Need this by 12 noon, can someone do that?
II.
Statements
: Shown below are an incomplete
Balance Sheet
and Income Statement. Please complete the statements. 10 items, 2 points each, 20 points total
Ratio Computations.
Using the data in the attached (last page) Balance Sheet and Income Statement (not the ones used in Section II above), compute the following ratios. For each ratio show the formula and the result. 5 Ratios, 2 responses for each, 3 points each, 30 points total.
Ratio Formula Result
Current ratio ____________________________________ ______________
Total Debt ratio ____________________________________ ______________
Inventory turnover ____________________________________ ______________
Profit margin ____________________________________ ______________
Return on Assets ____________________________________ ______________
*On this page it is suppose to look like this:
Ratio Formula Result
III.
Time value of money.
Following are five potential financial scenarios.
Please select four
of the scenarios to compute the results. It is assumed Excel will be for the computations. The computation will involve one of the time value functions – Present Value, Future Value, Rate, Number of Periods, or Payments. For each scenario attempted, show the function name and the input values used. (Note: Not all of the input values listed will be used for each computation). 4 scenarios, 5 points each, 20 points total.
1. You decide to make a one-time investment of $500 in an interest-bearing account earning 4.2% compounded annually. How much will this investment be worth in 6 years?
Function used: ______________ Computed Result: _____________
Input values:
Rate: _______________
Number of periods: ______________
Present Value: ______________
Future Value: ______________
Type (0 or 1): _______
2. Your company has a long-term plan to build a new plant in 6 years. You have an excess of cash on hand at this time that you can invest toward the cost of the plant. It is anticipated the plant will cost $5.2 million. If you can invest the money at 4.8%, how much cash should you invest today to be able to pay for the plant in four years?
Function used: ______________ Computed Result: _____________
Input values:
Rate: _______________
Number of periods: ______________
Present Value: ______________
Future Value: ______________
Type (0 or 1): _______
3. Your company plans to purchase a new piece of capital equipment in 3 years for a new product that is currently being developed. You have $100,000 to invest today toward that future purchase. It is estimated the purchase price for the equipment will be $132,000. What would the interest rate need to be for the investment to have the total purchase price available when you are ready to buy?
Function used: ______________ Computed Result: _____________
Input values:
Rate: _______________
Number of periods: ______________
Present Value: ______________
Future Value: ______________
Type (0 or 1): _______
4. You want to buy a new car for a total of $22,000. You plan to finance the full purchase price. The quoted rate for a loan is 4.7%, compounded monthly. You plan to finance the car for 5 years. What will your payments be?
Function used: ______________ Computed Result: _____________
Input values:
Rate: _______________
Number of periods: ______________
Present Value: ______________
Future Value: ______________
Type (0 or 1): _______
5. You are 32 years old. You plan to retire at age 65. You open an IRA that is guaranteed to pay 3.6% interest, compounded yearly. If you invest $2,500 each year until retirement, how much will your IRA be worth when you retire?
Function used: ______________ Computed Result: _____________
Input values:
Rate: _______________
Number of periods: ______________
Present Value: ______________
Future Value: ______________
Type (0 or 1): _______
1. Bond Prices. Lycan, Inc., has 6 percent coupon bonds on the market that have 9 years left to maturity. The bonds make annual payments. If the YTM on these bonds is 8 percent, what is the current bond price?
2. Bond Yields. The Timberlake-Jackson Wardrobe Co. has 7 percent coupon bonds on the market with nine years left to maturity. The bonds make annual payments. If the bond currently sells for $1,038.50, what is the YTM?
20122012
Current AssetsCurrent Liabilities
Cash100Accounts Payable88
Accounts Receivable137Notes Payable
Inventory
Total
Total
Long-term Debt51
Fixed Assets
Net Fixed Assets89Owner’s Equity
Common Stock and
paid-in surplus193
Retained Earnings45
Total
Total liabilities and
Total Assets Owner’s Equity523
TestOne, Inc
.
Balance Sheet
($ in Millions)
Net Sales1,140
Cost of Goods Sold974
Depreciation
Earnings Before Interest and Taxes80
Interest Paid
Taxable Income53
Taxes14
Net Income
Dividends8
Addition to Retained Earnings
TestOne, Inc
2012 Income Statement
($ in Millions)
