I need to compare Pepsi and Coca-Cola's two most recent fiscal years based upon operating profitability, asset utilization and risk management. I have already completed asset utilization and risk management. What I need help with is operating profitability and a brief introduction.
The factoring department of Inter American Bank (IAB) is processing 100,000 invoices per year with an average invoice value of $1,500. IAB buys the account receivables at 3.5 percent off the invoice value. Currently, 2.5 percent of the accounts receivable turns out to be bad debt. The annual operating expense of this departme
1. Romeo & Juliette are competitors in selling college finance textbooks. The separate capital structures of each company are as follows: Romeo Juliette Debt @ 10% (interest) $500,000 Debt @ 10% (interest) $1,000,000 Common Stock 1,000,000 Common Stock 500,000 Total Capital $1,500,000 Total Capital $1,500,000 Shares O
1. Will you explain to me the relationship between inventory turnover and purchasing needs. 2. How can I elaborate (or explain) this statement "rapid corporate growth in sales and profits can cause financing problems" 3. What are the advantage and disadvantage of level production schedules in firms with cyclical sales? 4. H
Delta manufacturing - Balance Sheet Cash & Marketable Securities $225,000 Account Receivables $890,000 Inventories (lower of cost or market $930,000 Prepaid Expenses $10,150 Accumulated Tax Prepayment $12,000 Current Assets $2,067,150 Fixed Assets at cost $2,500,000 Less: Accumulated Depreciati
True or False a. Financing for public corporations must flow through financial markets. b. Financing for private corporations must flow through financial intermediaries. c. The sale of policies is a source of financing for insurance companies. d. Almost all foreign-exchange trading occurs on the floors of the FOREX exchanges
Using the following data, compute cash flow from operating activities. Cash Inflow (Outflow) a. Cash received from sale of a building . . . . . . . . . . . . . . . . . . $ 5,600 b. Cash paid for interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (450) c. Cash paid to repay a loan . . . . . . . . . .
Susan Young is an attorney for a small law firm in Arizona. She is also a part-time inventor and an avid golfer. One day Susan's golf foursome included a man named Henry Jones, a manufacturer of Christmas ornaments. Henry explained to Susan that he manufactures an ornament everyone loves, but stores will not carry the ornaments
Computations: The following financial statements apply to the next six problems? Robert Manufacturing Balance Sheet December 31, XXXX Cash $ 200 Receivables 245 Inventory 625 Total Current Assets
Two companies are rivals in the buggy whip industry. Their manufacturing profiles are as follows: Co. A Co. B Unit Selling Price $ 300.00 $ 300.00 Manufacturing Cost/unit 50.0% 66.7% Staff Salaries & Benefits 150,000 75,000 Advertising 50,000 25,000 De
Please help with the following finance-related problem. Provide step by step calculations. The Ectoplasto Drug Company's common stock is considered highly speculative. Security analysts believe that over the next year four possible outcomes are possible for the company's research program. There is a 60% chance that their new
Canyon Recreational Products (CRP) has earnings of $1.60 per share and plans to pay a $0.64 dividend. In the past CRP has earned a return of 25% on its investments, and the firm believes this will continue in the future. At what rate do you expect Canyon's earnings to grow?
Sharon Shay estimates that a college education has a $28,000 equivalent cost at graduation. She believes the benefits of her education will occur throughout forty years of employment. She thinks she will have a $3000-per-year higher income during the first ten years out of college, compared to a non-college graduate. During the
What is the expected inflation rate in the U.S. and Japan if the real rate rate of interest in the U.S. is 5% and in Japan 2%, while the nominal interest rate in the U.S. is 7% and in Japan 5%?
Financial Management Short Construction offers its customer's credit terms of 2/10, net 30 days, while Fryman Construction offers its customer's credit terms of 2/10, net 45 days. The aging schedules for each of the two companies' accounts receivable are reported below: Short Construction Fryman Construction
HJ Turner Corporation produces a single product. Data concerning the company's operations last year appear below: Units in beginning inventory......................... 0 Units produced.............................................. 10,000 Units sold.....................................
Strident Marks, Inc. Income Statement For the Year Ended December 31, 2006 Revenue Net Sales 8,994,000 Cost of Goods Sold 3,759,600 Gross Margin 5,234,400 Expenses Selling General & Administrative 1,245,900 Depreciation Expense 350,000 1,595,900 Income Before Interest and Taxes 3,638,500 Interest
Baker Company has a product that sells for $20 per unit. The variable expenses are $12 per unit, and fixed expenses total $30,000 per year. Required: a. What is the total contribution margin at the break-even point? b. What is the contribution margin ratio for the product? c. If t
Describe with substantiation, the sources of short term financing.
Briefly describe the current economic conditions for India.
Investor A owns $1,000 worth of stock that does not pay a dividend. Investor B owns $1,000 of an equivalent stock that, after paying a dividend, becomes an investment in stock and cash: $900 in stock and $100 in dividend income. If the capital gains tax is lower than the tax on dividends, which investor has the better position:
T/F 1. Product costs become expenses in the period they are purchased. T/F 2. The difference in the amount of fixed overhead cost that is expensed to the income statement under absorption and variable costing is solely attributable to the difference between the number of units produced during the period and the number of un
The Allen Company has monthly credit sales of $600,000. The average collection period is 90 days. The cost of production is 70 percent of the selling price. What is the Allen Company's average investment in accounts receivable? a. 2,000,000 b. 1,500,000 c. 1,800,000 d. 1,600,000
What must financial managers consider when operating in the global environment? What types of regulatory compliance might they face? What can they do to mitigate financial risk? Should we have global accounting standards? Why or why not? Examine at least four accounting regulatory bodies, and discuss how an organization compl
Following is the financial information for Dell Inc. 2005 2004 Revenue $49,205 $41,444 Net Incomes 3,043 2,645 Total Assets 23,215
1. What procedure(s) would you recommend for a multinational company in studying exposure to political risk? What actual strategies can be used to guard against such risk? 2. Suppose a Danish krone is selling for $0.1845 and a Maltese lira is selling for $2.7211. What is the exchange rate (cross rate) of the Danish krone to t
Davis Industries must choose between a gas-powered and an electric -powered fork-lift truck for moving materials in its factory. Since both forklifts perform the same function, the firmwill choose only one. The electric truck will cost more but cost less to operate. Cost is $22,00 for the electric and the gas powered is $17
1. Use the overhead cost activity analysis in Exhibit 5 and other data on manufacturing costs to estimate product costs for valves, pumps, and flow controllers. 2. Why do the results of your analysis in (1) differ from the costs generated by the existing system and the one proposed by Peggy Alford? 3. What are the strategic im
1. How would you describe Bayern Brauerei's current financial health with respect to: a. Growth b. Profitability c. Cost structure d. Working Capital 2. Evaluate the assumptions on which the 1993 and 1994 forecasted financial statements are based. 3. Evaluate the proposed expansion plan. 4. If you were Maria Ober, how w
What is the difference between defined benefit and defined contribution? What are derivatives? How can they be used to manage a portfolio? What is an IRA? Is it important for an individual to have an IRA? Why or why not? How can you maximize the benefits of your employer's retirement fund?