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Finance
Muscarella Inc. has the following balance sheet and income statement data:
Cash $ 14,000 Accounts payable $ 42,000
Receivables 70,000 Other current liabilities 28,000
Inventories 210,000 Total CL $ 70,000
Total CA $294,000 Long-term debt 70,000
Net fixed assets 126,000 Common equity 280,000
Total assets $420,000 Total liab. and equity $420,000
Sales $280,000
Net income $ 21,000
The new CFO thinks that inventories are excessive and could be lowered sufficiently to cause the current ratio to equal the industry average, 2.70, without affecting either sales or net income. Assuming that inventories are sold off and not replaced to get the current ratio to the target level, and that the funds generated are used to buy back common stock at book value, by how much would the ROE change?
a. 4.28%
b. 4.50%
c. 4.73%
d. 4.96%
e. 5.21%
Please show work
Cash $ 14,000 Accounts payable $ 42,000
Receivables 70,000 Other current liabilities 28,000
Inventories 210,000 Total CL $ 70,000
Total CA $294,000 Long-term debt 70,000
Net fixed assets 126,000 Common equity 280,000
Total assets $420,000 Total liab. and equity $420,000
Sales $280,000
Net income $ 21,000
The new CFO thinks that inventories are excessive and could be lowered sufficiently to cause the current ratio to equal the industry average, 2.70, without affecting either sales or net income. Assuming that inventories are sold off and not replaced to get the current ratio to the target level, and that the funds generated are used to buy back common stock at book value, by how much would the ROE change?
a. 4.28%
b. 4.50%
c. 4.73%
d. 4.96%
e. 5.21%
Please show work
Finance
how mean,median,mode,docile,percentile r calculated from cumulitive frequency distributiion?
Finance
. Bartling Energy Systems recently reported $9,250 of sales, $5,750 of operating costs other than depreciation, and $700 of depreciation. The company had no amortization charges, it had $3,200 of outstanding bonds that carry a 5% interest rate, and its federal-plus-state income tax rate was 35%. In order to sustain its operations and thus generate sales and cash flows in the future, the firm was required to make $1,250 of capital expenditures on new fixed assets and to invest $300 in net operating working capital. By how much did the firm's net income exceed its free cash flow?
Finance
•From the e-Activity, determine if the company you analyzed would be a good investment for you or not. Provide specific examples to support your response.
Finance
2. Determine the size of the M1 money supply using the following information.
a) Currency $700 billion
b) Money market mutual funds $2,000 billion
c) Demand deposits $300 billion
d) Other checkable deposits $300 billion
e) Traveler’s checks $10 billion
5. The following information is available to you: traveler’s checks = $1 million; coin and paper currency = 30 million; repurchase agreements and Eurodollars = $15 million; demand deposits = $25 million; retail money market mutual funds = $60 million; savings accounts at depository institutions = $40 million; checkable deposits at depository institution = $35 million; large-denomination time deposits = $50 million; institutional money market mutual funds = $65 million; and small-denomination time deposits = #45 million. Using Fed definitions, determine the dollar size of the
a) M1 money supply
b) M2 money supply
c) M3 money supply
7. Assume that the real output (RO) for a country is expected to be 2.4 million products.
a) If the price level (PL) is $250 per product, what will be the amount of the gross national product (GDP)?
b) Now assume that the GDP is projected to be $8 million next year. What will the PL of the products need to be to reach the GDP target?
c) Now assume that the RO of 2.4 million products is composed of equal amounts of two types of products. The first product sells for $100 each, and the second product sells for $500 each. What will be the size of the GDP?
a) Currency $700 billion
b) Money market mutual funds $2,000 billion
c) Demand deposits $300 billion
d) Other checkable deposits $300 billion
e) Traveler’s checks $10 billion
5. The following information is available to you: traveler’s checks = $1 million; coin and paper currency = 30 million; repurchase agreements and Eurodollars = $15 million; demand deposits = $25 million; retail money market mutual funds = $60 million; savings accounts at depository institutions = $40 million; checkable deposits at depository institution = $35 million; large-denomination time deposits = $50 million; institutional money market mutual funds = $65 million; and small-denomination time deposits = #45 million. Using Fed definitions, determine the dollar size of the
a) M1 money supply
b) M2 money supply
c) M3 money supply
7. Assume that the real output (RO) for a country is expected to be 2.4 million products.
a) If the price level (PL) is $250 per product, what will be the amount of the gross national product (GDP)?
b) Now assume that the GDP is projected to be $8 million next year. What will the PL of the products need to be to reach the GDP target?
c) Now assume that the RO of 2.4 million products is composed of equal amounts of two types of products. The first product sells for $100 each, and the second product sells for $500 each. What will be the size of the GDP?
Finance
CH 15-7
Robinson expects its 2012 sales and cost of goods sold to grow by 20 percent over their 2011 levels.
a. What will be the affect on its levels of receivables, inventories, and payments if the components of its cash conversion cycle remain at their 2011 levels? What will be its net investment in working capital?
b. What will be the impact on its net investment in working capital in 2012 if Robinson is able to reduce its inventory period by ten days?
Robinson expects its 2012 sales and cost of goods sold to grow by 20 percent over their 2011 levels.
a. What will be the affect on its levels of receivables, inventories, and payments if the components of its cash conversion cycle remain at their 2011 levels? What will be its net investment in working capital?
b. What will be the impact on its net investment in working capital in 2012 if Robinson is able to reduce its inventory period by ten days?
Finance
CH 16-16
Beckheart is seeking financing for its inventory. Safe-proof Warehouses offers space in their facility for Beckheart’s inventory.
They offer loans with a 15 percent APR equal to 60 percent of the inventory. Monthly fees for the usage of the warehouse are $500 plus 0.5 percent of the inventory’s value. If Beckheart has saleable inventory of $2 million,
A. how much money can the firm borrow?
B. what is the interest cost of the loan in dollars over a year?
C. what is the total amount of fees to be paid in a year?
D. what is the effective annual rate of using Safe-proof to finance Beckheart’s inventory?
Beckheart is seeking financing for its inventory. Safe-proof Warehouses offers space in their facility for Beckheart’s inventory.
They offer loans with a 15 percent APR equal to 60 percent of the inventory. Monthly fees for the usage of the warehouse are $500 plus 0.5 percent of the inventory’s value. If Beckheart has saleable inventory of $2 million,
A. how much money can the firm borrow?
B. what is the interest cost of the loan in dollars over a year?
C. what is the total amount of fees to be paid in a year?
D. what is the effective annual rate of using Safe-proof to finance Beckheart’s inventory?
Finance
Given Robinson’s 2010 and 2011 financial information presented
in problems 2 and 4,
a. Compute its operating and cash conversion cycle in each year.
b. What was Robinson’s net investment in working capital each
year?
in problems 2 and 4,
a. Compute its operating and cash conversion cycle in each year.
b. What was Robinson’s net investment in working capital each
year?
Finance
march correll house of couture orders and distributes high fashion clothing items to fachion outlets all over Kuala Lumpur. they buy their clothing item from a well-known designer in italy. clothing items are ordered in lots that requre quantitites of 200 units per order, and each order cost usd50 to make. demand for high fashion clothing items is 7,000 units per month and the carrying const of usd0.50 per item: i. calculate the total inventory cost if marc correll haouse of couture needs to place order per year
Finance
I have a problem setting up an expression. So a person has financial wealth F, and a house with replacement value of H, and the probability of a house being destroyed is d. the utility function i u(w), she's risk averse. How can I set up an expression that determines how much this person i s willing to pay for full insurance?
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#333702 on Dec 2022
#333702 on Dec 2022