Effect on your financial statements

Assignment Help Financial Management
Reference no: EM13945132

Suppose your firm receives a $15M order in the last week of the fiscal year. You fill the order with $11.1M of inventory. The customer picks up the product before year end and pays you $9.0M and promises to pay the rest in 60 days time. Your firm’s tax rate is 40%. At end of the year, the effect on your financial statements is? Earnings Receivables a. $3.90M $15M b. $3.90M $6.0M c. $2.34M $6.0M d. $3.60M $15 M e. $2.34M $3.9M

Reference no: EM13945132

Questions Cloud

Souvenir sheets are designed and printed for the postal : The souvenir sheets are designed and printed for the postal service, a stamp agency service company. The souvenir sheets cost the postal service $1.15 each.
How many months will the loan balance : Sarah recently borrowed $30,000 to purchase a new car. The car loan is fully amortized over 5 years. In other words, the loan has a fixed monthly payment, and the loan balance will be zero after the final monthly payment is made. The loan has an APR ..
Allocate the overhead costs to the producing departments : Allocate the overhead costs to the producing departments using the direct method and then compute the total overhead cost for each producing department.
The effect of this sale on ni and cash would be : At the end of 2012, Liam Corporation buys a new machine for $30K, the cost of which is depreciated over 5 years. The first year’s depreciation is taken in 2013. Liam sells the machine at the end of 2015 (after three years) for $13,000. Liam’s tax rat..
Effect on your financial statements : Suppose your firm receives a $15M order in the last week of the fiscal year. You fill the order with $11.1M of inventory. The customer picks up the product before year end and pays you $9.0M and promises to pay the rest in 60 days time. Your firm’s t..
What causes conflicts in the ranking of projects : How is a net present value profile used to compare projects? What causes conflicts in the ranking of projects via net present value and internal rate of return? Does the assumption concerning the reinvestment of intermediate cash inflow tend to favor..
How of the second payment goes to paying interest : Suppose that you borrow $1,000 and the loan is to be repaid in three equal, end of year payments (an ordinary annuity). The interest rate on the loan is 6%. How of the second payment goes to paying interest?
Weighted average implied by two outstanding debt issues : Filer Manufacturing has 8.5 million shares of common stock outstanding. The current share price is $55, and the book value per share is $3. Filer manufacturing also has two bond issues outstanding. The company's stock has a beta of 1.1. The risk-free..
Prepaid insurance : What is prepaid insurance what do you have to do after journalizing

Reviews

Write a Review

Financial Management Questions & Answers

  Best describes the characteristics of your portfolio

Your portfolio consists of $50,000 invested in Stock X and $50,000 invested in Stock Y. Both stocks have an expected return of 15%, a beta of 1.6, and a standard deviation of 30%. The returns of the two stocks are independent--the correlation coeffic..

  Compare dividends-total distributions to investors

Adams Inc. expects EBIT of $50 million if there is a recession, $100 million if the economy is normal, and $150 million if the economy expands. Bellingham Inc. also expects EBIT of $50 million if there is a recession, $100 million if the economy is n..

  Explains what happens to a firms break-even point

Explains what happens to a firm’s break-even point if it is able to lower its fixed operating costs but keeps its variable operating costs per unit constant.

  What is the final payment the tips investor will receive

An investor buys a $10,000 par, 4.25% annual coupon TIPS security with 3 years to maturity. If inflation every six months over the investor's holding period is 2.50%, what is the final payment the TIPS investor will receive?

  Recorded and posted to the general ledger

Upon completion of the closing entries, you reviewed the general ledger and noticed that balances remained in all asset, liability, and equity accounts. In addition, there were still balances in the revenue accounts, but not expenses or dividends. Sh..

  The fixed overhead spending variance is also called

The fixed overhead spending variance is also called the ________ variance.

  Growth rate in dividends is expected to be a constant

Great Pumpkin Farms just paid a dividend of $3.40 on its stock. The growth rate in dividends is expected to be a constant 5 percent per year indefinitely. Investors require a return of 13 percent for the first three years, a return of 11 percent for ..

  What is the cash break-even quantity

A project has the following estimated data: price = $79 per unit; variable costs = $46.61 per unit; fixed costs = $5,600; required return = 12 percent; initial investment = $6,000; life = six years. Ignore the effect of taxes. What is the cash break-..

  Example of a fraud related to either an expenditure

Please find an example of a fraud related to either an expenditure or acquisition. You must discuss an actual example of a case that meets these requirements, describe the fraud in detail, and explain how it was detected and what controls and procedu..

  Assume semi annual coupon payments

What is the yield to maturity of a 23 year old bond that pays a coupon rate of 8.25% per year, has $1,000 par value and is currently priced at $1298.05? (Assume semi annual coupon payments)

  What is the depreciation tax shield for this project in year

Your firm needs a machine which costs $250,000, and requires $40,000 in maintenance for each year of its 3 year life. After 3 years, this machine will be replaced. The machine falls into the MACRS 3-year class life category. Assume a tax rate of 35% ..

  Firm is anticipated to have net income per share

Suppose a firm is anticipated to have a Net Income per Share of $25 next year and is expected to pay only 20% of (total) Net Income in Dividends. Also, the firm faces an unusually high cost of common stock of 22% and has an unusually low dividend gro..

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