QUESTION 3 At the beginning of the year, long-term debt of a firm is $272 and total liabilities is $321. At the end of the year, long- term debt is $251 and total liabilities is $331. The interest paid is $17. What is the amount of the cash flow to creditors? -$38 $21 $38 -$21 $17

QUESTION 3 At the beginning of the year, long-term debt of a firm is $272 and total liabilities is $321. At the end of the year, long- term debt is $251 and total liabilities is $331. The interest paid is $17. What is the amount of the cash flow to creditors? -$38 $21 $38 -$21 $17

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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14. 15. 16. 17. 18. 19. 20. Question Workspace Check My Work The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over. Balance Sheet (Millions of $) 2021 Assets Cash and securities $ 3,000 Accounts receivable 15,000 Inventories 18,000 Total current assets $ 36,000 Net plant and equipment 24,000 Total assets $ 60,000 Liabilities and Equity Accounts payable $ 15,004 Accruals 9,196 Notes payable 7,000 Total current liabilities $ 31,200 Long-term bonds 12,000 Total liabilities $ 43,200 Common stock 4,536 Retained earnings 12,264 Total common equity $ 16,800 Total liabilities and equity $ 60,000 Income Statement (Millions of $) 2021 Net sales $…
Question 6 (this question has 2 parts) Gordon Industries Ltd has provided you with the following information: 2019 2020 2021 Debt to Equity 10.5% 23.4% 36.2% Gross Profit margin 30.2% 36.5% 35.3% Net profit margin 19.5% 17.6% 13% Return on Equity 15.1% 17.5% 16.2% Asset Turnover (times) 0.71 0.82 1.41 Return on Assets 13.8% 14.4% 18.3% Interest coverage ratio 4 times 3 times 2.5 times a) Advise Gordon Industries of the relationship between Return on Assets, Asset Turnover and Net Profit Margin. Comment on the profitability position of Gordon and any advice you consider relevant. b) Advise the shareholders of Gordon Industries on the financial structure of the company.
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Question# 5 You are planning to analyse Zamil Company's December 31, Year 6, balance sheet. The following information is available: 1) Beginning and ending balances are identical for both accounts receivable and inventory. 2) Net income is $1,300. 3) Times interest earned is 5 (income taxes are zero). Company has 5% bonds outstanding and issued at par. 4) Net profit margin is 10%. Gross profit margin is 30%. Inventory turnover is 5. 5) Days' sales in receivables is 72 days. 6) Sales to end-of-year working capital is 4. Current ratio is 1.5. 7) Acid-test ratio is 1.0 (excludes prepaid expenses). 8) Plant and equipment (net) is $6,000. It is one-third depreciated. 9) Dividends paid on 8% nonparticipating preferred stock are $40. There is no change in common shares outstanding during Year 6. Preferred shares were issued two years ago at par. 10) Earnings per common share are $3.75. 11) Common stock has a $5 par value and was issued at par. 12) Retained earnings at January 1, Year 6, are…
Exhibit 8.1The balance sheet and income statement shown below are for Pettijohn Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over. Balance Sheet (Millions of $) Assets 2012 Cash and securities $ 1,588.0 Accounts receivable 9,510.0 Inventories 13,700.0 Total current assets $24,798.0 Net plant and equipment 15,272.0 Total assets $40,070.0 Liabilities and Equity Accounts payable $ 7,420.0 Notes payable 5,030.0 Accruals 4,030.0 Total current liabilities $16,480.0 Long-term bonds 10,320.0 Total debt $26,800.0 Common stock 3,720.0 Retained earnings 9,550.0 Total common equity $13,270.0 Total liabilities and equity $40,070.0 Income Statement (Millions of $) 2012 Net sales $59,700.0 Operating costs except depr'n $54,318.0 Depreciation $ 1,229.0…
Q. 7 The Primus Corp. began the year with $7,451 in its long-term debt account and ended the year with $9,117 in long-term debt. The company paid $1,059 in interest during the year and issued $2,435 in new long-term debt. How much long-term debt must the company have paid off during the year? -$1,666 -$607 $769 $532 $1,666
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Exhibit 8.1The balance sheet and income statement shown below are for Pettijohn Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over. Balance Sheet (Millions of $) Assets 2012 Cash and securities $ 1,588.0 Accounts receivable 9,510.0 Inventories 13,700.0 Total current assets $24,798.0 Net plant and equipment 15,272.0 Total assets $40,070.0 Liabilities and Equity Accounts payable $ 7,420.0 Notes payable 5,030.0 Accruals 4,030.0 Total current liabilities $16,480.0 Long-term bonds 10,320.0 Total debt $26,800.0 Common stock 3,720.0 Retained earnings 9,550.0 Total common equity $13,270.0 Total liabilities and equity $40,070.0 Income Statement (Millions of $) 2012 Net sales $59,700.0 Operating costs except depr'n $54,318.0 Depreciation $ 1,229.0…
Pls Solve question g
Exhibit 8.1The balance sheet and income statement shown below are for Pettijohn Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over. Balance Sheet (Millions of $) Assets 2012 Cash and securities $ 1,588.0 Accounts receivable 9,510.0 Inventories 13,700.0 Total current assets $24,798.0 Net plant and equipment 15,272.0 Total assets $40,070.0 Liabilities and Equity Accounts payable $ 7,420.0 Notes payable 5,030.0 Accruals 4,030.0 Total current liabilities $16,480.0 Long-term bonds 10,320.0 Total debt $26,800.0 Common stock 3,720.0 Retained earnings 9,550.0 Total common equity $13,270.0 Total liabilities and equity $40,070.0 Income Statement (Millions of $) 2012 Net sales $59,700.0 Operating costs except depr'n $54,318.0 Depreciation $ 1,229.0…
A1
Bank 3 Assets (millions) 6 11 Liabilities (millions) Maturities 1 day +1 day-3mos +3 mos- 6 mos +6 mos-12 mos +1 year-5 years 17 10 15 90 43 52 11 Use the Repricing Model. If interest rates rise by 56 basis points for assets and 142 basis points for liabilities over the next year, then how will impact the interest income of Bank 3 over the next year? Bank 3 will experience a loss of $1,483,000 O Bank 3 will experience a gain of $679,400 Bank 3 will experience a loss of $679,400 Bank 3 will experience a gain of $1,953,400

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