Change in net working capital calculation Samuels Manufacturing is considering the purchase of a new machine to replace one it believes is obsolete. The firm has total current assets of $929,000 and total current liabilities of $645,000. As a result of theproposed replacement, the following changes are anticipated in the levels of the current asset and current liability accounts noted.AccountAccrualsMarketable securitiesInventoriesAccounts payableNotes payableAccounts receivableCashChangea. The change in net working capital is $+ $45,0000- 18,000+88,0000+ 148,000+ 14,000a. Using the information given, calculate any change in net working capital that is expected to result from the proposed replacement action.(Round to the nearest dollar.)

Net working capital:Net working capital is a vital measure of a company’s liquidity and ability to…

Answered: Change in net working capital…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A summary of B's capital account for the year ended December 31, 2022 is as follows: Balance, Jan. 1, 2022 Additional investment, May 1 Withdrawal, Sept 2 Balance, Dec. 31, 2022 Compute for the weighted average capital. 1,200,000 230,000 (100,000) 1,330,000
1. Net Operating Capital for 2022 2. Amount of Total Investor-Supplied (Net Current Investment and Net Fixed Asset Investment) operating capital for 2022 3. Free Cash Flow for 2022 Net Operating Working Capital for 2022 4. Net Operating Profit After Taxes for 2022
ine capital asset pricing model to find the rcquired retim on this investment Q3: Company currently has total assets of $4 million, of which current assets comprise $0.5 million. Sales are $9 million annually, and the before-tax net profit margin (the firm currently has no interest-bearing debt) is 13 percent. Current assets levels of $0.5 million and $0.7 million are being considered instead of the $0.5 million presently held. Any additions to current assets would be financed with new equity capital. a. Determine the total asset turnover, before-tax return on investment, and before-tax net profit margin under the three alternative levels of current assets. b. If the new additions to current assets were financed with long-term debt at 14 percent interest, what would be the before-tax interest "cost" of the two new policies?
Net Present Value Method, Present Value Index, and Analysis for a service company Continental Railroad Company is evaluating three capital investment proposals by using the net present value method. Relevant data related to the proposals are summarized as follows: MaintenanceEquipment RampFacilities ComputerNetwork Amount to be invested $591,053 $351,873 $159,991 Annual net cash flows: Year 1 251,000 171,000 103,000 Year 2 233,000 154,000 71,000 Year 3 213,000 137,000 52,000 Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 0.890 0.826 0.797 0.756 0.694 3 0.840 0.751 0.712 0.658 0.579 4 0.792 0.683 0.636 0.572 0.482 5 0.747 0.621 0.567 0.497 0.402 6 0.705 0.564 0.507 0.432 0.335 7 0.665 0.513 0.452 0.376 0.279 8 0.627 0.467 0.404 0.327 0.233 9 0.592 0.424 0.361 0.284 0.194 10 0.558 0.386 0.322 0.247 0.162 Required: 1. Assuming that the desired rate…
Present Value Index Tasty Doughnuts has computed the net present value for capital expenditure at two locations. Relevant data related to the computation are as follows: Des Moines Cedar Rapids Total present value of net cash flow $252,720 $274,550 Amount to be invested (243,000) (289,000) Net present value $9,720 $(14,450) a. Determine the present value index for each proposal. Round your answers for the present value index to two decimal places. Des Moines Cedar Rapids Total present value of net cash flow Amount to be invested $ $ Present value index b. Which location does your analysis support? (If both present value indexes are the same, either location will grade as correct.) v, because the net present value index is 1.
Prepare Projected Balance Sheet
Current Attempt in Progress Sheridan's Vegetable Market had the following transactions during 2020: 1. Issued $52000 of par value common stock for cash. 2. Repaid a 6 year note payable in the amount of $15000. 3. Acquired land by issuing common stock of par value $52000. 4. Declared and paid a cash dividend of $7400. 5. Sold a long-term investment (cost $3400) for cash of $6100. 6. Acquired an investment in IBM stock for cash of $9900. What is the net cash provided by financing activities? $69300 $0 $29600 $37000
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Gmail > docs.google.com a P Company is trying to decide whether to acquire S Co., P Co. expects that S will earn approximately $200,000 per year in net income over the next five years. This income is higher than the 14% annual return on assets considered to be the industry "norm." Read the above case and choose the best answer of the following: If the fair value of Hager Inc. assets equal to $1,000,000. What is the estimation of goodwill if P Co. is willing to pay for excess earnings for an expected life of 4 years? * $250,000 $240,000 $260,000 None of the answers

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