Carson Electronics’ management has long viewed BGT Electronics as an industry leader and uses this firm as a model firm for analyzing its own performance. The balance sheet and income statements for the two firms are as follows: Calculate the following ratios for both Carson and BGT: a) Debt ratio: b) Average collection period: c) Fixed asset turnover: d) Return on equity:
Q: Opportunity Cost In the context of capital budgeting, what is an 9.1 opportunity cost?
A: Capital budgeting is the process a company takes to evaluate potential major projects or…
Q: A bond is being sold at $960.47. If you know that the maturity of this bond will happen in 15 years…
A: Bonds are defined as financial instruments used by companies to raise additional funds from the…
Q: Given cash flows for Concatenator Manufacturing Division, calculate PV of near- term cash flows, PV…
A: Here, r is 10% g is 6% Free Cash Flows are as follows:
Q: Here and After Corporation plans a new issue of preferred stock. Similar risk stock currently offers…
A: Solution:- Preferred stock is the stock issued by the corporate which get preference over the common…
Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery…
A: NPV and IRR NPV and IRR are capital budgeting tools to decide on whether the capital project should…
Q: 3. Consider two stocks A and B with expected returns of 6% (stock A) and 8% (stock B). The matrix of…
A: "Hi, Thanks for the Question. Since you asked multiple sub part question, we will answer first three…
Q: 3. Expected dividends as a basis for stock values The following graph shows the value of a stock's…
A: Dividend refers to that portion of the net income of the company which the company paid to its…
Q: Marginal Incorporated (MI) has determined that its before-tax cost of debt is 10.0%. Its cost of…
A: (in million dollar) weight (%) Capital required(in million dollar) Value of debt 372 62 181.66…
Q: Sam and Mary purchased a two-bedroom town house for $599 000 with a 10% down payment. The mortgage…
A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
Q: 9.1 Calculating Operating Cash Flow Mater Pasta, Inc., has projected a sales volume of $1,432 for…
A: Operating cash flow is calculated as cash flow generated from business after taxes
Q: 1. Help Prof. White on the following questions he has. Assume $1,000 has been deposited into Prof.…
A: Amount deposited per month us $1,000 Time period is 25 years for deposit and 25 years for…
Q: The Jacob Chemical Company is considering building a new potassium sulfate plant. The following cash…
A: Present Value: The present value is the value of cash flow stream or the fixed lump sum amount at…
Q: A parcel of land can be leased for a period of 10 years. Initial development costs for clearing,…
A: First year revenue (R) = P 22000 Growth rate (g) = 5% r = 8% Let the equivalent revenue = A
Q: 5. Given: First cost = $1,000,000 Salvage value after 5 years = $400,000 N= 7 year life Annual O&M…
A: Solution : Under CCA Rate of Deprecation Deprecation on assets will be charge in first year of…
Q: A portfolio is comprised of equal weights of two stocks labeled Stock X and Stock Y. The covariance…
A: Covariance between stock X and stock Y (CovX,Y) = 0.10 Standard deviation of stock X (SDX) = 0.50…
Q: expansion project that requires an initial fixed asset investment of $2.15 million. The fixed asset…
A: NPV is net present value that can be found out from the present value of cash flow and initial…
Q: Deferred Annuity: 1. Find the present value of a deferred annuity of P760 every six months for 5…
A: Deferred Annuity is a type of annuity where the payment and deposits starts after a certain period…
Q: 5. Find the amount and the present value of an annusty due of P370 every month for 4 years, if money…
A: Note: Only first independent question can be solved as per guidelines. Please post other unrelated…
Q: Consider a non-paying dividend stock sells for $100. The continuously compounded risk-free interest…
A: Current Stock Price is $100 Exercise price at the end of 2 years is $88 To Find: Most profitable…
Q: professionals review the existing accounts at least once a
A: Step 1 A debt analyst examines and evaluates a person's financial or corporate financial history to…
Q: 4. Mr. Torres borrows P 150,000 and agrees to pay it with interest at 16 % compounded quarterly…
A: Given, Loan amount is P 150,000 Interest rate is 16% compounded quarterly Quarterly payments is…
Q: Identify and list 2 methods each for collecting, organising and analysing financial and economic…
A: Qualitative and quantitative data collection methods are used to collect and analyze economic and…
Q: Which of the following statements is false? A. Credit spreads narrow during an economic…
A: Credit Spread is the difference between the yield of the bonds with similar maturity but having…
Q: D4 The company is planning to borrow now $85000 at 10% per year. The company expects to repay the…
A: The annual payment can be found using excel’s PMT function. It is the minimum payment that an…
Q: Explain the role of Anticipatory Breach of Contract in non-performance of contract. Briefly state…
A: A financial contract is an independently agreed agreement, contract, or sale, purchase, exchange,…
Q: QUESTION 4: RISK & RETURN Aisyah, a new investor cannot decide whether to invest in Stock Media…
A: Solution : We should selected that option of investment of portfolio which provide the highest…
Q: Drew, 72, is a widower with a gross estate worth $975,000. He is in the highest current marginal…
A: Correct option is (A) A charitable outright gift, since it reduces Drew's income tax liability…
Q: 1. What is the advantage of offshore trust in terms of avoidance of local laws and restrictions? 2.…
A: An offshore trust is referred as the trust, which subject to govern the offshore jurisdiction of the…
Q: The Jacob Chemical Company is considering building a new potassium sulfate plant. The following cash…
A: The current worth for all the expenditures related to any new project or investment is called the…
Q: Thank you for your answer, can you explain to me why n is negative in this formula?…
A: Here, The price of the bond is P. The periodic coupon payments are C. The rate of return is r. The…
Q: The director where you work asked you to provide feedback on each as a potential investment. Using…
A: With the help of the given data we are going to solve this question in a tabular manner.
Q: Two years ago Agro Inc., purchased an ACE generator that cost $300,000. Agro had to pay an…
A: After tax proceeds from the sales of the assets will be the amount recovered from selling the…
Q: A loan is to be amortized by n level annual payments of X where n > 5. You are given (1) The amount…
A: Let L = Loan amount Number of payments = n Annual payments = X Interest rate = r
Q: g) Based on the findings above, which alternatives is the best for Aisyah to choose? Justify your…
A: The investment in a combination of different stocks is known as a portfolio. The purpose behind…
Q: (a) Patty Stacey deposits $2000 at the end of each of 5 years in an IRA. If she leaves the money…
A: Given,
Q: Last year the Rondoelea Products Company had $142 million in annual sales and a net profit margin…
A: EBIT = [ (Sales x net profit margin) / (1 - tax rate) ] + (Amount of debt * Interest rate) EBIT =…
Q: Determine the capitalized cost of an expenditure of P 200,000 at time 0, P 25,000 in years 2…
A: Capitalized cost is referred as an expense that are added on the basis of the cost of fixed asset on…
Q: Use the data to calculate annual rates of return for Bartman, Reynolds, and the Winslow 5000 Index.…
A: Average return is calculated as : Mean=Sum of returnnumber of periodsStandard deviation (sample) =…
Q: "Financial manager
A: Financial managers are the person who is responsible for the financial health of the company and…
Q: On January 1, 2021, Wild Rapids Water Park issues $40.0 million of 8% bonds to finance expansion.…
A: Given in the question is the below information regarding, Wild Rapids Water Park issues $40.0…
Q: An amortization of a debt is in a form of a gradient series of P5,000 on the first year, P4,500 on…
A: Interest rate = 0.06 Year Amortization 1 5000 2 4500 3 4000 4 3500
Q: Compare consulting and assurance services.
A: Consulting is classified as the practice of giving insight on a subject to a third party for a fee.…
Q: Do you think the PointCast situation a case of pride clouding someone’s judgment or more accurately…
A: I believe he was absurd and tragically allowed his sense of self to be a burden. Given that the…
Q: Suppose instead, Evergreen uses a retention ratio of 30%. Their capital budget for the upcoming…
A: Financing Decision refers to those decisions undertaken by the companies to decide the proportion of…
Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery…
A: Initial cash flows is the cash flows occurred at the beginning of the project. It will be incurred…
Q: 30. The internal rate of return is the simple (noncompounded) interest rate that equates the present…
A: The internal rate of return (IRR) is the rate at which initial investment equals the present value…
Q: As an analyst, how do you go about choosing a peer group of companies for an individual company?
A: Peer groups form the basis of payroll exercises for many companies. The CEO's salary benchmark…
Q: Considering the recent criminal conduct of Bernard Madoff in the world of finance, indicating…
A: The recent criminal conduct of Bernard Madoff was based on a Ponzi scheme. Mr. Madoff defrauded…
Q: (Margin Purchase and Selling Short) You are very optimistic about the personal computer industry, so…
A: Margin purchase is the strategy of borrowing funds from a bank or a broker to buy stocks. Short…
Q: McDonald's offers numerous perks and benefits for its employees which makes the staff happy and…
A: To summarise, benefits are intended to supplement a person's wage, whereas a perk is more of a…
Carson Electronics’ management has long viewed BGT Electronics as an industry leader and uses this firm as a model firm for analyzing its own performance. The balance sheet and income statements for the two firms are as follows:
Calculate the following ratios for both Carson and BGT:
a) Debt ratio:
b) Average collection period:
c) Fixed asset turnover:
d)
Step by step
Solved in 2 steps with 3 images
- Chasse Building Supply Inc. reported net cash provided by operating activities of $243,000, capital expenditures of $112,900, cash dividends of $35,800, and average maturities of long-term debt over the next 5 years of $122,300. What is Chasses free cash flow and cash flow adequacy ratio? a. $94,300 and 0.77, respectively c. $130,100 and 1.06, respectively b. $94,300 and 0.82, respectively d. $165,900 and 1.36, respectivelyNet Cash Flow from Operating Activities The following are accounting items taken from Tyrone Shoelaces Required: a. Net income, 22,900 b. Payment for purchase of land, 4,000 c. Payment for retirement of bonds, 6,000 d. Depreciation expense, 7,800 e. Receipt from issuance of common stock, 7,000 f. Patent amortization expense, 2,700 g. Increase in accounts receivable, 3,400 h. Payment of dividends, 5,000 i. Decrease in accounts payable, 2,600 Required: Prepare the operating activities section of Tyrones statement of cash flows using the indirect method.JEY-4322 Inc. reported the following data for last year: JEY-4322 Inc.Balance Sheet Beginning BalanceEnding BalanceAssets Cash$ 128,000$ 139,000Accounts receivable331,000481,000Inventory567,000471,000Plant and equipment, net894,000869,000Investment in Tesla Inc.400,000428,000Land (undeveloped)246,000249,000Total assets$ 2,566,000$ 2,637,000Liabilities and Stockholders' Equity Accounts payable$ 382,000$ 341,000Long-term debt981,000981,000Stockholders' equity1,203,0001,315,000Total liabilities and stockholders' equity$ 2,566,000$ 2,637,000 JEY-4322 Inc.Income StatementSales $ 3,880,000Operating expenses 3,336,800Net operating income 543,200Interest and taxes: Interest expense$ 111,000 Tax expense197,000308,000Net income $ 235,200 JEY-4322 Inc. paid dividends of $123,200 last year. The “Investment in Tesla Inc.” item on the balance sheet represents an investment in the stock of another company. The company's minimum required rate of return is 15%. What was the company’s residual income…
- UTV Corp. have the following account balances for the year ended December 31, 2020:DEBIT BALANCESAmountCash and cash equivalents400,000Accounts receivable900,000Raw materials560,000Goods in process600,000Finished goods1,400,000Financial assets at FVOCI2,500,000Sinking fund200,000Land1,000,000Building6,000,000Plant and equipment2,400,000Patent800,000Goodwill1,400,000Unrealized loss – FVOCI100,000Prepaid benefit cost20,000Treasury shares at cost250,000TOTAL18,530,000 CREDIT BALANCESAmountBank overdraft100,000Due from an officer50,000Allowance for bad debts40,000Accumulated depreciation – building1,600,000Accumulated depreciation – plant and equipment400,000Notes payable, due June 30, 20211,300,000Notes payable, due June 30, 20222,100,000Accounts payable1,000,000Provision180,000Warranty liabilities80,000Income tax payable120,000Finance lease liability180,000Deferred tax liability280,000Actuarial gain300,000Revaluation surplus360,000Share capital6,000,000Share premium2,000,000Retained…The statement of financial position and profit or loss of an entity on December 31, 20x1 shows the following information: Cash and cash equivalents 1,500,000Trade and other receivables 3,000,000 Inventories 9,000,000Investment property (Cost model) 3,500,000Investment in associate 2,000,000Property, plant and equipment 12,500,000Total assets 31,500,000 Trade and other payables 12,250,000Current tax payable 4,500,000Deferred tax liability 1,750,000Ordinary share capital 5,000,000Retained earnings 6,750,000Other components of equity 1,250,000Total liabilities & equity 31,500,000Revenue 5,600,000Cost of sales (2,000,000)Gross profit 3,600,000Distribution of cost (780,000)Administrative expenses (900,000) Impairment loss (reversal) on assets held for saleFinance costs (300,000)Share of profit of associates 240,000Profit for the period from continuing operations 1,860,000 Discontinued Operations:Profit for the period from discontinued operations…FDN Company shows the following balances on December 31, 2021: Accounts receivable P250,000 Accumulated depreciation P200,000 Allowance for uncollectible accounts P57,000 Cash P200,000 Property, plant and equipment P800,000 Supplies P20,000 How much is the Current Assets in the Statement of Financial Position as of December 31, 2021?
- 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?On September 1, 2020, the account balances of Tom Cruise Repair, Inc. were asfollows.No Debit No Credit101 Cash £4,880 158 Accumulated DepreciationEquipment£2,100112 AccountsReceivable3,520 201 Accounts Payable 3,400126 Supplies 2,000 209 Unearned Service Revenue 1,400157 Equipment 18,000 212 Salaries and Wages Payable 500311 Share Capital-Ordinary 10,000320 Retained Earnings 11,000£28,400 £28,400During September, the following summary transactions were completed.Sept. 8 Paid £1,700 for salaries due employees, of which £1,200 is for September.10 Received £1,200 cash from customers on account.12 Received £3,400 cash for services performed in September.15 Purchased store equipment on account £3,000.17 Purchased supplies on account £1,200.20 Paid creditors £4,500 on account.22 Paid September rent £500.25 Paid salaries £1,050.27 Performed services on account and billed customers for services provided£1,600.29 Received £750 from customers for future service.Adjustment data consist of:1.…Blum Services has the following unadjusted balances at year-end.Cash $12,900Prepaid insurance 2,000Office supplies 1,300Office equipment 10,500Accumulated depreciation–office equipment 3,500Accounts payable 2,900Salaries payable -0-Unearned service revenue 4,500A.L.Blum, capital 11,750A.L.Blum, drawing 5,600Service revenue 13,350Salary expense 3,700Depreciation expense -0-Supplies expense -0-Insurance expense -0-The following information is available to use in making adjusting entries.a. Office supplies on hand at year-end: $250b. Prepaid insurance expired during the year: $325c. Unearned revenue remaining at year-end: $2,500d. Depreciation expense for the year: $1,800e. Accrued salaries at year-end: $900From the above information prepare the adjusted trial balance for the company (NB.Worksheet must include unadjusted trial balance, adjustments, and the adjusted trialbalance.
- An entity reported the following current assets on December 31, 2020: Cash in bank 4,000,000 Accounts receivable 7,000,000 Notes receivable 2,500,000 Notes receivable discounted (400,000) Inventory 4,500,000 Financial asset – FVPL 1,000,000 Financial asset – FVOCI 1,500,000 Prepaid expenses 200,000 Deferred tax asset 2,500,000 Equipment classified as “held for sale” 2,000,000 Total 24,800,000 Customers’ accounts 5,000,000 Allowance for doubtful accounts (500,000) Sale price of unsold goods out on consignment at 125% of cost and excluded from ending inventory 2,500,000 Net accounts receivable 7,000,000 What amount should be reported as total current assets on December 31, 2020?Hirshberg Corporation's comparative balance sheet appears below: Comparative Balance Sheet Ending Balance Beginning Balance Assets: Current assets: Cash and cash equivalents $ 59,000 $ 39,000 Accounts receivable 33,100 39,000 Inventory 74,900 69,000 Total current assets 167,000 147,000 Property, plant, and equipment 378,000 349,000 Less accumulated depreciation 200,000 168,000 Net property, plant, and equipment 178,000 181,000 Total assets $ 345,000 $ 328,000 Liabilities and stockholders' equity: Current liabilities: Accounts payable $ 34,900 $ 30,000 Accrued liabilities 81,800 69,000 Income taxes payable 62,900 59,000 Total current liabilities 179,600 158,000 Bonds payable 61,000 89,000 Total liabilities 240,600 247,000 Stockholders’ equity: Common stock 47,200 50,000…Gerald Company had the following account balances for 2021. December 31 January 1 Accounts payable 500,000 650,000 Inventory 300,000 250,000 Accounts receivable 800,000 900,000 Prepaid expenses 400,000 600,000 All sales and purchases of inventory were on account. Depreciation expense of P900,000 was recognized during 2021. Equipment was sold during 2021 and a gain of P300,000 was recognized. The entity provided the following cash flow information for 2021: Cash collected from customers 9,500,000 Cash paid to suppliers 4,100,000 Cash paid for other expenses 1,400,000 What is the net income under accrual basis? What is the net income under cash basis?