Reference no: EM132468102

Question 1: Which one of the following will increase the profit margin of a corporate, assuming all else constant?

A. Increase in interest paid

B. Increase in fixed costs

C. Increase in depreciation expense

D. Decrease in the tax rate

E. Decrease in sales

Question 2: When you use raw-form financial statements to compare different firms, there are three issues: industry, currency, and size issues. Discuss solutions that mitigate the size problem by providing an example(s).

Question 3: It takes The Crossroads Boutique an average of 61 days to sell its inventory and 30 days to collect its accounts receivable. The firm has sales of $568,700 and costs of goods sold of $398,800. What is the accounts receivable turnover rate?

Question 4: You have just made your first $5,000 contribution to your retirement pension plan. Assuming you get a 5 percent rate of return and make no additional contributions, 1) how much will you have when you retire in 35 years? 2) How much will you have if you wait for 5 years before contributing?

Question 5: You want to buy a house in 10 years and that will cost you $100,000. Now, you only have $43,000. Find the interest rate that you need to buy the house in 10 years. (what should r be?)