Question: : (TCO D) On December 31, 2010, Irey Co. has $2,000,000 of short-term notes payable due on February 14, 2011. On January 10, 2011, Irey arranged a line of credit with County Bank which allows Irey to borrow up to $1,700,000 at one percent above the prime rate for three years. On February 2, 2011, Irey borrowed $1,700,000 from County Bank and used $300,000 additional cash to liquidate $1,700,000 of the short-term notes payable. The amount of the short-term notes payable that should be reported as current liabilities on the December 31, 2010 balance sheet which is issued on March 5, 2011 is 9. Question: : (TCO D) Tender Foot Inc. is involved in litigation regarding a faulty product sold in a prior year.
The business required £30,000 cash for working capital. The company gets a loan of £450,000 which was transfer into the business bank account in January as shown in appendix 6. The cash budget shows a balance of £3,918 in January and £16,335 February. The loan calculation is shown in appendix 8. This is expected to be paid back within 8 years by monthly paid instalments of £5.718.41 which was calculated on a 5.1% interest rate.
b) Balance the accounts and prepare the trial balance at the end of week 1. Question 3 The transactions of Mr Peters business during the first week of trading are as follows: 1/ Mr Peters deposits £62000 into a business bank account. 2/ Buys a machine for £7000 on credit from Mr Brown 3/ The business receives a loan of £15000. 4/ Purchases goods at a cost of £16000, paying by cheque 5/ Sells goods for £14000. Customer pays by cheque immediately.
Financial Reporting Problem - Part II ACC/290 Abstract This week’s essay is a continuation of last week’s topic: Financial Reporting of Wal-Mart Corporation. The topics covered will analyze the information contained in Wal-Mart’s balance sheet and income statement and discuss Wal-Mart’s assets listed under the company’s current assets list and whether or not they them in the proper order. Also covered is how these assets get classified. Breaking down these documents into the cash equivalents, the company’s total current liabilities at the end of its most recent annual reporting period compared to their total current liabilities at the end of the previous annual reporting period. By placing further consideration on
Week 5 Problem 3 Carri Gradisca FIN/370 – Finance for Business August 6, 2012 Professor Shadi Sifain Week 5 Problem 3 A firm’s current balance sheet is as follows: Assets: $100 Debt: $10 Equity: 90 a. What is the firm’s weighted-average cost of capital at various combinations of debt and equity, given the following information? Debt/Assets | After-Tax Cost of Debt | Cost of Equity | Cost of Capital | 0% | 8% | 12% | 12.00% | 10 | 8 | 12 | 11.60% | 20 | 8 | 12 | 11.20% | 30 | 8 | 13 | 11.50% | 40 | 9 | 14 | 12.00% | 50 | 10 | 15 | 12.50% | 60 | 12 | 16 | 13.60% | b. Construct a pro forma balance sheet that indicates the firm’s optimal capital structure. Compare this balance sheet with the firm’s current balance sheet. What course of action should the firm take?
Net initial investment outlay is $302,040. (Cost of new system + Installation) + (Proceeds from old equipment + Tax on proceeds + Removal cost) = Total cost + NCF (old) = 303,000 +-960 2. Tax depreciation savings = (36% tax rate) x (depreciation of each year) Depreciation for each year based on MACRS 5-year (Wikipedia) 3. Incremental cash flows = (Deprn. Tax savings + A.T. cost savings) each year [pic]2.
* * * * * Rachel’Jo Fraser Medical Associates Dr. James Coon Health Financial Management February 25th, 2012 Medical Associates is a large for-profit group practice. Its dividends are expected to grow at a constant rate of 7% per year into the foreseeable future. The firm’s last dividend (D0) was $2, and its current stock price is $23. The firm’s beta coefficient is 1.6; the rate of return on 20-year T-bonds currently is 9%; the expected rate of return is 13%. The firm’s target capital structure calls for 50% debt financing, the interest rate required on the business’s new debt is 10%, and its tax rate is 40%.
FINA 3310 | Project | Dr. Alexandra K. Theodossiou | | Yixin Zhang | 4/4/2012 | 1st Assignment Report Summary In the value line report of the ZALE CORP, an informative abstract about the company was given in one paragraph. It tells the exact year the company was founded and talked about the bankruptcy and reconstruction that the company has been through. Below this abstract, capital structure are listed so that we know the amount of total debt, long-term debt, as well as common stock. Followed by the capital structure, current assets and current liabilities are given from the year 2009 to 2011 with annual rates of change for the past 10years. We can see a negative book value during that period.
The book was first released in 2005, was later released as an "updated and expanded" edition in 2006, and yet again released with additional updates in 2007 as "further updated and expanded: Release 3.0." The title was derived from a statement by Nandan Nilekani, the former CEO of Infosys. The World is Flat won the inaugural Financial Times and Goldman Sachs Business Book of the Year Award in
External Environment Analysis In the section, key opportunities and threats of Samsung will be identified. A rating from 5 (outstanding) to 1(poor) is given to each factor accordingly based on the judgment of how well Samsung is currently dealing with these external factors. 7.6 Opportunities 7.7.4 Strategic alliances Samsung has entered into strategic agreement with some of the well know companies of the world in the recent past. In 2011, the company entered into an agreement with Seagate Technology to expand their strategic relationship. They also signed a patent cross license agreement with Toshiba for semiconductor technologies.