FIN 341 EXERCISE#13 - TEMPLATE
TUCKER CORPORATION
STATEMENT OF CASH FLOWS - INDIRECT METHOD
For the Year Ended April 30, 2014
Cash Flows From Operating Activities
Net Income (Earnings After Taxes)
Adjustments to determine cash flow from
Operating Activiti
FIN 341 - Exercise#11
BALANCE SHEET-03-31-14-TUCKER COMPANY
ASSETS
CURRENT ASSETS
Cash
Marketable securities
Accounts Receivable
Less: Allowance for bad debts
Inventory
Prepaid Expenses
Total Current Assets
Other Assets:
Investments
Fixed Assets:
Plant an
EXERCISE#13 - FIN 341
TUCKER CORPORATION
INCOME STATEMENT
4-30-2014
1. SALES
2. GAIN ON SALE OF LONG-TERM ASSETS
3. COST OF GOODS SOLD
4.
GROSS PROFIT
5. SELLING & ADMINISTRATIVE X
6. DEPRECIATION EXPENSE
7.
OPERATING PROFIT (EBIT)
8. LOSS ON SALE OF LONG
FIN 341-QUIZ#11-Based on EX#11 - Due Date -4-14-14
BALANCE SHEET-4-30-14-VENUS COMPANY
ASSETS
CURRENT ASSETS
Cash
Marketable securities
Accounts Receivable
Less: Allowance for bad debts
Inventory
Prepaid Expenses
Total Current Assets
Other Assets:
Investm
FIN 341 - QUIZ#10 Based on Exercise#10
Due Date - 4-11-14-Friday-Midnight
Calculate the following Bond Prices .
1. 4% coupon payment semi-annually, 6% yield, $1,000 par, 25
years to maturity.
$1,000 *.04=$40/2 = $20 * (1-1/(1.03)^50)/.03 + $1,000/(1.03)^5
FIN 341 QUIZ#9 (Based on Exercise#9)
Due Date April 9, 2014 WednesdayMidnight
Calculate the required rate of return % for the preferred stock in
the following three problems. Check work.
1.
Annual Dividend (Dpfd) = $9
(Ppfd) = $70
Preferred Stock Price
$9
Assignment 1
Article Critique on Corporate Finance
http:/www.reuters.com/article/2014/01/11/ces-mobile-pricewar-idUSL2N0KL09X20140111
Dated: January 11, 2014
1-Price war in U.S. mobile market raises fear of profit hemorrhage
This article discusses what th
Assignment 1
Article Critique on Corporate Finance
http:/www.reuters.com/article/2014/03/30/us-delta-virgin-idUSBREA2T06T20140330
Dated: March 30, 2014
DeltaVirgintakesupbattleforNewYorkLondonfliers
This article discusses the battle going on between Delta
Assignment 1
Article Critique on Corporate Finance
http:/blogs.wsj.com/digits/2014/03/03/apple-to-bring-iphone-software-to-cars/
Dated: March 3, 2014
Apple to Bring iPhone Software to Cars
This article discusses Apples plan to add a system class CarPlay t
Assignment 1
Article Critique on Corporate Finance
http:/www.reuters.com/article/2014/01/11/ces-mobile-pricewar-idUSL2N0KL09X20140111
Dated: March 11, 2014
Target says it declined to act on early alert of cyber breach
This article discusses explains that
FIN 341 Exercise#6 - PAYBACK
Payback Method formula = add up the years cash flow until
you get to the initial investment but not over (this is your
whole number such as 2.?) then divide the last cash flow
number by that years cash flow to get the hundredt
FIN 341 Exercise#5
Net Present Value
Calculate the Net Present Value from the following five
problems.
1. II = $100,000 YR1CF = $50,000 YR2CF = $60,000 YR3CF =
$70,000 R = 12%
$50,000/(1.12)^1+$60,000/(1.12)^2+$70,000/(1.12)^3-$100,000
=
$44,642.86+$47,83
FIN 341 Quiz#5 Based on Exercise#5
Due Date 2-28-14 Friday - Midnight
Calculate the Net Present Value from the following five
problems.
1. II = $250,000 YR1CF = $90,000 YR2CF = $120,000 YR3CF
= $150,000 R = 14%
$90,000/(1.14)^1+$120,000/(1.14)^2+$150,000/
Assignment 1
Article Critique on Corporate Finance
http:/www.reuters.com/article/2014/02/21/whatsapp-what-idUSL2N0LP2QO20140221
Dated: February 20, 2014
What's WhatsApp? A messages service that spans borders,
devices
This article explains what the app Wha
FIN 341 Quiz#6 Based on Exercise#6
1.
Due Date 2-28-14 Friday - Midnight
II = $240,000 year 1 to 5 cash flow $80,000, $80,000,
$80,000, $80,000, and $80,000. Calculate the years
payback.
$80,000+$80,000+$80,000 = 3 Years Payback
2.
II = $360,000 year 1 to
FIN 341 Exercise#7WACC
Weighted Average Cost of Capital (WACC) =
(Wd)(Kd) + (Wpfd)(Kpfd) + (We)(Ke)
1. The capital structure (Wd, Wpfd, and We) of Tucker
Company is 25%, 10%, and 65%, and the cost of the bonds,
preferred stock, and common stock (Kd, Kpfd,
FIN 341 Exercise#8
1.
Estimated future total sales in units (S) = 72,000, Cost to
place an order (O) = $6,
Carrying cost per unit (C) = $2.40
Sq. root 2*72,000 (S) *$6 (O)/$2.40(C) = 600 EOQ
72000 Sales/600 EOQ = 120 Orders
120*$6(O)=$720 Ordering Cost
60
FIN 341 Quiz#7 Based on
Exercise#7
Due Date March 7, 2014
1. The capital structure (Wd, Wpfd, and We) of Tucker
Company is 30%, 20%, and 50%, and the cost of the bonds,
preferred stock, and common stock (Kd, Kpfd, and Ke) is
8%, 5%, and 14%. Calculate the
FIN 341 QUIZ#8 Based on Exercise#8
Due Date 3-07-14 Friday - Midnight
Calculate the A) Economic Order Quantity (EOQ), B)
Number of Orders, C) $ Ordering Costs, D) Carrying
Cost, E) Total Cost for problems #1, #2, and #3.
1.
Estimated future total sales in
FIN 341 - Exercise#2
1. Company A has its common stock selling for $36 a share, there is $2 million
of net income, and 1 million shares outstanding. Calculate the Earnings Per
Share and Price Earnings ratio.
A) $2MM Net Income/1MM Shares Outstanding = $2.
FIN 341 EXERCISE#3 SPRING 2014
1. An investor bought $5,000 worth of McDonalds shares 10 years ago,
and today they are worth $18,000.
(18,000/5,000)^.101 = 13.67%
2. An investor bought $20,000 worth of Wal-Mart shares 5 years ago,
and today they are worth
Due Date 2-07-14 Friday - Midnight
Solve the following problems. Rule of 72, Simple Interest,
Future Value, Present Value, Future Value Ordinary Annuity,
Present Value Ordinary Annuity, Future Value Annuity Due,
and Present Value Annuity Due.
Rule of 72
1
FIN 341 QUIZ#4-Based on Exercise#4
Due Date 3-25-14-Tuesday-Midnight
1) Do the ten step process from Exercise#4 on the following
four companies.
1) Minnesota Mining and Manufacturing (3MMM)
2) International Business Machines
3) Kellogg
4) Microsoft
Mi
FIN 341 Quiz#3 Based on Exercise#3
Due Date 2-25-14-Tuesday-Midnight
1.
Company A has its common stock selling for $60 a share,
there is $8 million of net income, and 2 million shares
outstanding. Calculate the Earnings Per Share and
Price Earnings ratio.
FIN 341 Quiz#2 Based On Exercise#2
Due Date 2-25-14-Tuesday-Midnight
Calculate the annual % return from the following capital gain
problems.
1. An investor bought $10,000 worth of McDonalds shares 5
years ago, and today they are worth $20,000.
(20,000/10,
FIN 341 Financial Management EXERCISE#1
Spring 2014 Dr. Tucker (REVISED)(#13,#22,#24)
Rule of 72
1. How many years does it take an investment to double earning 18%? Rule
of 72
72/18 = 4 years
2. How many years does it take an investment to double earning