Round 11

#1 Homework #1A

Purple Dalia, inc has the following balance sheet statement items: current liabilities of $706,281: net fixed and other of $1,962,360; total assets of $3,452,230; and long-term debt of $813,230. What is the amount of the firm’s stockholder’s equity

Your Answer

 

#2 Homework #1C (Operating Cycle and Cash Conversion Cycle ratios)

a)      Canadian Bacon Inc. financial statements are presented in the table below.

Based on the information in the table, and using a 365-day year, calculate Average Day’s Purchases.

Round the answers to two decimal places

Balance Sheet December 31, 2011

Cash and marketable securities $143,000 Accounts payable $278,000
Accounts receivable $354,000 Notes payable $87,000
Inventories $672,000 Accrued expenses $65,000
Prepaid expenses $12,500 Total current liabilities $430,000
Total current assets $1,181,500 Long-term debt $284,000
Gross fixed assets $1,675,000 Par value and paid-in-capital $228,000
Less: accumulated depreciation $500,000 Retained Earnings $1,414,500
Net fixed assets $1,175,000 Common Equity 1,642,500
Total assets $2,356,500 Total liabilities and owner’s equity $2,356,500

Income Statement Year of 2011

Net sales (all credit) $3,136,600.00
Less: Cost of goods sold $2,195,620.00
Selling and administrative expenses $345,000.00
Depreciation expense $146,000.00
EBIT $449,980.00
Interest expense $45,300.00
Earnings before taxes $404,680.00
Income taxes $161,872.00
Net income $242,808.00

 

Your Answer:

 

#3 Homework #2C (FV and PV of a Single Amount Non-Annually)

Camila plans to go for vacation to Australia in 7 years from now. She estimates that she will need $17,879 for the trip. How much does she need to place in a saving account today that earns 6.21 percent per year (compounded quarterly) to accumulate this amount?

Round the answer to two decimal places

Your Answer:

 

#6Homework #3B (FV and PV of annuity non-annually)

You are going to save money for your son’s education. You have decided to place $1,721 every half year at the end of the period into a saving account earning 4.71 percent per year, compounded semi-annually for the next 14 years. How much money will be in the account at the end of that time period?

Round the answer to two decimal places.

Your Answer:

#7Homework #3C (How much will each annual payment be (Using FV or PV))

A commercial bank will loan you $33,814 for 7 years to buy a car. The loan must be repaid in equal monthly payments at the end of the month. The annual interest rate on the loan is 18.42 percent of the unpaid balance. What is the amount of the monthly payments?

Round the answer to two decimal places.

Your Answer:

#8Homework #4D (YTM annually, semi-annually)

What is the yield to maturity of a 12-year bond that pays a coupon rate of 7.97 percent per year, has a $1,000 par value, and is currently priced at $931? Assume annual coupon payments.

Round the answers to two decimal places in percentage form. (Write the percentage sign in the “units” box).

You should use Excel or financial calculator.

 

 

Your Answer: