How it is possible for a firm to report rising ni each year

Assignment Help Financial Management
Reference no: EM13882992

Explain how it is possible for a firm to report rising NI each year yet continue to need more working capital financing from a bank.

Reference no: EM13882992

Questions Cloud

Prepare the journal entry to recognize revenue : Fit & Slim is a health club that offers members various gym services. F&S accounts reports.
Develop your knowledge and experience with auditing : Course projects will be team oriented and designed to help develop your teamwork and collaboration skills in addition to your knowledge and experience with auditing.
Describe the cross culture management with special reference : Describe the Cross culture management with special references of japans companies in Germany in 3 to 5 pages.
Depreciating the machine using straight-line depreciation : A firm purchased a machine with a life of four years. Depreciating the machine using straight-line depreciation over the four years yields a NPV = -$10. The initial investment was $1000, cost of capital = 15%, and tax rate = 34%. If the firm is allow..
How it is possible for a firm to report rising ni each year : Explain how it is possible for a firm to report rising NI each year yet continue to need more working capital financing from a bank.
The remainder of the purchase price is paid on completion : The remainder of the purchase price is paid on completion of the contract when Edwards obtains possession of the apartment.
Williams company purchased a machine costing : Williams Company purchased a machine costing $44,800 and is depreciating it over a 10-year estimated useful life with a residual value of $4,800. At the beginning of the eighth year, a major overhaul on it was completed at a cost of $9,800, and the t..
End of the year and semiannual reinvestment rate : Bond of Zello Corporation pays its coupons semiannually. The annual coupon rate is 6%, the maturity is 15 years, and the annual yield to maturity is 7%.i. Find the holding period return for one year investment period if the bond is selling at annual ..
Indicate whether each of the following is a source of cash : Indicate whether each of the following is a source of cash, use of cash, or has no cash impact. a. Firm issues new long term debt. b. Firm prepays operating costs. c. Because the firm buys another firm, it amortizes goodwill. d. Firm sells outdated c..

Reviews

Write a Review

Financial Management Questions & Answers

  Tax return claiming

Taylor and Jordan are married and file a joint tax return claiming their two children, ages 12 and 9 as dependents. Their AGI for 2014 is $100,000. Taylor and Jordan's child tax credit for 2014 is:

  Volatility of the exchange rate is quoted

An exchange rate is currently 0.8000. The volatility of the exchange rate is quoted as 12% and interest rates in the two countries are the same. Using the lognormal assumption, estimate the probability that the exchange rate in 3 months will be a) Le..

  Concerning principal and interest on fannie mae-sponsored

Concerning Principal and Interest on Fannie Mae-sponsored MBS:

  What is the value of this abandonment option

Carlson Inc. is evaluating a project in India that would require a $6.2 million investment today (t = 0). The after-tax cash flows would depend on whether India imposes a new property tax. There is a 50-50 chance that the tax will pass, in which case..

  Determine that the firms performance was not deteriorating

You are considering making a working capital loan to a company that manufactures and distributes fad items for convenience and department stores. The loan will be secured by the firm's inventory and receivables. What risks are associated with this ty..

  Annuity-perpetuity and a series of unequal cash flows

Describe in detail the differences and similarities in calculating the present value and future value of a lump sum, annuity, perpetuity and A series of unequal (multiple) cash flows.

  Yield to maturity and call with semi annual payments

Thatcher corporation's bonds will mature in 10 years. The bonds have a face value of $1,000 and an 8% coupon rate, paid semi annually. The price of the bonds is $1,100. The bonds are callable in 5 years at a call price of $1,050. What is their yield ..

  Mega company has just signed a contract to export a machine

mega company has just signed a contract to export a machine to bestway enterprises an american corporation. the machine

  Effective annual cost of costly trade credit

If Rubash Corporation bought on terms of 1/10, net 30, what would be its nominal annual cost of costly trade credit? Assume a 365-day year. If Rubash were unable to stretch its trade credit and hence had to pay by Day 30 if it did not take discounts,..

  What is the value of the current assets

Saunders Corp. has a book net worth of $13,330. Long-term debt is $8,450. Net working capital, other than cash, is $3,230. Fixed assets are $17,630 and current liabilities are $1,730. How much cash does the company have? What is the value of the curr..

  Anticipated constant growth rate for dividends

A share of stock is currently selling for $31.80. If the anticipated constant growth rate for dividends is 6% and investors are seeking a 16% return, what is the dividend just paid?

  Develop a bsc for anthonys orchard

Develop a BSC that is aligned to the key goal in the strategic plan, i.e. exceeding revenue of $25 million dollars by 2015.

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