Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Accrual income versus cash flow for a period Thomas Book Sales, Inc., supplies textbooks to college and university bookstores. The books are shipped with a proviso that they must be paid for within 30 days but can be returned for a full refund credit within 90 days. In 2014, Thomas shipped and billed book titles totaling $760,000. Collections, net of return credits, during the year totaled $690,000. The company spent $300,000 acquiring the books that it shipped.
a. Using accrual accounting and the preceding values, show the firm’s net profit for the past year.
b. Using cash accounting and the preceding values, show the firm’s net cash flow for the past year.
c. Which of these statements is more useful to the financial manager? Why?
Jones has been depositing $150 in a saving account every three months for the past 3 years. This account paid 4% convertible quarterly. Jones has just made the last deposit. Jones is buying a car for $8,000. He is taking out a car loan. He will use t..
Future value of an ordinary annuity: Robert Hobbes plans to invest $25,000 a year at the end of each year for the next seven years in an investment that will pay him a rate of return of 11.4 percent. How much money will Robert have at the end of seve..
An investor recently purchased a corporate bond which yields 11.5%. The investor is in the 40% combined federal and state tax bracket. What is the bond's after-tax yield?
Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.
Carter Corporation's sales are expected to increase from $5 million in 2012 to $6 million in 2013, or by 20%. Its assets totaled $4 million at the end of 2012. Carter is at full capacity, so its assets must grow in proportion to projected sales. Unde..
A stock has an annual return of 11.6 percent and a standard deviation of 47 percent. What is the smallest expected gain over the next year with a probability of 1 percent?
Kolby Corp. is comparing two different capital structures. Plan I would result in 12,000 shares of stock and $100,000 in debt. Plan II would result in 8,700 shares of stock and $155,000 in debt. What is the price per share of equity under Plan I? Pla..
Municipal bonds are usually tax-free. Since investor’s car about after-tax return on their investment, these bonds have higher yield than bonds whose interest rate payments are taxable. Investors demand compensation for default risk in the form of ri..
ABC Inc. borrows money at 8%, sells bonds at 7%, and the purchasers of common stock require 14% rate of return. If the company has borrowed $40 million, sold $60 million in bonds, and sold $100 million worth of common stocks, what is the Weighted Ave..
A company is considering a 5-year project that opens a new product line and requires an initial outlay of $78,000. The assumed selling price is $91 per unit, and the variable cost is $58 per unit. Fixed costs not including depreciation are $17,000 pe..
A local firm has debt worth $250,000, with a yield of 9%, and equity worth $400,000. It is growing at a 6% rate, and its tax rate is 40%. A similar firm with no debt has a cost of equity of 11%. Under the MM extension with growth, what is the value o..
Write Brown's memo to the home office to report on her purchases.- Include the store's balance sheet as the final part of your memo. Prepare a T-account to compute the balance for Cash.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd