CHAPTER 6
VALUE OF CAPITAL
1. Capital Sources
Corporations issue financial securities (i.e., sell stock or bonds) to raise necessary capital so that
they can run their businesses while investors purchase those financial securities from
corporations in hop
CHAPTER 6
VALUE OF CAPITAL
1. Capital Sources
Corporations issue financial securities (i.e., sell stock or bonds) to raise necessary capital so that
they can run their businesses while investors purchase those financial securities from
corporations in hop
CHAPTER 5
TIME VALUE OF MONEY
1. What is Time Value of Money (TVM)?
Time Value of Money (TVM) is an important concept in financial management. It can be used
to compare investment alternatives and to solve problems involving loans, mortgages, leases,
savi
CHAPTER 5
TIME VALUE OF MONEY
1. What is Time Value of Money (TVM)?
Time Value of Money (TVM) is an important concept in financial management. It can be used
to compare investment alternatives and to solve problems involving loans, mortgages, leases,
savi
Review for Exam 1
Instructions: Please read carefully
The exam will have 20 multiple choice questions and 4 work problems.
Questions in the multiple choice section will be either concept or calculation questions.
The calculation questions will be similar
CHAPTER 5
TIME VALUE OF MONEY
1. What is Time Value of Money (TVM)?
Time Value of Money (TVM) is an important concept in financial management. It can be used
to compare investment alternatives and to solve problems involving loans, mortgages, leases,
savi
FinancialMath:PracticeTest
CreatedbyPamelaPetersonDrake
1. Supposeyoudeposit$1,000inanaccounttodaythatpays5%interest,compoundedannually.Whatwillbethebalanceintheaccountattheendof
twoyearsifyouwithdrawonlytheinterestpaidoninterest?
a. $1,000.00
b. $1,050.0
Homework #5
Internal Control
Please use a word processor for this assignment, and single space your text. The assignment is due in the particular
class when Internal Control is covered.
Please bring the assignment to class. (The written part of the assign
January
February March
April
May
June
July
August
September
October
November
December
Year Total
Food Sales
Beverage Sales
Total Sales
55000
13750
68750
58025
14506
72531
61216
15304
76520
64583
16146
80729
68135
17034
85169
71883
17971
89854
75836
18959
336 Assignment 1 You have to use Excel. Please format your work!
Also: hand in your formulas by using CTRL ~
A. Using the following information, prepare a balance sheet for the Tron Diner. Use proper format. Make
sure A=L+OE (in other words, the thing has
Michael Giorgio 961063484
January
February
March
April
May
June
July
August
September
October
December
$93,948
$99,115
$23,487
$24,779
$117,435 $123,894
Year Total
Food Sales
Beverage Sales
Total Sales
$55,000
$13,750
$68,750
$58,025
$14,506
$72,531
$61,2
Assets
Current Assets:
Cash
Inventory
Inventory Supplies
Prepaid Insurance
Deposit Electric Company
6000
1500
500
600
200
Total Current Assets
8800
Property and Equiptment
Building less Accumlated Depreciation
Equiptment less Accumlated Deppreciation
Fixt
Michael Giorgio
Seats
Days Open
Seat Turnover
Total Covers
Tax Rate
Question 1
200 Total Investment
365 Personal Investment
1.9 Borrowed from bank
138700 Desired ROI
30% Intrest Rate
2008 Income Statement
Sales
Fixed Charges
Depreciation
Rest. Op. Expense
THE PENNSYLVANIA STATE UNIVERSITY
SCHOOL OF HOSPITALITY MANAGEMENT
Welcome to:
Course Instructor:
Office Location:
Office Hours:
Phone:
E-mail:
HRIM 336 (3 credits)
Hospitality Managerial Accounting
Spring 2011
Dr. Marja J. Verbeeten
232 Mateer
T: 1-3 PM
n
RATIOS
Ifyou understand
@,!,.".,
5
wer to you as a manager (and more $ in your pocl<et)
4tu w#)^ffiY[ff^
Food Sales: $5,678
7+;
Beverage Sales: $3'678
Available rooms: 345
A.
/$ f,*"n are these sales mix elements:
LY
cfw_a\"\ 4M- ,*7d
'q\"os"
Rooms:657o
Team Two (Rose Perez, Emily Keisman, Rachel Boulay, and Carrie Gardoski)
B= budget a= actual
Room rev- budget more than actual = unfavorable. We did not meet our occu. %. Also
we waited to refurbish certain amenities so our occupancy would increase over t
Michael Giorgio 961063484
Tron Diner
Balance Sheet
Assets
Current Assets:
Cash
Inventory
Inventory Supplies
Prepaid Insurance
Deposit Electric Company
$6,000.00
$1,500.00
$500.00
$600.00
$200.00
Total Current Assets
$8,800.00
Property and Equiptment
Build
Trade Calculations
Cost of Ingredients
Objective 6
When you complete this objective you will be able to calculate the cost of ingredients, given an ingredient,
an amount and a purchase price.
Formula Ingredient amount x Edible Product Price = Ingredient c
Chapter 2
Time Value of Money
Basic TVM Concepts
Future Value
Interest rate: abbreviated r or k
Compound rate
Discount rate
Cost of capital
Required return
Present Value PV value today
Future Value FV value sometime in the future
Present Value
Annu
Formulae Sheet
1.
Future value of a lump sum FVt = PV ( 1 + i )t
2.
Present value of a lump sum PV = FVt / ( 1 + i )t
3.
Future value of an annuity
FV = PMT * ( 1 + i )t - 1
i
4.
Present value of an annuity
PV = PMT * j 1 1
k
l i i (1 + i )t m
5.
Present
Topics
Chapter 5
Time Value of Money
Future Value - Compounding
Future Value - What is something worth in
the future at a rate of interest.
ex. $1,000 deposited into a bank today and
left in the account for 1 year earning
interest at 5%
1.
2.
3.
4.
5.
6.
Name: _ Class: _ Date: _
ID: A
Problem set, TVM
Multiple Choice
Identify the choice that best completes the statement or answers the question.
_
1. After graduation, you plan to work for Mega Corporation for 10 years and then start your own business. You
CHAPTER 4
FINANCIAL STATEMENTS & ANALYSIS FOR RESTAURANTS
1. Uniform System of Accounts for Restaurants (USAR)
The financial statements of a business consist of a balance sheet, a statement of income and
retained earnings, and a statement of cash flows th
Common Stock
Chapter 9
Stocks and Their
Valuation
Common Stock - Provides ownership in a
corporation with resulting voting rights and
residual claims.
Features of Common Stock:
(1)
(2)
(3)
(4)
No maturity
Voting rights
Residual claim on assets
Residual cl
Risk and Return
Chapter 8
Risk and Rates of
Return
What do we know so far?
We know why returns vary between different securities!
Which is better?
(1) 4% return with no risk, or
(2) 15% return with risk.
Cannot say - need to know how much risk
comes with
Bond Valuation
Valuing the cash flows
Chapter 7
(1) coupon payment (interest payment)
= (coupon rate * principal)
Bonds, Bond Valuation,
and Interest Rates
usually paid every 6 months
(2) maturity value
= principal or par value
= $1000
Example (coupon rat