PART II: (Total Marks - 30) BARBELLE LADIES CLUB Company has the chance to open a...
PART II: (Total Marks = 50) Project: BARBELLE LADIES CLUB Expansion BARBELLE LADIES CLUB Company is planning to open a new branch in Dubai. The new investment would cost AED 850,000 to invest today. These assets will last for 5 years with no salvage value. The company uses a straight-line depreciation method. Management has prepared the projected income statements for 5 years given below. Year 1 Year 2 Year 3 Year 4 Year 5 Sales 400,000 450,000 500,000 550,000 550,000...
Marks = 30) Year 1 Year 2 evaluating the following two projects. The cost of SARBELLE LADIES CLUB Company has the chance to open a third brunch. There we toute Project A is AED 550.000, for Project B is AED 350,000. The cost of capital is 10%. Project A Year 3 120,000 Year 4 130,000 Year 5 Project B 145.000 100,000 150.000 165.000 110,000 120,000 140.000 150,000 1) Calculate the net present value (NPV) of the two projects, A and...
PART II: (Total Marks = 50) Project: BARBELLE LADIES CLUB Expansion new investment would cost AED 850,000 to invest today. These assets will last for 5 years with no salvage value. The company uses a straight-line depreciation method. Management has prepared the projected income statements for 5 years given below. Year 1 Year 2 Year 3 Year 4 Year 5 Sales 400,000 450,000 500,000 550,000 550,000 Selling 60,000 65,000 65,000 65,000 70,000 expense 52,000 50,000 55,000 55,000 55,000 Rent expense...
Question 2: Calculate the Payback Period. Shall investment be accepted target payback period is 3 years? (25 marks) Question 3: Calculate Average Accounting Return (AAR) for the Famous Company. Shall investment be accepted if target rate of return is 19%? (15 marks) PART II: (Total Marks 50) Project: BARBELLE LADIES CLUB Expansion BARBELLE LADIES CLUB Company is planning to open a new branch in Dubai. The new investment would cost AED 850,000 to invest today. These assets will last for...
Question 2: Calculate the Payback Period. Shall investment be accepted target payback period is 3 years? (25 marks) Question 3: Calculate Average Accounting Return (AAR) for the Famous Company. Shall investment be accepted if target rate of return is 19%? (15 marks) amount of money at the end of each year, caming 7% annual interest rate. How much is such a yearly annuity? (4 marks) PART II: (Total Marks = 50) Project: BARBELLE LADIES CLUB Expansion BARBELLE LADIES CLUB Company...
Yong Importers, an Asian import company, is evaluating two mutually exclusive projects, A and B. The relevant cash flows for each project are given in the table below. The cost of capital for use in evaluating each of these equally risky projects is 10 percent. initial investment project a project b $350,000 $425,000 year cash inflows (cf) 1 140,000 175,000 2 165,000 150,000 3 190,000 125,000 4 100,000 5 75,000 6 50,000 Which project should be chosen on the basis of...
1. (30 points) Bedrock Company has $70 million in debt and $30 million in equity. The debt matures in 1 year and has a 10% interest rate, so the company is promising to pay back $77 million to its debtholders 1 year from now. The company is considering two possible investments, each of which will require an upfront cost of $100 million. Each investment will last for 1 year, and the payoff from each investment depends on the strength of...
Michaels Company Below find the trial balance for Michaels for the year ended December 31, 2019. Using these accounts please prepare a classified balance Sheet at December 31, 2019 Account Name Debit (Credit) Accounts Payable (140,000) Accounts Receivable 170,000 Accumulated Depreciation=Equip (180,000) Accumulated Depreciation-Bldg (370,000) Allowance for uncollectible Accounts (10,000) Bond Sinking Fund 250,000 Bonds Payable (1,000,000) Building 1,050,000 Cash 150,000 Cash Surrender Value of Life Insurance 45,000 Common Stock, $1 par 400,000 shares authorized 100,000 shares issued (100,000) Copyrights...
Total: 23 Marks Question 4 Suggested time allocation: 414 Minutes The comparative statements of Gong Limited are presented below. Gong Limited Income Statement For the year ended 30 June 2018 $ 600,000 2017 Net sales (all on account) Expenses: Cost of sales 520,000 415,000 123,800 354,000 114,800 6,000 14,000 488,800 31,200 Selling and administrative Interest Expense Income tax expense Total expenses Profit 7,800 18,000 564,600 35,400 Gong Limited Statement of Financial Position As at 30 June Assets 2018 2017 Current...
only need part b worksheet
Illustration #3 Pepper Company, which is a calendar-year-reporting company, purchased 100% of the common stock of Salt Inc. for $325,000 on 12/31/17. On the acquisition date, the following net assets of Salt had fair values different than book value: Cost FMV Inventory 80,000 75,000 Turnover 6 times per year Land 70,000 100,000 Building and equipment 220,000 210,000 10 year life Accumulated depreciation (60,000) Covenant-not-to-complete 40,000 4 year life Bonds payable 150,000 175,000 10 years to...