21. Davis Corporation expects the following first year of operations: Sales (90% collectible in 20X3) Bad debt write-offs .... Disbursements of costs and expenses Disbursements for income taxes. Purchases of fixed assets.... Proceeds from issuance of ordinary shares. Proceeds from short-term borrowings Payments on short-term horrouingo P1,500,000 60,000 1,200,000 90,000 400,000 580,000 100,000 50.000 .....

21. Davis Corporation expects the following first year of operations: Sales (90% collectible in 20X3) Bad debt write-offs .... Disbursements of costs and expenses Disbursements for income taxes. Purchases of fixed assets.... Proceeds from issuance of ordinary shares. Proceeds from short-term borrowings Payments on short-term horrouingo P1,500,000 60,000 1,200,000 90,000 400,000 580,000 100,000 50.000 .....

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Give typing answer with explanation and conclusion The management of Tarantulagoodies is considering a reduction in the corporation’s debt ratio. The following information is available: Debt: $10,000,000, kd=7.5%, tax-rate=30% Common Stock: $23,000,000, b=1.2, RF=3.5%, E(RM)=10%. The issuance of $5,000,000 in common stock and repurchase of debt in that same amount is expected to result in the reduction in kd to7%. The impact of the action on the cost of equity is to be determined. Should management pursue the change in debt ratio? Why/why not?
10. Naronath & Co. has a DSO of 30 days, and its annual sales are $6,500,000. What is its accounts receivable balance? Assume that it uses 365-day year." a) $17,808 b) $216,666 O c) $534,247 O d) $593,607 O e) None of the above 11. LSP Co. has net income of $20.000 and total assets of $100,00O, The
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Question 21 A firm has accounts receivables of R352 476, sales just ended of R3 050 291. What is the average collection period? Assume 365 days in a year Question 22 A firm has sales of R40 million, total assets of R50 million and total debt of R9 million. The net profit margin is 8%. a) What is the net profit? b) ROE
Q5. First National Bank has the following balance sheet and faces a required reserve ratio on deposits of 10%: Assets Reserves $50 million Securities $50 million Loans $100 million Liabilities Deposits $150 million Bank capital $50 million 1. This banks earn $10 million as an annual after-tax profit. Calculate ROA (return on asset) and ROE (return on equity) for both banks. 2. Assume that depositors withdraw $60 million and the bank experience a $30 million loans default. How should the bank balance sheet change?
BestBatteries, Inc just published this Balance Sheet. All dollar amounts are in millions of dollars. Assets Cash 2.5 AR 2.5 Long Term Assets 10.0 Liabilities Accounts Payable 5.0 Loan, repayment due in 3 months, IRR = 7% 3.0 Bond maturing in 10 years, IRR = 10% 2.0 Equity 5.0 What is the company's weighted average, pre-tax cost of debt capital, rD, pre-tax? If not enough information is provided to solve this problem, answer 0.0 (zero).
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Sub : FinancePls answer very fast.I ll upvote. Thank You Smashed Pumpkins Company paid $136 in dividends and $568 in interest over the past year. The company increased retained earnings by $474 and had accounts payable of $594. Sales for the year were $16,265 and depreciation was $720. The tax rate was 21 percent. What was the company's EBIT? Options: $984 $1,333 $1,340 $6,181 $1,823
Company A unlevered value is $100 million. The tax rate is 30%. The debt cost ofcapital is 3% and the asset cost of capital is 6%.i. What is company A’s value if debt/assets is raised to 25% after aleveraged recapitalization. Assume debt is permanent.