QUESTION Aggressive& Construct income statement for each company for strong, average, and weak economies using the following format: Question Details Aggressive Moderate Conservative Current Assets $225,000 $300,000 $450,000 Fixed Assets 300,000 $300,000 300,000 Total Assets $525,000 $600,000 $750,000 Current liabilities (cost=12%) $300,000 $150,000 $750,000 Long-term debt (cost=10%) 0 150,000 300,000 Total Debt $300,000 $300,000 $375,000 […]
QUESTION A common-size balance sheet helps financial managers determine:A. which customers are paying on a timely basis.B. if costs are increasing faster or slower than sales.C. if changes are occurring in a firms mix of assets.D. if a firm is generating more or less sales per dollar of assets than in prior A common-size balance […]
QUESTION The 7th Street Shop is having a contest to bring attention to its store. It is offering a $2,000 grand prize to one lucky winner. $500 will be paid on the day of the drawing. The remaining $1,500 will be paid in three annual payments of $500 each, starting one year after the drawing. […]
QUESTION (Ratio Analysis) Assuming a 360-day year, calculate what the average investment in inventory would be for a firm, given the following information in each case.a. The firm has sales of $600,000, a gross profit margin of 10%, and an inventory turnover ratio of 6.b. The firm has a cost-of-goods-sold fi For all of these […]
QUESTION Bond Pricing. A 30-year maturity bond with a face value of $1,000 makes annual coupon payments and has a coupon rate of 8%. What is the bonds yield to maturity if the bond is selling for:a. $900?b. $1,000?c. $1,100?please show work Yield to Maturity = [C (FV-MV)/ (M)]/ (FV MV)/2 Where C = Coupon […]
QUESTION Its competition for information that makes securities markets efficient. Is this statement correct? Explain. This is a true statement. To make markets efficient means that current prices for assets reflect ALL known and important information regarding what the asset should be priced at. Because there are arbitrage opportunities in finding the “real” price of […]
QUESTION 4. First National Bank of Elderidge borrowed $550,000 from the Federal Reserve Bank of St. Louis last Friday. The bank received short-term adjustment credit for three days and plans to repay its loan at the close of business Monday. Show the proper accounting (T-account) entries for this transaction T-account entries for the friday transactin: […]
QUESTION Eagle Sales Company owns a warehouse, subject to a mortgage obtained from First National Bank. Separately, Eagle and First National obtain insurance policies from Good Hands Insurance, Inc., to cover the warehouse. Later, Eagle sells the property to Interstate Distribution Corporation but keeps the I dont believe this happens typically. Usually there is only […]
QUESTION An imaging center has the following information:Revenue per test: $300Variable cost per test: $150Total fixed costs: $300,000Calculate the total revenue dollars needed to break-even. To find our Break Even point we must employ the following profit equation: Total Units x (Sales Price Variable Cost) Fixed Costs = profit To find the break even UNITS […]
QUESTION What is the current yield on the following bond?Par value $1000Coupon rate 8%Years to maturity 12Market interest rate 7%Market price $1080a. 80/1000 = 8.7%b. 70/1080 = 6.5%c. 70/1000 = 7.6%d. 80/1080 = 7.4%e. (8 * 7)/1000 = 5.6% Yield is a figure that shows the return you get on a bond. The simplest version […]
