- Vertical analysis | Amount | Percent | Current assets | $100,000 | 25% | Property, plant, and equipment | 300,000 | 75% | Total assets | $400,000 | 100% | 10. A common measure of profitability is the - return on common stockholders' equity ratio 11. Which one of the following would be considered a long-term solvency ratio? - Debt to total assets ratio 12. The current ratio is - used to evaluate a company's liquidity and short-term debt paying ability 13.
$30.0 FI504 Final Exam Business - General Business 1. (TCO A) An advantage of the corporate form of business is that _____. (Points : 5) it has limited life its owner's personal resources are at stake its ownership is easily transferable via the sale of shares of stock it is simple to establish 2. (TCO A) The Dividends account _____. (Points : 5) is increased with a debit is decreased with a credit is not an expense account All of the above 1.
Problem 3.5 from Page 106, Chapter 3 A. Construct Brandywine’s 2011 income statement Brandywine Homecare Statement of Income Year ended December 31, 2011 Revenue: Total revenues $12,000,000 Expenses: Expenses $9,000,000 Depreciation $1,500,000 Total Expenses $10,500,000 Net Income $1,500,000 B. What were Brandywine’s net income, total profit margin, and cash flow? The facilities net income is Total revenues which is the total revenue minus total expense. Their profit margin equals the net income and revenue times 100. Their cash flow is the net income plus depreciation.
Q= 4 weeks supply = 1600 units R= 400 units a week= 20000 units/ year C= purchase cost per unit= $1250 X (1-.20)= 1,000 H= holding cost= rC= $200 per unit / year S= setup cost= 2000 + 93.75 = $2,093.75 Setups per year= R/Q= 20000/1600= 12.5 Annual setup cost= (R/Q)(S)=12.5X $2,093.75= $26,172 Annual Holding cost= (q/2)(H)= (1600 /2)X $200= $160,000 Total Annual Cost= Annual Setup Cost+ Annual Holding Cost Total Annual Cost= 26,172+160,000 BIM’S Total Annual Cost= $186,172 (b) Compute the economic batch size and the resulting cost savings. Qo= √2RS/H= √(2(20000)(2093.75)/200) = 647 Economic Batch size= 647 Annnual setup cost= (R/Q)(S)= (20000/647) X 2093.75= $64,722 Annual Holding Cost= (Q/2)H= (647/2)X $200= 64,700 Total Annual Cost= Annual setup cost+ Annual Holding Cost Total Annual Cost= $64,722+ $64,700 = $129,422 Cost savings= $186,172- $129,422= $56,750 Cost savings= $56,750 Question 3 (a) Compute Victor’s total annual cost of ordering and carrying inventory. Assumption= 52 weeks/year R = 30 dresses per week = 30 X 52 weeks per year = $1560 Sales price = $300/dress C = 150 per dress Order Lead Time = 2 weeks Fixed Order Cost = S = $225 Cost of Capital = r = 20% Annual Holding cost = H = rC = 150 X 20% = $30 per dress Q = 10 week supply X $30 Annual
(0.5 points) 50% c. A company has $1,400 in liabilities and $1,500 in assets. Calculate the company's debt ratio as a percentage. (0.5 points) 93.3% d. A company has $1,400 in liabilities and $1,500 in equity. Calculate the company's debt to equity ratio as a percentage. (0.5 points) 93.3% e. A company's current assets are $30,000 and current liabilities are
Berkshireis offering $5.1 billion in cash for PacifiCorp’s equity, for a per-share price of $16.34; altogether, this is a per-share expected value for PacifiCorp’s shares of $23.29. This a fair estimate of PacifiCorp’s intrinsic value, as is shown below. D. Summary of PacifiCorp valuation estimates | Enterprise Value as Multiple of: Net Rev EBIT
. (TCO A) Which one of the following is an advantage of corporations relative to partnerships and sole proprietorships? (Points : 5) Reduced legal liability for investors Harder to transfer ownership Lower taxes Most common form of organization 2. (TCO A) The Dividends account _____. (Points : 5) is increased with a debit is decreased with a credit is not an expense account All of the above 3.
With the assumption that the firm will raise the fund of $750 thousand on debt and the level of the debt will remain unchanged. We can calculate the tax shield of 20400 each year for perpetuity. The PV of the tax shield is 300000, which is equivalent to the 40% tax rate times the amount of debt. The net present value of the project using the APV on the $750000 of debt level is the unlevered NPV of
Since the company owed $1,600 to creditors and there are sufficient funds to pay them, the creditors will receive $1,600. The investors will receive the balance of $200. c. Kennedy Company Accounting Equation Event Assets = Liabilities + Stockholders’ Equity Cash Notes Payable Common Stock Retained Earnings Acquired assets $3,400 $1,600 $1,800 earned profit 1,600 1,600 Balance $5,000 = $1,600 + $1,800 $1,600 The creditor will receive the $1,600 that is owed to them. The stockholders will receive their initial investment of $1,800 plus an additional $1,600 of profit for a total of $3,400. EXERCISE 1-4 Entities Distribution of Cash Mr. Chang (personal account) Personal account was decreased by the $30,000 cash deposited in the Chang Enterprises’ business account.