Compute companies accounting net income

Assignment Help Financial Management
Reference no: EM131179703

Use following to compute companies accounting net income:

credit sales = 800,000

cash sales = 500,000

operating expenses on credit = 200,000

cash operating expenses =700,000

A/R Bewginning of year = 50,000

A/R End of Year = 80,000

A/P Beginning of year = 50,000

A/P end of year = 100,000

tax rate = 40%

Reference no: EM131179703

Questions Cloud

Calculate the balance of the fund : 2000 is deposited into a newly opened fund on January 1, 1999. Another deposit is made into the fund on July, 1 1999. On January 1, 2000, the balance in the fund is 6000. The time-weighted rate of return in 1999 is 8.0% and the dollar-weighted rate o..
What''s the operating cash flow : The company is thinking about a new project. They expect to have sales of 500,000. Variable and fixed costs should be 200,000. The equipment is going to cost 600,000. It will be depreciated straight line to zero over the life of the project. They exp..
Assume the cost of capital : Suppose that you will receive $10,000 five years from now. What is it worth today? What is it worth 3 years from today? What is it worth 10 years from today? What constant payment for the next 20 years is equivalent to receiving $10,000 five years fr..
What will happen to the bank net interest income : If a bank has 10 billion dollars of 1-year loans and 40 billion dollars of 5-year loans, which are financed by 30 billion dollars of 1-year deposits and 20 billion dollars in 5-year deposits. If interest rates increase by 1 percent every year for the..
Compute companies accounting net income : Use following to compute companies accounting net income:
Use in capital budgeting analysis : Dublin International Corporation’s marginal tax rate is 40 percent. It can issue 3 year bonds with a coupon rate of 8.5 percent and par value of $1,000.00 The bonds can be sold now at a price of $938.90 each. The underwriters will charge $23 per bond..
Potential long term risks to financial performance : Evaluate the environmental factors that contribute to corporate management’s need to manage corporate earnings to align with market expectations, indicating the potential long- term risks to financial performance and sustainability.
What is true amount of capital that the company has to raise : The company has 250,000 shares of common stock outstanding at a market price of $28 a share. Next year’s annual dividend is expected to be $1.55 a share. The dividend growth rate is 2%. What is WACC for the company? The company want to raise 5 millio..
Market share leader in radar detection systems : This is a comprehensive project evaluation problem bringing together much of what you have learned in this and previous chapters. Suppose you have been hired as a financial consultant to Defense Electronics, Inc. (DEI), a large, publicly traded firm ..

Reviews

Write a Review

Financial Management Questions & Answers

  Which will be depreciated straight-line to zero book value

$2.46 million which will be depreciated straight-line to a zero book value over the 10-year life of the project. At the end of the project the equipment will be sold for an estimated $300,000. The project will not directly produce any sales but will ..

  Evaluating capital budgeting project

Depreciation methods Kristin is evaluating a capital budgeting project that should last for 4 years. The project requires $750,000 of equipment. She is unsure what depreciation method to use in her analysis, straight-line or the 3-year MACRS accelera..

  Should a business have more fixed or variable costs

Should a business have more fixed or variable costs? What are the types of fixed and variable costs will you would incur in your business? Will you have more variable than fixed costs? Why or why not?

  What is expected return on the portfolio

You own a portfolio that has $2,000 invested in Stock A and $3,100 invested in Stock B. Assume the expected returns on these stocks are 10 percent and 16 percent, respectively. Required: What is the expected return on the portfolio?

  What is the market value of this firm

Jake owns The Corner Market which he is trying to sell so that he can retire and travel. The Corner Market owns the building in which it is located. This building was built at a cost of $1,200,000 and is currently appraised at $1,470,000. What is the..

  Assuming target capital structure

Assuming a target capital structure of: 40% debt 20% preferred stock 40% common equity What would be the WACC given the following: all debt will be from the sale of bonds with a coupon of 10% (assume no flotation costs), preferred stock's associated ..

  A stock has correlation with the market

A stock has a correlation with the market of 0.49. The standard deviation of the market is 25%, and the standard deviation of the stock is 33%. What is the stock's beta?

  Pink sheets are traded

"Pink sheets" are traded on the

  What is the return on equity and return on assets

Keller Cosmetics maintains an operating profit margin of 8.60% and a sales-to-assets ratio of 3.10. It has assets of $620,000 and equity of $420,000. Interest payments are $42,000 and the tax rate is 35%. a. What is the return on assets? What is the ..

  Define the general contracts and general scope of work

Define the following terms: General Contracts · General scope of work · Contract Intent · Contract Indication · Reasonable review · Patent errors · Change clause(order) · Pass-through clause Contract Bonds and Insurance · Bid Bond · Performance Bond ..

  Explain the current yield offered by each preferred stock

What is the current yield offered by each preferred stock? Why are the prices of these preferred stocks different even though they both pay the same dividend?

  Computing the common equity cost

What are the pros and cons of using CAPM for computing the common equity cost? What are some critical assumptions that must be made? As with many of our calculations, the CAPM formula is pretty manageable, but estimating some of the variables used an..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd