Q: Explain certificate of deposit (CD).
A: Money Market Instruments are short term financial instruments which helps in increasing financial…
Q: Today is the morning of Jan 2, Year 5. XYZ Inc has exchange-listed convertible bonds outstanding.…
A: Bonds are the debt obligations of a business on which it requires to pay regular interest to the…
Q: a series of 12 annual payments of $2400 is equivalent to three equal payments, one each at the end…
A: Present Value: The present value is the value of cash flow stream or the fixed lump sum amount at…
Q: Given the following holding-period returns, LOADING... Month Sugita Corp. Market 1 2.4 % 1.0 % 2…
A: Here,
Q: When examining tax, the optimal debt level is proportional to its current earnings. D. The…
A: Managers choose internal finance over outside sources. The weighted average cost of capital, risk…
Q: purchase price was $1,000. Also, assume that today comparable bonds are paying 7.0 percent. a) What…
A: Bond Price: The price of a bond can be estimated by discounting its future expected coupon payments…
Q: Jason purchased a car for $32,000 and arranged the monthly financing at 6.85% compounded…
A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…
Q: 8. a. What is the annual interest amount for a $2,000 bond that pays 7.5 percent interests? b.…
A: Annual interest amount on bond With the par or face value of bonds (FV) and annual interest rate…
Q: xtended a 5,000,000, 10% loan to a borrower. The principal is due in 4 years time but interest is…
A: A financial responsibility might be a contractual obligation to give cash or something comparable to…
Q: Find the simple interest paid on a $510 loan at 7.8% annual interest for 19 months.
A: Simple interest can be calculated as: = Principal * Rate * Months / 12
Q: D4) When a 2-year currency swap between U.S. Dollars and Currency X is created, the exchange rate is…
A: Cross-currency swaps are OTC derivatives in which two parties agree to exchange interest and…
Q: Summarize the process of planning for financial management.
A: Financial management comprises planning, organizing, directing, and managing the financial…
Q: You can obtain a loan of $200000 at a rate of 15 percent for two years. You have a choice of (i)…
A: Loan amount $ 2,00,000.00 Time Period 2 Interest Rate 15%
Q: What will the value of your account be 4 years from today?
A: Future Value of Annuity: It is the future worth of the present stream of cash flows. It is…
Q: 5. Interest rate. A 2-year loan of $4650.25 accumulated $269.75 in simple interest. Calculate the…
A: Simple interest rate Is very simple interest rates and no effect of compounding of interest it…
Q: O/S Balance on January 01, 2021
A: Outstanding balance refers to the amount which is to be owed on any type of debt as interest…
Q: $5476.6 monthly If you can afford to pay the monthly payment from the above calculation, how much…
A: Here, Monthly Payment is $5476.6 Time Period (n) is 20 years Interest Rate (Rate) is 6.25%…
Q: A 6-percent corporate coupon bond is callable in 10 years for a call premium of one year of coupon…
A: Par value of bond = 1000 Coupon rate = 6% Coupon amount = 1000 * 6% = 60
Q: ant to purchase a building to open your restaurant and you are given 3 different payment schedules:…
A: Present value of all future cash flow based on interest rate and period of cash flow would gives the…
Q: A college scholarship fund received a gift of $ 156,469.08. The money is invested in CDs, bonds, and…
A: The following information has been provided in the question: Amount of gift received= $156,469.08…
Q: 3. Beverly and Kyle Nelson currently insure their cars with separate companies paying $450 and $375…
A: Future value of the savings can be calculated as: = Annual savings * Future Value Annuity Factor…
Q: Suppose you want to use this fund to buy a $279,000 houseboat when you retire in 40 years. How much…
A: Future Value = $279,000 Interest Rate = 4.75% Time Period = 40 Years
Q: 9. Given the following information: Total assets 360,000,000 18,000,000 Total liabilities Total…
A: Net Asset Value (per share) can be calculated as: = (Assets - Liabilities) / Number of shares
Q: If 2400 dollars is invested in an account for 10 years. Find the value of the investment at the end…
A: Future value is the value of initial investments at a future date after compounding it with a rate…
Q: A new production system for a factory is to be purchased and installed for $175,812. This system…
A: Equivalent annual worth The annual cost of owning and sustaining an asset is determined by dividing…
Q: 10. Mary Canfield purchased the All-Canadian Compound bond fund. While this fund doesn't charge a…
A: Total contingent sales load = amount × sales load percentage Amount = $11,800 Sales load percentage…
Q: 1. Plans qualifying for preferential tax treatment must meet minimum participation and vesting…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: 10. Warren bought a bicycle for $2500, plus 13% HST. He arranged to make a payment to the store at…
A: Price of Bicycle is $2500 HST on Bicycle is 13% Time period is 2 years Interest rate is 6%…
Q: You make single investment of $500 in mutual fund earning 8% annual interest which is compounded…
A: Future Value: It is the worth of an investment or resource on a particular date from here on out,…
Q: contingent deferred sales load?
A: Contingent deferred sales load refers to the load which is mutual fund by investors who is paying…
Q: NZ Company wishes to determine the returns on two of its investment projects, A and B. Project A was…
A: Return on investment is the amount of profit generated on the investment as a percentage of…
Q: What is the Macaulay duration of a semiannual-pay 7.39 percent coupon bond with 12 years to maturity…
A: Here, To Find: Macaulay Duration =?
Q: Suppose the beta of this value based company is 0.85, the risk-free rate is 2 percent, and the…
A: The capital asset pricing model is used for calculation of expected rate of return on the basis of…
Q: California Resource Corporation has a bond outstanding with a coupon interest rate of 6 percent that…
A: Present value/ price of a bond In case of a bond, a series of equal payment of coupon is made at…
Q: What are the projected sales for the last year before the sale?
A: Future Value: It represents the future worth of the present amount of cash flow. It is calculated…
Q: effective interest rate
A: The effective rate of interest refers to the interest rate which is charged on the amount of the…
Q: After carefully going over your budget, you have determined you can afford to pay $854 per month…
A: Present Value of Ordinary Annuity refers to the concept which gives out the discounted or today's…
Q: The following table provides information relating to Omega Ltd, as well as the market portfolio. The…
A: Here, To Find: Part A. Omega's M2 value =? Part B. Omega's Sharpe Ratio =?
Q: The Drogon Company just issued a dividend of $2.36 per share on its common stock. The company is…
A: The cost of equity is the cost which is incurred to raise the funds from equity shares. It is…
Q: verage of 6.6% and the bond B yields 5.8%. Matt requires that least 2 times as much money be…
A: Bonds are paid annual interest rate on them and face value is paid on the maturity of bond only.
Q: Which of the following statements is FALSE? A. Equity cost of capital is normally higher then…
A: The Modigliani Miller propositions: In their paper on Capital Structure, Modigliani and Miller (MM)…
Q: A particular security's default risk premium is 3 percent. For all securities, the inflation risk…
A: Rate of return on security is the sum of all risk premiums added together to get overall required…
Q: 9. Given the following information: Total assets S Total liabilities S 360,000,000 18,000,000…
A: Net asset value is calculated in the case of mutual funds. It is the value per share after the…
Q: What is risk return ratio?
A: Any susceptibility a corporation or organization has to factors that might affect profitability or…
Q: You are considering purchasing Kimberly-Clark stock. Suppose the risk-free interest rate is 4.5…
A: The Cost of Equity or required rate of return will be Calculated by using Capital Pricing Model…
Q: You deposit $50,000 into a fund that pays 5% per year compounded annually. You plan to make the…
A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…
Q: You would like to have $550,000 when you retire in 40 years. How much should you invest each quarter…
A: Required Amount at retirement is $550,000 Time period is 40 years Interest rate is 6.4% Compounded…
Q: Beverly and Kyle Nelson currently insure their cars with separate companies paying $450 $375 a year.…
A: Future value of savings depends on the interest rate and period of deposit and amount of interest…
Q: Fishing Designs has arranged to borrow $12,000 today at 10% interest. The loan is to be repaid with…
A: Loan Payments are the amounts that the borrower is required to return in line with the terms of the…
Q: How is certificate of deposit beneficial?
A: A certificates of deposit basically are a sort of the financial savings account that holds a sure…
PLEASE SKIP IF YOU ALREADY ANSWERED. I WILL UPVOTE
Step by step
Solved in 2 steps
- Return on total assets ratio: net income/ average total assets 21,331/(321,195+225,248)/2= 0.07807= 7.8% (2020 year) 11588/(162,648+225,248)/2= 0.059= 6.0% (2019 year) Write financial analysis report.A comparative balance sheet for Carter Fuel Injection Systems, Inc. appears below:Carter Fuel Injection Systems, Inc.Comparative Balance SheetDec. 31, 2020 Dec. 31, 2019AssetsCash $ 34,000 $11,000Accounts receivable 25,000 13,000Inventory 18,000 17,000Prepaid expenses 11,000 9,000Long-term investments -0- 17,000Equipment 55,000 33,000Accumulated depreciation—equipment (20,000) (15,000)Total assets $123,000 $85,000Liabilities and Stockholders' EquityAccounts payable $ 27,000 $ 7,000Bonds payable 35,000 45,000Common stock 31,000 23,000Retained earnings 30,000 10,000Total liabilities and stockholders' equity $123,000 $85,000Additional information:1. Net income for the year ending December 31, 2020 was $35,000.2. Cash dividends of $15,000 were declared and paid during the year.3. Long-term investments that had a cost of $17,000 were sold for $14,000.4. No equipment was sold during 2020.HINT: depreciation expense must be determined. Notice in #4 it states no equipment was “sold”during…The following items were excerpted from Poeltl, Inc.'s balance sheets: December 31, 2023December 31, 2022Cash$86,300$59,000Accounts receivable65,60070,600Inventory157,000150.300Property and equipment794,500745,400Accumulated depreciation(184,000)(168,200)Accounts payable61,00050,600Wages payable20,40023,000 Poeltl's 2023 income statement showed net income of $463,000, depreciation expense of $57,000, and a gain on disposal of equipment of $16,000. On Poeltl's 2023 statement of cash flows, how much is Net Cash Provided by Operating Activities?
- Please see attachment. The bottom portion is what I cannot figure out. The following financial information is for Priscoll Company. Priscoll CompanyBalance SheetsDecember 31 Assets 2020 2019 Cash $ 84,700 $ 78,650 Debt investments (short-term) 66,550 48,400 Accounts receivable 125,840 108,900 Inventory 278,300 199,650 Prepaid expenses 30,250 27,830 Land 157,300 157,300 Building and equipment (net) 314,600 223,850 Total assets $1,057,540 $844,580 Liabilities and Stockholders’ Equity Notes payable (short-term) $205,700 $145,200 Accounts payable 78,650 62,920 Accrued liabilities 48,400 48,400 Bonds payable, due 2023 302,500 205,700 Common stock, $10 par 242,000 242,000 Retained earnings 180,290 140,360 Total liabilities and stockholders’ equity $1,057,540 $844,580 Priscoll CompanyIncome StatementFor…The comparative balance sheet of Merrick Equipment Co. for Dec. 31, 20Y9 and 20Y8, is:Dec. 31, 20Y9 Dec. 31, 20Y8AssetsCash $70,720 $47,940Accounts receivable (net) 207,230 188,190Inventories 298,520 289,850Investments 0 102,000Land 295,800 0Equipment 438,600 358,020Accumulated depreciation—equipment (99,110) (84,320)Total assets $1,211,760 $901,680Liabilities and Stockholders' EquityAccounts payable (merchandise creditors) $205,700 $194,140Accrued expenses payable (operating expenses) 30,600 26,860Dividends payable 25,500 20,400Common stock, $1 par 202,000 102,000Paid-in capital: Excess of issue price over par—common stock 354,000 204,000Retained earnings 393,960 354,280Total liabilities and stockholders' equity $1,211,760 $901,680The income statement for the year ended December 31, 20Y9, is as follows:Sales $2,023,898Cost of goods sold 1,245,476Gross profit $778,422Operating expenses:Depreciation expense $14,790Other operating expenses 517,299Total operating expenses 532,089Operating…Question 1The following information was extracted from the financial statement of Barryfor the year ended 31 December 2020. RMSales 437,500Opening inventories 17,500Closing inventories 26,250Cost of sales 262,500Other income 3,750Expenses 61,250Current liabilities 47,250Trade receivables 39,375Bank 8,750Cash 31,500Required:(a) Show the formulae and compute the value of the following for Barry:(i) Purchases(ii) Gross profit(iii)Net Profit
- The comparative balance sheets of RegalEagle Inc. at the beginning and the end of the year 2020 are as follows. RegalEagle INC.BALANCE SHEETS Dec. 31, 2020 Jan. 1, 2020 Inc./Dec. Assets Cash $ 47,720 $ 15,720 $32,000 Inc. Accounts receivable 95,830 90,110 5,720 Inc. Equipment 43,830 24,110 19,720 Inc. Less: Accumulated Depreciation-Equipment 21,830 11,000 10,830 Inc. Total $165,550 $118,940 Liabilities and Stockholders’ Equity Accounts payable $ 24,830 $ 17,110 7,720 Inc. Common stock 102,720 82,110 20,610 Inc. Retained earnings 38,000 19,720 18,280 Inc. Total $165,550 $118,940 Net income of $48,830 was reported, and dividends of $30,550 were paid in 2020. New equipment was purchased and none was sold.Prepare a statement of…Here is comparative balance sheet for 2021 and 2022, stating each asset as a percent of total assests and each liability and stockholders' equity item as a percent of the total liabilities and stockholders' equity. 2020 (%) 2021 (%) Assets Cash 43,500 8.84 55,000 14.25 Inventory 22,000 4.47 23,500 6.09 Equipment and fixures 380,000 77.24 255,000 66.08 Supplies 3,800 0.77 4,100 1.06 Prepaid expenses 9,200 1.87 12,500 3.24 Store design/Buildout 27,000 5.49 27,000 7.00 Loan Fee 4,000 0.81 5,500 1.42 Advertising and Marketing 2,500 0.51 3,300 0.86 Total assets 492,000 100.00 385,900 100.00 Bank Loan 150,000 30.49 170,000 44.05 Other liability (Balancing figure) 292,000 59.35 170,900 44.29 Owner contribution 50,000 10.16 45,000 11.66 Total equity and liability 492,000 100.00 385,900 100.00 Please explain or make an assumption of the figureHere are comparative balance sheets for Velo Company. Velo CompanyComparative Balance SheetsDecember 31 Assets 2020 2019 Cash $73,200 $32,700 Accounts receivable 85,600 70,500 Inventory 169,800 186,600 Land 74,000 100,600 Equipment 260,500 200,100 Accumulated depreciation—equipment (65,800 ) (33,700 ) Total $597,300 $556,800 Liabilities and Stockholders’ Equity Accounts payable $35,400 $47,300 Bonds payable 151,400 203,000 Common stock ($1 par) 217,500 173,200 Retained earnings 193,000 133,300 Total $597,300 $556,800 Additional information: 1. Net income for 2020 was $104,100. 2. Cash dividends of $44,400 were declared and paid. 3. Bonds payable amounting to $51,600 were redeemed for cash $51,600. 4. Common stock was issued for $44,300 cash. 5. No…
- The comparative balance sheets of Pronghorn Inc. at the beginning and the end of the year 2020 are as follows. PRONGHORN INC.BALANCE SHEETS Dec. 31, 2020 Jan. 1, 2020 Inc./Dec. Assets Cash $ 46,480 $ 14,480 $32,000 Inc. Accounts receivable 94,200 89,720 4,480 Inc. Equipment 42,200 23,720 18,480 Inc. Less: Accumulated Depreciation-Equipment 20,200 11,000 9,200 Inc. Total $162,680 $116,920 Liabilities and Stockholders’ Equity Accounts payable $ 23,200 $ 16,720 6,480 Inc. Common stock 101,480 81,720 19,760 Inc. Retained earnings 38,000 18,480 19,520 Inc. Total $162,680 $116,920 Net income of $47,200 was reported, and dividends of $27,680 were paid in 2020. New equipment was purchased and none was sold.Prepare a statement of cash…Supply the missing figures for the following: 1. Current assets, 2020 - 2. Total assets, 2020 - 3. Noncurrent liabilities, 2020 - 4. Total assets 2021 - 5. Current liabilities, 2021 - 6. Total liabilities and owner's equity, 2021 - 7. Current assets, 2022 - 8. Current liabilities, 2022 -Carla Vista Co. has these comparative balance sheet data: CARLA VISTA CO.Balance SheetsDecember 31 2020 2019 Cash $ 16,140 $ 32,280 Accounts receivable (net) 75,320 64,560 Inventory 64,560 53,800 Plant assets (net) 215,200 193,680 $371,220 $344,320 Accounts payable $ 53,800 $ 64,560 Mortgage payable (15%) 107,600 107,600 Common stock, $10 par 150,640 129,120 Retained earnings 59,180 43,040 $371,220 $344,320 Additional information for 2020: 1. Net income was $32,500. 2. Sales on account were $392,900. Sales returns and allowances amounted to $27,300. 3. Cost of goods sold was $217,300. 4. Net cash provided by operating activities was $57,200. 5. Capital expenditures were $30,000, and cash dividends were $19,000. Compute the following ratios at December 31, 2020. (Round current ratio and inventory turnover to 2 decimal places, e.g. 1.83…