DeBauge Realtors, Inc., is a realty firm owned by Jeff and Kristi DeBauge. The DeBauge family owns 100% of the corporation's stock. The following summarized data (in thousands) are taken from the December 31, 2010, financial statements: For the Year Ended December 31, 2010: Commissions revenue $145 Cos
A venture capitalist has expressed interest in potentially funding your new business venture and has asked for a presentation of your business plan. Explain how you will provide some guidelines that can be used for effectively presenting your plan to venture capitalists. Make sure to cover the following in your response: â?
In a small business what are other means of raising capital and justify why you would use these means instead of others (omit using your own money as an option).
What happens when one company purchases assets from another company by trading assets or stock? How are the costs of the newly acquired assets booked? Could this create a gain?
Discuss the different sources of capital for a firm. Why is it important to have not only adequate capital but also to make sure it comes for the most appropriate, for each situtation, sources?
Part a) Jackson Electronics inventories computer chips that cost $30.00 each. Inventory carrying cost is approximately 20% of value. It costs $40 to place, process, and receive an order. The firm uses 3,000 chips a year. What ordering quantity minimizes the sum of ordering and carrying cost? Part b) Mathey, Inc. uses 4,000 ci
Discuss at least three alternative working capital policies that reduce future difficulties, and make a recommendation on which policy Lawrence Sports should follow. Your recommendation must include: Disclose LS bank balances at borrowing balances at the end of the simulation An evaluation of the risk associated with the r
Please see attached file. A) How much is the firm's net working capital and what is the debt ratio? B) Complete a statement of cash flows for the period. Interpret your results. C) Compute the changes in the balance sheets from 2009 to 2010. What do you learn about T.P Jarmon from these computations? How do these numbers r
Explain the advantages of using sensitivity and scenario analysis when evaluating capital projects.
Ewa, the owner of Finest Enterprises, is a sole proprietor. What are the chief characteristics, advantages, and disadvantages of this form of business organization? Ewa wants to obtain additional capital to expand Finest, but she does not want to lose control of the firm. As a sole proprietor, what is her best option to attain t
- Discuss the avenues to improve working capital management. Discuss the components of working capital and their effects on the firm's value. - Discuss the importance and main avenues of cash management. Elaborate on the company's cash cycle, and how it differs from its operating cycle. - List and discuss the main object
Axtel retired stock for $1,000,000 and paid a dividend of $1,727,000. Depreciation for the year was $1,166,000. Construct a Statement of Cash Flows for Axtel for 2001. (Hint: Retiring stock means buying it back from shareholders. Assume the purchase was made at book value, and treat it like a negative sale of stock). SOLUTION
Samuels Manufacturing is considering the purchase of a new machine to replace one they feel is obsolete. The firm has total current assets of $920,000 and total current liabilities of $640,000. As a result of the proposed replacement, the following changes are anticipated in the levels of the current asset and current liability
Define the purpose of working capital. How does extending credit affect working capital requirements and the cash conversion period? Evaluate consequences of inventory costs on working capital needs and the cash conversion period.
The Acme Company is exploring many strategic options. Whichever global business strategy the Acme Company eventually chooses, the firm inevitably will require the services of a bank to help manage its working capital. Many major multinational banks provide a variety of working capital and multinational cash management services.
Efficient Capital Market assumptions and Portfolio Management assumptions are related. In the light of the actual economical-financial problem, provide any examples contradicting these assumptions?
Julie can purchase an investment now or she can wait one year from now to invest. The cash flows for investing now or postponing one year are: TIME 0 1 2 3 4 5 6 Invest now -150 15 20 25 30
Suppose that you were a member of Enron's board of directors from 1987 to 2000. Investors such as short-seller James Chanos of Kynikos Associates Ltd. estimated that Enron's cost of capital was between 9 and 12 percent, but its return on capital was closer to 7 percent. As a director, how would you use information about the cos
18 -10 Consider this simplified balance sheet for Geomorph Trading: Current Assets $100 $ 60 Current Liabilities Long-term assets $500 280 Long-term debt 70 Other liabilities 190 Equity $600 $600 a. Calculate the ratio of debt to equity b. What are Geomorphy's
Suppose that, in an effort to reduce the federal deficit, Congress increases the top personal tax rate on interest and dividends to 35% but retains a 15% tax rate on realized capital gains. The corporate tax rate stays at 35%. Compute the total corporate plus personal taxes paid on debt versus equity income if: (a) capital g
According to Coleman, Swenson, Booth Inc. (2011), the following information should be included when submitting a request for venture capital: - The company's history. - A description of the company's products or services, how they impact the cost and efficacy of healthcare delivery, and their uniqueness to those of compe
A. Does Phillip Morris have any investments? If yes, indicate the type of investments (debt or stock) for current year and prior year. Investments represent what percentage of total assets? b. How does Phillip Morris account for its investments in Marketable Securities (i.e., cost or equity method)? c. Does Phillip Morris
You have considered expanding your line of equipment and apparel for high school athletic teams to include soccer teams and gathered information on the increase in sales for your division and the investment needed in new manufacturing equipment without having to hire additional manufacturing personnel. After this, you arrange a
You have considered expanding your line of equipment and apparel for high school athletic teams to include soccer teams and gathered information on the increase in sales for your division and the investment needed in new manufacturing equipment without having to hire additional manufacturing personnel. After this, you arrange a
Your friend has told you about his or her plan to secure bonds to raise capital. Explain to your friend about the risks associated with investing in bonds. Describe at least four types of those risks.
Discuss: â?¢Describe the investment banking process, including portfolio construction. â?¢Describe factors that must be considered when selecting among asset classes for an investment portfolio. â?¢Describe capital market instruments used in portfolio construction. â?¢Make general recommendations for the compositio
During a board meeting, the CEO of TCB advised you that the lending bank is raising another issue about the audited financial statement presented. This time the loan officer is questioning the low level of the company's working capital. Please write a memo to the loan officer. Explain the various factors that can affect a compan
Some nonfinancial factors included in capital investment decisions are more important now than they were 20-25 years ago. Give some examples of the types of nonfinancial factors that managers would consider more important in today's capital investment decisions than they were in the past.
These all need to be based on the United States 1)Explain the nature and purpose of audit working papers and identify one of the four major types 2)Why is it considered necessary for a successor auditor to communicate with a predecessor audit? 3)Why is it necessary for auditors to determine whether they have the competenc
Choose the correct answer and explain in one sentence why: 1. Expenditures capitalized as long-lived assets generally include those expenditures that: a. are for items that have a physical life of more than a year, regardless of their cost. b. are material and that have an economic benefit to the entity that extends bey