17. XYZ's balance sheet and income statement are given below: Balance Sheet Cash 50 Accounts payable 100 A/R 150 Notes payable Inventories 300 Long-term debt (10%) 700 Fixed assets 500 Common equity (20 shares) 200 Total assets 1,000 Total liabilities and equity 1,000 Income Statement Sales 1,000 Cost of goods sold 855 ЕBIT 145 Interest 70 ЕВT 75 Taxes (33.33%) 25 Net income 50 The industry average inventory turnover is 5, the interest rate on the firm's long-term debt is 10 percent, 20 shares are outstanding, and the stock sells at a P/E of 8.0. If XYZ changed its inventor methods so as to operate at the industry average inventory turnover, if it used the funds generated b this change to buy back common stock at the current market price and thus to reduce common equity and if sales, the cost of goods sold, and the P/E ratio remained constant, by what dollar amount would

17. XYZ's balance sheet and income statement are given below: Balance Sheet Cash 50 Accounts payable 100 A/R 150 Notes payable Inventories 300 Long-term debt (10%) 700 Fixed assets 500 Common equity (20 shares) 200 Total assets 1,000 Total liabilities and equity 1,000 Income Statement Sales 1,000 Cost of goods sold 855 ЕBIT 145 Interest 70 ЕВT 75 Taxes (33.33%) 25 Net income 50 The industry average inventory turnover is 5, the interest rate on the firm's long-term debt is 10 percent, 20 shares are outstanding, and the stock sells at a P/E of 8.0. If XYZ changed its inventor methods so as to operate at the industry average inventory turnover, if it used the funds generated b this change to buy back common stock at the current market price and thus to reduce common equity and if sales, the cost of goods sold, and the P/E ratio remained constant, by what dollar amount would

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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A schedule of budgeted cash collections for trade receivables (sales on account) for each ofthe months October to December.
Subject: acounting
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Current liabilities Total assets Retained earnings The following data are for the A, B, and C Companies: Variables Current assets A $150,000 $ 60,000 $300,000 Company B $170,000 $ 50,000 $280,000 C $180,000 $ 30,000 $250,000 $ 60,000 $ 80,000 $ 90,000 Earnings before interest and taxes $ 70,000 $ 60,000 $ 50,000 Market price per share $ 20.00 $ 18.75 $ 16.50 Number of shares outstanding 9,000 9,000 9,000 Book value of total debt Sales $ 30,000 $430,000 $ 50,000 $ 80,000 $400,000 $200,000 REQUIRED: A. B. Using MS Excel, compute the Z score for each company. According to the Altman model, which of these firms is most likely to experience financial failure?
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2. A payment of £10 will be made in 10 years. The annual effective interest rate is 1 % p.a. Compute the convexity of this payment 数字 Enter an answer correct to 2 decimal places
38. Last year, the Montvilo family spent $1,745.10 for electricity. They are optingto use balanced billing for next year. What will their monthly payment beunder balanced billing? A. $1,745.10B. $290.85C. $174.51D. $145.43
Describe alternative approaches to budgeting (viz., zero-base, activity-based,time-driven activity-based, and kaizen budgeting).
Subject - Acounting
Employees are charged State and Federal Unemployment tax based upon the amount of money they earn. • True False