These are the automatically computed results of your exam. Grades for essay questions, and comments from your instructor, are in the "Details" section below. | Date Taken: | 11/8/2013 | Time Spent: | 09 min , 29 secs | Points Received: | 24 / 30 (80%) | | Question Type: | # Of Questions: | # Correct: | Multiple Choice | 5 | 4 | | | Grade Details - All Questions | Question 1. | Question : | Branch Corp's total assets at the end of last year were $315,000 and its net income after taxes was $22,750. What was its return on total assets?
Husky used annual observations from 20 prior years to estimate each of the four equations. Following are a definition of the variables used in the four equations and a statistical summary of these equations: St = Forecasted sales in dollars for Lockit in period t St–1 = Actual sales in dollars for Lockit in period t – 1 Gt = Forecasted U.S. gross domestic product in period t Gt–1 = Actual U.S. gross domestic product in period t – 1 Nt–1 = Lockit’s net income in period t – 1 Required: 1. Write Equations 2 and 4 in the form Y = a + bx. 2. If actual sales are $1,500,000 in 2009, what would be the forecasted sales for Lockit in 2010?
Initial value of Pacific ridge investment (December 1995) is: 666,667 * $1.50 + 133,333 * $0.3 = $1,040,000.4 (initial investment, exhibit 7). If we now value the rest of the company’s stock before venture capitalist investment at $1.50, we have: $1.50 * (800,000 + 4,796,000) =
Week 1 Assignment Ashford University BUS 640: Managerial Economics Instructor: Marlo Chavarria September 10, 2012 Chapter 1: Applied Problem 1 A) Explicit Cost Total operating costs and expenses $555,000 Interest expenses $45,000 Income taxes $28,000 Net Income $165,000 Total Explicit Costs for 2010 $793,000 Implicit Costs Annual Salary $175,000 15% interest on a $100,000 investment $15,000 Total Implicit Costs for 2010 $190,000 Economic Costs Total Explicit Costs $793,000 Total Implicit Costs $190,000 Total Economic Costs for 2010 $983,000 B) Accounting Profit Revenue $970,000 Operating costs and expenses -$555,000 Interest Expenses -$45,000 Income Taxes -$28,000 Net Income -$165,000 Total Accounting Profit for 2010 $177,000 C) D) Chapter 2: Applied Problems 2 A) In knowing that Florida faces a major freeze in which the price of oranges and quantity of produce will fall below. B) In knowing that new technological development has occurred in which the amount of oranges will increase and the cost of oranges will decrease. If the suppliers can reduce or cut back their supply then it would lead to more sales and increase in supply. So therefore if technology is not made for everyone meaning all suppliers then this could affect these suppliers in their financial and could even lead them to lose their business. C) If the AMA announces that drinking orange juice can reduce the risk of heart attacks then this could cause a huge increase in demands and could also lead an increase in price or price could stay neutral temporarily but the supply would decrease the price later on the line.
Located on page 304, problem #90 states, “P dollars is invested at annual interest rate r for 1 year. If the interest is compounded the polynomial P(1+r/2)2 represents the value of the investment after 1 year.” (Dugopolski, 2012, p.304) For the first part rewrite the expression without parenthesis. This would require the use of FOIL, which means multiply First, Outer, Inner, Last. Do this to the binomial (1+r/2)2 and then multiply all of the terms by P. The following is an example: P(1+r/2)2 This is the original expression with the exponent ONLY with the binomial. P(1+r/2)(1+r/2) Next step is to multiply the squared quantity.
– 133 2013 net sales / base year 2011 net sales = 800,000 / 600,000 = 1.33 1.33 x 100% = 133% 5. In analyzing financial statements, horizontal analysis is a- tool 6. Comparative balance sheets - are usually prepared for at least two years 7. Assume the following cost of goods sold data for a company: 2013 $1,500,000 2012 1,200,000 2011 1,000,000 If 2011 is the base year, what is the percentage increase in cost of goods sold from 2011 to 2013? – 50% = New - Old Old 100 8.
MAA705 Auditing T1 2013 Student:Chunwei Li -212008981 Qiao Zhang -211731543 Word count: 2207 Content Question 1..................................................................................................................................3 Question 2..................................................................................................................................5 Question 3..................................................................................................................................7 Reference..................................................................................................................................10 Question 1. Jia Chen has calculated profitability ratios using data extracted from his client’s pre-audit trial balance in 2012. Values for the same ratios for the preceding two years are based on audited figures. | |2012 |2011 |2010 | |Gross profit margin |0.45 |0.35 |0.40 | |Net profit margin |0.09 |0.15 |0.20 | 1.1 Make a list of possible explanations for the pattern observed in the gross profit and the net profit margins. This table shows that the different change about gross profit margin and net profit margin.
Delta Life Insurance 1. Liquidity analysis: Current Ratio= Current asset/ Current liability Current ratio of Delta life insurance | 2008 | 2009 | 2010 | 2011 | 2012 | Current asset | 14253345379 | 16930742180 | 20809102686 | 23582543351 | 26256357103 | Current liability | 1226321276 | 1322019412 | 1413060156 | 1324803875 | 1336446475 | Current ratio | 11.62 | 12.81 | 14.73 | 17.80 | 19.65 | At every year they had enough assets to meet liquidity 2. Underwriting ratio: Loss ratio: claim paid/ net premium Loss ratio of Delta life insurance | 2008 | 2009 | 2010 | 2011 | 2012 | Claim paid | 2457193182 | 2091840469 | 2165396666 | 2393538389 | 2728855615 | Net premium | 3810127579 | 4358259309 | 4800691357 | 4975346673 | 5029426902 | Loss ratio | 0.64 | 0.48 | 0.45 | 0.48 | 0.54 | As at 2009 and 2011 loss ratio was the lowest, efficiency was highest. Expense ratio= underwriting expense/ net premium Expense ratio of Delta life insurance | 2008 | 2009 | 2010 | 2011 | 2012 | Underwriting expense | 1239539703 | 1407827851 | 1631391284 | 1718973032 | 1407731769 | Net premium | 3810127579 | 4358259309 | 4800691357 | 4975346673 | 5029426902 | Expense ratio | 0.3253 | 0.3230 | 0.3398 | 0.3454 | 0.2799 | As at 2012 expense ratio was the lowest, efficiency was highest. Combined ratio= loss ratio + expense ratio | 2008 | 2009 | 2010 | 2011 | 2012 | Loss ratio | 0.64 | 0.48 | 0.45 | 0.48 | 0.54 | Expense ratio | 0.3253 | 0.3230 | 0.3398 | 0.3454 | 0.2799 | Combined ratio | 0.9653 | 0.8030 | 0.7898 | 0.8254 | 0.7199 | 3.
D/V = 40%). Solution – APV vs. WACC Basics: DV=40%,EV=60%→DE=0.40.6=0.667 βL= βU1+DE= 0.9 1+0.667= 1.5 rE= rf+ βLMRP= 4+1.510-4= 13% WACC=rD1-TcDV+ rEEV=0.041-0.30.4+0.130.6=0.0112+0.078=8.92% 1) Project value using WACC -1000+ 300(1+0.0892)+ 400(1+0.0892)2+ 500(1+0.0892)3= -0.46 2) Project value using APV a) 60% debt paid off in three equal annual installments APV=PVCFs at rU+ PVITS rU= rf+ βUMRP=4+0.910-4= 9.4% PVCFs at rU= -1000+ 3001.094+ 4001.0942+ 5001.0943= -9.69 ITS1=Debt x rD x Tc=0.610000.040.3= 7.2 ITS2=4000.040.3= 4.8 ITS3=2000.040.3= 2.4 PVITS= 7.21.04+ 4.81.042+ 2.41.043=13.49 APV= -9.69+13.49=3.8 b) Debt is rebalanced to be consistent with the target debt ratio (D/V = 40%) APV=PVCFs at rU+ PVITS PVCFs at rU= -9.69 (From 2a above) * PV0= 3001.0892+ 4001.08922+ 5001.08923=999.54 Debt0 =0.4999.54= 399.82 ITS1=Debt0 x rD x Tc=399.820.040.3= 4.80 * PV1= 4001.08921+ 5001.08922= 788.7 Debt1=0.4788.7= 315.48 ITS2=315.480.040.3= 3.79 * PV2= 5001.08921=459.05 Debt2=0.4459.05=183.62 ITS3=183.620.040.3=2.2 PVITS= 4.81.094+ 3.791.0942+ 2.21.0943=9.23 APV= -9.69+9.23= -0.46 Note: The APV under 2b equals the value using
… School of Business Administration Fall 2009 Case study FIN 5305 Case study: Financial ratios You’ve been recently hired as a financial analyst by SSS Industries, a manufacturer of electronic calculators. Your first task was to conduct a financial analysis of the firm covering the last two years. To begin, you gathered the following financial statements and other data. BALANCE SHEETS 2008 2007 Assets: Cash $52,000 $57,600 Accounts receivable 402,000 351,200 Inventories 836,000 715,200 Total current assets $1,290,000 $1,124,000 Gross fixed assets $ 527,000 $491,000 Less accumulated depreciation 166,200 146,200 Net fixed assets $360,800 $344,800 Total assets $1 650 800 $1468800 Liabilities and Equity: Accounts payable 175,200 145,600 Notes payable 225,000 200,000 Accruals 140,000 136,000 Total current liabilities $540,200 $481,600 Long-term debt $424,612 $323,432 Common stock (100,000 shares) $460,000 $460,000 Retained earnings 225,988 203,768 Total equity $685,988 $663,768 Total liabilities and equity $1650800 $1,468,800 INCOME STATEMENTS Sales $3,850,000 $3,432,000 Cost of goods sold $3,250,000 $2,864,000 Other expenses 430,300 340,000 Depreciation 20,000 18,900 Total operating costs $3,700,300 $3,222,900 EBIT $149,700 $ 209,100 Interest expense 76,000 62,500 EBT $73,700 $ 146,600 Taxes (40%) 29,480 58,640 Net income $44,220 $87,960 EPS $0,442 $0,880 Other Data.. December 31 stock price $6.00 $8.50 Number of shares 100,000 100,000 Dividends per share $0.22 $0.22 Lease payments $40,000 $40,000 STATEMENT OF