[tc01098]

1. You charged $1,000 on your credit card for Christmas presents. Your credit card company charges you 16% annual interest, compounded monthly. If you make the minimum payments of $25 per month, how long will it take (to the nearest month) to pay off your balance?



2. You plan to send your daughter to college in two years. You want to be able to pay the first year in cash. She will start college in two years. The amount is expected to be $16,000. You will buy a 2-year CD that pay 4.75%. How much must you put in the CD?



3. You recently purchased a quilting machine for $3600. You paid for it with a signature loan that charges 5%. The cash flows from it are expected to be $1500 per year for 5 years. The loan will be apid off in 5 years. The warranty is 4 years. At the 5-year mark, the machine will have a value of 0 and will sold. Ignore salvage value on this problem. What is the NPV of this?



4.

# of shares outstanding
10,000

Taxes
225,000

Interest expense
127,500

Depreciation expense
135,000

Selling, general and administrative expense
1,387,500

Sales revenue
6,375,000

Cost of goods sold
4,312,500



Calculate

(a) gross profits.

(b) operating profits.

(c) net profits before taxes.

(d) net profits after taxes.

(e) earnings per share.



5.

Assets:

Cash and Marketable Securities 300,000

Accounts receiveable 1,215,000

Inventories 1,747,500

Prepaid Expenses 24,000

Total Current Assets 3,286,500

Fixed Assets: 2,700,000

Less: Dep (1,087,500)

Net Fixed Assets 1,612,500

Total Assets 4,899,000






Liabilities:

Accounts Payable 240,000

Notes Payable 825,000

Accrued Taxes 42,000

Total Current Liabilities 1,107,000

Long-term Debt 975,000

Common Stock(100,000 shares) 100,000

Retained Earnings 2,717,000

Total Liabilities and OE 4,899,000





Net Sales(all credit) 6,375,000

Less: COGS (4,312,500)

Selling and Admin Exp (1,387,500)

Depreciation Exp (135,000)

Interest Exp (127,500)

EBT 412,500

Taxes (225,000)

Net Income 187,500



Common Stock Dividends 97,500

Change in Retained Earnings 90,000



What is the current ratio?

What is the quick ratio?

What is the average collection period?

What is the debt ratio?

What is the inventory turnover ratio?

What is the return on equity?

If the company’s stock price is $40 per share, what is the P/E ratio?

What is the times interest earned ratio?



6. What is the break even in sales rounded to the nearest whole unit and in sales dollars if your fixed costs are $237,000, your sales price is $99 per unit and the direct materials and labor are $39 per unit?

[Curlyben]

Thank you for taking the time to copy your homework to AMHD.
Please refer to this announcement: https://www.askmehelpdesk.com/financ...-b-u-font.html