A firm has common stock of 95, paid-in surplus of 190, total liabilities of 400, current
assets of 450, and fixed assets of 580. What is the amount of
the shareholders' equity?
Jake owns The
Corner Market which he is trying to sell so that he can retire and travel. The
Corner Market owns the building in which it is located. This building was built
at a cost of $1,200,000 and is currently appraised at $1,430,000. The counters
and fixtures originally cost $665,000 and are currently valued at $407,000. The
inventory is valued on the balance sheet at $357,000 and has a retail market
value equal to 1.2 times its cost. Jake expects the store to collect 97 percent
of the $181,200 in accounts receivable. The firm has $10,800 in cash and has
total debt of $1,430,000. What is the market value of this firm?
Jensen
Enterprises paid $460 in dividends and $585 in interest this past year. Common
stock increased by $255 and retained earnings decreased by $120. What is the
net income for the year?
At the
beginning of the year, the long-term debt of a firm was 290 and total debt was
350. At the end of the year, long-term debt was 240 and total debt was 360. The
interest paid was 30. What is the amount of the cash flow to creditors?
The Daily News
had net income of $372 of which 41 percent was distributed to the shareholders
as dividends. During the year, the company sold 78 worth of common stock. What is the cash flow to stockholders?
Jessica's
Boutique has cash of $43, accounts receivable of $70, accounts payable of $190,
and inventory of $160. What is the value of the quick ratio?
A firm has a
debt-equity ratio of .37. What is the total debt ratio?
The Purple
Martin has annual sales of $4,700, total debt of $1,400, total equity of
$2,500, and a profit margin of 6 percent. What is the return on assets?
Reliable Cars
has sales of $3,790, total assets of $3,250, and a profit margin of 5 percent.
The firm has a total debt ratio of 42 percent. What is the return on equity?
What is the
debt-equity ratio for 2009?
You invested
$1,340 in an account that pays 5 percent simple interest. How much more could
you have earned over a 3-year period if the interest had compounded annually?
Phil can afford
$150 a month for 6 years for a car loan. If the interest rate is 5.5 percent,
how much can he afford to borrow to purchase a car?
What is the
present value of $14,150 to be received 4 years from today if the discount rate
is 5.50 percent?
You are
borrowing $5,410 to buy a car. The terms of the loan call for monthly payments
for 3 years at a 6.00 percent interest. What is the amount of
each payment?
Your credit
card company charges you 2.00 percent per month. What is the annual percentage
rate on your account?
What is the
profitability index for an investment with the following cash flows given a 8
percent required return?
- It will cost $2,500 to acquire an ice cream cart.
Cart sales are expected to be $1,600 a year for three years. After the three
years, the cart is expected to be worthless as the expected life of the
refrigeration unit is only three years. What is the payback
period?
- A project has an initial cost of $8,800 and
produces cash inflows of $2,700, $5,000, and $1,500 over the next three years,
respectively. What is the discounted payback period if the required rate of
return is 7 percent?
- Kelly's Corner Bakery purchased a lot in Oil City
five years ago at a cost of $730,000. Today, that lot has a market value of
$870,000. At the time of the purchase, the company spent $40,000 to level the
lot and another $4,500 to install storm drains. The company now wants to build
a new facility on that site. The building cost is estimated at $1,110,000. What
amount should be used as the initial cash flow for this project?
- Jefferson & Sons is evaluating a project that
will increase annual sales by $80,000 and annual costs by $40,000. The project
will initially require $150,000 in fixed assets that will be depreciated
straight-line to a zero book value over the 10 year life of the project. The
applicable tax rate is 34 percent. What is the operating cash flow for this
project?
Bernie's
Beverages purchased some fixed assets classified as 5-year property for MACRS.
The assets cost $29,000. What will the accumulated depreciation be at the end
of year three?
Edward's
Manufactured Homes purchased some machinery 2 years ago for $45,000. The assets
are classified as 5-year property for MACRS. The company is replacing this
machinery today with newer machines that utilize the latest in technology. The
old machines are being sold for $15,000 to a foreign firm for use in its
production facility in South America. What is the aftertax salvage value from
this sale if the tax rate is 34 percent?
Champion Bakers
uses specialized ovens to bake its bread. One oven costs $830,000 and lasts
about 3 years before it needs to be replaced. The annual operating cost per
oven is $10,000. What is the equivalent annual cost of an oven if the required
rate of return is 12 percent? (Round your answer to whole dollars)
Some time ago,
Julie purchased eleven acres of land costing $14,990. Today, that land is
valued at $43,222. How long has she owned this land if the price of the land
has been increasing at 4 percent per year?
Wicker Imports
established a trust fund that provides $160,000 in scholarships each
year for needy students. The trust fund earns a 4.00 percent rate of return.
How much money did the firm contribute to the fund assuming that only the
interest income is distributed?
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