Reference no: EM131105545
Answer the following questions.
(a) On May 1, 2004, Liselotte Neumann Company sold some machinery to Tee-off Company on an installment contract basis. The contract required five equal annual payments, with the first payment due on May 1, 2004. What present value concept is appropriate for this situation?
(b) On June 1, 2004, Mike Brisky Inc. purchased a new machine that it does not have to pay for until May 1, 2006. The total payment on May 1, 2006, will include both principal and interest. Assuming interest at a 12% rate, the cost of the machine would be the total payment multiplied by what time value of money concept?
(c) Kelly Gibson Inc. wishes to know how much money it will have available in 5 years if five equal amounts of $35,000 are invested, with the first amount invested immediately. What interest table is appropriate for this situation?
(d) Patty Sheehan invests in a "jumbo" $200,000, 3-year certificate of deposit at First Wisconsin Bank. What table would be used to determine the amount accumulated at the end of 3 years?
|
What balance sheet accounts must have changed
: Over the past year, M. D. Ryngaert & Co. had an increase in its current ratio and a decline in its total assets turnover ratio. However, the company's sales, cash and equivalents, DSO, and fixed assets turnover ratio remained constant. What balance s..
|
|
Why would the inventory turnover ratio be more important
: Why would the inventory turnover ratio be more important for someone analyzing a grocery store chain than an insurance company?
|
|
What do you believe is the irs position
: Recently the IRS has joined the debate because they say the full reserve is unfair from a taxation viewpoint. What do you believe is the IRS position?
|
|
Compute the effective interest rate to the nearest percent
: Compute the effective interest rate to the nearest percent that Vickie would pay if she chooses to make the five annual payments.
|
|
What present value concept is appropriate for this situation
: On June 1, 2004, Mike Brisky Inc. purchased a new machine that it does not have to pay for until May 1, 2006. The total payment on May 1, 2006, will include both principal and interest. Assuming interest at a 12% rate, the cost of the machine would b..
|
|
What is the present value of the five rents discounted
: What is the present value of the five rents discounted at 12%?
|
|
What interest rate was used to determine the amount
: What interest rate (to the nearest percent) was used to determine the amount of the annuity? (Assume end-of-year payments)
|
|
What is the primary emphasis of each group
: Financial ratio analysis is conducted by three main groups of analysts: credit analysts, stock analysts, and managers. What is the primary emphasis of each group, and how would that emphasis affect the ratios they focus on?
|
|
Why does the market price per share
: Explain how earnings per share, dividends per share, and book value per share are calculated, and what they mean. Why does the market price per share not equal the book value per share?
|