Define the term "Statement of Cash Flows." Explain why and how the statement of cash
flows is important information you would need to run a business? In your opinion, do the
three main sections of the statement of cash flows also apply to you as you manag
3-2 Liquidity Ratios The top part of Ramakrishnan, Inc.s, 2015 and 2014 balance sheets is
listed below (in millions of dollars).
Calculate Ramakrishnan, Inc.s, current ratio, quick ratio, and cash ratio for 2015 and 2014.
(LG3-1)
2014
Current Ratio=
$ 383
2-1 Balance Sheet You are evaluating the balance sheet for Goodmans Bees Corporation.
From the balance sheet you find the following balances: cash and marketable securities =
$400,000, accounts receivable = $1,200,000, inventory = $2,100,000, accrued wage
Chapter 2, Solutions
Cornett, Adair, and Nofsinger
CHAPTER 2 REVIEWING FINANCIAL STATEMENTS
Questions
LG1
1. List and describe the four major financial statements.
The four basic financial statements are:
1. The balance sheet reports a firms assets, liabi
Unit 2 Homework
Ch. 3
Problems: 3-2, 3-3, 3-7, 3-9, 3-11, 3-15, 3-18, 3-25
3-2: Calculate Ramakrishnan, Inc.s, current ratio, quick ratio, and cash ratio for 2015 and 2014.
2014
2015
Current Ratio:
= 1.9641 times
= 1.9429 times
Quick Ratio:
= 0.9076 times
download full file at http:/testbankcafe.com
CHAPTER 2 REVIEWING FINANCIAL STATEMENTS
questions
LG1
1. List and describe the four major financial statements.
The four basic financial statements are:
1. The balance sheet reports a firms assets, liabilities
1. A bond's coupon rate is equal to the annual interest divided by which one of the
following?
A. call price
B. current price
C. face value
D. clean price
E. dirty price
2. An indenture is:
A. another name for a bond's coupon.
B. the written record of all
4-5 Multiyear Future Value How much would be in your savings account in 11 years after
depositing $150 today if the bank pays 8 percent per year? (LG4-3)
FV
N
FV
11
=
PV x (1+i) N
11
= $ 150 x (1+0 . 08)
= $150 x 2.3316
= $349.74
4-7 Compounding with Diff
Question 1 To 15
Question 15 To 25
=
=
1.67 Points each
2.50 Points each
Student:
1. Which one of the following terms is defined as the management of a firm's long-term
investments?
A. working capital management
B. financial allocation
C. agency cost anal
Chapter 5, Solutions
Cornett, Adair, and Nofsinger
CHAPTER 5 Time Value of Money 2: ANALYZING ANNUITY CASH FLOWS
Questions
LG1
5-1 How can you add a cash flow in year two and a cash flow in year four in year seven?
To add cash flows, they need to be moved
1. The internal rate of return is defined as the:
A. maximum rate of return a firm expects to earn on a project.
B. rate of return a project will generate if the project in financed solely with internal
funds.
C. discount rate that equates the net cash in
1. Which one of the following is a capital structure decision?
A. determining which one of two projects to accept
B. determining how to allocate investment funds to multiple projects
C. determining the amount of funds needed to finance customer purchases
FINANCE 201 UNIT 5 Solution Set
9-1 FedEx Corp stock ended the previous year at $103.39 per share.
It paid a $0.35 per share dividend last year. It ended last year at $106.69. If you owned 200 shares of FedEx, what
was your dollar return and percent retur
Professor and class,
Future (or Compounded) Value can be defined as the rising value of a todays sum at a
specified future date given at a specified rate of interest. It is calculated by compounding
technique. Present (discounted) Value can be defined as
1. Why is Amazon's cash cycle so much shorter than that of competitor Barnes & Noble?
How does this comparison affect financial management decisions of other retailers?
a. Amazon has a shorter cash cycle mainly b.c they receive income every moment
in the
Jordan Panteleakos
Case Problem Chapter 1
1
1. The types of people that use financial markets are people who have invested or wish to
invest money. That could include companies, investors, or even the people in between
both of those making it all happen.
Jordan Panteleakos
Case Problem Chapter 2
1
2-1) The firms capital is $1.8 million.
2-4) The fitness studio in 2012 EPS was $4.39.
2-6) The change in the firms EPS from the change in capital structure is $0.6534.
2-7) The average tax rate is 32.16% while
Jordan Panteleakos
Case Problem Chapter 7
7-7) Par Value is 210.7 divided by 185.4 then multiplied by $1,000 =$1,136.46
The interest payment is multiplied by 0.0275 multiplied by $1,136.46 = $15.63
7-9) Treasury Note at 97.27: $978.44
Corporate bond at 10
Chapter 13 - Weighing Net Present Value and Other Capital Budgeting Criteria
CHAPTER 13 - WEIGHING NET PRESENT VALUE AND OTHER CAPITAL
BUDGETING CRITERIA
Questions
LG1
13-1
Is the set of cash flows depicted below normal or non-normal? Explain.
Time
Cash F
FINANCE 201 UNIT 4 Solution Set
6-1 A particular securitys default risk premium is 2 percent. For all securities, the inflation risk
premium is 1.75 percent and the real risk free rate is 3.5 percent. The securitys liquidity risk
premium is 0.25 percent a
FINANCE 201 Unit 3 Solution Set
4-5
How much would be in your savings account in 11 years after depositing $150 today if the bank pays 8
percent per year?
FVN = PV (1 + i)N
FV8 = $150 (1 + 0.08)11
= $150 2.3316
= $349.74
Calculator Method
N=11, I=8, PV=15
FIN 201 SOLUTION SET UNIT ONE
CHAPTER 2
2-1
Balance Sheet You are evaluating the balance sheet for Goodmans Bees Corporation.
From the balance sheet you find the following balances: cash and marketable securities =
$400,000, accounts receivable = $1,200,0
Professor and class,
I am a big fan of the show "Shark Tank" and am amazed at how the "Sharks" have been
mostly every day people with goals and driven to success. This drive has led to multimillionaires and billionaires that are always looking for the nex
Chapter 4 Solutions
Cornett, Adair, and Nofsinger
CHAPTER 4 TIME VALUE OF MONEY 1: ANALYZING SINGLE CASH
FLOWS
Questions
LG1
1. List and describe the purpose of each part of a time line with an initial cash inflow and
a future cash outflow. Which cash flo
1. Award: 10 out of 10.00 points
Balance Sheet You are evaluating the balance sheet for Cypress Corporation. From the balance sheet you ﬁnd the following balances: Cash and
marketable securities = $530,000, Accounts receivable = $730,000, Inventory = $430
A perpetuity pays $50 per year and interest rates are 9 percent. How much would its value change if
interest rates decreased to 7.5 percent? (Round your answer to 2 decimal places.)
Change in value $ 111.11 9
Did the value increase or decrease?
Increase 0
A perpetuity pays $50 per year and interest rates are 9 percent. How much would its value change if
interest rates decreased to 7.5 percent? (Round your answer to 2 decimal places.)
Change in value $ 111.11 9
Did the value increase or decrease?
Increase 0
1. Awardz10 out of 10.00 points
According to this theory of term structure of interest rates, at any given point in time, the yield curve reﬂects the market's current expectations of
future short-term rates.
0 Term structure of interest rates theory
0 Fut
1. Award: 0 out of 10.00 points
Portfolio Weights If you own 380 shares of Air Line Inc at $20.15, 310 shares of BuyRite at $11.1, and 490 shares of Motor City at $47.15, what are the
portfolio weights of each stock?
6 . Air Line = .3220, BuyRite = .2627,
Award: 10 out of 10.00 points
Compute the PI statistic for Project X and note whether the ﬁrm should accept or reject the project with the cash flows shown below if the
appropriate cost of capital is 11 percent.
mun-:-
nus-“mum:
O “00%, reject
o . 36.29%,