Managerial Finance Assignment #2
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Managerial Finance 5550
Winter 2023 Name: Rahul Chandrakant Kalambe
Student Number - N01579500
Assignment
#2
(5% of your Final Grade)
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Exercises:
1.
Choose two publicly traded companies
that are listed on the Toronto Stock Exchange (TSX
) or New York Stock Exchange (NYSE)
. The companies should be competitors and/or within the same industry.
Find their Financial Statements for end of year (Dec 31
st
) of 2021 (2022 – is not available yet) and
calculate Cash
Flow
from
Assets
and the Financial
Ratios
included in
Part
B
for each company.
Complete and submit Part B
. In Part B of the Assignment decide on which company is doing better for each ratio.
2.
Briefly give your overall impression
of each company based on your ratios and choose which one you think would make a better investment option. Explain your answer. (approx. 250 words)
Overall
impression
:
In terms of total assets, Loblaw Companies Limited has a significantly larger balance sheet compared to Metro Inc. However, this is not necessarily an indicator of which company is better for investment
Looking at the current ratio, Loblaw Companies Limited has a higher ratio, indicating that it has better ability to meet its short-term obligations using its current assets. On the other hand, Metro Inc has a higher debt-to -equity ratio, which may indicate higher financial leverage and risk
While comparing the Gross profit margin, Loblaw company Limited have higher gross profit margin then as compared to Metro Inc If we come to Net Profit Margin, Metro Inc is leading higher terms of net profit margin then Loblaw Companies Limited. A high net profit margin means that a company can effectively control its costs and/or provide goods or service at a price significantly higher than its cost. Both Loblaws and Metro Inc. have their strengths and weaknesses. From above comparison we concluded that Metro Inc is resulting in good financial analysis as compared to Loblaw Companies
Limited. Hence we find the conclusion that Metro Inc is better option for investment as compared to Loblaw Companies Limited. It's important to note that there are other factors to consider when making an investment decision, such as market trends, management quality, industry conditions, and future growth potential. It's important to conduct further research and analysis on these factors before making an investment decision.
Managerial Finance 5550
Winter 2023
Name: Rahul Chandrakant Kalambe
Student Number - N01579500
Part B – Assignment #2
Company #1
Company #2
Company Name:
Loblaw Companies Limited (L.TO)
Metro Inc (MRU.TO)
Which Company is performing better?
Stock Exchange & Symbol:
Toronto Stock Exchange(TSX) Toronto Stock Exchange(TSX) Financial Statements used:
Balance Sheet and Income Statement
Balance Sheet and Income Statement
Cash
flow
from Assets
Cash Flow
36,45,000
8,40,300
Loblaw Companies Limited (L.TO) is performing better
Short
Term
Liquidity
Ratios
Current Ratio
1.37
1.12
Loblaw Companies Limited (L.TO) is performing better
Quick Ratio
0.81
0.59
Loblaw Companies Limited (L.TO) is performing better
Cash Ratio
26%
20%
Loblaw Companies Limited (L.TO) is performing better
Long
Term
Debt
Ratios
Total Debt Ratio
68.39%
52.91%
Metro Inc (MRU.TO) is performing better
Debt / Equity Ratio
0.41
0.66
Loblaw Companies Limited (L.TO) is performing better
Times interest earned
4.26
8.60
Metro Inc (MRU.TO) is performing better
Asset
Utilization
Ratios
Inventory Turnover
7.05
12.51
Metro Inc (MRU.TO) is performing better
Days Sales in Inventory
51.78 days
29.17 days
Metro Inc (MRU.TO) is performing better
Receivables Turnover
12.11
26.92
Metro Inc (MRU.TO) is performing better
Days Sales in Receivables
30.14 days
13.56 days
Metro Inc (MRU.TO) is performing better
Profitability
Ratios
Gross Profit Margin
31.47%
19.99%
Loblaw Companies Limited (L.TO) is performing
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d) Suppose you begin making a monthly payment of $75.00. Fill in the table.
Current
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Interest
Рayment
Amount applied to principal
$2750.00
$45.38
$75.00
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e) Will you ever be out of debt? Explain.
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Exercise 9-12 a-b (Part Level Submission)
Oriole Supply Co. has the following transactions related to notes receivable during the last 2 months of 2020. The company does not make entries to accrue interest except at
December 31.
Nov. 1
Loaned $23,50Chcash to Manny Lopez on a 12-month, 12% note.
Dec. 11
Sold goods to Ralph Kremer, Inc., receiving a $61,200, 90-day, 10% note.
16
Received a $97,200, 180 day, 8% note in exchange for Joe Fernetti's outstanding accounts receivable.
31
Accrued interest revenue on all notes receivable.
(a)
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lournalize the transactions for Oriole Supply Co. (Ignore entries for cost of goods sold.) (Credit account titles are…
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What is a salesperson's commission on net sales of $17800 if the commission is paid on a
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1. From the following Trial balance , you are require to prepare the final accounts for the year ended 31st December 2020.
Grades
Particulars
Amount (Dr)
Amount(Cr)
4,80,000
Сapital
Drawings
Land & Building
People
1,35,000
4,50,000
Pages
Account
Creditors
3,15,000
Files
Plant& Machinery
1,20,000
Purchase returns
7,950
Syllabus
Bills receivable
18,000
Dashboard
Sales
6,54,000
Quizzes
Opening stock
1,20,000
1,53,000
78,000
1,500
3,000
1,14,000
10,200
79,800
1,35,000
3,600
6,000
18,000
11,850
Courses
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Purchase
Wages
Carriage outwards
Carriage inwards
Salaries
Calendar
Discount
Inbox
Bank balance
Debtors
Bad debts
Sales returns
Furniture
Advertisements
Total
14,56,950
14,56,950
Adjustments:
Stock on 31st December,2020 is Rs. 1,05,000
Machinery & Furniture to be depreciated @ 10%.
Wages outstanding is Rs. 4,50O
Prepaid Advertisement is Rs.1,500
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els B: Lesson 1 - Salary
Target due: 1/14/21 58.33%
$344.75
$700
2) Choose the best answer.
Caleb has a job that pays $11.15 per hour for a 40-hour work week. He is paid time
and a half for every hour over 40 that he works in a week. What will his gross pay be
for a week in which he works 46 hours?
NTT
$546.35
$446
$512.90
$256.45
$769.35
O O O
O O
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b) https://www.imf.org/en/Publications/WEO/Issues/2021/01/26/2021-world-economicoutlook-
update
(And click on download data)
Step-2: Answer the below questions
What do you understand by Real GDP? What is the Real GDP Growth Rate of India and
China in 2019? What is the estimated real GDP growth rate of India and China in 2020?
What is the projected real GDP growth rate of India and China in 2021 and 2022?
What is the estimated 2022 GDP Loss (in percentage) in comparison to pre-covid levels
(January 2020 forecast) in China and Other Emerging Economies in Asia other than
China?
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Make the working paper elimination entry to facilitate the consolidation.
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Analysis of Receivables Method
At the end of the current year, Accounts Receivable has
balance of $4,375,000; Allowance for Doubtful Accounts has a debit balance of $21,300; and sale
for the year total $102,480,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $205,000.
a. Determine the amount of the adjusting entry for uncollectible acfounts.
b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense.
Accounts Receivable
Allowance for Doubtful Accounts
Bad Debt Expense
c. Determine the net realizable value of accounts receivable.
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Attempt 1 of 1
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SECTION 3 OF 4
QUESTION 6 OF 8
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Match the option with the lowest monthly payment to highest monthly payment.
$12,000 loan with 1% simple
1.
lowest payment
interest over 7 years
$7,500 loan with 4% simple interest
2. second highest payment
over 5 years
$8,500 loan with 2% simple
3. third highest payment
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$10,000 loan with 3% simple
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A newspaper editor starts a retirement savings plan in which $225 per month is deposited at the beginning of each month into an account that earns an annual interest rate of 6.4% compounded monthly.
Find the value of this investment (in dollars) after 20 years. (Round your answer to the nearest cent.)
$
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logo design company purchases four new computers for $12,500. The company finances the cost of the computers for 3 years at an annual interest rate of 5.175% compounded monthly. Find the month
ayment (in dollars) for this loan. (Round your answer to the nearest cent. See Example 8 in this section.)
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What is the Payback Period for the following investment?
Year
1
2
3
4
5
O a. 3.77
Ob. 3.73
Oc. 3.89
Od. 3.96
Cash Out
$ (1,600,000)
(710,000)
Cash In
550,000
580,000
610,000
640,000
670,000
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Exercise 11-11 a-b (Part Level Submission)
Ramirez Company has the following data for the weekly payroll ending January 31.
Hours
Hourly
Rate
Federal Income
Health
Insurance
Employee
M
T.
F
Tax Withholding
L. Helton
8
8.
10
3
$12
$34
$10
R. Kenseth
8
8.
8
8
8
2
14
37
25
8 9
D. Tavaras
10
8.
15
58
25
Employees are paid 1.5 times the regular hourly rate for all hours worked in excess of 40 hours per week. FICA taxes are 7.65% on the first $127,200 of gross earnings. Ramirez Company is subject to 5.4% state unemployment
taxes and 0.8% federal unemployment taxes on the first $7,000 of gross earnings.
v (a)
Prepare the payroll register for the weekly payroll. (Round answers to 2 decimal places, e.g. 15.25.)
RAMIREZ COMPANY
Payroll Register
For the Week Ending January 31
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Anand Kalaimani Al Harthi SAOG located in Muscat Sultanate of Oman involved in manufacturing of
Drugs and Pharmaceutical Industry from 1981 to till now. The SAOG Company has provided the
following information for the months of September, October, November and December 2023.
Month
Sales
Material
Wages
Postage
Electrical
Other
September
Expense
Expense
10,000
6,000
350
1,200
1,000
5,000
October
12,500
7,500
550
2,400
2,000
6,000
November
13,600
8,200
850
3,600
3,000
5,500
December
19,400
9,000
950
4,800
4,000
3,200
Additional information:
a) Cash Balance on 1/10/2023 is RO X000000
b) Sales 25 per cent is for Cash in the same month. 50 per…
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Question 2
«Question 2 of 10
Goremann Corp (GC) has a total market value of $524 million. The market value of equity is $300 million and the company carries debt valued at $224 million. The before-tax cost of debt is 9
percent and the cost of equity is estimated at 14 percent. The statutory company tax rate is 35 percent. What is the weighted-average cost of capital for the company closest to?
O A. 9.34%.
O B. 10.52%.
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O D. 12.05%.
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Journalizing Installment Notes
On the first day of the fiscal year, a company issues $52,000, 11%, five-year installment notes that have annual payments of $14,070. The first note
payment consists of $5,720 of interest and $8,350 of principal repayment.
a. Journalize the entry to record the issuance of the installment notes. If an amount box does not require an entry, leave it blank.
b. Journalize the first annual note payment. If an amount box does not require an entry, leave it blank.
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At 1.1.2017, KAZA Bhd grants 80,000 share appreciation rights to employee, with service
condition that the employee will still be employed in KAZA for three years. grant date,
KAZA's share price is RM3.00. The rights grants have a life of five years. At 31.12.2019,
employee will be received cash by KAZA based on the value of the rights on that date. At the
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follows:
Year
Share price RM
Dividend yield
%
Value of rights
RM
0
3.00
1
0.81
2017…
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What are the future value and the interest earned if $4000 is invested for 3 years at 8% compounded quarterly? (Round your answers to the nearest cent.)
future value
24
interest earned
%24
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Target due: 1/14/21 58
3) Choose the best answer.
Andi has a job that pays $27.35 per hour for a 40-hour work week. She is paid time
and a half for each hour over 40 that she works in a week. She is paid biweekly. What
is her gross pay for a paycheck where she worked 40 hours in each of the two weeks
for a total of 80 hours?
$2,215.35
ST
O $2,735.00
$3,283.00
$2,188.00
O $1,641.00
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Prepare the following journal entries
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Brief Exercise 10-01
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Brief Exercise 10-3 a1-
a2
Sandhill Co. borrows $65,600 on July 1 from the bank by signing a $65,600, 8%, one-y
(a) Prepare the journal entry to record the proceeds of the note.
Brief Exercise 10-04
Brief Exercise 10-05
Brief Exercise 10-06
(b) Prepare the journal entry to record accrued interest at December 31, assuming adjusting
at the end of the year.
Brief Exercise 10-07
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Brief Exercise 10-09
(Credit account titles are automatically indented when amount is entered. Do n
Brief Exercise 10-10 a-c
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- File Home Insert Draw Design Layout References Mailings Review View Help Table De Paste Font Paragraph Styles Editing Dictate Editor Undo Clipboard Styles Voice Editor d) Suppose you begin making a monthly payment of $75.00. Fill in the table. Current Month balance Interest Рayment Amount applied to principal $2750.00 $45.38 $75.00 $29.62 $75.00 3. $75.00 4. $75.00 $75.00 $75.00 $75.00 8. $75.00 9. $75.00 10 $75.00 $75.00 11 12 $75.00 e) Will you ever be out of debt? Explain. Calculation: Page 5 of 6 1043 words D Focus 80% Type here to search 立 目arrow_forwardBookmarks Window Help Fri Apr 30 7:38 PM edugen.wileyplus.com W WileyPLUS Bb Upload Assignment: Exercise16b - 2021 Spring Term (1)... Return to Blackboard Weygandt, Accounting Principles, 13th Edition, Custom WileyPLUS Course for Bronx Community College Help | System Announcements CALCULATOR PRINTER VERSION 4 ВАСK NEXT Exercise 9-12 a-b (Part Level Submission) Oriole Supply Co. has the following transactions related to notes receivable during the last 2 months of 2020. The company does not make entries to accrue interest except at December 31. Nov. 1 Loaned $23,50Chcash to Manny Lopez on a 12-month, 12% note. Dec. 11 Sold goods to Ralph Kremer, Inc., receiving a $61,200, 90-day, 10% note. 16 Received a $97,200, 180 day, 8% note in exchange for Joe Fernetti's outstanding accounts receivable. 31 Accrued interest revenue on all notes receivable. (a) Your answer is correct. lournalize the transactions for Oriole Supply Co. (Ignore entries for cost of goods sold.) (Credit account titles are…arrow_forwardInsert Draw Page Layout Formulas Data Review View Tell me Calibri (Body) v A A 11 Wrap Text v В I U Merge & Centem fx B E F CLR Question Lesson Objective # Ma Q4: Solve the following 2 problems related to employee compensation CLR 1-Obj. 4 L2 a. Jon is employed at annual salary of $41995. His regular work week is 38 hours and he is paid semi-monthly i. What is Jon's Gross pay per period? ii. What is hourly rate of pay? iii. What is his gross pay for a period in which work 12 hours of overtime and he is paid overtime at time and a half of What is a salesperson's commission on net sales of $17800 if the commission is paid on a sliding scale of 7%% on the first $7000, 8%% on the next $8000 and 12.5% on sales over $15000? b. CLR 1- Obj. 5 L2 Mark Q5: Solve the following 3 problems related to GST, HST, PST, 公 四arrow_forward
- Need help with answering the questiins. Thank youarrow_forwardEat min C e New tab Λ Content xW Quiz 3-MAT-143, section 03F, Fa X + Q A ✩ https://www.webassign.net/web/Student/Assignment-Responses/last?dep=34832472 Viewing Saved Work Revert to Last Response DETAILS MY NOTES You deposit $850 in an account paying an annual simple interest rate of 7.8%. Find the future value of the investment (in dollars) after 1 year. DETAILS MY NOTES Calculate the simple interest due (in dollars) on a 40-day loan of $1,600 if the annual interest rate is 9%. (Use 360 days in 1 year.) $ DETAILS MY NOTESarrow_forwardI have already answered A-I (on the pictures I posted below. I just need help finding the answers to J-L.arrow_forward
- Subject: acountingarrow_forwardAHEAD | Login FA_21BUS101A-END-SEM ASSIGI X https://aheadonline.amrita.edu/courses/34/assignments/2033?module_item_id=9674 Discussions 1. From the following Trial balance , you are require to prepare the final accounts for the year ended 31st December 2020. Grades Particulars Amount (Dr) Amount(Cr) 4,80,000 Сapital Drawings Land & Building People 1,35,000 4,50,000 Pages Account Creditors 3,15,000 Files Plant& Machinery 1,20,000 Purchase returns 7,950 Syllabus Bills receivable 18,000 Dashboard Sales 6,54,000 Quizzes Opening stock 1,20,000 1,53,000 78,000 1,500 3,000 1,14,000 10,200 79,800 1,35,000 3,600 6,000 18,000 11,850 Courses Modules Purchase Wages Carriage outwards Carriage inwards Salaries Calendar Discount Inbox Bank balance Debtors Bad debts Sales returns Furniture Advertisements Total 14,56,950 14,56,950 Adjustments: Stock on 31st December,2020 is Rs. 1,05,000 Machinery & Furniture to be depreciated @ 10%. Wages outstanding is Rs. 4,50O Prepaid Advertisement is Rs.1,500 A…arrow_forwardos.schoolsplp.com/enrollments/156569804/items/YUI32/work?prev3LNSDS O Western Brown Loc. Desmos | Graphing. A ALEKS- Gracie Glov. M My Classes | McGra. A Classes Next Activity > els B: Lesson 1 - Salary Target due: 1/14/21 58.33% $344.75 $700 2) Choose the best answer. Caleb has a job that pays $11.15 per hour for a 40-hour work week. He is paid time and a half for every hour over 40 that he works in a week. What will his gross pay be for a week in which he works 46 hours? NTT $546.35 $446 $512.90 $256.45 $769.35 O O O O Oarrow_forward
- Conduct the below exercise Step-1: Click the link The student can use any of the below links to download the same a) https://www.imf.org/- /media/Files/Publications/WEO/2021/Update/January/English/data/WEOJan2021updat e.ashx b) https://www.imf.org/en/Publications/WEO/Issues/2021/01/26/2021-world-economicoutlook- update (And click on download data) Step-2: Answer the below questions What do you understand by Real GDP? What is the Real GDP Growth Rate of India and China in 2019? What is the estimated real GDP growth rate of India and China in 2020? What is the projected real GDP growth rate of India and China in 2021 and 2022? What is the estimated 2022 GDP Loss (in percentage) in comparison to pre-covid levels (January 2020 forecast) in China and Other Emerging Economies in Asia other than China?arrow_forwardQuality of initial posting 15 Frequency of responses to classmates 2.5 Quality of responses to classmates 2.5 Reference to supporting readings 2.5 Language and grammar 2.5 Total 25arrow_forwardMake the working paper elimination entry to facilitate the consolidation.arrow_forward
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