How much will you have saved in four years

Assignment Help Financial Management

Reference no: EM131876161

1. Assignment: Forecast the Income Statement and Balance Sheet for 2008. Replicate Balancing Forecasted Assets and Liabilities to Find Funding###.
Assume sales and related items increase by 12%
PP&E rises by $9,000,000
Depreciation Expense rises by 450,000
SG&A can rise by any amount you assume.

Income Statement

	2007
Sales	30,000,000
COGS	24,000,000
Gross Margin	6,000,000
SG&A	3,000,000
Depreciation	600,000
EBIT	2,400,000
**Interest	669,400
EBT	1,730,600
Taxes	605,710
Net Income	1,124,890
Dividends	200,000
Additon to Retained Earnings	924,890

Balance Sheet

	2007
Cash & Marketable Securities	1,000,000
Accounts Receivable	2,000,000
Inventories	6,000,000
Net PP&E	4,000,000
Total Assets	13,000,000
Accounts Payable	2,500,000
Accruals	700,000
Notes Payable	1,000,000
Long Term Debt	7,100,000
*Plug
Common Paid in Capital	500,000
Retained Earnings	1,200,000
Total Liabilities and Equity	13,000,000

2. Assignment: "Price a bond by discounting cash flows. Then use the Excel formula to price the bond. Finally, given the bond price, use the Excel formula to get the yield to maturity: Replicate Bond Pricing in Excel### in Sakai using the same Excel formulas and functions. "

The bond: This is for a 8 year bond with semiannual payments. The coupon rate is 7% and the stated yield to maturity is 7.4%.

3. Assignment: Create an Amortization Schedule by replicating Amortization Schedule###, including formulas and Excel functions. Only replicate one sheet where the payment is known.

Loan Length: 25 years
APR 7.2%
Monthly Payment 3,800

4. You are saving to buy a second honeymoon for your parents. Starting today you will put $440 into a savings account. Each monthly contribution thereafter will be .6% (.006) larger than the one before. The APR (a stated rate) on the account is 9% and compounding is monthly. How much will you have saved in four years?

Attachment:- finance.rar

Reference no: EM131876161

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