pls answer all the questions and show the work
Answer to Question No. 10
Working Capital = Current Assets – Current Liabilities
Working Capital, Last Year = $55,300 - $47,950
Working Capital, Last Year = $7,350
Working Capital, This Year = $80,400 - $82,100
Working Capital, This Year = -$1,700
Change in Net Working Capital = -$1,700 - $7,350
Change in Net Working Capital = -$9,050
pls answer all the questions and show the work In-Class Exercise - Accounting Review 10. Angie...
pls show the work In-Class Exercise - Accounting Review 10. Angie Animal House had current assets of $55,300 and current liabilities of $47.950 last year. This year, the current assets are $80,400 and the current liabilities are $82,100. The depreciation expense for the past vear is $10,600 and the interest paid is $7.800. What is the amount of the change in net working capital (NWC)? Chapter 3 - Analysis of Financial Statements 11. Bloom Car Rental's sales last year were...
pls do from 14 to 20 In-Class Exercise - Accounting Review 10. Angie Animal House had current assets of $55,300 and current liabilities of $47.950 last year. This year, the current assets are $80,400 and the current liabilities are $82,100. The depreciation expense for the past vear is $10,600 and the interest paid is $7.800. What is the amount of the change in net working capital (NWC)? Chapter 3 - Analysis of Financial Statements 11. Bloom Car Rental's sales last...
In-Class Exercise - Accounting Review 10. Angie Animal House had current assets of $55,300 and current liabilities of $47.950 last year. This year, the current assets are $80,400 and the current liabilities are $82,100. The depreciation expense for the past vear is $10,600 and the interest paid is $7.800. What is the amount of the change in net working capital (NWC)? Chapter 3 - Analysis of Financial Statements 11. Bloom Car Rental's sales last year were $415,000, and its year-end...
please show the work and provide correct answers. This is from financial management course In-Class Exercise - Accounting Review Chapter 2 - Financial Statements, Cash Flow, and Taxes 1. Frederickson Office Supplies recently reported $12,500 of sales, $7,250 of operating costs other than depreciation, and $1,250 of depreciation. The company had no amortization charges and no non- operating income. It had $8,000 of bonds outstanding that carry a 7.5% interest rate, and its federal-plus- state income tax rate was 40%....
LeCompte Corp. has $312,900 of assets, and it uses only common equity capital (zero debt). Its sales for the last year were $720,000, and its net income after taxes was $24,655. Stockholders recently voted in a new management team that has promised to lower costs and get the return on equity up to 15%. What profit margin would LeCompte need in order to achieve the 15% ROE, holding everything else constant? Select the correct answer. LeCompte Corp. has $312,900 of...
6. Last year Swensen Corp. had sales of $303,225, operating costs of $267,500, and year-end assets of $195,000. The debt-to-total-assets ratio was 27%, the interest rate on the debt was 8.2%, and the firm's tax rate was 37%. The new CFO wants to see how the ROE would have been affected if the firm had used a 45% debt ratio. Assume that sales and total assets would not be affected, and that the interest rate and tax rate would both...
pls answer 6 to 9. pls show the work in details. In-Class Exercise - Accounting Review Chapter 2 - Financial Statements, Cash Flow, and Taxes 1. Frederickson Office Supplies recently reported $12,500 of sales, $7.250 of operating costs other than depreciation, and $1,250 of depreciation. The company had no amortization charges and no non- operating income. It had $8,000 of bonds outstanding that carry a 7.5% interest rate, and its federal-plus- state income tax rate was 40%. How much was...
Last year Kruse Corp had $410,000 of assets (which is equal to its total invested capital), $403,000 of sales, $28,250 of net income, and a debt-to-total-capital ratio of 39%. The new CFO believes the firm has excessive fixed assets and inventory that could be sold, enabling it to reduce its total assets and total invested capital to $252,500. The firm finances using only debt and common equity. Sales, costs, and net income would not be affected, and the firm would...
LeCompte Corp. has $312,900 of assets, and it uses only common equity capital (zero debt). Its sales for the last year were $620,000, and its net income after taxes was $24,655. Stockholders recently voted in a new management team that has promised to lower costs and get the return on equity up to 20%. What profit margin would LeCompte need in order to achieve the 20% ROE, holding everything else constant? Answers: a. 8.35% b. 7.57% c. 10.09% d. 8.76%...
Last year Ann Arbor Corp had $250,000 of assets (which equals total invested capital), $305,000 of sales, $20,000 of net income, and a debt-to-total-capital ratio of 37.5%. The new CFO believes that a new computer program will enable the company to reduce costs and thus raise net income to $33,000. The firm finances using only debt and common equity. Assets, total invested capital, sales, and the debt to capital ratio would not be affected. By how much would the cost...