P(x) =x^2 – 4000x + 7800000 3800000 = x^2 -4000x + 7800000 answer: number of items sold= 2000 X^2-4000x+4000000=0 (x-2000) ^2=0 X=2000 P(2000) =3800000 6. The value of a machine depreciates according to the function f(x)=20000(1/2)x , where x is the time in years from the purchase of the machine. Find its value after 3 years. 1(x)=200000(1/2)^x 20,000(.5)
NAME: SCORE /50 DATE: FINANCIAL MANAGEMENT FIN 450 SUMMER 2014 QUIZ 1 ________ QUESTIONNUMBER | ANSWERS | QUESTIONS | 1 | b | A firm has $520 in inventory, $1,860 in fixed assets, $190 in accounts receivables, $210 in accounts payable, and $70 in cash. What is the amount of the current assets? A. | $710 | B. | $780 | C. | $990 | D. | $2,430 | E. | $2,640 | | 2 | D | A firm has common stock of $6,200, paid-in surplus of $9,100, total liabilities of $8,400, current assets of $5,900, and fixed assets of $21,200.
3. How does the fact that Giant has honored the contract for two years affect the argument? STATEMENT OF FACTS Two years ago, Giant entered into a five-year “requirements” contract with Little for candy coating. The exact contract language follows. “Giant Candy Company (Giant) agrees to buy and Little Candy Company (Little) agrees to sell all of the candy coating that Giant requires for a period of five years.
On January 1, 2010, Roberto Company adopts a compensatory stock option plan and grants 40 executives 1,000 shares each at $30 a share. The fair value per option is $7 on the grant date. The company estimates that its annual employee turnover rate during the service period of three years will be 4%. However, at the end of 2011, the company estimates that the employee turnover will be 5% a year for the entire service period. The compensation expense for 2011 will be (Round off turnover calculations to three decimal places and answer to the nearest dollar.)
Old press – Originally purchased 3 years ago at an installed cost of $400,000, it is being depreciated under MACRS using a 5-year recovery period. The old press has a remaining economic life of 5 years. It can be sold today to net $420,000 before taxes; if it is retained, it can be sold to net $150,000 before taxes at the end of 5 years. Press A – This highly automated press can be purchased for $830,000 and will require $40,000 in installation costs. It will be depreciated under MACRS using a 5-year recovery period.
DONNA URCHAK The annual sales for Salco Inc. were $4.5 million last year. The firm’s end-of-year balance sheet was as follows: Current assets $500,000 Liabilities $1,000,000 Net fixed assets $1,500,000 Owners’ equity $1,000,000 $2,000,000 $2,000,000 The firm’s income statement for the year was as follows: Sales $ 4,500,000 Less cost of goods sold (3,500,000) Gross profit $ 1,000,000 Less operating expenses (500,000) Operating income $ 500,000 Less interest expense (100,000) Earnings before taxes $ 400,000 Less taxes (50%) (200,000) Net income $ 200,000 a. Calculate Salco’s total asset turnover, operating profit margin, and operating return on assets. b. Salco plans to renovate one of its plants, which will require an added investment in plant and equipment of $1 million. The firm will maintain its present debt ratio of .5 when financing the new investment and expects sales to remain constant.
Besides, it services customers across the UK over more than 500 Stores, 130 M locals and online home delivery service (Morrisons-corporate.com, nd). The aim of this report is analyzing and evaluating Morrison’s financial strategy and making appropriate recommendations based on its annual reports for the last 5 years. Analyze Morrison’s capital structure/financing decision Capital structure Year | 2010 | 2011 | 2012 | 2013 | 2014 | Net debt (£m) | 924 | 817 | 1471 | 2200 | 2817 | Total equity (£m) | 4949 | 5420 | 5397 | 5230 | 4692 | Gearing ratio (%) | 19 | 15 | 27 | 42 | 60 | It is interesting to note that net debt movement and equity movement are on the contrary. The level of Morrison’s debt was relatively high while its level of equity capital was relatively low. After a slight decline to 15% in 2011, the Gearing ratio appeared to rise noticeably for the following years.
from Aéropostale stores in 21 states (Yahoo Finance, 2012, Business Summary). In addition, pursuant to a licensing agreement, one of the company's international licensees operated 10 Aéropostale stores in the United Arab Emirates. The company also recently announced a second licensing agreement, which allow the licensee to operated 25 stores in Singapore, Malaysia and Indonesia over the next five years. Financial Analysis According to the Aéropostale’s financial statement (U.S. Securities and Exchange Commission 2012, Aeropostale Inc. Financial
Monro Muffler/Brake | Credit Analysis | | Table of Contents Description of Requested Credit Facility 3 Executive Summary 3 Organization Description 3 Economic & Industry Forecast 6 External Factors 7 Highlights of the Financial Statements 8 Five Year Projections 13 Net Income and Cash Flow Projections 13 Credit Analysis/Ability to Meet Financial Obligations 14 Pricing the Credit Facility 15 * Description of Requested Credit Facility In anticipation of the expiration of its existing credit facility, Monro Muffler/Brake is requesting a five-year, $175 million revolving credit facility from Wells Fargo Bank. The company will use this credit facility to replace smaller existing facilities and use the additional funds for general company needs. As the largest chain of company operated under-car facilities in the U.S. , this credit facility will allow the company to continue to improve its financial position in the retail automotive service industry. * Executive Summary In determining the viability of the organization, the macro-economy, industry prospects, and the company itself are all thoroughly evaluated. The company’s financial statements from the past three years are analyzed in great detail and net income and net cash flow projections are completed for the next five years to gain a sense of the capability of the organization to repay the pending revolving credit facility.
â€¦ School of Business Administration Fall 2009 Case study FIN 5305 Case study: Financial ratios Youâ€™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