b. What is the amount of tax expense for the current year?

Canyon Realty Co. pays weekly salaries of $3,700 on Friday for a five-day workweek
ending on that day. Journalize the necessary adjusting entry at the end of the accounting
period assuming that the period ends (a) on Wednesday and (b) on Thursday.