Rocking Horse Corp, Charlie Spleen, Oliver Inc
Not what you're looking for?
1)Rocking Horse Corporation reported net income for 2004 of $100,000, sales of $300,000, expenses (excluding depreciation) of $150,000, and depreciation expense of $50,000. The company's accounts receivable balance increased by $25,000 during the year and its accounts payable balance remained the same. The company's change in cash for the year is estimated to be:
A)$125,000 B) $175,000 C) $100,000 D) $300,000
2)Charlie Spleen wants to retire in 25 years, and he wants to have an annuity of $20,000 a year for 20 years after retirement. Charlie wants to receive the first annuity payment at the end of the 25th year. Using an interest rate of 8%, how much must Charlie invest today in order to have his retirement annuity (round to nearest $10).
A)$28,670 B) $30,970 C) $26,440 D) $23,720
3)How much would you be willing to pay for a 10-year ordinary annuity if the payments are $500 per year and the rate of return is 6.25% annually?
A)$4,132 B) $3,637 C) $3,864 D) $3,423
4)You purchased 1,000 shares of Oliver Inc. common stock one year ago for $50 per share. You decided to take your profit today by selling at $55.00 per share. What is your holding period return?
A)15.0% B) 12.5% C) 10.0% D) 50.0%
Purchase this Solution
Solution Summary
This solution is comprised of a detailed explanation to answer the financial management questions.
Solution Preview
Financial Management
1)Rocking Horse Corporation reported net income for 2004 of $100,000, sales of $300,000, expenses (excluding depreciation) of $150,000, and depreciation expense of $50,000. The company's accounts receivable balance increased by $25,000 during the year and its accounts payable balance remained the same. The company's change in cash for the year is estimated to be:
A)$125,000 B) $175,000 C) $100,000 D) $300,000
Answer: A
Net income + Depreciation - Accounts Receivable = 100,000 + 50,000 - 25,000 = 125,000
2)Charlie Spleen wants to retire in 25 ...
Purchase this Solution
Free BrainMass Quizzes
Motivation
This tests some key elements of major motivation theories.
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking
Organizational Leadership Quiz
This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.
Business Ethics Awareness Strategy
This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.