Share
Explore BrainMass

Finance

Retained Earnings Statement

See attached On January 1, 2008, Castle Corporation had retained earnings of $550,000. During the year, Castle had the following selected transactions. 1. Declared cash dividends $120,000. 2. Corrected overstatement of 2007 net income because of depreciation error $30,000. 3. Earned net income $350,000. 4. Declared stoc

Discuss Wayne Hurt and The Kroger Company

Discuss Wayne Hurt and The Kroger Company Executive Summary: Introduce the current status of your company (a brief overview of your company's status. Include the good and the bad. Recommendations & Justifications: You will use the Recommendations below (or make up some of your own) and justify whether the firm should go a

Gross margin and contribution margin income statements

Gross Margin and Contribution Margin Income Statements Tosca Beverages reports the following information for July: Units produced and sold 18,800 Per unit revenue and costs: Sales revenue. $3.20 Direct material costs 0.20 Direct labor costs 0.16 Variable manufacturing overhead 0.06

Acme:Recommend which alternative should be used to finance overseas investment

Having previously identified the location of its Greenfield investment, Acme, a multi-billion public MNE that is incorporated in the U.S., must next obtain external financing for its proposed overseas production facility. It has been estimated that the acquisition will cost $500M and all funds will be secured in the U.S. Your jo

Compute Finance Charges, amount of payment and APR

a) Borrow $10,200 from the First National Bank at a fixed rate of 12% per annum, simple interest. The loan would be repaid in equal monthly installments over a 3-yar (36 months) period. b) Obtain a $10,200 installment loan requiring 36 monthly payments from the Store Manager's Credit Union at a 6.5% stated rate of interest.

Returns and the Bell Curve and Using Returns Distributions

Returns and the Bell Curve An investment has an expected return of 8 percent per year with a standard deviation of 4 percent. Assuming that the returns on this investment are at least roughly normally distributed, how frequently do you expect to lose money? Using Returns Distributions Based on the historical record, if

Return Calculations and Returns Distributions

1..Return Calculations A particular stock had a return last year of 4 percent. However, you look at the stock price and notice that it actually didnâ??t change at all last year. How is this possible? 2.Returns Distributions What is the probability that the return on small stocks will be less than 100 percent in a sin

Interpreting beta

A firm wishes to assess the impact of changes in the market return on an assess that has a beta of 1.20 a. If the market return increased by 15%, what impact would this change be expected to have on the asset's return? b. If the market return decreased by 8%, what impact would this change be expected to have on the asset's ret

Portfolio Rebalancing

Using the data below, suppose you are holding a market portfolio, and have invested $12000 in stock C. a) How much have you invested in stock A? b) How many shares of B do you hold? c) If the price of Stock C suddenly drops to $4 per share, what trades would you need to make to maintain a market portfolio? Stock Price/Shar

Gross Margin & Contribution Margin Income Statement

2-41 Gross Margin and Contribution Margin Income Statements Tosca Beverages Reports the following information for July: Units produced and sold 18,800.00 Per unit revenue and costs: Sales revenue $3.20 Direct material costs 0.20 Direct labor costs 0.16 Variable manufacturing overhead 0.06 Fixe

Break Even Point Computed

Rock is sold to contractors who use the product in construction projects. Needs to increase sales by advertising. Spend $100,000 advertising campaign. currently sells 25,000 tons for a total revenue of $5,000,000. Direct Labor...............$1,500,000 Variable production overhead...........200,000 fixed production overhead..

Fianance - Straight Line

E10-8 Jerry Grant, the new controller of Blackburn Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2008. His findings are as follows. Accumulated Useful Life Type Date Depreciation in Years Salvage Value of Asset Acquired Cost 1/1/08 Old Pr

Rem Inc. produces electronic components for sale to manufacturers of radios, television sets, and digital sound systems. In connection with her examination of Rem's financial statements for the year ended December 31, 2007, Maggie Zeen, CPA, completed field work 2 weeks ago. Ms. Zeen now is evaluating the significance of the following items prior to preparing her auditor's report. Except as noted, none of these items have been disclosed in the financial statements or notes. Item 1 A 10-year loan agreement, which the company entered into 3 years ago, provides that dividend payments may not exceed net income earned after taxes subsequent to the date of the agreement. The balance of retained earnings at the date of the loan agreement was $420,000. From that date through December 31, 2007, net income after taxes has totaled $570,000 and cash dividends have totaled $320,000. On the basis of these data, the staff auditor assigned to this review concluded that there was no retained earnings restriction at December 31, 2007. discuss any additional disclosures in the financial statements and notes that the auditor should recommend to her client. (The cumulative effect of the four items should not be considered

Rem Inc. produces electronic components for sale to manufacturers of radios, television sets, and digital sound systems. In connection with her examination of Rem's financial statements for the year ended December 31, 2007, Maggie Zeen, CPA, completed field work 2 weeks ago. Ms. Zeen now is evaluating the significance of the fol

Key elements identified in the article: 1. Numbers play a significant role in a person's daily life whether they realize it or not. 2. In comparison to organizational operations management, people are inclined to manage their personal lives in accordance with systematic maintenance of record keeping. Although most people do not keep accurate records on personal repetitive flows of functioning, however, this article illustrates that individuals can manage time more efficiently through proper prioritization. 3. In the beginning of the article the author compares and contrast the human brain against computers and how people in general have serious issues with focus and how we tend to utilize stimulants that ultimately do more harm to our mental acuity than we initially thought. This article raised awareness about the dangers of coffee in some regard which changes the way I personally feel about drinking coffee. 4. People in general are more likely to be easily distracted. Generating enough data about various activities during the day will enable a person to become more focused on the initial task thus alleviating menial tasks that are of low priority. 5. This article does not specifically correlate operations management with accounting and finance, however, it does offer insight about the importance of maintaining accountability of one's actions on a personal basis. The author emphasizes that everything we do personally or professionally is equated to a mathematical formula and if we learn how to manage our time and the processes we integrate we will begin to answer questions that relate to what we are doing and why.

Key elements identified in the article: 1. Numbers play a significant role in a person's daily life whether they realize it or not. 2. In comparison to organizational operations management, people are inclined to manage their personal lives in accordance with systematic maintenance of record keeping. Although most peop

Hybrid Financing

Its investment bankers have told Donner Corporation that it can issue a 25-year, 8.1% annual payment bond at par. They also stated that the company can sell an issue of annual payment preferred stock to corporate investors who are in the 40% tax bracket. The corporate investors require an after-tax return on the preferred that

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

Finance: Stock evaluation.

You expect the risk-free rate (RFR) to be 3 percent and the market return to be 8 percent. You also have the following information about three stocks. Stock Beta Current Price Expected Price Expected Dividend X 1.25 $ 20 $ 23 $ 1.25 Y 1.50 $ 27 $ 29 $ 0.25 Z 0.90 $ 35 $ 38 $ 1.00 a. What ar

Market Value and Hedge Positions Given Expected Market Drop

You are given the following information about a portfolio you are to manage. For the long-term you are bullish, but you think the market may fall over the next month. Portfolio Value: $1 million Portfolio's Beta: 0.86 Current S&P500 Value 990 Anticipated S&P500 915 a. If the anticipated market value m

Future contracts, parity and arbitrage

Assume a futures contract exists on Micromedia stock that expires in two months. Micromedia has a current market price of $200, has a beta of 1.15, a 0% dividend yield, and a standard deviation of .33. The current T-Bill rate is 5% annually. a. Determine what the parity relationship suggests the futures price should be?

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

Flotation Costs and Issue Size: Shares to Be Issued

Your firm needs to raise $10 million. Assuming that flotation costs are expected to be $15 per share, and that the market price of the stock is $120, how many shares would have to be issued? What is the dollar size of the issue?

Annual Incremental Earnings

Daily Enterprises is purchasing a $10.5 million machine. It will cost $55,000 to transport and install the machine. The machine has a depreciable life of 5 years and will have no salvage value. The machine will generate incremental revenues of $4.3 million per year along with incremental costs of $1.5 million per year.

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