15. Question: : (TCO D) On January 1, Martinez Inc. issued $3,000,000, 11% bonds for $3,195,000. The market rate of interest for these bonds is 10%. Interest is payable annually on December 31. Martinez uses the effective-interest method of amortizing bond premium.
To forecast 2010 sales based on 2009 sales, Equation 1 must be used: St = $500,000 + $1.10St–1 S2010 = $500,000 + $1.10($1,500,000) = $2,150,000 3. Equation 2 requires a forecast of gross domestic product. Equation 3 uses the actual gross domestic product for the past year and, therefore, is observable. 4. Advantages: Using the highest R2, the lowest
Part I: Case study: Gap Inc. (5 points) Using the fiscal 2011 (year end Jan 28, 2012) 10k for Gap Inc., answer the following questions. Be sure to provide well-written answers that are clearly supported. 1. What was Gap’s Total Assets at the fiscal yearend of 2011? $7,422.00 What was its Total Liabilities?
Normal Cost of Trade Credit = [Discount percentage/(100-Discount percentage)]*[365days/(credit outstanding-Discount Period)] Normal Cost of trade credit = (3/97)*(365/30) = 37.63% Question 6. Your supplier offers terms of 1/10, Net 45. What is the effective annual cost of trade credit if you choose to forgo the discount and pay on day 45? Normal Cost of Trade Credit = [Discount percentage/(100-Discount percentage)]*[365days/(credit outstanding-Discount Period)] Normal Cost of trade credit = (1/99)*(365/45) = 8.19% Question 10. The Manana Corporation had sales of $60 million this year.
receivable turnover | sales/AR | NA | NA | NA | 10. days sales in receivables | 365/receivable turnover | NA | NA | NA | 11.capital intensity | TA/Sales | 0.682844178 | 0.717922 | 0.691657 | 12.PM | NI/Sales | -0.064448746 | -0.05795 | -0.10648 | 13.TAT | sales/TA | 1.46446295 | 1.392909 | 1.445804 | 14. ROA | NI/TA | -0.094382801 | -0.08073 | -0.15395 | 15. ROE | NI/OE | -0.527686807 | -0.30411 | -0.50697 | 2nd Assignment Loan Amortization Problem Note： First name | Middle name | Last name | Number of letters in full name | Loan amount | Interest rate | Yixin | | Zhang | 10 | 150000 | 12% | A: CURRENT MONTHLY PAYMENT N=30*12=360 PV=150000 I/Y=12% /12=1% FV=0 PMT=1542.918895 B: TOTAL INTEREST PAY 1542.918895x30x12-150000=405450.80 C: Month | Beginning Balance | Payment | Interest Payment | Principal Payment | Ending Balance | 1 | 150000.000000 | 1542.918895 | 1500.000000 | 42.918895 | 149957.081105 | 2 | 149957.081105 | 1542.918895 | 1499.570811 | 43.348084 | 149913.733021 | 3 | 149913.733021 | 1542.918895 | 1499.137330 | 43.781565 | 149869.951456 | 4 | 149869.951456 | 1542.918895 | 1498.699515 | 44.219380 | 149825.732076 | 5 | 149825.732076 | 1542.918895 | 1498.257321 | 44.661574 | 149781.070502
__________ d. What is the amount of gross profit recognized in 2012? __________ e. As a result of this project, what is reported on the December 31, 2010, balance sheet? 9 6. (10 points) Assume Z-Mart appropriately uses the installment sales method of accounting for its installment sales. During 2011, Z-Mart made installments sales of $300,000 and received payments of $135,000 on those sales.
Accounting Assignment 2013 By : David Step One ….. all calculations are in $000’s $000’s | 2012 | 2011 | 2010 | 2009 | REVENUE | 419,812 | 413,131 | 373,144 | 344,150 | SALES | 418,981 | 411,652 | 372,120 | 343,078 | GROSS PROFIT | 418,981-175,843 = 243,138 | 411,652-171,256 = 240,396 | 372,120-164,789 = 207,331 | 343,078-145,275 = 197,803 | EBIT* | 19,491 | 21,532 | 16,667 | 21,164 | NET PROFIT | 16,103 | 18,218 | 12,331 | 15,649 | -TREND ANALYSIS- | | | | | SALES | 418,981/343,078 *100 = 122.1 | 413,131/343,078 *100 = 120.4 | 373,144/343,078 *100 = 108.8 | 100 | EBIT | 19,491/21,164 *100 = 92.1 | 21,532/21,164 *100 = 101.7 | 16,667/21,164 *100 = 78.8 | 100 | PROFIT | 16,103/15,649 *100 = 102.9 | 18,218/15,649
salaries and benefits 2008- 214129 2009- 220752 cash diff- 6623 % diff- 3.1% (.03092995...) supplies 2008- 71,346 2009-74584 cash diff- 3238 %diff-4.5% (0.453844...) physician and profess fees 2008- 107065 2009- 110376 cash diff-3311 %diff- 4.6% (.046440...) ultities 2008- 1164 2009-1200 cash diff- 36 %diff- 3.1% (.03092...) other 2008- 1785 2009- 1840 diff- 55 %diff- 3%(,03081...) deprecation 2008- 24955 2009- 36036 diff- 11081 %- 44%(.44403..) intrest 2008- 3597 2009- 3708 diff- 111 %- 3%(.030850..) provision 2008- 13383 2009- 13797 diff- 414 %- 3.1%(.03093..) total expenses 2008- 437424 2009- 462293 diff-24869 %- 5.7% (.056853..) operating income 2008- (-16,110) 2009- 689 cash diff- (-15421) %diff- 95% (.9572...) * Even though my cash difference shows a negative number I did not put in red on the worksheet because the hospital had more money in 2009 compared to 2008 non operating come both years blank investment income 2008- 264 2009- (-62) diff -326 %diff -123% (-1.2348...) * On my sheet I put the % in the red to show a lost since the hospital ended up with less money in 2009 compared to 2008 net income 2008 (-15846) 2009- 627 cash diff- 16473 %diff-
Notes Payable | 12000 | | Interest Payable | 9000 | | Total Current Liabilities | 58500 | | Long Term Liabilities | | | Notes Payable | 28000 | | Total Liabilities | | 86500 | Stockholder's Equity | | | Common Stock | 205500 | | Retained Earnings - December 31 | 97400 | | Total Stockholder's Equity | | 302900 | Total Liabilities & Stockholder's Equity | | 389400 | Elker Fashions Incorporated Closing Entries For Year Ended December 31, 2008 Date | Account Title & Explanation | Debit | Credit | 31-Dec | Merchandise Inventory - December 31 | 80000 | | | Sales | 865800 | | | Purchase Discounts | 16400 | | | Income Summary | | 962200 | | (To record ending inventory and close accounts with credit balances) | | | | | | | 31-Dec | Income Summary | 860100 | | | Depreciation Expense - Buildings | | 12000 | | Depreciation Expense - Equipment | | 10000 | | Gas & Oil Expense | | 7600 | | Salary Expense | | 70700 | | Utilities Expense | | 11400 | | Repair Expense | | 5900 | | Insurance Expense | | 3500 | | Sales Discounts | | 6100 | | Purchases | | 720000
* $18 M purchase price * $1.8 M selling price * Investment in PPE (2007) was $16 M * Investment in PPE (2008) was $2 M * $4 M in Sales (2008) * $10 M in Sales (2009-2013) * COGS: 75% of Sales * SG&A: 5% of Sales * $2 M Operating Savings (2008) * $3.5 M Operating Savings (2009-2013) * Depreciation was on a straight-line basis for 6 years beginning in 2008 * $18 M / 6 years = $3 M * 40% tax rate * NWC: 10% of Sales * Salvage value was zero * The FCF per year was determined using the following: * Net Income + Depreciation Expense - ∆ Net Working Capital + Investment in PPE After generating the FCF for each year, I had to solve for NPV and IRR to value the investment. I calculated 2 NPVs—one using Excel’s NPV equation and the other by discounting each year’s FCF using the WACC I calculated earlier. Both methods gave me negative NPVs. * Excel NPV: ($489,344.33) * Discounted FCF NPV: ($538,153.89) Lastly, I used Excel to