Reference no: EM13760501

Question 1:

Mark each or the accounts listed in the following table as follows:

a. In column indicate in which statement - income statement or balance sheet -the account belongs,

b. In column indicate whether the account is a current asset (CA). current liability (CL), expense (K), fixed asset (FA), long-term debt (LTD), revenue (R), or stockholders's equity (SE).

Question 2:

(a) by comparing the financial stataments of 2012 and 2011 you find that the following accounts changed. Fill the column next to the account with the appropriate cash flow - Write IN for cash inflow and out for cash outfollow.

(b) During the year, Kitchen Supply incraised its accounts receivable by $130, decreased its inventory by $75, and decreased its accounts payable by $40. Calculate the three accounts affect the firm's cash flows tier the year?

(c) A firm generated net inclome of $878. The depreciation expense was $47 told dividends way paid in the amount of $25. Accounts payables decrcaced by $13. accounts receivables increased by $22. inventory decreased by $14, and net axed aSSeiS dread by $8, That was no juiciest txpense. What was the net cash flow from operating activity?

(d) Wises Corner Gmea had the following current account values. What effect did the change in net working, capital have on the firm's cash flows for 2009? Calculate the net outflow of cash or the net inflow of cash.

		22112
Cash	87	112
Accounts receivable	304	321
Inventory	919	868
Accounts payable	$617	$714

Question 3:
Refer us the financial statements bellimr and calculate the ratios as required:

			20041 Galaxy United, kn. arid 2009 Balance Sheets 2:201                             IN2
Cash	517,000	$24,700	Accounts payable	5128,600 51344700
Accounts rec.	54.103	56.700	Long, term debt	147,500              141,000
Inventory	_29.400	-MIN	Common stOCI	125,000              140.000
Sub-total	$260,500	$268,100	Retained earnings	120.700              131200
Net fixed assets	261,300	279.400
Total	55214899	$_541504	Total	5.521,499               .1117445211

• The par value of the common sunk is 51 per share.

Calculate the following ratios and provide and explanation of trends:

1. What is the current ratio for 2009

2. What is the quick ratio for 2009?

3. How mama days of sales are in receivables? (Use 2009 values)

4. What is total debt-equity ratio? (Use 2009 values)

5. What is the cash coverage talk, for 2009?

6. What is the return on equity? (Use 2009 values)

7. What is the amount the dividends paid for 2009?

8. What is the amount of the cash flow from investment activity for 2009?

Question 4:

Consider the data in the following table and calculate the value of each perpetuity ostion 5.

Pespeturity	Annual amount	Discount rate
A	20000	8
B	100000	10
C	3000	6
D	60000	5

Question 5:

a) Calculate the value of each of the bends shown in the following table. all of which pay interest annually

Bond	Par Value	coupon Interset	Years to maturity	required return
A	1000	0.04	9	0.09
B	750	0.12	14	0.08

(b) The value of a bond depends on the lime till maturity and the interest rate in the market. How will a change in the interest rate affect the value of the bond?