What should be the formula in B13?
A
B
1
2017
2
Cash
62,000
3
Accounts...
What should be the formula in B13?
A
B
1
2017
2
Cash
62,000
3
Accounts Receivable
348,000
4
Inventory
728,000
5
Plant and Equipment
629,000
6
Accumulated Depreciation
149,000
7
Accounts Payable
157,000
8
Notes Payable
263,000
9
Other Current Liabilities
166,000
10
Long-term Debt
423,000
11
Common Stock
414,000
12
Retained Earnings
195,000
13
Current Ratio
?
Group of answer choices
=SUM(B2:B4)/(B7+B9)
=SUM(B2:B4)/SUM(B7:B9)
=(B1+B2)/(B6+B7+B8)
=(B4-B4)/(B6+B7+B8)
=SUM(B2:B5)/(B6+B8+B9)
What would be the value of cell B7?
A
B
C
1
Last Dividend
$0.75
2...
What would be the value of cell B7?
A
B
C
1
Last Dividend
$0.75
2
Required Return
12%
3
Growth Rate 1
8%
4
Growth Rate 2
3%
5
Growth Rate 1 Time
5
6
Transition Period
6
7
Intrinsic Value
=FAME_HModelValue(B1*(1+B3),B2,B3,B4,B5,B6)
Group of answer choices
$12.36
$18.22
$11.92
$22.44
$28.46
2. Pinches Salt Company has the following income statement:
Sales
&
2. Pinches Salt Company has the following income statement:
Sales
$5,000,000
Variable Operating
Cost
1,000,000
Fixed Operating Cost
2,000,000
EBIT
$2,000,000
Interest
500,000
EBT
$1,500,000
Tax (at
40%)
600,000
EAT
$ 900,000
Preferred
Dividends
100,000
Earnings available for
CS
$ 800,000
Shares
Outstanding
400,000
a. Compute Pinches DOL, DFL, and DTL
b. If sales increase to $5,500,000, what is the forecast
of the EPS. You need to...
Year
Investment A
Investment B
0
-$5,000,000
-5,000,000
1
$1,500,000
$1,250,000
2
$1,500,000
$1,250,000
3
$1,500,000...
Year
Investment A
Investment B
0
-$5,000,000
-5,000,000
1
$1,500,000
$1,250,000
2
$1,500,000
$1,250,000
3
$1,500,000
$1,250,000
4
$1,500,000
$1,250,000
5
$1,500,000
$1,250,000
6
$1,500,000
$1,250,000
7
$2,000,000
$1,250,000
8
0
$1,600,000
You have been hired as a consultant for Pristine Urban-Tech
Zither, Inc. (PUTZ), manufacturers of fine zithers. The market for
zithers is growing quickly. The company bought some land three
years ago for $2.1 million in anticipation of using it as a toxic
waste dump site but has...
The Alexander Company reported the following income statement
for 2016:
Sales $15,000,000
Less: Operating expenses
Wages,...
The Alexander Company reported the following income statement
for 2016:
Sales $15,000,000
Less: Operating expenses
Wages, salaries, benefits $6,000,000
Raw materials 3,000,000
Depreciation 1,500,000
General, selling, and administrative expenses 1,500,000
Total operating expenses 12,000,000
Earnings before interest and taxes (EBIT) $3,000,000
Less: Interest expense 750,000
Earnings before taxes $2,250,000
Less: Income taxes 1,000,000
Earnings after taxes $1,250,000
Less: Preferred dividends 250,000
Earnings available to common stockholders $1,000,000
Earnings per share—250,000 shares outstanding $4.00
Assume that all depreciation and 75 percent...
Kidd Corp. reports the following for 2021 on 100,000 unit sales:
Sales $1,000,000 Variable costs 550,000...
Kidd Corp. reports the following for 2021 on 100,000 unit sales:
Sales $1,000,000 Variable costs 550,000 Contribution margin 450,000
Fixed costs 300,000 Net income $ 150,000 Kidd's management is
proposing a 5% price increase for 2022 ($10.00 to $10.50 per unit),
and it expects the resulting weaker demand for its product to
result in a 7% decrease in volume (100,000 units to 93,000 units).
If the price change is adopted and the assumptions are correct,
Kidd's break even point (in...
1.
Margin of Safety
a. If Canace Company, with a break-even point
at $423,400 of sales,...
1.
Margin of Safety
a. If Canace Company, with a break-even point
at $423,400 of sales, has actual sales of $580,000, what is the
margin of safety expressed (1) in dollars and (2) as a percentage
of sales? Round the percentage to the nearest whole number.
1. $
2. %
b. If the margin of safety for Canace Company
was 25%, fixed costs were $1,537,500, and variable costs were 75%
of sales, what was the amount of actual sales (dollars)?...
CAPITAL BUDGETING PROJECT
NEWMAN ENTERPRISES, Inc. is a multinational conglomerate
corporation providing a wide range of...
CAPITAL BUDGETING PROJECT
NEWMAN ENTERPRISES, Inc. is a multinational conglomerate
corporation providing a wide range of goods and services to its
customers. As part of its budgeting process for the next year, it
has three mutually exclusive projects under consideration, and it
might decide which project should receive the investment funds for
this year.
As part of the financial analysis team, it is up to you to
determine the appropriate valuation of each project. However,
before you can determine the...