esCurrently, Atlas Tours has $5.4 million in assets. This is a peak six-month period. During the other six months temporary current assetsdrop to $400,000 (for computation purposes still consider these temporary current assets).Temporary current assetsPermanent current assetsCapital assetsTotal assets$1,200,0001,800,0002,400,000$5,400,000Short-term rates are 4 percent. Long-term rates are 5 percent. Annual earnings before interest and taxes are $1,080,000. The tax rateis 38 percent.a. If the assets are perfectly hedged throughout the year, what will earnings after taxes be? (Enter answers in whole dollar, not inmillion.)Earnings after taxes$b. If short-term interest rates increase to 5 percent when assets are at their lowest level, what will earnings after taxes be? For anexample of perfectly hedged plans, see Figure 6-8 (Enter answers in whole dollar, not in million.)Earnings after taxes$

The objective of the question is to calculate the earnings after taxes for Atlas Tours under two…

Answered: es Currently, Atlas Tours has $5.4…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 19P

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Current assets of NorthPole.com at the end of each quarter were: 1st quarter $1.3 million, 2nd quarter $1.7 million, 3rd quarter $1.5 million and 4th quarter $2.2 million. The best estimate for North Pole's permanent current assets is: Seleccione una: Oa. $2.2 million. Ob. $1.675 million. Oc. $1.3 million. Od. $0.9 million.
Fill in the shown table below when P = $10,000, S = $2,000 (at the end of four years), and i = 15% per year. Complete the accompanying table and show that the equivalent uniform CR amount equals $3,102.12.
Following is information from Skyway Inc. for the year (in thousands). Total annual revenue $3,206,980 Total revenue growth rate 5.0% Terminal revenue growth rate 2% Net operating profit margin (NOPM) 8.2% Net operating asset turnover (NOAT) 3.42 Projected total revenue for the following year would be: Select one: a. $3,469,952 b. None of these are correct c. $3,316,659 d. $3,271,120 e. $3,367,329
Nighthawk Steel, a manufacturer of specialized tools, has $5,040,000 in assets. Temporary current assets Permanent current assets Capital assets Total assets $1,180,000 1,680,000 2,180,000 $5,040,000 Short-term rates are 5 percent. Long-term rates are 7.5 percent. (Note that long-term rates imply a return to any equity). Earnings before interest and taxes are $1,050,000. The tax rate is 25 percent. Assume the term structure of interest rates becomes inverted, with short-term rates going to 10 percent and long-term rates 5 percentage points lower than short-term rates. If long-term financing is perfectly matched (hedged) with long-term asset needs, and the same is true of short-term financing, what will earnings be after taxes? For an example of perfectly hedged plans. see Figure 6-8 Earning after taxes
Your company has net sales revenue of $43 million during the year. At the beginning of the year, fixed assets are $15 million. At the end of the year, fixed assets are $17 million. What the fixed asset turnover ratio? Multiple Choice 2.87 1.34 2.53 269
es Nighthawk Steel, a manufacturer of specialized tools, has $5,450,000 in assets. Temporary current assets Permanent current assets Capital assets Total assets $2,900,000 1,595,000 955,000 $5,450,000 Short-term rates are 7 percent. Long-term rates are 12 percent. (Note that long-term rates imply a return to any equity). Earnings before interest and taxes are $1,150,000. The tax rate is 20 percent. If long-term financing is perfectly matched (hedged) with long-term asset needs, and the same is true of short-term financing, what will earnings after taxes be? For an example of perfectly hedged plans, see Figure 6-8. Earnings after taxes $
JT Engineering's current asset information is shown here. If JT's current liabilities are $300,000, what is JT's current ratio and what is its acid-test ratio? Round each ratio to the nearest hundredth. Current Assets Cash $ 9.000 Short-term investments 89.000 Accounts receivable 76.000 Inventory Prepaid expenses 130,000 40,000 Total current assets $344,000 The current ratio is 1.15 times and the acid-test ratio is 0.58 times. The current ratio is 0.58 times and the acid-test ratio is 1.01 times. The current ratio is 0.58 times and the acid-test ratio is 1.15 times. The current ratio is 1.65 times and the acid-test ratio is 0.71 times.
Nighthawk Steel, a manufacturer of specialized tools, has $4,200,000 in assets. Temporary current assets Permanent current assets Capital assets Total assets $1,000,000 2,000,000 1,200,000 $4,200,000 Short-term rates are 4 percent. Long-term rates are 6.5 percent. (Note that long-term rates imply a return to any equity). Earnings before interest and taxes are $860,000. The tax rate is 25 percent. Assume the term structure of interest rates becomes inverted, with short-term rates going to 9 percent and long-term rates 4.5 percentage points lower than short-term rates If long-term financing is perfectly matched (hedged) with long-term asset needs, and the same is true of short-term financing, what will earnings be after taxes? For an example of perfectly hedged planssee Figure 6-8. Earning after taxes $ 459,000.00 O
AMT. Inc.'s net income for this quarter is $500,000. The publicized return on assets (ROA) is 34.5 % . Estimate the firm's total asset to the closet possible. a. $1,500,000 c. $2,450,000 b. $ 1,450,000 d. $2,005,500
Consider the following data for the Jamestown Company. Sales = $3,650,000 Total asset turnover = 1.6x Current ratio = 4:1 Quick ratio = 3:1 Current liabilities to net worth = 30% Average collection period = 25 days Total debt to total assets = 0.4 Fill in the balance sheet for the Jamestown Company based on the data provided above (assume a 365-day year). Round your answers to the nearest dollar. Balance Sheet Cash 2$ Accounts payable 2$ Accounts receivable Total current liabilities 2$ Inventory Long-term debt 2$ Total current assets $4 Stockholders' equity Fixed assets Total assets $ Total liabilities and equity
You have the following historical year information: New purchases Sales of old equipment Gross fixed assets, ending $300.00 $12.00 $4,000.00 You also know the following assumptions: Growth in new purchases will be 5% in the first year, and 10% in all subsequent years. Sales of equipment % New purchases will be constrained to 3% / year indefinitely. Produce an excel sheet that shows: 1. 5-year projection of all (3) data points.
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