Identify the main tools used in financial planning

Assignment Help Financial Accounting

Reference no: EM133328083

Question 1: Identify the main tools used in financial planning

Question 2: The basic ideas justifying the use of Activity Based Costing (ABC) and Activity Based Budgeting (ABB) are well publicized and the number of applications has increased. However, there are apparently still significant problems in changing from existing systems.

Explain which characteristics of an organization may make the use of ABC useful and the problems that may cause the organization not to use or abandon ABC

Question 3 Discuss the components of a master budget and discuss the importance of Financial Planning and Control

Question 4 Distinguish between capital structure and financial structure.

Question 5

Case Study 1

Data

Steve and Mary Jo, both 35 years old, own a house worth $150,000 and have a yearly income of $50,000, monetary assets of $5,000, two cars worth $20,000, and furniture worth $10,000. The house has a $100,000 mortgage, they have college loans of $10,000 outstanding, and the cars have outstanding loans of $10,000 each. Bills totaling $1,150 for this month have not been paid ($1,000 is to pay off their credit card that they use for bills).

Using the data above, show a balance sheet to calculate Steve and Mary Jo's net worth. How are they doing?

Question 6

Case Study 2

Data

Steve and Mary Jo, who make $50,000 per year, calculated their average tax rate at 15 percent. They contribute 12 percent of their income to charity and pay themselves 10 percent of their income. They have 25 years and $100,000 remaining on their 6-percent mortgage ($7,730 per year), three years and $20,000 remaining on their 7-percent auto loan ($7,410), and 10 years and $10,000 remaining on their 3-percent college loan ($1,160). In addition, utilities and property taxes were $2,270 per year, food was $6,000, insurance was $1,500, and other expenses were $5,430.

Calculate their income statement using the "better" method, and round values to the nearest $10. How are they doing?

Question 7

Case Study 3

Data

Steve and Mary Jo would like you to help them understand where they are financially. You have Steve and Mary Jo's balance sheet and income statements, which were prepared earlier. Calculate each of the six-key liquidity, debt, and savings ratios. Using the data and calculations, comment on how well they are doing. What can and should they be doing to improve?

Reference no: EM133328083

Questions Cloud

Consider the production and sale of computer software : Consider the production and sale of computer software. What is there about software such as Microsoft Office that results in a falling LRAC curve

Diversifiable and non-diversifiable risk : What is the relationship between diversifiable and non-diversifiable risk? How does this distinction affect the reward that investors receive for bearing risk

Define what is the ultimatum game : What is the ultimatum game? Please define. What is the backward induction equilibrium prediction for this game? Briefly describe some general findings

What is the rate of return for the 8% bond : FINANCE 5370 Cornell University If their yields to maturity next year are still 10%, what is the rate of return for the 8% bond

Identify the main tools used in financial planning : Discuss the components of a master budget and discuss the importance of Financial Planning and Control and Distinguish between capital structure and financial

Discuss this statement using a simple intertemporal model : Discuss this statement using a simple intertemporal model (2-period model). Examine first the case when there are no costs of default.

Determine if there are any internal control weaknesses : Determine if there are any internal control weaknesses and how to mitigate it. Remember to use the WIR approach - Ben says this is good because lately one

Risk and assertions for procedures : IAF520 Seneca College which is updated at year end when he counts the inventory to get a number for her balance sheet. Simon orders products based

Describe the geographic features of new orleans : Describe the geographic features of New Orleans and the surrounding area. Use your own words. Imagine you are walking through the city and surrounding area.

User Account

All Pages