Question 1
""Preparation of a complete master budget 20-5A Near the end of 2011, the management of Simid Sports Co, a merchandising company, prepared the following estimated balance sheet for December 31, 2011 Simid Sports Company Estimated Balance Sheet December 31,2011 Assets Cash $18,000 Accounts Receivable 262,500 Inventory 75,000 Total Current Assets 355,500 Equipment $270,000 Less accumulted depreciation 33,750 236,250 Total Assets $591,750 Liabilities and Equity Accounts Payable $180,000 Bank loan payable 7,500 Taxes payable (due 3/15/2012) 45,000 Total liabilities $232,500 Common Stock 236,250 Retained Earnings 123,000 Total stockholders equity 359,250 Total liabilities and equity $591,750 To prepare a master budget for January, February and March 2012, management gathers the following information a. Simid Sprts single product is purchased for $30 per unit and resold for $55 per unit. The expected inventory level of 2,500 units on December 1,2011, is more than management's desired level for 2012, which is 20% of the next months expected sales (in units). Expected sales are: January, 3,500 units, February, 4,500 units, March, 5,000 units, and April, 5,000 units. b. Cash slaes nd credit sales represent 25% and 75%, respectively, of total sales. Of the credit sales, 60% is collected in the first month after the month of sale and 40% in the second month, after the month of sale. For the December 31, 2011, accounts receivable balance, $62,500 is collected in January and the remaining $200,000 is collected in February. c. Merchandise purchases are paid for as follows: 20% in the first month after the month of purchase and 80% in the second month after the month of purhase. For the December 31, 201, accounts payable balance, $40,000 is paid in January and the remaining $140,000 is paid in February. d. Sales commissions equal to 20% of sales ar paid each month. Sales salaries (excluding commissions) are $30,000 per year. e. general and administrative salaries are $72,000 per year. Maintenance expense equals $1,000 per month and is paid in cash. f. Equipment reported in the December 31, 2011, balance sheet was purchased January 2011. It is being depreciated over eight years under the straight-line method with no salvage value. The following amounts for new equipment purchases are planned in the coming quarter: January, $18,000, February, $48,000, and March, $14,400. This equipment will be depreciated under the straight-line method over eight years with no salvage value. A full month's deprecation is taken for the month is which the equipment is purchased. g. The company plans to acquire land at the end of March at a cost of $75,000, which will be paid with cash on the last day of the month. h. Simid Sports has a working arrangement with its bank to obtain additional loans as needed. The interest rate is 12% per year, and interest is paid at the end of each month-end based on the beginning balance. Partial or full payments on these loans can be made on the last day of the month. The company has agreed to maintain a minimum ending cash balance of $12,500 each month. i. The income tax rate for the company is 40%. Income taxes on the first quarter's income will not be paid until Apri l15. Required. Prepare a master budget for each of the first three months of 2012; include the following component budgets (show supporting calcuations as needed, and round amounts to the nearest dollar). 1. Monthly sales budgets (showing both budgeted unit sales and dollar sales)
Question 2
Rachel, The final paper is an combination of the prior part 1-3 and now a part 4 to make a final 8-10 page report. So you have done the first 3 parts which I will attach. Now need part 4 and make a 8-10 page paper Final Paper As the global marketplace becomes increasingly more competitive, it is incumbent upon human resources to broaden its strategic mission and become a strategic partner with executive staff. This requires human resources to have a detailed understanding of not only the human resources field, but the strengths and challenges of its organization, and the complexities of its industry. Through these units of knowledge, human resources can maximize its value by providing competent advice and counsel to its organization as it strives to achieve its strategic objectives. The comprehensive Final Paper comprises four parts, with Parts 1, 2, and 3 submitted during the first three weeks of the course. In Week 5, a cohesive final paper will be due that includes Part 4, an executive summary, and the previously submitted Parts 1, 2, and 3. This final paper should be eight to ten pages and should incorporate any comments or suggestions made by the instructor on Parts 1, 2, and 3. Focus of the Final Paper In your final project, you are to choose a major problem/issue affecting an organization of your choice, and then utilize your detailed knowledge of human resources and strategic planning to develop a comprehensive plan that minimizes, and hopefully eliminates, this threat to your chosen organization?s ability to meet its long-range organizational goals and objectives. The components of this comprehensive project are as follows: Part 1 ? Overview of Organization/Problem (due in Week 1): In a 2-3 page paper, provide an overview of the organization and the problem/issue that challenges that organization. Next, detail how the problem/issue affects (or can affect) the future viability of the organization. Finally, discuss the principle role of human resources in an organization and how human resources can provide critical advice and counsel to the organization in addressing this challenge. Part 2 ? Environment Analysis (due in Week 2): Optimal solutions are determined when a researcher has a thorough understanding of a company and its industry, along with the strengths and weaknesses that impact its future viability. In the second part of your plan, perform a SWOT Analysis (Strengths, Weaknesses, Opportunity, and Threats) on your chosen organization and provide an analysis of these results in light of the problem or issue under study. Be attentive to identifying how the problem or issue impacts the organization and its competitive position within the industry. The paper should be 2-3 pages. Part 3 ? Financial Analysis (due in Week 3): Nearly every problem or issue confronting an organization has a financial or budgetary impact. For instance, staff turnover has not only a direct cost on recruitment expenses, training costs, and productivity, but also an indirect cost related to the loss of organizational learning. In Part 3, detail the financial implications to the organization related to your problem or issue, including the additional costs that may arise if the problem or issue is not resolved effectively. The paper should be 1-2 pages. Part 4 - Recommendations (due in Week 5): The final part of your comprehensive project incorporates your recommendations. Based on your work in Parts 1, 2, and 3, provide 2-3 recommendations to organizational leadership that would resolve the problem/issue in question. Be sure to detail any challenges the organization should consider in implementing your recommendations (culture, motivation, etc.) and your strategy to overcome these challenges. The recommendations section should be 2-3 pages. The Final Paper due at the end of Week 5 will comprise Parts 1, 2, 3 and 4. It should begin with an Executive Summary, which is an abbreviated capture of the entire paper and as such should touch upon all major points while engaging the reader. The final paper should be 8-10 pages. Note that some of the information related to this project may not be readily available in course materials, requiring you to research contemporary management trends in the public sector. Writing the Final Paper The Final Paper: Must be eight to ten double-spaced pages (excluding title and reference pages) in length and formatted according to APA style as outlined in the approved APA style guide. Must include a cover page that includes: - Title of assignment - Student?s name - Course name and number - Instructor?s name - Date submitted Must address the questions with critical thought and complete sentences. Must include an introductory paragraph with a succinct thesis statement. Must conclude with a restatement of the thesis and a conclusion paragraph. Must use at least four scholarly resources. Must include, on the final page, a Reference Page that is completed according to APA style as outlined in the approved APA style guide.,I have to attached parts 1,2 & 3 separately. You will notice that part one is different than Part 2 & 3 we did not understand each other for that one so its not on Nike.,The last one Part 3
Question 3
can you answer me all the questions expect the essay questions in an hour?,. (TCO 1) Which one of the following actions best matches the primary goal of financial management? (Points : 3) increasing the net working capital while lowering the long-term asset requirements improving the operating efficiency, thereby increasing the market value of the stock increasing the firm?s market share reducing fixed costs and increasing variable costs increasing the liquidity of the firm by transferring short-term debt into long-term debt 2. (TCO 1) When analyzing alternative capital structures for a firm, a financial manager must consider which of the following? (Points : 3) type of loan amount of funds needed cost of funds mix of debt and equity all of the above 3. (TCO 1) Market value reflects which of the following: (Points : 3) The amount someone is willing to pay today for an asset. The value of the asset based on generally-accepted accounting principles. The asset?s historical cost. A and B only None of the above 4. (TCO 1) Which of the following is true regarding income statements? (Points : 3) It reveals the net cash flows of a firm over a stated period of time. It reflects the financial position of a firm as of a particular date. It records revenue only when cash is received for the product or service provided. It records expenses based on the recognition principle. None of the above is a true statement. 5. (TCO1) Telemarket Inc. has sales of $625,000. They paid $43,000 in interest during the year and depreciation was $79,000. Administrative costs were $100,000 and other costs were $160,000. Assuming a tax rate of 35 percent, what is Telemarket?s taxable income? (Points : 3) $157,950 $322,000 $243,000 $200,000 6. (TCO 1) Home Best Hardware had $315,000 in taxable income last year. Using the tax rates provided in Table 2.3, what are the company?s income taxes? (Points : 3) $122,850 $106,100 $94,500 None of the above 7. (TCO 1) Pizza A had earnings after taxes of $390,000 in the year 2008, and 300,000 shares outstanding. In year 2009, earnings after taxes increased by 20 percent to $468,000 and 25,000 new shares were issued for a total of 325,000 shares. What is the EPS figure for 2009? (Points : 3) $1.30 $1.44 $0.77 $0.69 8. (TCO 1) The financial statement that summarizes a firm's operations over a period of time is called a(n): (Points : 3) income statement. cash flow statement. production report. balance sheet. periodic operating statement. 9. (TCO 1) Best Electronics has EBIT of $450,000, interest of $30,000, taxes of $50,000, and depreciation of $80,000. What is the company?s operating cash flow? (Points : 3) $497,200 $480,000 $530,000 $470,000 $450,000 10. (TCO 3) You opened a new certificate of feposit with $13,000. Your broker indicated that this investment pays five percent interest, compounded quarterly. Which one of the following statements is correct concerning this investment? (Points : 3) You will receive equal interest payments every three months over the life of the investment. You could earn more interest by investing in an account paying five percent simple interest. You would have earned more interest if you had invested in an account paying annual interest. You will earn less and less interest each year over the life of the investment. You will earn more interest in year 3, than you will in year 2. 11. (TCO 3) Mr. Smith will receive $6,500 a year for the next 14 years from his trust. If the interest rate on this investment is eight percent, what is the approximate current value of these future payments? (Points : 3) $93,000 $53,500 $84,300 $52,000 12. (TCO 3) Paper Pro recently purchased a printing machine costing $97,000. The company financed this purchase at 8.25 percent interest, with monthly payments of $2,379.45. How many years will it take the firm to pay off this debt? (Points : 3) 3.0 years 4.0 years 4.25 years 4.5 years 5.0 years 13. (TCO 3) Fine Oak Woodworks is considering a project that has cash flows of $6,000, $4,000, and $3,000 for the next three years. If the appropriate discount rate of this project is 10 percent, which of the following statements is false? (Points : 3) The current value of the project?s inflows is $13,000 The approximate current value of the project?s inflows is $11,000 The project?s inflows are higher than zero The project should be accepted because its present value is positive 14. (TCO 4) You are considering two investments. Investment I, is in a software company and Investment II, is an engineering company. The investments offer the following cash flows: Year Software Company Engineering Company 1 $5,000 $15,000 2 $3,000 $8,000 3 $4,000 $9,000 4 $3,600 $11,000 If the appropriate discount rate is 10 percent, what is the approximate present value of the Software Company investment? (Points : 3) $15,600 $12,500 $12,750 $15,000 15. (TCO 3) North Bank offers you an APR of 13.17 percent compounded monthly, and South Bank offers you an effective rate of 13.75 percent on a business loan. Which bank should you choose and why? (Points : 3) South Bank because its effective rate is higher. North Bank because the APR is lower. South Bank because its effective rate is lower. North Bank because its effective rate is lower. Tim needs to borrow $5,000 for two years. The loan will be repaid in one lump sum at the end of the loan term. Which one of the following interest rates is best for Tim? (Points : 3) 7.5 percent simple interest 7.5 percent interest, compounded monthly 8.0 percent simple interest 8.0 percent interest, compounded annually 8.0 percent interest, compounded monthly 2. (TCO 3) Which one of the following best exemplifies a perpetuity? (Points : 3) a mortgage of $860 a month for 30 years $2,000 annual payments from a trust fund indefinitely social security payments of $2,500 a month for life student loan payments of $600 a month for three years $250 a month over the life of a lease 3. (TCO 3) Fanta Cola has $1,000 par value bonds outstanding at 12 percent interest. The bonds mature in 25 years. What is the current price of the bond if the YTM is 13 percent? Assume annual payments. (Points : 3) $1078 $1085 $927 $1000 4. (TCO 6 and 8) A bond's indenture agreement will include which of the following? (Points : 3) description of any loan collateral call provisions total amount of the bond issue protective covenants all of the above none of the above 5. (TCO 3) Bonds issued by Blue Sky Airlines have a face value of $1,000 and currently sell for $850. The annual coupon payments are $80. If the bonds have 10 years until maturity, what is the approximate YTM of the bonds? (Points : 3) 10.50% 11.50% 11.75% 12% 6. (TCO 3) The preferred stock of Bean Coffee pays an annual dividend of $5.60. It has a required rate of return of eight percent. What is the price of the preferred stock? (Points : 3) $700 $70 $5.20 $6.05 None of the above 7. (TCO 3) Intelligence Research, Inc. will pay a common stock dividend of $1.60 at the end of the year. The required rate of return by common stockholders is 13 percent. The firm has a constant growth rate of nine percent. What is the current price of the stock? (Points : 3) $35 $40 $27 $29 8. (TCO 3) Royal Electric paid a $2 dividend last year. The dividend is expected to grow at a constant rate of five percent over the next three years. Common stockholders require a 12 percent return. What is the total amount of dividends stockholders will receive during the next three years? (Points : 3) $6.62 $6.03 $6.52 $6.85 9. (TCO 6) Which of the following is true regarding the primary market? (Points : 3) it is the market where the largest number of shares are traded on a daily basis. it is the market in which the largest number of issues are listed. it is the market with the largest number of participants. it is the market where new securities are offered. it is the market where shareholders trade most frequently with each other. 10. (TCO 6) A member of the NYSE who trades on the floor of the exchange for his or her personal account is called a(n): (Points : 3) specialist. independent broker. floor trader. stand-alone agent. dealer. 11. (TCO 6) The maturity date of a bond is defined as: (Points : 3) the first date on which a bond can be called. the date on which the principal amount is paid. 20 years after the issue date. the date on which the next interest payment will be made. the original issue date. 12. (TCO 6) Star Industries has one outstanding bond issue. An indenture provision prohibits the firm from redeeming the bonds during the first two years. This provision is referred to as a _____ provision. (Points : 3) deferred call market liquidity debenture sinking fund 13. (TCO 8) Which of the following is true regarding bonds? (Points : 3) Most bonds do not carry default risk. Municipal bonds are free of default risk. Bonds are not sensitive to changes in the interest rates. Moody?s and Standard and Poor?s provide information regarding a bond?s interest rate risk. None of the above is true 14. (TCO 6) Which of the following best describes a floating-rate bond? (Points : 3) A bond that adjusts the coupon payments based on an interest rate index, such as the T-bill. A bond that is issued by the U.S. government. A bond that adjusts the coupon payment date. A bond that has no coupons, but adjusts the face value payment based on inflation. 15. (TCO 6) Which of the following are not true regarding convertible bonds? Select all that apply: (Points : 3) Are extremely rare Can be exchanged for a fixed number of shares at maturity only Can be exchanged for a fixed number of shares before maturity Allow the holder to require the issuer to buy the bond back,Rachel,please just answer the questions with problems. This is a midterm and I only have an hour to finish it. I know someone already post these quesitns, you might have the answers already. Please just let me know. This is urgent .. bonus at the end.
Question 4
3. Espinola Corporation's most recent balance sheet and income statement appear below: BALANCE SHEETS 2006 2005 ASSETS Cash & equivalents $320,000 $180,000 Accounta receivable 220,000 240,000 Inventory 140,000 130,000 Prepaid expenses 20,000 20,000 Total current assets 700,000 570,000 Plant & equipment, net 860,000 920,000 Total Assets $1,560,000 $1,490,000 LIABILITIES & EQUITIES Accounts payable $200,000 $170,000 Accrued payable 80,000 80,000 Notes payable, current 40,000 40,000 Total current liabilities 320,000 290,000 Bonds payable 210,000 220,000 Total liabilities 530,000 510,000 Preferred stock, $100 par value, 5% 100,000 100,000 Common stock, $1 par value 100,000 100,000 Additional paid in capital, common stock 150,000 150,000 Retained earnings 680,000 630,000 Total equities 1,030,000 980,000 Total liabilities & equities $1,560,000 $1,490,000 INCOME STATEMENT 2006 Sales $1,220,000 Cost of goods sold 790,000 Gross margin 430,000 Selling & Admin expense 268,000 Net operating income 162,000 Interest expense 26,000 Income before tax 136,000 Income tax 41,000 Net income 95,000 Dividends paid, preferred 5,000 Net income for common shareholders 90,000 Dividends paid, common 40,000 Net income added to retained earnings 50,000 Beginning retained earnings 630,000 Ending retained earnings $680,000 Other: Market value of stock end of year $12.87 Tax rate 30% Bond interest 10% Return demanded on preferred stock 10% Return demanded on common stock 14% Required compute the following for 2006 : a. Gross margin percentage. b. Earnings per share (of common stock). c. Price-earnings ratio. d. Dividend payout ratio. dividend per share dividend payout ratio e. Dividend yield ratio. f. Return on total assets. after tax cost of interest average total assets return on total assets g. Return on common stockholders' equity. average stockholders equity average preferred stock return on equity h. Book value per share. i. Working capital. j. Current ratio. k. Acid-test ratio. l. Accounts receivable turnover. m. Average collection period (days). n. Inventory turnover. o. Average sale period (days). p. Times interest earned. q. Debt-to-equity ratio. r. Show that financial leverage is positive or negative.
Question 5
"Instructions: For analytical questions make sure to show your work for full credit. Do not report only the final answer but show formulas and calculations when appropriate. If you would like, you may work in small groups of 2-4 people to discuss the problem set. However, you must write up answers individually. If you decide to work in a group, please list the names of the group members on your problem set. Also, please write your program of study on the problem set (it makes it much easier to return the problem sets to you). 1. Investing in the market portfolio (5 points): You are interested in investing funds in the market portfolio of US stocks and 1 year Treasury notes, which you view as the risk-free asset. In order to figure out the characteristics of returns on the overall US stock market, you decide to analyze historical data. You collect data on historical Treasury note rates as well as historical data on stock returns. I have placed the file PS2.xls on LATTE. It contains Treasury note interest rate data from 1954 to 2010 (downloaded from The Federal Reserve Bank of St. Louis; the link to the website is on LATTE under ?Useful Links?) and return data for the value-weighted US stock market from 1954 to 2009 (downloaded from CRSP from WRDS). a. What is the average interest rate (not including 2010)? b. What is the average stock return? What is the standard deviation of the stock returns? Before making your capital allocation decision you take a close look at the data and especially the recent experience. c. If you had invested 100 at the beginning of 2000 in 1-year Treasury notes what would your investment have been worth at the end of 2009? How about if you had invested 100 in the stock market instead? What do you conclude from this exercise? d. Your estimate of the US stock market return for 2010 is 12%. In this case what would be the value of your Treasury note and stock market investments at the end of 2010 (this is part c. plus one more year)? e. Over the period 1954 to 2009 what was the average excess return of the stock market over Treasury notes, i.e. what was the risk premium on the stock market? What was the Sharpe ratio of the stock market (Hint: use the average interest rate as your measure of the risk-free rate)? f. After an extended meeting with your investors, you determine that they would be indifferent investing all of their funds in a portfolio with a 12% expected return and 20% standard deviation and a portfolio with a 6% expected return and a 10% standard deviation. What is their level of risk aversion A? Currently the 1-year Treasury note interest rate is 0.3%. You decide to use the Sharpe ratio from part e. as your best guess of the slope of the CML when investing over the next year (remember, you are investing in the risk-free asset and the market portfolio). Fin201a, Prof. Jens Hilscher, Sep 24 2010 g. Draw the CML in risk return space. What is the expected return and standard deviation of the risky portfolio? (Hint: Add the current Treasury note rate to the historical risk premium from e.) h. Your client chooses to invest 75% of a portfolio in the stock market and 25% in Treasury notes. Using your inputs from part g. what is the expected return and standard deviation of her portfolio? Indicate the portfolio that corresponds to your client?s portfolio on the CML. i. Now suppose that instead your client decides to invest a proportion y of funds so that the complete portfolio has an expected rate of return of 4%. What is the proportion y? j. What is the optimal amount y that your client should invest in the risky portfolio? Use the degree of risk aversion A from part f. to calculate the optimal proportion y of the total investment your client should invest in the market portfolio. What is the expected value and standard deviation of the rate of return on your client?s portfolio? 2. Investing in 2 risky assets and the risk free asset (5 points): Assume that there are two risky funds that you consider investing in: a corporate bond fund (B) and a large cap stock fund (L). After careful analysis you determine that B has expected return 3.5% and standard deviation 10% while L has expected return 7.5% and standard deviation 20%. You determine that the correlation between the returns is 0.25. a. What is the expected return and standard deviation of the portfolio that invests 50% in the corporate bond fund B and 50% in the large cap stock fund L? b. Tabulate the portfolio opportunity set of investing in the two risky funds B and L: make a table with the weights, the expected returns, and the standard deviations of the portfolios. Use investment proportions for the funds from zero to 100% in increments of 20%. (Hint: Use Excel.) c. What are the investment proportions in the minimum-variance portfolio of the two risky funds, and what is the MVP?s expected return and standard deviation? Use the formula from class to calculate this (show your work). If you want, you can then check your answer using the Excel solver. d. Draw the investment opportunity set POS in mean-variance space assuming that you can invest any fraction (larger or equal to zero) in the two assets (and the rest in the other asset). Remember that you now have eight feasible risk-return combinations that you can plot. Indicate the minimum variance portfolio and the two investment opportunities that invest 100% in either B or L and zero in the other in the graph. Now assume that you are advising a client. The investor has standard mean variance utility with A=4. The investor decides to invest in the two funds B and L you have been researching and decides to also invest in Treasury notes which offer a risk-free rate of return of 0.5%. [Note: here you add the risk-free asset as another investment choice.] e. Of the eight portfolios (that you considered in parts a. to d. above) which one has the highest reward to variability ratio (Sharpe ratio)? What is Sharpe ratio of that portfolio? f. What fraction w of funds invested in the bond portfolio maximizes the slope of the CAL? To figure this out adapt the worksheet ?Optimal_CAL? in PS2.xls and use the Excel Solver. What is the optimal weight w* invested in the bond portfolio B and what is the maximized slope of the CAL? g. Assuming your client decides to invest $1,000,000, what are the optimal investments in B, L and T-bills? (Hint: first find the optimal fraction y your client should invest in the risky portfolio. You can then further break that down into investments in B and L.)",Hi, I found in Google that someone else asked the same questions as mine, so I guess you may already have the answers for the problem set. I am running out of time. Thank you
