The Harley Health Club has asked you to review aspects of its financial condition, specifically its break even point and its use of leverage. Management has supplied you with the following company information, along with corresponding data for the industry. Harley Industry
I want to continue explaining the advantages and disadvantages of consumer credit and to make sure to explain what leverage is and why it is important. I have to explain the advantages and disadvantages of consumer credit. I also have to make sure you explain what leverage is and why it is important. So far, I am starti
Based on what you know about risk, determine which is the riskier investment. Company A has an expected rate of return of 15% and a standard deviation of 3% Company B has an expected rate of return of 10% and a standard deviation of 2% Company C has an expected rate of return of 25% and a standard deviation of 5% If th
In 1880 five aboriginal trackers were each promised the equivalent of 100 Australian dollars for helping to capture the notorious outlaw Ned Kelley. In 1993 the granddaughters of two of the trackers claimed that this reward had not been paid. The Victorian prime minister stated that if this was true, the government would be happ
1)In a statement of cash flow, the term cash includes: A) only money on deposit in bank accounts(B)on bank accounts and cash on hand(C) bank accounts, cash on hand, and cash equivalents(D) bank accounts, cash on hand, and cash equivalents and marketable securities classified on current assets 2) The ownership of common stoc
Van Roekel Company sells a single product. The product has a selling price of $100 per unit and variable expenses of 80% of sales. If the company's fixed expenses total $150,000 per year, what will the break even point be? My answer must be given in dollars and units. Truesdale Company sells hand crafted furniture. One it
Limitations of the Balance Sheet include: a) Assets recorded at historical value. b) It only recognizes assets that can be expressed in monetary terms. c) Owners' equity is usually less than the company's market value. d) All of the above The costs of maintaining current assets, including the opportunity cost of capital i
The budgeting process: a) defines goals and objectives b) coordinates business activities c) motivates employees d) all of the above 33. A method of attributing costs to products based on assigning costs of resources to activities and assigning costs of activities to products is known as Unit Based Costing. a) true b) f
A cash payment received from a customer's accounts receivable would be recorded as: a) an increase in revenue b) a decrease in liability c) an increase in owner's equity d) an increase in assets 16. Which of the following statements is false? a) A company generally prefers to have a high debt ratio. b) The current ratio
Case 7-3 Credit Policy Review The president, vice president, and sales manager of Moorer Corporation were discussing the company's present credit policy. The sales manager suggested that potential sales were being lost to competitors because of Moorer Corporation's tight restrictions on granting credit to consumers. He stated
(This is the table) Practice 21-4 Gross Margin Comparison Which of the following companies performed better during the period based on gross margin alone? Com. A Com. B Beginning total assets $ 183,000 $ 92,000 Ending total assets 192,000
Risk management involves safety concerns not only for the employees but for a company as well. What are some ways a company can prepare the business for a natural disaster?
Finance Questions - Retained Earnings, K, Warrants. See attached file for full problem description.
Find the simple interest 1) $4902 at 9.5% for 11 months Find the amount of interest earned 2) $3954 at 8% compounded annually for 12 years Find the present value 3) $17,650 in 4 years, 8% compounded quarterly Find the future value 4) $500 deposited at the end of each 6-month period for 8 years; money earns 6% co
Your firm has $100,000 available in Retrained Earnings at a cost of 12%. Additional common stock can be issued at a cost of 14%. If your company needs to raise $200,000 in equity, what rate should you assume for its cost?
TIME LOAN BALANCE YEAR-END INTEREST YEAR-END PAYMENT AMORTIZATION OF LOAN DUE ON BALANCE 0 $1,000 $80 $301.92 $221.92 1 $301.92 2 $301.92 3 $301.92 4 0 0 x 4-year amortizing loan. Borrow $1,000 initially and repay it in four equal annual year-end payme
A share of stock currently pays a dividend of D0 = $5. The dividend is expected to grow at a 20 percent annually for the next 10 years, then it will grow at a 15 percent rate for 10 more years, and then at a long-run normal growth rate of 10 percent forever. If investors require a 10 percent return on this stock, what is its c
About a personal experience with a financial market. Identify your need for the financial market and the process of selecting an intermediary-including criteria used in the selection. Discuss any barriers or unusual circumstances that were part of the experience, and if you consider your process repeatable as executed or requiri
The Lottery has arrived in North Carolina. Your client has a novel idea of combining pizza sales with lottery ticket sales. You have been employed as a management consultant to recommend "for or against" the Lotto Pizza project. You have been asked to develop a business plan around your recommendation in rural eastern Johnsto
What does that term "time value of money" mean and how does it relate to the calculation of interest, present values of annuities, and payments to amortize a loan?
What will be the investor's return if a stock rises by 7% if purchased on 50% margin?
The Hart Mountain Company has recently discovered a new type of kitty litter which is extremely absorbent. The company expects to enjoy an unusually high growth rate (25 percent) for two years while it has exclusive rights to the raw material used to make the kitty litter. For the next two years (years 3 and 4), the company pr
Bando Company has a $300,000 balance in Accounts Receivable and a $4,000 debit balance in Allowance for Doubtful Accounts. Credit sales for the period totaled $1,800,000. What is the amount of the bad debt adjusting entry if Bando uses a percentage of credit sales basis (at 2%) or a percentage of receivables basis (at 10%)?
1. The ____________ provides a financial summary of the firm's operating results during a specified period. a) Statement of cash flows b) Statement of retained earnings c) Balance sheet d) Income statement 2. When calculating the proportion of revenue that finds its way into profits, it is often appropriate to add back d
For a given change in prevailing interest rates, which security will change more in value, a T-bill or a 30 year government bond? Why?
The yield on a corporate bond is 10%, and it is currently selling at par. The marginal tax rate is 20%. A par value municipal bond with a coupon rate of 8.50% is available, Which security is a better buy? Also If the municipal bond rate is 4.25% and the corporate bond rate is 6.25%, what is the marginal tax rate, assuming inves
6. Assume the bid rate of a New Zealand dollar is $.33 while the ask rate is $.335 at Bank X. Assume the bid rate of the New Zealand dollar is $.32 while the ask rate is $.325 at Bank Y. Given this information, what would be your gain if you use $1,000,000 and execute locational arbitrage? That is, how much will you end up with
1. In 2003, David Corp. acquired 15,000 shares of its own $1 par value common stock at $18 per share. In 2004, David issued 10,000 of these shares at $25 per share. David uses the cost method to account for its treasury stock transactions. What accounts and what amounts should David credit in 2004 to re
For the following list of costs, indicate by the appropriate letter which category of activities each cost applies to: unit level (U), batch level (B), product line (P), or facility support (F): 1. Machine fine-tuning adjustment cost (required after the production of each unit) 2. Salary of vice president of finance 3. Mach
9. What is the basic C-V-P equation? What is a more detailed version of this equation? 10. What is the contribution margin, and why is it important for managers to know the contribution margins of their products? 11. How much will profits increase for every unit sold over the break-even point? 12. What is the maj