Name:_______________ Part I Open-ended question (10 points; 20% of exam) ID:____________ For Quick Start the first month in business has ended. In the last days of December 2005, they already received contributed capital of € 6,000 and they obtained a five-year bank loan of € 24,000 at an annual rate of interest of 10 percent. Interest has to be paid each year on October 31. On December 31, 2005 various store equipment was purchased at a total cost of € 12,000, paid in cash. It is expected that the equipment has to be replaced after five years.
In the last 40 years CVS has experienced tremendous growth. In the 1990’s through acquisitions CVS Pharmacy acquired more than 4,000 stores domestically, the corporation continued to expand to Florida, Texas, and Chicago; now CVS is currently in 42 states. CVS Pharmacy in 2007 merged with Caremark Rx to form CVS Caremark. Through 2013 CVS continues to acquire pharmacies to increase their market share. CVS Pharmacy was the first pharmacy to establish an online presence that offered customers an alternative to purchase products as of today customers are able to track and refill prescriptions online.
These funds were to pay off $114,000 of the $170,000 loan from Lester to this estate, which were then distributed to Lisa and your two nephews. The balance of $56,000 which was to he paid to you was never distributed to you. Those funds and the additional $100,000 that you personally borrowed were used to pay down the accounts payable balance. The individual that looked you the $100,000 per their note requires you to pay down the loan by $20,000 every six months starting 7/1/10. When we prepared your personal financial statements for the bank we discussed that your loans against your home are too high and that you should start reducing these down as
If sales outlook for the coming three years increases to 40,000,000, the recent increase in production will actually help B.E. company in transitioning to maximum production capacity. In this case, there are two options for the company; produce 35,000,000 in 2011 and use the 5,000,000 units in ending inventory to satisfy the total sales outlook then increasing production to the maximum of 40,000,000 units in the next two years or increase production to 40,000,000 units in the next three years and keep the extra 5,000,000 sitting in ending inventory. With either option, B.E. Company’s net income will increase tremendously due to a substantial increase in sales and very little inventory left in ending
The company could sell a new issue of 25-year bonds at an annual interest rate of 11.67% in today's market. A call premium of 14% would be required to retire the old bonds, and flotation costs on the new issue would amount to $3 million. NYW's marginal tax rate is 40%. The new bonds would be issued when the old bonds are called. What will the after-tax annual interest savings for NYW be if the refunding takes place?
Graves Enterprises: Critique a Communication Plan Scenario Graves Enterprises, Defining a Communication Plan Scenario In this scenario-based activity, you will need to review the scenario presented to you, your role in the process, and then read the viewpoints of the key employees that have been assigned to help you with this activity. Scenario Summary Continuing with Graves Enterprises and its floor care products from Week TWO, both business units are doing well. They have been focused on expansion and have developed new users of their products. While the decision to expand is part of the charter of a company, the strategic moves the company makes have implications across the three key functions â€" finance, marketing, and operations.
For business alpha the total current asset calculation is to add all the assets In order to receive the full current assets. For business alpha the full current asset value is 251,000. The stock amount was 242,000 whilst the debt having 6,000 and the cash was 3,000. The current liabilities are something’s that are owned by the business which should be paid back by in less than one year. Examples of current liabilities are creditors.
The EHC will receive $2,300,000 from managed care companies and Medicare in three months, but the shortfall at the business must be resolved first. To achieve this, we must determine two cost cutting measures. A loan option must be identified as well. The cost cutting options we have at EHC are reducing benefits, reducing agency staff, downsizing staff, reducing length-of-stay, or changing the skill mix (University of Phoenix, 2015). To achieve a cost saving target of $750,000 for the first quarter the first cost cutting measure I selected is reducing a proportion of the agency contracted staff.
Hints: When filling out the “Marketing Budget” worksheet in the Excel spreadsheet: o Begin in the current year and complete a marketing budget for the first year of your business. The information you enter in the marketing budget spreadsheet will flow through to your “Income Statement” in the Business Plan Financials. o Leave the number at zero (0) for any marketing vehicles you do not intend to use. o Remember that all marketing activities involve costs. If social media represents a significant portion of your marketing, assume you will have cost of advertising and that should be reflected on your budget.
Finley also stated that " Princeton, which recently built a resplendent $136 million student residence with leaded glass windows and a cavernous oak dining hall (paid for in part with a $30 million tax-deductible donation by Hewlett-Packard CEO Meg Whitman). The dorm's cost approached $300,000 per bed." The extra money coming in from the higher costs is helping the universities make more and expand more. Universities are not only about education anymore, they also are in the housing, entertainment, and food business. School administrators are enjoying a nice pay raise as well.