Danielle Finance Assignment Help With Solution

Posted on March 14, 2017

Danielle Finance Assignment Help With Solution

 

  1. Which of the following best describes the goal of the firm?

 

  1. a) Maximizing the value of the firm.
  2. b) Maximizing the firm’s profits.
  3. c) Minimizing the risk of the firm’s common stock.
  4. d) Minimizing taxes.
  5. e) All of the above are equally acceptable.

 

Use the following balance sheet and income statement for the next three questions:

Balance Sheet                                                 Income Statement

Assets:

Cash                                        $9,000             Sales (all credit)           $255,000

Accounts Receivable               21,000             Cost of Goods Sold     (153,000)

Inventories                               19,500

Land                                        44,000             Operating Expenses     (45,000)

Other Fixed Assets                   70,000             Depreciation                  (3,000)

 

Liabilities & Owners’ Equity                            Interest Expense            (9,000)

Accounts Payable                    12,000

Long Term Debt                      53,400             Taxes                           (15,300)

Common Stock (Par)                 4,000

Paid In Capital                         78,000

Retained Earnings                    16,100

 

  1. What is the firm’s operating income return on investment?

 

  1. a) 31.1% c) 27.5% e) 40.0%
  2. b) 33.0% d) 62.6%

 

  1. Calculate the firm’s current ratio.

 

  1. a) 4.1 c) 4.5 e) 0.76
  2. b) 7.8 d) 2.5

 

  1. What is the firm’s return on equity?

 

  1. a) 27.5% c) 18.2% e) 45.1%
  2. b) 36.2% d) 30.3%

 

  1. Kingston Corporation had sales of $1,855,000 in 2002. The firm’s costs of goods sold amounted to 70% of sales.  Kingston also paid operating expenses of $225,000, and $26,500 in interest expense.  Also, the firm received $40,000 in dividend income and experienced a $10,000 capital gain on the sale of property.  Compute the corporation’s tax payment.

 

  1. a) $111,180 d) $106,880
  2. b) $99,430 e) $96,030
  3. c) $110,780

 

  1. Net operating losses may be:

 

  1. a) carried back 2 years or carried forward up to 20 years.
  2. b) carried back 5 years or carried forward up to 5 years.
  3. c) deducted from the current year’s earnings.
  4. d) allocated over the next 3 years.
  5. e) carried back 3 years or carried forward up to 5 years.

 

  1. In 2002, Pulaski Corporation had sales of $5 million, cost of goods sold of $3 million, operating expenses of $175,000 and depreciation of $125,000. The firm received $40,000 in dividend income.  Pulaski has $2.5 million in 8% coupon bonds outstanding.  Also, Pulaski sold stock during the year, receiving a $60,000 gain on stock owned 6 years, but losing $40,000 on stock owned 4 years.  What is the firm’s tax payment?

 

  1. a) $527,680 d) $507,280
  2. b) $529,200 e) $520,880
  3. c) $514,080

 

 
  1. Sand Point Corporation had 2002 sales of $65 million. The firm’s operating expenses amounted to $20 million and costs of goods sold totaled $24 million.  In addition, Sand Point received $80,000 in dividend income, and paid $300,000 in dividends to its stockholders.  Sand Point has $25 million in 9% bonds outstanding.  The firm also had $3 million in depreciation expense, and sold land for $3.5 million that had been purchased for $4 million several years earlier.  What is the firm’s tax payment?

 

  1. a) $5,520,900 d) $5,420,900
  2. b) $5,363,160 e) $5,444,120
  3. c) $4,895,900

 

  1. Which of the following items is NOT included in current assets?
a.Short-term, highly liquid, marketable securities.
b.Accounts receivable.
c.Inventory.
d.Bonds.
e.Cash.

 

  1. Which of the following items cannot be found on a firm’s balance sheet under current liabilities?
a.Accrued payroll taxes.
b.Accounts payable.
c.Short-term notes payable to the bank.
d.Accrued wages.
e.Cost of goods sold.

 

How it Works

How It works ?

Step 1:- Click on Submit your Assignment here or shown in left side corner of every page and fill the quotation form with all the details. In the comment section, please mention product code mentioned in end of every Q&A Page. You can also send us your details through our email id support@assignmentconsultancy.com with product code in the email body. Product code is essential to locate your questions so please mentioned that in your email or submit your quotes form comment section.
 
Step 2:- While filling submit your quotes form please fill all details like deadline date, expected budget, topic , your comments in addition to product code . The date is asked to provide deadline.
 
Step 3:- Once we received your assignments through submit your quotes form or email, we will review the Questions and notify our price through our email id. Kindly ensure that our email id assignmentconsultancy.help@gmail.com and support@assignmentconcultancy.com must not go into your spam folders. We request you to provide your expected budget as it will help us in negotiating with our experts.
 
Step 4:- Once you agreed with our price, kindly pay by clicking on Pay Now and please ensure that while entering your credit card details for making payment, it must be done correctly and address should be your credit card billing address. You can also request for invoice to our live chat representatives.
 
Step 5:- Once we received the payment we will notify through our email and will deliver the Q&A solution through mail as per agreed upon deadline.
 
Step 6:-You can also call us in our phone no. as given in the top of the home page or chat with our customer service representatives by clicking on chat now given in the bottom right corner.
 

Features

Features for Assignment Help

Zero Plagiarism
We believe in providing no plagiarism work to the students. All are our works are unique and we provide Free Plagiarism report too on requests.

 

Relevancy
We believe in providing perfect, relevant and 100% accurate solutions to the student as per questions asked. All our experts are perfect in providing that so as to give unique experience to the students.

 

Three Stage Quality Check
We are the only service providers boasting of providing original, relevant and accurate solutions. Our three stage quality process help students to get perfect solutions.

 

 

100% Confidential
All our works are kept as confidential as we respect the integrity and privacy of our clients.

Related Services

  1. Which of the following statements is CORRECT?
a.Depreciation and amortization are not cash charges, so neither of them has an effect on a firm’s reported profits.
b.The more depreciation a firm reports, the higher its tax bill, other things held constant.
c.People sometimes talk about the firm’s net cash flow, which is shown as the lowest entry on the income statement, hence it is often called “the bottom line.”
d.Depreciation reduces a firm’s cash balance, so an increase in depreciation would normally lead to a reduction in the firm’s net cash flow.
e.Net cash flow (NCF) is often defined as follows:

Net Cash Flow = Net Income + Depreciation and Amortization Charges.

 

  1. Which of the following would be most likely to occur in the year after Congress, in an effort to increase tax revenue, passed legislation that forced companies to depreciate equipment over longer lives? Assume that sales, other operating costs, and tax rates are not affected, and assume that the same depreciation method is used for tax and stockholder reporting purposes.
a.Companies’ reported net incomes would decline.
b.Companies’ net operating profits after taxes (NOPAT) would decline.
c.Companies’ physical stocks of fixed assets would increase.
d.Companies’ net cash flows would increase.
e.Companies’ cash positions would decline.

 

  1. Aubey Aircraft recently announced that its net income increased sharply from the previous year, yet its net cash flow from operations declined. Which of the following could explain this performance?
a.The company’s operating income declined.
b.The company’s expenditures on fixed assets declined.
c.The company’s cost of goods sold increased.
d.The company’s depreciation and amortization expenses declined.
e.The company’s interest expense increased.

 

  1. Which of the following statements is CORRECT?
a.Net cash flow (NCF) is defined as follows:

NCF = Net income –  Depreciation and Amortization.

b.Changes in working capital have no effect on free cash flow.
c.Free cash flow (FCF) is defined as follows:

FCF = EBIT(1 – T)

+ Depreciation and Amortization

– Capital expenditures required to sustain operations

– Required changes in net operating working capital.

d.Free cash flow (FCF) is defined as follows:

FCF = EBIT(1 – T)+ Depreciation and Amortization + Capital expenditures.

e.Net cash flow is the same as free cash flow (FCF).

 

  1. Companies generate income from their “regular” operations and from other sources like interest earned on the securities they hold, which is called non-operating income. Lindley Textiles recently reported $12,500 of sales, $7,250 of operating costs other than depreciation, and $1,000 of depreciation. The company had no amortization charges and no non-operating income. It had $8,000 of bonds outstanding that carry a 7.5% interest rate, and its federal-plus-state income tax rate was 40%. How much was Lindley’s operating income, or EBIT?
a.$3,462
b.$3,644
c.$3,836
d.$4,038
e.$4,250

 

  1. JBS Inc. recently reported net income of $4,750 and depreciation of $885. How much was its net cash flow, assuming it had no amortization expense and sold none of its fixed assets?
a.$4,831.31
b.$5,085.59
c.$5,353.25
d.$5,635.00
e.$5,916.75

 

  1. Swinnerton Clothing Company’s balance sheet showed total current assets of $2,250, all of which were required in operations. Its current liabilities consisted of $575 of accounts payable, $300 of 6% short-term notes payable to the bank, and $145 of accrued wages and taxes. What was its net operating working capital that was financed by investors?
a.$1,454
b.$1,530
c.$1,607
d.$1,687
e.$1,771

 

  1. Meric Mining Inc. recently reported $15,000 of sales, $7,500 of operating costs other than depreciation, and $1,200 of depreciation. The company had no amortization charges, it had outstanding $6,500 of bonds that carry a 6.25% interest rate, and its federal-plus-state income tax rate was 35%. How much was the firm’s net income after taxes? Meric uses the same depreciation expense for tax and stockholder reporting purposes.
a.$3,284.55
b.$3,457.42
c.$3,639.39
d.$3,830.94
e.$4,022.48

 

  1. TSW Inc. had the following data for last year: Net income = $800; Net operating profit after taxes (NOPAT) = $700; Total assets = $3,000; and Total operating capital = $2,000. Information for the just-completed year is as follows: Net income = $1,000; Net operating profit after taxes (NOPAT) = $925; Total assets = $2,600; and Total operating capital = $2,500. How much free cash flow did the firm generate during the just-completed year?
a.$383
b.$425
c.$468
d.$514
e.$566

 

  1. Edwards Electronics recently reported $11,250 of sales, $5,500 of operating costs other than depreciation, and $1,250 of depreciation. The company had no amortization charges, it had $3,500 of bonds that carry a 6.25% interest rate, and its federal-plus-state income tax rate was 35%. How much was its net cash flow?

 

a.$3,284.75
b.$3,457.63
c.$3,639.61
d.$3,831.17
e.$4,032.81

 

  1. Arshadi Corp.’s sales last year were $52,000, and its total assets were $22,000. What was its total assets turnover ratio (TATO)?
a.2.03
b.2.13
c.2.25
d.2.36
e.2.48

 

  1. Hutchinson Corporation has zero debt¾it is financed only with common equity. Its total assets are $410,000. The new CFO wants to employ enough debt to bring the debt/assets ratio to 40%, using the proceeds from the borrowing to buy back common stock at its book value. How much must the firm borrow to achieve the target debt ratio?
a.$155,800
b.$164,000
c.$172,200
d.$180,810
e.$189,851

 

  1. Orono Corp.’s sales last year were $435,000, its operating costs were $362,500, and its interest charges were $12,500. What was the firm’s times interest earned (TIE) ratio?
a.4.72
b.4.97
c.5.23
d.5.51
e.5.80

 

  1. Rappaport Corp.’s sales last year were $320,000, and its net income after taxes was $23,000. What was its profit margin on sales?
a.6.49%
b.6.83%
c.7.19%
d.7.55%
e.7.92%

 

  1. Branch Corp.’s total assets at the end of last year were $315,000 and its net income after taxes was $22,750. What was its return on total assets?
a.7.22%
b.7.58%
c.7.96%
d.8.36%
e.8.78%

 

Product Code :Fin186

To get answer for this question, kindly click here (Note: Don’t forget to write the product code in comment section)

You can also email us at assignmentconsultancy.help@gmail.com but please mentioned product code in the mail body while sending emails.You can browse more questions to get answer in our Q&A sections here.

Summary
User Rating
5 based on 1 votes
URL