Identify good investment opportunities for the firm

Reference no: EM13324100

For this question, use the information for Sports Baseballs, Inc. Sports Baseballs, Inc. is a corporation that manufacturers and sells baseballs across several states in the Southeast. It had sales of $2.7 million during the last year. Expenses were as follows:

Cost of goods sold............................... $1.2 million

Administrative expenses........................ $250,000

Marketing and selling expenses............... $175,000

Depreciation........................................ $500,000

Interest expense.................................. $200,000

Dividends paid..................................... $150,000

(TCO 1) Assuming a tax rate of 30%, what is the EBIT and taxable income for the year?

$1,000,000 and $800,000 respectively

$575,000 and $375,000 respectively

$565,000 and $365,000 respectively

$425,000 and $225,000 respectively

None of the above

Cost of goods sold............................... $1.2 million

Administrative expenses........................ $250,000

Marketing and selling expenses............... $175,000

Depreciation........................................ $500,000

Interest expense.................................. $200,000

Dividends paid..................................... $150,000

Select all items that will be included in Sports Baseballs, Inc. Balance Sheet. For this exercise you will be choosing more than one option for your answer:

Accounts receivable

Cost of goods sold

Net working capital

Interest expense

Taxes

Current assets

Notes payable

Consulting revenues

Cost of Goods Sold

Which one of the following activities best exemplify working capital management. For this exercise you will be choosing more than one option for your answer:

Identify three good investment opportunities for the firm.

Obtain a short-term loan to purchase materials.

Assess the level of inventory to be kept on hand.

Sale long-term bonds to raise funds for a new machine.

Determine the return of a potential project.

Calculate the cash flows for a project.

Manage payments to suppliers.

Match the following terms with the examples as appropriate:

Potential Matches:

1 : McDonald's work to redesign packaging items with recyclable materials.

2 : Microsoft's monopolistic behavior.

3 : Martha Stewart's sale of ImClone stock as result of information provided by the company's CEO before an announcement was made public that significantly decrease ImClone's stock price.

4 : Parmalat's deliberate fraudulent accounting practices.

5 : established an oversight board responsible for improving auditing standards within companies.

Answer

: Insider trading

: Social responsibility

: Sarbanes-Oxley Act

: Fraud

: Antitrust case

Can you provide some examples of situations in which business ethics play a role in the financial management process?

Reference no: EM13324100

Questions Cloud

What key factors of a business situation : Describe the key differences between simulation models and the models covered in previous modules, not only from the perspective of their applications, but also from the perspective of computing/solving the models.

With these data draw a graph of the linear demand curve : Granny’s Restaurant sells apple pies. Granny knows that the demand curve for her pies does not shift over time, but she wants to learn more about that demand. She has tested the market for her pies by charging different prices

Determine the minimum required wire diameter of safety 5 : A large steel tower is to be supported by a series of steel wires; it is estimated that the load on each wire will be 19,000N. Determine the minimum required wire diameter assuming a factor of safety 5

Explain dimethyl ether and ethanol are structural isomers : Dimethyl ether and ethanol are structural isomers of C2H6O. Which one will have a higher boiling point? Explain why and do the same for their melting points.

Identify good investment opportunities for the firm : Can you provide some examples of situations in which business ethics play a role in the financial management process - Identify three good investment opportunities for the firm.

Evaluate the phenylmagnesium chloride in thf solution : Calculate the amount (mL) needed of a 4.0 M phenylmagnesium chloride in THF solution to give 1.5 equivalents based on the amount of starting material used. Starting material needed

How many firms are in this industry : A market contains a group of identical price-taking firms. Each firm has a marginal cost curve SMC(Q) = 2Q, where Q is the annual output of each firm. A study reveals that each firm will produce if the price exceeds $20 per unit and will shut down

Apply the concepts and techniques of the module : The purpose of the Final Project is to apply the concepts and techniques of the module to the analysis of real-world situations or problems. You will be expected to use diverse sources of information and to carry out an original analysis rather than ..

What is coefficient of static friction on verge of sliding : A chair weighing 150 rests on a level floor that is not frictionless. A man pushes on the chair with a force = 43.0 that is directed at an angle of 34.0 with the horizontal. Assume that the chair is stationary but is on the verge of sliding.

User Account

All Pages