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Business Plans

Read the following three sample business plans: Ice Dreams http://www.bplans.com/shaved_ice_beverage_business_plan/executive_summary_fc.cfm R J Wagner & Associates Realty http://www.bplans.com/real_estate_brokerage_business_plan/executive_summary_fc.cfm Interstate Travel Center http://www.bplans.com/truck_stop_busine

Common stockholder/Prospective owner

1. Common stockholder/Prospective owner: a. Indicate whether or not you would purchase the stock of this company at a current market price of $24 per share. b. Justify your decision using at least three reasons that are based upon the ratios you calculated. 2. Common stockholder/Current owner: a. Indicate whether or

enterprise value and share price

Heavy Metal Corp. is expected to generate the following free cash flows over the next five years: Year 1 2 3 4 5 FCF( $millions) 53 68 78 75 82 After then, the free cash flows are expected to grow at the industry average of 4% per year. Using the discounte

Finance Problem: Choosing a Bank

See the attachment. Assume that there are two banks in your area, Bank C and Bank NSC. Assume also that both are federally chartered banks, meaning that they are both subject to periodic examination and have their deposits insured by the FDIC. Also, assume that the deposit insurance coverage limit is $250,000. Both banks are su

finance an expansion

The Thompson Corporation projects an increase in sales from $18 million to $25 million, but it needs an additional $500,000 of current assets to support this expansion. Thompson purchases under terms of 2/10, net 60 and currently pays on the 10th day, taking discounts. The CFO is considering using trade credit to finance the add

Finance Project: Process of Capital Budgeting & Decision Making

Five brief articles to reference are found on the "Headlines" page of the menu for GE on Yahoo! Finance. These articles were posted on Thursday, April 21, 2011 and Friday, April 22, 2011. Additionally, as you construct your answers, please reference not only General Electric (GE) but also Citigroup, Inc. (C), Koninklijke Philips

Finance Problems: Net Cost and Sales

1) Penn Steelworks is a distributor of cold-rolled steel products to the automobile industry. All of its sales are on a credit basis, net 30 days. Sales are evenly distributed over its 10 sales regions throughout the United States. Delinquent accounts are no problem. The company has recently undertaken an analysis aimed at impr

issues in finance

SQ20-3 What are the essential characteristics of common stock? SQ20-14 What is the random walk hypothesis? Does research evidence tend to support or deny the validity of this hypothesis? SQ21-9 Discuss the factors that influence the volume of borrowing by individuals and families. What role do you believe inflation play

Personal Financial Management

13.1 Ray's Dilemma: Common Stocks or Mutual Funds? Ray Sutton has worked in the management services division of Strategic Consultants for the past 5 years. He currently earns a n annual salary of about %95,000. At 33, he's still a bachelor and has accumulated about $60,000 in savings over the past few years. He keeps his sa

Payable Shareholders of Record Stock Dividends

Instructions: You will complete each of the following problems using Microsoft Excel. In Excel, create a tab for each problem. Solve each problem on the excel tab in a professional manner (make sure your solution is clear and neatly organized). Problem One (Chapter 10): On January 1, 2011, the Seikely-Anderson Company sign

financial statement fraud exposure areas

Please help with the following problem. Provide at least 200 words and include references. What are the four different exposure areas that must be examined while detecting financial statement fraud? Provide a detailed answer.

Planning a Budget for Orlo Company

See excel attached: Orlo Company is planning their budget for the first half of 2012. Their budgeted sales for the last part of 2011 and the first 6 months of 2012 are as follows: Month Sales Nov-11 $200,000 Dec-11 $150,000 Jan-12 $100,000 Feb-

Kim had the following transactions for 2006: Salary: $Kim had the following transactions for 2006: Salary: $48,000 Damage award (compensatory) for city bus accident: $18,000 Loss on sale of stock investment: $5,600 Loan from father to purchase auto: $14,000 Alimony paid to ex-wife: $8,000 What is Kim's AGI for 2006? 2. John forms a corporation and transfers property having a basis to him of $18,000 and a fair market value of $26,000 to the corporation for 1,000 shares of $10 par stock. One year later, Hal transfers property having a basis to him of $2,500 and a fair market value of $3,500 for 100 shares of the stock. Hal is not related to John. The corporation issued no other stock. How much gain does John recognize on his exchange? What is the basis to John of his 1,000 shares? b. What gain or loss is recognized by the corporation when it issues its shares to John? What is the basis to the corporation of the property it received from John? c. How much gain does Hal recognize on his exchange? What is the basis to Hal of his 100 shares? 3. Shareholders in closely held C-corporations often pay themselves large salaries in order to avoid double taxation on corporate income. Briefly explain the double taxation problem and how paying large salaries to owners avoids it. b. Briefly discuss how the reasonable compensation issue applies to S-corporations. c. Briefly discuss the IRS s position on reasonable compensation for owner-employees of closely held C-corporations.

1. Kim had the following transactions for 2006: Salary: $48,000 Damage award (compensatory) for city bus accident: $18,000 Loss on sale of stock investment: $5,600 Loan from father to purchase auto: $14,000 Alimony paid to ex-wife: $8,000 What is Kim's AGI for 2006? 2. John forms a corporation and transfers property hav

business and financial environment

Consider a newly-listed company of interest to you and using the 2009/2010 annual accounting reports describe its business and financial environment. Subsequently, critically discuss the following topics: a) Write a report for senior managers on how they could improve the company's financial performance and achieve the primar

Finance: Sales or purchases of Treasury securities to increase the M1 money supply

Assume there is $400 billion of currency in circulation in the economy outside the banking system, that depository institutions in the economy have $800 billion in checkable deposits, and that those same depository institutions have $80 billion in reserves on deposit at the central bank. All depository institutions are "loaned o

Prepare budgeted financial statements for the Ma & Pa Kettle's Chili Company: 1. Ma & Pa Kettle's Chili Company has begun selling a new chili recipe and they want you to help them with next year's budgeted financial statements. Using the Ma & Pa Kettle information complete Ma & Pa's forecast and answer the questions which follow. Ma & Pa Kettle's Chili Company has begun selling a new chili recipe and they want you to help them with next year's budgeted financial statements. Using the worksheet below, complete Ma & Pa's forecast and answer the question which follows. Assumptions To begin with, Ma & Pa are sure sales will grow 50% next year. Assume that is true. Then assume that COGS, Current Assets, and Current Liabilities all vary directly with Sales (that means if sales grows a certain percentage, then the account in question will grow by that same percentage). Assume that fixed expenses will remain unchanged and that $1,000 worth of new Fixed Assets will be obtained next year. Lastly, the current dividend policy will be continued next year. Ma & Pa Kettle Chili Company, Inc. Financial Forecast for 2010 2009 Est for 2010 Sales $10,000 _______ COGS 4,000 _______ Gross Profit 6,000 _______ Fixed Expenses 3,000 _______ Before-Tax Profit 3,000 _______ Tax @ 33.3333% 1,000 _______ Net Profit $2,000 _______ Dividends $0 _______ Current Assets $25,000 _______ Net Fixed Assets 15,000 _______ Total Assets $40,000 ______ Current Liabilities $17,000 ______ Long-term debt 3,000 ______ Common Stock 7,000 ______ Retained Earnings 13,000 ______ Total Liabs & Eq $40,000 ______ Amount need to balance the balance sheet _____ This is the question. (Projected total assets minus projected total liabilities & equity *) If this number is positive it means Ma & Pa need additional external funding to finance their projected asset growth. If this number is negative it means Ma & Pa have programmed too much financing for the amount of assets they project.

Prepare budgeted financial statements for the Ma & Pa Kettle's Chili Company: 1. Ma & Pa Kettle's Chili Company has begun selling a new chili recipe and they want you to help them with next year's budgeted financial statements. Using the Ma & Pa Kettle information complete Ma & Pa's forecast and answer the questions which

Monetary Impact, Cost Benefit and Additional Benefit

1. Identify one each (1) benefit, (2) disbenefit, and (3) monetary cost that would impact each of the following projects: a. A new electrical distribution station in a developing part of the city, with feeds from the city power plant and from a regional electrical grid b. Annexation of an adjoining semirural area into th

S&R Rentals rents and services different types of yard-improvement equipment. Information about the company's financial performance for a recent fiscal period is provided below:

The following document contains some brain teasers randomly selected for another study template by my peers for an upcoming study session 1. S&R Rentals rents and services different types of yard-improvement equipment. Information about the company's financial performance for a recent fiscal period is provided below: Average

Post-2008 Economic and Financial Realities

Given the new economic and market realities prevailing since the 2008 great recession, first list and then explain in detail four behavioral finance lessons that can be of value to anyone going forward in life. You may answer this question from the perspective of your own personal life as an individual, or the perspective of you

Finance Problem: Basic Valuation

B5. (Expected return and risk) General Eclectic Corporation is considering three possible capital investment projects. The projected returns depend on the future state of the economy as given here. a. Calculate each project's expected return, variance, and standard deviation. b. Rank the projects on the basis of (1) expected

fraud red flags

While performing an audit of CCC Corporation, the audit team noticed something that didn't look right. The company's receivables aging report showed that bank loan receivables were approximately $91 million. That audit team calculated the bank loan edible receivables to be approximately $50 million. The client didn't identify sp

Transaction Analysis and Financial Statements

Expert Consulting Services Inc. was organized on March 1, 2010 by two former college roommates. The corporation provides computer consulting services to small businesses. The following transactions occurred during the first month of operations: March 2: Received contributions of $20,000 from each of the two principa

Subchapter S; S corporations; Lang Corporation; S corporation stock purchases

1. What are the eligibility requirements that a corporation must meet in order to qualify under Subchapter S? 2. What limits are placed on the selection of a tax year of an S corporation? How do these limits differ from those applicable to C corporations and partnerships? 3. Durrabusiness is organized as a regular C corpo

Characteristics of MACS; efficiency in handling insurance claims

Chow Company is an insurance company in Hong Kong. Chow hires 55 people to process insurance claims. The volume of claims is extremely high and all claims examiners are kept extremely busy. The number of claims in which errors are made runs about 10%, If a claim has an error, it must be corrected by the claims examiners. Aft

Financial Management Theory

1. Much of financial management theory is based upon the assumption that individuals act rationally in their decision making. Text has noted several areas where the conclusion is that individuals do not act rationally. What is the implication of this conclusion on our understanding of traditional financial management. 2. How