Banana box corporation has sales of

Round 20

#1HOMEWORK #1A (Financial statements)

Banana Box Corporation has sales of $4,621,970; income tax of $361,088; the selling, general and administrative expenses of $272,290; depreciation of $322,266; cost of goods sold of $2,991,730; and interest expense of $147,189. Calculate the amount of the firm’s income before tax?

Your Answer

#2Homework #7E (After-Tax cash flow from selling the old asset)

Reversing Rapids Co. purchases an asset for $177,343. This asset qualifies as a five-year recovery asset under MACRS. The five-year expense percentages for years 1, 2, 3, and 4 are 20.00%, 32.00%, 19.20%, and 11.52% respectively. Reversing Rapids has a tax rate of 30%. The asset is sold at the end of year 4 for $10,953, what is the cash flow from disposal?

Calculate gain or loss on disposal. Gain should be entered as a positive number. Loss should be entered as a negative number.

Round the answer to two decimals.

Your Answer:

#3Homework #8C (EOQ, Average Inventory)

Appliance for Less is a local appliance store. It costs this store $25.44 per unit annually for storage, insurance, etc., to hold microwave in their inventory. Sales this year are anticipated to be 202 units. Each order costs $60. The company is using Economic Order Quantity model in placing the orders.

What is the average inventory held during the year including safety stock if the store insists on a 5 days safety stock (assume 365 days a year)?

(Round the answer to the whole number)

Your Answer:

#4 QUIZ

Mary holds a portfolio with the following securities

Security Percent of portfolio Return

Stock A $320,106 2.06

Stock B $418,519 0.76

Stock C $558,408 1.69

Calculate the beta portfolio

Round the answer to two decimal places in percentage form

(you must show work)

Your Answer

#5Homework#5A Value and Expected rate of return on preferred stock)

1. Potters Violin Co. has just issued non-convertible preferred stock with a par value of $100 and an annual dividend rate of $12.18. The preferred stock is currently selling for $117.77 per share. Which rate of return does the investor expect to receive on this stock if the stock is purchased today?

the answer to two decimal places in percentage form

Your Answer

#6Homework #4G (Bonds Quotes)

Assume that today's date is February 15, 2015. Robin Hood Inc. bond is an annual-coupon bond. Par value of the bond is $1,000. Calculate annual coupon interest payments.

The answer should be calculated to two decimal places

Company

Price

Coupon Rate

Maturity Date

YTM

Current Yield

Rating

Robin Hood

110.639

5.596

2-15- 2033

-

-

D

Your Answer:

#7Homework #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 cost of goods sold and a 365-day year, calculate Days of Sales in Inventory (using cost of goods sold).

Round the answers to two decimal places

Balance Sheet December 31, 2013

Cash and marketable securities

$112,000

Accounts payable

$211,000

Accounts receivable

$325,000

Notes payable

$51,500

Inventories

$426,000

Accrued expenses

$50,100

Prepaid expenses

$10,700

Total current liabilities

$312,600

Total current assets

$873,700

Long-term debt

$225,000

Gross fixed assets

$1,514,000

Par value and paid-in-capital

$117,000

Less: accumulated depreciation

$315,000

Retained Earnings

$1,418,100

Net fixed assets

$1,199,000

Common Equity

1,535,100

Total assets

$2,072,700

Total liabilities and owner’s equity

$2,072,700

Income Statement, Year of 2013

Net sales (all credit)

$3,256,600.00

Less: Cost of goods sold

$2,572,714.00

Selling and administrative expenses

$323,000.00

Depreciation expense

$115,000.00

EBIT

$245,886.00

Interest expense

$29,600.00

Earnings before taxes

$216,286.00

Income taxes

$86,514.40

Net income

$129,771.60

Your Answer:

#8Homework #5E (HPR, Annualized holding period return, Effective annual rate on investment)

You purchased 100 shares of General Motors stock at a price of $107.91 one year ago. You sold all stocks today for $90.86. During the year, the stock paid dividends of $5.22 per share. What is your holding period return?

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