HW 1. HanhDo
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Palm Beach State College *
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MANAGERIAL FINANCE HOMEWORK #1
Summary
Summary of Homework #1
This homework is based on Chapters 1, 2, 3, and 4. There are 10 questions in this assignment. Each question is worth 0.5 points regardless of difficulty.
This assignment can be completed based on group effort.
Do not forget to put your name(s) in the appropriate cells (shown right) in alphabetical order.
If you have any questions, please feel free to contact me.
GRBA 811
Member
Last name
First name
1
Do
Hanh
2
3
4
5
6
Part A: What should be the primary objective of management?
to maximize stockholders' wealth, and this means maximizing the company's fundamental value.Legal action
prices usually increase social welfare
Part B: Briefly explain the term "free-cash flow"
free-cash flow is the cash flow available for distribution to all of a firm's investors after the firm has paid all e
and has made the required investments in operations to support growth
Part C: Briefly explain the term "weighted average cost of capital"
weighted average cost of capital is the average return required by all of the firm 's investor, it is determined structure (the firm 's relative amounts of debt and equity), interest rate, the firm's risk, and the market's atti
Part D: Briefly explain the term "fundamental value or intrinsic value"
the value of a firm depends on the size of the firm 's free cash flow, the timing of those flows and their risk. I
free cash flow and the cost of capital incorporate all relevant information MANAGERIAL FINANCE HOMEWORK #1
Question 1-Conceptual questions (Hint: Review Chapter 1)
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GRBA 811
ns that maximize stock expenses (including taxes)
by the firm's capital ttitude toward risk
If the expected future
Find the present value of the cash flow schedule shown below assuming a discount rate of 10%
Answer:
t
CF
t=1
60
t=2
20
t=3
30
r=10%
pv
$93.61 MANAGERIAL FINANCE HOMEWORK #1
Question 2-Uneven cash-flows (Hint: Review Chapter 4)
GRBA 811
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Find the present value of the cash flow schedule shown below assuming a discount rate of 10%
Answer:
t=0
CF
t=1
20
t=2
20
t=3
20
t=4
20
pv
r=10%
$63.40 MANAGERIAL FINANCE HOMEWORK #1
Question 3-Ordinary annuity (Hint: Review Chapter 4)
GRBA 811
Find the present value of the cash flow schedule shown below assuming a discount rate of 10%
Answer:
CF
t=1
50
t=2
50
t=3
50
t=4
50
t=5
50
r=10%
pv
$189.54 MANAGERIAL FINANCE HOMEWORK #1
Question 4-Ordinary annuity (Hint: Review Chapter 4)
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GRBA 811
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Find the present value of the cash flow schedule shown below assuming a discount rate of 10%. (The following is a growing perpetuity, where the first cash-flow($80) occurs in t= 1 and subsequent cash flow
Answer:
1760
r=0.1
g=0.05
pv
$1,600.00 MANAGERIAL FINANCE HOMEWORK #1
Question 5-Growing perpetuity (Hint: Review Chapter 4 and/or notes on perpetuities posted on Black
GRBA 811
ws grow at a rate of 5%)
Board under Module 1)
Find the present value of the cash flow schedule shown below assuming a dis
(The following is a late-starting growing perpetuity, where the first cash-flow
grow at a rate of 5%)
Answer
r=0.1
g=0.05
1760
pv
1092.8215286
MANAGERIAL FINANCE HOMEWORK #1
Question 6- Late-starting growing perpetuity (Hint: Review Chapter 4 an
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scount rate of 10%. w($80) occurs in t= 5 and subsequent cash flows nd/or notes on perpetuities posted on Black Board under Module 1)
!!! Extremely important !!! You MUST know how to work this problem by heart since we will be using this over and over again through out the course.
GRBA 811
Use the financial statements given below to answer the questions.
Balance Sheet
2008
2007
Assets
Cash
330
300
Accounts receivable
550
500
Inventory
925
1,000
Total current assets
1,805
1,800
Net plant and equipment
2,300
2,000
Total assets
4,105
3,800
Liabilities and equity
Notes payable
390
380
Accounts payable
280
250
Accruals
85
70
Total current liabilities
755
700
Long-term debt
950
1,100
150
Total liabilities
1,705
1,800
Common stock
1,000
1,000
Retained earnings
1,400
1,000
Total common equity
2,400
2,000
Total liabilities and equity
4,105
3,800
Part A: Compute NOPAT for 2008
Answer:
NOPAT= EBIT*(1- tax rate)
756
Tax rate= taxes/EBT
0.3125
Part B: Compute Free Cash Flow for 2008
Answer:
FCF=NOPAT-net investment in operating capital 496
operating working capital in 2008
1,440
operating long term asset in 2008=NPPE 2008
2,300
total operating capital 2008
3,740
MANAGERIAL FINANCE HOMEWORK #1
Question 7- Financial Statements (Hint: Follow the example solved through Chapters 2 and 3. If you are
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operating working capital in 2007
1,480
operating long term asset in 2007=NPPE 2007
2,000
totak operationg captial 2007
3,480
Part C: Construct the statement of cash flows
Answer:
Part D: Compute the amount of dividends paid out in 2008.
Answer:
change in retaining earning =net income-devidend
devidend=net income-change in retaining earning
150
Part E: Compute the current ratio for 2008
Answer:
2.39072847682119
Part F: Compute the acid ratio for 2008
Answer:
1.16556291390728
Part G: Compute the inventory turnover ratio for 2008
Answer:
10.8108108108108
Part H: Compute days sales outstanding for 2008
Answer:
20.075
Part I: Compute fixed asset turnover ratio for 2008
Answer:
4.34782608695652
Part J: Compute the total asset turnover ratio for 2008
Answer:
2.43605359317905
Part K: Compute the debt ratio for 2008
Answer:
33%
42%
Part L: Compute times-interest-earned for 2008
Answer:
3.66666666666667
Part M: Compute profit margin on sales for 2008
Answer:
6%
Part N: Compute return on total assets (ROA) for 2008
Answer:
13%
Part O: Compute return on common equity (ROE) for 2008
Answer:
23%
Part P: Using your computations above comment on the firm's liquidity policy.
Answer:
acid ration less than quick acid (test )ratio (less than industry average. The firm need hold more cash
Part Q: Using your computations above comment on the firm's asset management policy.
Answer:
fix asset and total asset are higher than the industry average
Part R: Using your computations above comment on the firm's debt management policy.
Answer:
debt is higher than industry average
Part S: Using DuPont analysis please explain why ROE is larger than ROA
Answer:
ROA=
13%
ROE
23%
Part T: Do you think this firm exhibits the financial resources to manage its debt load? Provide evidence suppo
Answer:
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FINANCIAL STATEMENTS FOR BigRed INC. (MILLIONS OF DOLLARS)
Income Statement
Sales
COGS
EBITDA
Depreciation
EBIT
Interest expense
EBT
Taxes
Net Income
Industry averages for selected financial ratios
Current ratio
Quick (Acid test) ratio
Inventory turnover ratio
Days sales outstanding
Fixed asset turnover ratio
Total asset turnover ratio
Debt ratio
Times-interest earned ratio
Profit margin on sales
ROA
ROE
Alternate method calculate FCF
CFO
820
Subtract Cap EX
-500
Add interest expense*(1-tc)
206.25
subtract the change in cash balance
-30
FCF
496
e not familiar to the topic, you might want to review the crash-course on financial statements)
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operating activity net income
550
depreciation 200
subtract change in account receivable
-50
subtract change in inventories
75
add change in account payable
30
add change in accrued expense 15
CFO
820
Investing activities subtract change in GPEE (Cap Ex)
-500
CFI -500
financing activity add change in note payable
10
add change in long term debt -150
add change in common stock
0
subtract devidends
-150
CFF
-290
Net CF
30
check with net CF= 330-300 =30
Beginning Cash Balance
300
End Cash Balance
330
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orting your discussion.
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GPPE
Acc depreciation NPPE
change in NPPE
>>Cap ex
>>cap ex
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GRBA 811
2008
10,000
8,700
1,300
200
1,100
300
800
250
550
4.2
2.1
9
36
3
1.8
30%
6
5%
9%
15%
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2008
2007
x+cap ex
x
y
(x+cap ex) -(y+depreciation expense)
x-y
500
change in retaining earning=net income-devidend
y+depreciation expense 2008
cap ex - depreciation expense 2008
change in NPPE+ depreciation expense 2008
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Point in time
Withdrawal/Deposit
t=0
0
t=1
10000
t=2
144
t=3
622
t=4
715
t=5
82
t=6
708
t=7
164
t=8
419
t=9
-273
t=10
-656
t=11
208
t=12
-862
t=13
1994
t=14
1267
t=15
-75
t=16
431
t=17
1329
t=18
183
t=19
1877
t=20
1837
t=21
-545
t=22
1412
t=23
-407
t=24
49
t=25
-366
t=26
1798
t=27
-163
t=28
-706
t=29
1073
t=30
44
t=31
1482
t=32
1148
t=33
772
t=34
214
t=35
-344
t=36
-902
MANAGERIAL FINANCE HOMEWORK #1
Question 8
The following schedule shows how much money you withdraw or deposit every month to your
amount. t=1 represents 1 month, t=2 represents 2 months from today. Currently you have a ze
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a) Assuming that your money earns an interest rate of 0.2% per month during the next 36 month
Answer
Point in time
Withdrawal/Deposit
a)Balance with r=0.2% t=0
0
t=1
10000
10000
t=2
144
10164
t=3
622
10806.328
t=4
715
11542.940656
t=5
82
11648.026537312
t=6
708
12379.3225903866
t=7
164
12568.0812355674
t=8
419
13012.2173980385
t=9
-273
12765.2418328346
t=10
-656
12134.7723165003
t=11
208
12367.0418611333
t=12
-862
11529.7759448555
t=13
1994
13546.8354967453
t=14
1267
14840.9291677387
t=15
-75
14795.6110260742
t=16
431
15256.2022481264
t=17
1329
16615.7146526226
t=18
183
16831.9460819279
t=19
1877
18742.6099740917
t=20
1837
20617.0951940399
t=21
-545
20113.329384428
t=22
1412
21565.5560431968
t=23
-407
21201.6871552832
t=24
49
21293.0905295938
t=25
-366
20969.676710653
t=26
1798
22809.6160640743
t=27
-163
22692.2352962024
t=28
-706
22031.6197667949
t=29
1073
23148.6830063284
t=30
44
23238.9803723411
t=31
1482
24767.4583330858
t=32
1148
25964.993249752
b) Assuming that your money earns an interest rate of 0.2% per month during the next 12 month
the following 12 months (starting from t=24 to t=36), what will be your balance at t=36?
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t=33
772
26788.9232362515
t=34
214
27056.501082724
t=35
-344
26766.6140848894
t=36
-902
25918.1473130592
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bank account. If the number shown is negative then the number represents a withdrawal amount and sim
ero balance in your bank account and the first deposit of $10,000 will be made 1 month from today.
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hs, what will be your final balance at t=36?
B)balance 10000
<<<<r=0.2% t=0 to 1=12
10164
10806.328
11542.940656
11648.026537312
12379.3225903866
12568.0812355674
13012.2173980385
12765.2418328346
12134.7723165003
12367.0418611333
11529.7759448555
13558.3652726901
<<<r=0.3% t=12 to t=24
14866.0403685082
14835.6384896137
15311.1454050825
16686.0788412978
16919.1370778217
18846.8944890551
20740.4351725223
20257.6564780399
21730.429447474
21388.6207358164
21501.7865980238
21221.7937444159
<<<r=0.4% t=24 to t=36
23104.6809193936
23034.0996430712
22420.2360416435
23582.91698581
23721.2486537533
25298.1336483683
26547.3261829618
hs (starting from t=0 to t=12) and an interest rate of 0.3% per month during the following 12 months (startin
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27425.5154876936
27749.2175496444
27516.214419843
26724.2792775223
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GRBA 811
milarly if the number is positive then the number represents a deposit
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ng from t=12 to t=24) and an interest rate of 0.4% per month during
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a) What will be Joe's monthly mortgage payment?
b) Joe makes the monthly payments (calculated in part a) during the next 60 months and wants to p
Answer
t=0
t=1
t=2
t=3
…
t=180
t=nper
r
0.50%
pv
$300,000 a/annual payment PMT
($2,531.57)
b/
$228,027.30 c/ maturity (10 year)
120
new rate
0.40%
new annual payment PMT
($2,396.353)
d/ monthly payment saving
$135.22 MANAGERIAL FINANCE HOMEWORK #1
Question 9
Suppose that Joe Brown borrows $300,000 via 15-year mortgage that requires him to make payme
prepayment penalties.
Suppose that Joe Brown borrows $300,000 via 15-year mortgage that requires him to make payme
prepayment penalties.
c) At t=60, instead of paying back all of the debt out of his own pocket, Joe borrows from another le
d) Assume the scenario in part c except for that Joe will have to pay a one-time upfront fee of $120
into the new loan (i.e. he has to pay for it out-of-pocket).
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fee of 12K given up monthly investment CF
$140.57 $5.35 everymonth ,we will lose $5.35 if refinance with cost 12K upfont, th
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payback all of the loan at the end of the 60th month (t=60). How much will Joe have to pay to ex
ents every month. The first payment will be made one month from today (t=1) and the last pay
ents every month. The first payment will be made one month from today (t=1) and the last pay
ender a 10-year mortgage loan at a lower monthly rate of 0.4%. What will be Joe's new monthly p
000 for refinancing . Should Joe refinance? Why or why not? Please be specific and assume that J
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hen no refinance
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xtinguish the debt (in addition to his payment at t=60).
yment will be made 180 months from today (t=180). Assume that the monthly interest rate on the loan (r) is yment will be made 180 months from today (t=180). Assume that the monthly interest rate on the loan (r) is payments? (
Assume no refining costs)
oe can reinvest his money in an investment that earns 0.6% rate of return per month and Joe cannot roll the r
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GRBA 811
0.5% and there are no 0.5% and there are no refinancing fee of $12,000
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For years ending 12/31
2010
INCOME STATEMENT Net sales
$ 16,230 Cost of sales
$ 9,430 Gross Profit
$ 6,800 Selling, general, and administrative expenses
$ 5,195 Depreciation
$ 160 Net interest expense
$ 119 Pre-tax income
$ 1,326 Income taxes
$ 546 Net income
$ 780 Dividends
$ 155 Contribution to retained earnings
BALANCE SHEET
Assets
2010
Cash balances
$ 508 Accounts receivable
$ 2,545 Inventories
$ 1,630 Total current assets
$ 4,683 Gross plant & equipment
$ 3,232 Accumulated depreciation
$ 1,335 Net plant & equipment
$ 1,897 Total assets
$ 6,580 Liabilities & Equity
Current maturities of long-term debt
$ 125 Accounts payable
$ 1,042 Accrued expenses
$ 1,145 Total current liabilities
$ 2,312 Long-term debt
$ 1,000 Common stock
$ 1,135 Retained earnings
$ 2,133 Total shareholders' equity
$ 3,268 Total liabilities and equity
$ 6,580 Please construct the statement of cash flows for year 2011 using the above information.
On the cash flow statements DO NOT just present the figure but show your work by linking the calculation
MANAGERIAL FINANCE HOMEWORK #1
Question 10
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Answer
net income
$ 997 add depreciation $ 180 subtract change A/R
$ (550)
subtract change inventory $ (208)
add change A/P
$ 283 add change accrued
$ 287 Cash flow from operating $ 989 subtract change Gross PE
$ (563)
cash flow from investing
-563
subtract dividends
-200
add long term debt
$ (125)
add common stock
$ - cash flow from finance -325
net cash flow
$ 101 beginning cash balance
$ 508 end cash balance
$ 609
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GRBA 811
2011
$ 20,355 $ 11,898 $ 8,457 $ 6,352 $ 180 $ 106 $ 1,819 $ 822 $ 997 $ 200 2011
$ 609 $ 3,095 $ 1,838 $ 5,542 $ 3,795 $ 1,515 $ 2,280 $ 7,822 $ 125 $ 1,325 $ 1,432 $ 2,882 $ 875 $ 1,135 $ 2,930 $ 4,065 $ 7,822 n to the appropriate cells on the financials.
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5 year mortage
annually and the 1st payment will occur at the end of the 1st year
borrow $100,000
r=2%
annually mortgage payments?
t=0
t=1
$21,215.84 t=2
$21,215.84 t=3
$21,215.84 t=4
$21,215.84 t=5
$21,215.84 annual payment $21,215.84 r
2%
pv
$100,000.00 <<<use goal seek
second way
t=0
t=1
pmt
t=2
pmt
t=3
pmt
t=4
pmt
t=5
pmt
…
…
t=Nper
pmt+fv
pv
rate
($21,215.84)
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all 2021 I Chapter 1 Consumer Finance / Section 1.5 Digital Exercises
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Remaining Time Unimted
Suppose you are paid $3,000 per month and your employer's 401(k) matches your contributions by 10% up to a
maximum of 15% of your pay. Assuming you max-out your retirement savings and you work for 25 years, how
much will the 401(k) be worth when you retire (if you can get an APR of 8% during your work years)? If you are
taxed at a rate of 27%, then how much will you have when you retire?
Round all answers to 2 decimal places.
Before taxes retirement amount $
Number
After taxes retirement amount $
Number
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Quantitative Problem 1: You plan to deposit $2,200 per year for 6 years into a money market account with an annual return of 2%. You plan
to make your first deposit one year from today.
a. What amount will be in your account at the end of 6 years? Do not round intermediate calculations. Round your answer to the nearest cent.
4
b. Assume that your deposits will begin today. What amount will be in your account after 6 years? Do not round intermediate calculations.
Round your answer to the nearest cent.
6
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Review the FVAN definition and its equation.
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Understand the difference between an ordinary annuity and an annuity due.
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A1 Math Algebra II 20-21 Form MT Online
Screen Settings
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I Sa
Main Street Bank has savings accounts that earn 0.8% interest per month. All deposits, interest payments, and account closures are processed on the first day of a month
Part A
Assume a customer deposits the same amount of money, x, in dollars, each month. Write an expression that can be used to determine how much money would be in a savings account from Main
Street Bank after n months.
Respond in the space provided.
Part B
Luciana and Valerie are both opening savings accounts at Main Street Bank and will close their savings accounts at the end of their savings strategy Luciana's savings strategy is to deposit $200
each month for 24 months. Valerie's savings strategy is to deposit $400 each month for 12 months.
Whose savings strategy will result in…
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Proceeds from Notes Payable
On January 26, Bella Co. borrowed cash from Conrad Bank by issuing a 30-day note with a face amount of $48,000. Assume a 360-day year.
a. Determine the proceeds of the note, assuming the note carries an interest rate of 6%.
b. Determine the proceeds of the note, assuming the note is discounted at 6%.
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The proceeds equal the cash initially received. Proceeds represents how much in value the borrower is walking away with in cash on
merchandise.
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Entries for notes payable
Bennett Enterprises issues a $660,000, 45-day, 9%, note to Spectrum Industries for merchandise inventory.
Assume a 360-day year. If required, round your answers to the nearest dollar.If an amount box does not require an entry, leave it blank.
a. Journalize Bennett Enterprises' entries to record:
1. the issuance of the note.
2. the payment of the note at maturity.
2
b. Journalize Spectrum Industries' entries to record:
1. the receipt of the note.
2. the receipt of the payment of the note at maturity.
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SOUTH EAST-ASIA INSTITUTE OF TRADE AND TECHNOL0GY
LL
LEARNING MODULE FOR 1
SEMESTER
GRADE 12
BUSINESS FINANCE
STUDENT'S NAME:
STRAND & SECTION:
PART 4: ACTIVITY/APPLICATION
Suppose: The following income Statements and Cash Flow Statements of company A, B and C were presented to you.
Which do you think is a more attractive company? Why?
O STAED
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Lesson 16.4 - Homework-Homework
3
6 7
Round your answers to two decimal places, if necessary.
At the beginning of each of the last three years, Lucas put $7,000 from his earnings as a waiter into a
college savings account that earned 1.7% interest compounded annually. Now he will spend an
estimated $21,600 to attend his local community college for 2 years and not take out a student loan.
Complete the table to determine whether Lucas has saved enough money to attend community college.
2
3
Year
1
Beginning balance
$0
Amount deposited
$7,000
$7,000
$7,000
New balance
$7,000
$
Amount of interest earneds
Ending balance
$
Lucas (select)
v enough money to attend community college.
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Salary
State income taxes
Exercise 12-22 (Algorithmic) (LO. 2, 3, 5)
Yanni, who is single, provides you with the following information for 2021:
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Print Item
Mortgage interest expense on principal
residence
Charitable contributions
Interest income
a. Yanni's taxable income:
b. Yanni's AMT base:
Check My Work
Click here to access the exemption table. If required, round your answers to the nearest dollar.
Compute the following:
c. Yanni's tentative minimum tax:
$117,400
11,740
10,566
2,348
1,761
94,507
32,647
X +
8,488
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need help with Question 1 and 2
please explain step by step
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els B: Lesson 1 - Salary
Target due: 1/14/21 58.33%
$344.75
$700
2) Choose the best answer.
Caleb has a job that pays $11.15 per hour for a 40-hour work week. He is paid time
and a half for every hour over 40 that he works in a week. What will his gross pay be
for a week in which he works 46 hours?
NTT
$546.35
$446
$512.90
$256.45
$769.35
O O O
O O
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Assignment - 1. Credit Scores and Loans
Attempt 1 of 1
ASSIGNMENTS
COURSES
SECTION 3 OF 4
QUESTION 6 OF 8
1
2
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5
>>
Match the option with the lowest monthly payment to highest monthly payment.
$12,000 loan with 1% simple
1.
lowest payment
interest over 7 years
$7,500 loan with 4% simple interest
2. second highest payment
over 5 years
$8,500 loan with 2% simple
3. third highest payment
interest over 6 years
$10,000 loan with 3% simple
4. fourth highest payment
interest over 4 years
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Assignment Details
ATG-110-20A01: Financial Accounting (Session II Summer 2021)
7474 unread replies.7575 replies.
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TIF 12-2
Issuing Stock
1.
ETHICS Lou Hoskins and Shirley Crothers are
organizing Red Lodge Metals Unlimited Inc. to
undertake a high-risk gold mining venture in Canada.
Lou and Shirley tentatively plan to request
authorization for 400,000,000 shares of common
stock to be sold to the general public. Lou and Shirley
have decided to establish par of $0.03 per share in
order to appeal to a wide variety of potential
investors. Lou and Shirley believe…
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1. Journal all transactions in Part One 2. Using the chart of accounts, open ledger accounts and post journals to the ledger account. 3. Prepare a trial balance 4. Prepare the following statements: 1. Income Statement 2. Retained Earnings Statements 3. Balance Sheet You need to use Microsoft Excel. Do not use Google Docs or Apple’s numbers. Place your submission in the appropriate journal labeled final project in the learning modules tab in Blackboard. The project is due in Module 15. Three points extra credit to final grade if submitted during Module 14. Part One A. The following transaction occurred for Scrooge Inc. for the month of December 31, 1820. B. Ebenezer Scrooge invested $50,000 cash along in the company in exchange for common stock. C. The company prepaid $500 for 12 month’s rent. D. The company purchased $100 in office supplies. Payment due withing 10 days E. Scrooge Inc. completed services for a client and immediately received $2,000. F. The company completed $1,500…
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Home > Math 173-4 Spring 2024> Assessment
Quiz 2 (Sec. 1.5-1.7)
54 points possible 5/12 answered
Question 6
The graph of the function
y = f(x - 39)
can be obtained from the graph of
y = f(x)
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Oshifting the graph of f(x) to the right 39 units
shifting the graph of f(x) to the left 39 units
shifting the graph of f(x) upwards 39 units
shifting the graph of f(x) downwards 39 units
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Percent of Sales Method
At the end of the current year, Accounts Receivable has a balance of $555,000; Allowance for Doubtful Accounts has a credit balance of $5,000; and sales for
the year total $2,500,000. Bad debt expense is estimated at 1/4 of 1% of sales.
a. Determine the amount of the adjusting entry for uncollectible accounts.
b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense.
Accounts Receivable
24
Allowance for Doubtful Accounts
Bad Debt Expense
%24
c. Determine the net realizable value of accounts receivable.
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a. Remember that since accounts receivable are created by credit sales, uncollectible accounts çan be estimated as a percent of credit sales. If the
portion of credit sales to sales id relatively constant, the…
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6.2 Saving and Investing
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Lateral Flexion: What Is It and
Molly starts an IRA (Individual Retirement Account) at the age of 28 to save for retirement. She deposits $350 each month. The IRA has an average annual interest rate of
7% compounded monthly. How much money will she have saved when she retires at the age of 65? Round your answer to the nearest cent, if necessary.
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ACCT-1170-017-Fall 2024-Principles of Managerial Accounting
Question Completion Status:
>
QUESTION 1
Take Test: Unit 4 Homework
Relaunch to update:
Freeman Furnishings has summarized its data as shown. Direct labor hours will be used as the activity
base to allocate overhead:
Raw materials purchased
$ 320,000
Raw materials, beginning inventory
Raw materials, ending inventory
15,000
14,000
Work in process, beginning inventory
35,000
0
Work in process, ending inventory
37,000
Estimated overhead
300,000
Depreciation of factory building
50,000
Factory real estate taxes
Factory utility expenses
Indirect materials
7,382
45,000
20,000
Indirect labor
Direct labor cost
Direct labor hours incurred
11,000
100,000
24,000
Estimated direct labor hours
25,000
Compute the cost of goods manufactured.
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Days' cash on hand
Financial statement data for years ending December 31 for Newton Company follow:
20Υ9
20Υ8
Cash (end of year)
$25,500
$24,250
Short-term investments (end of year)
8,270
9,460
Operating expenses
60,135
63,780
Depreciation expense
13,225
11,400
Determine the days' cash on hand for 20Y8 and 20Y9. Assume 365 days in a year. Round all calculations to one decimal place.
Days' Cash on Hand
20Υ8:
days
20Υ9:
days
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Analysis of Receivables Method
At the end of the current year, Accounts Receivable has
balance of $4,375,000; Allowance for Doubtful Accounts has a debit balance of $21,300; and sale
for the year total $102,480,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $205,000.
a. Determine the amount of the adjusting entry for uncollectible acfounts.
b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense.
Accounts Receivable
Allowance for Doubtful Accounts
Bad Debt Expense
c. Determine the net realizable value of accounts receivable.
Feedback
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The analysis of receivables method is based on the assumption that the longer an account receivable is outstanding the less likely that it will be
collected.
The…
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Your factory has been offered a contract to produce a part for a new printer. The contract would last for 3 years and your cash flows from the contract would be $4.93 million per year. Your upfront setup costs to be ready to produce the part would
be $7.91 million. Your discount rate for this contract is 7.6%.
a. What does the NPV rule say you should do?
b. If you take the contract, what will be the change in the value of your firm?
a. What does the NPV rule say you should do?
The NPV of the project is $ million. (Round to two decimal places.)
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Course Modules: Budgeting and Forecasting 62211
Week 4: Homework
Question 3 - Week 4: Homework - Co
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Information pertaining to Noskey Corporation's sales revenue follows:
November 2021
(Actual)
$ 180,000
December 2021
(Budgeted)
$ 160,000
500,000
January 2022
(Budgeted)
Cash sales
000'09
$ 540,000
Credit sales
$ 360,000
000'09
Total sales
000'099 2$
Management estimates 5% of credit sales to be uncollectible. Of collectible credit sales, 60% is collected in the month of sale and the
remainder in the month following the month of sale. Purchases of inventory each month include 70% of the next month's projected
total sales (stated at cost) plus 30% of projected sales for the current month (stated at cost). All inventory purchases are on-account;
25% is paid in the month of purchase, and the remainder is paid in the month following the month of purchase.…
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Determine the following measures for 2018.
Round ratio values to one decimal place and dollar amounts to the nearest cent. For number of days' sales in receivables and number of
days' sales in inventory, round intermediate calculations to the nearest whole dollar and final amounts to one decimal place. Assume
there are 365 days in the year.
1. Working capital
Г
2,790,000
2.
Current ratio
4.1
3. Quick ratio
2.5
4.
Accounts receivable turnover
16
5. Days' sales in receivables
22.8
days
6.
Inventory turnover
7. Days sales in inventory
8. Debt ratio
days
%
9. Ratio of liabilities to stockholders' equity
10.
Ratio of fixed assets to long-term liabilities
11. Times interest earned
times
times
12.
Times preferred dividends earned
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- Learning SE MINDTAP evo/index.html?deploymentid=60338517901669990751687760&elSBN=9780357517642&nbld=3626933&snap... ☆ lomework 6300. 1 mancial Lailuialvi vi a spicoubnicel. Hide Feedback Correct X f6 Quantitative Problem 1: You plan to deposit $2,200 per year for 6 years into a money market account with an annual return of 2%. You plan to make your first deposit one year from today. a. What amount will be in your account at the end of 6 years? Do not round intermediate calculations. Round your answer to the nearest cent. 4 b. Assume that your deposits will begin today. What amount will be in your account after 6 years? Do not round intermediate calculations. Round your answer to the nearest cent. 6 Hide Feedback Incorrect F Check My Work Feedback Review the FVAN definition and its equation. Q Search Understand the difference between an ordinary annuity and an annuity due. Be careful about the order of mathematical operations if using the equation. If using a financial calculator, be…arrow_forwardPowerSchool Leaming : Portal : D A ANet Online 4DC a login.achievementnetwork.org/tutti/learn/assignments/viewAssignment.svc?ciid3FE954372A54D406885C1144055.. A1 Math Algebra II 20-21 Form MT Online Screen Settings 9 of 9 * Full Screen I Sa Main Street Bank has savings accounts that earn 0.8% interest per month. All deposits, interest payments, and account closures are processed on the first day of a month Part A Assume a customer deposits the same amount of money, x, in dollars, each month. Write an expression that can be used to determine how much money would be in a savings account from Main Street Bank after n months. Respond in the space provided. Part B Luciana and Valerie are both opening savings accounts at Main Street Bank and will close their savings accounts at the end of their savings strategy Luciana's savings strategy is to deposit $200 each month for 24 months. Valerie's savings strategy is to deposit $400 each month for 12 months. Whose savings strategy will result in…arrow_forward* CengageNOWv2 | On x * Cengage Learning B Milestone Two Guidel G module 5 problem set x blem Set: Mod x now.com/ilm/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogres.. eBook Show Me How Proceeds from Notes Payable On January 26, Bella Co. borrowed cash from Conrad Bank by issuing a 30-day note with a face amount of $48,000. Assume a 360-day year. a. Determine the proceeds of the note, assuming the note carries an interest rate of 6%. b. Determine the proceeds of the note, assuming the note is discounted at 6%. Check My Work The proceeds equal the cash initially received. Proceeds represents how much in value the borrower is walking away with in cash on merchandise. Previous Next Check My Work 1:36 PM 54°F A O E A 4 11/28/2021 %23arrow_forward
- blem Set: ModX * CengageNOWv2 | On x * Cengage Learning B Milestone Two Guidel x G module 5 problem set X ow.com/ilm/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=. Lo еВook Show Me How Entries for notes payable Bennett Enterprises issues a $660,000, 45-day, 9%, note to Spectrum Industries for merchandise inventory. Assume a 360-day year. If required, round your answers to the nearest dollar.If an amount box does not require an entry, leave it blank. a. Journalize Bennett Enterprises' entries to record: 1. the issuance of the note. 2. the payment of the note at maturity. 2 b. Journalize Spectrum Industries' entries to record: 1. the receipt of the note. 2. the receipt of the payment of the note at maturity. Previous Check My Work 56°F Mostly cloudy ヘ 回。arrow_forwardStrictly type-written Required: • Ledger • Guide Questionsarrow_forwardSOUTH EAST-ASIA INSTITUTE OF TRADE AND TECHNOL0GY LL LEARNING MODULE FOR 1 SEMESTER GRADE 12 BUSINESS FINANCE STUDENT'S NAME: STRAND & SECTION: PART 4: ACTIVITY/APPLICATION Suppose: The following income Statements and Cash Flow Statements of company A, B and C were presented to you. Which do you think is a more attractive company? Why? O STAED rasoplastarrow_forward
- 9 Concept 1: Competition & Dep x 9 16.4 Savings plan homework u x Login - Powered by Skyward 9 Paired Selections - STAAR Prep x A my.hrw.comAwwtb/api/viewer.pl O Personal Math Trainer Lesson 16.4 - Homework-Homework 3 6 7 Round your answers to two decimal places, if necessary. At the beginning of each of the last three years, Lucas put $7,000 from his earnings as a waiter into a college savings account that earned 1.7% interest compounded annually. Now he will spend an estimated $21,600 to attend his local community college for 2 years and not take out a student loan. Complete the table to determine whether Lucas has saved enough money to attend community college. 2 3 Year 1 Beginning balance $0 Amount deposited $7,000 $7,000 $7,000 New balance $7,000 $ Amount of interest earneds Ending balance $ Lucas (select) v enough money to attend community college. v Check Answer Ne Question 5 of 8 P Search ILLUCHarrow_forwardMindTap - Cengage Learning 2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession Locator=&inprogress=false ork items week 6: Homework eBook Salary State income taxes Exercise 12-22 (Algorithmic) (LO. 2, 3, 5) Yanni, who is single, provides you with the following information for 2021: CengageNOWv2 | Online teachin X Print Item Mortgage interest expense on principal residence Charitable contributions Interest income a. Yanni's taxable income: b. Yanni's AMT base: Check My Work Click here to access the exemption table. If required, round your answers to the nearest dollar. Compute the following: c. Yanni's tentative minimum tax: $117,400 11,740 10,566 2,348 1,761 94,507 32,647 X + 8,488arrow_forwardneed help with Question 1 and 2 please explain step by steparrow_forward
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Excel Applications for Accounting Principles
Accounting
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Cengage Learning