Заказ 33954 (200 грн.)

Заказ 33954 (200 грн.) 11.07.2019 14:06

VARIANTS OF PRACTICAL TASKS

Variant 1

 

1. The company shows the following information on its 2015 income statement: sales - $70,000; costs - $46,000; other expenses - $6,750; depreciation expense - $8,000; interest expense - $12,000; taxes - $9,165; dividends - $8,200. In addition, you’re told that the firm issued $6,415 in new equity during 2015, and redeemed $8,000 in outstanding long-term debt.

a. What is the operating cash flow?

b. What is the cash flow to creditors?

c. What is the cash flow to stockholders?

d. If net fixed assets increased by $7,500 during the year, what was the addition to NWC?

e. What is the cash flow from assets?

2.The market values  of  a firm's  capital are as  follows:

•  Debt outstanding: $8  million

•  Preferred  stock outstanding: $2 million

•  Common stock outstanding: $10  million

•  Total  capital: $20 million

What is the firm's target capital structure based on its existing capital structure?

3.Consider the costs for the projects presented in the following table.  Assuming that 100,000 units are produced for each firm, calculate the DOL for Atom Company and Beta Company.

Operating Costs for Atom Company and Beta Company

	Atom  Company	Beta  Company
Price	4	4
Variable costs	3	2
Fixed costs	40 000	120 000
Revenue	400                    0	401                    0

4/.Sosa Lumber Yard has a current accounts receivable balance of $425,467. Credit sales for the year just ended were $2,510,255. What is the receivables turnover? The days’ sales in receivables? How long did it take on average for credit customers to pay?

5.Tommy Illfinger Inc.’s net income for the most recent year was $6,250. The tax rate was 34 percent. The firm paid $2,235 in total interest expense and deducted $1,450 in depreciation expense. What was Tommy Illfinger’s cash coverage ratio for the year?

6.What are the NPV and the profitability index for the following set of cash flows if the relevant discount rate is 10%? What if the discount rate is 15%? If it is 22%?

 

Year	0	1	2	3
Cash Flow	-1600	900	350	300