FIN 200
Axia College of University of Phoenix (UoP)
Foundations of Financial Management
Block Hirt Danielsen
Introduction to Finance: Harvesting the Money Tree
Fin 200 Week 3 Solution
Assignment: Pro Forma Statements
Chapter 4
25. Carter Paint Company has plants in nine midwestern states. Sales for last year were $100 million, and the balance sheet at year-end is similar in percentage of sales to that of previous years (and this will continue in the future). All assets (including fixed assets) and current liabilities will vary directly with sales.
BALANCE SHEET
(in $ millions)
Assets Liabilities and Stockholders’ Equity
Cash . . . . . . . . . . . . . . . . . . . . . . . . $ 5 Accounts payable . . . . . . . . . . . . . . $15
Accounts receivable. . . . . . . . . . . . . 15 Accrued wages . . . . . . . . . . . . . . . . 6
Inventory . . . . . . . . . . . . . . . . . . . . . 30 Accrued taxes . . . . . . . . . . . . . . . . . 4
Current assets . . . . . . . . . . . . . . . 50 Current liabilities . . . . . . . . . . . . . 25
Fixed assets . . . . . . . . . . . . . . . . . . 40 Notes payable . . . . . . . . . . . . . . . . . 30
Common stock . . . . . . . . . . . . . . . . . 15
Retained earnings . . . . . . . . . . . . . . 20
Total assets . . . . . . . . . . . . . . . . . . . $90 Total liabilities and
stockholders’ equity . . . . . . . . . . . $90
Carter Paint has an aftertax profit margin of 5 percent and a dividend payout ratio of 30 percent.
If sales grow by 10 percent next year, determine how many dollars of new funds are needed to finance the expansion. (Assume Carter Paint is already using assets at full capacity and that plant must be added.)
Click here for the SOLUTION
Showing posts with label Week 3. Show all posts
Showing posts with label Week 3. Show all posts
Saturday, July 3, 2010
16. J. Lo’s Clothiers has forecast credit sales for the fourth quarter of the year as
FIN 200
Axia College of University of Phoenix (UoP)
Foundations of Financial Management
Block Hirt Danielsen
Introduction to Finance: Harvesting the Money Tree
Fin 200 Week 3 Solution
Assignment: Pro Forma Statements
Chapter 4
16. J. Lo’s Clothiers has forecast credit sales for the fourth quarter of the year as:
September (actual) . . . . . . . . . . . . . $70,000
Fourth Quarter
October . . . . . . . . . . . . . . . . . . . . . . $60,000
November . . . . . . . . . . . . . . . . . . . . 55,000
December . . . . . . . . . . . . . . . . . . . . 80,000
Experience has shown that 30 percent of sales are collected in the month of sale, 60 percent in the following month, and 10 percent are never collected. Prepare a schedule of cash receipts for J. Lo’s Clothiers covering the fourth quarter (October through December).
Click here for the SOLUTION
Axia College of University of Phoenix (UoP)
Foundations of Financial Management
Block Hirt Danielsen
Introduction to Finance: Harvesting the Money Tree
Fin 200 Week 3 Solution
Assignment: Pro Forma Statements
Chapter 4
16. J. Lo’s Clothiers has forecast credit sales for the fourth quarter of the year as:
September (actual) . . . . . . . . . . . . . $70,000
Fourth Quarter
October . . . . . . . . . . . . . . . . . . . . . . $60,000
November . . . . . . . . . . . . . . . . . . . . 55,000
December . . . . . . . . . . . . . . . . . . . . 80,000
Experience has shown that 30 percent of sales are collected in the month of sale, 60 percent in the following month, and 10 percent are never collected. Prepare a schedule of cash receipts for J. Lo’s Clothiers covering the fourth quarter (October through December).
Click here for the SOLUTION
Saturday, April 24, 2010
FIN 200: Assignment Workbook Week 3 Solution
FIN 200
Axia College of University of Phoenix (UoP)
Introduction to Finance: Harvesting the Money Tree
Finance 200 Assignment Workbook Week 3 Solution
Week 3 Assignment: Pro Forma Financial Statements
Click here for the SOLUTION
The Niara Corporation
The balance sheet items of The Niara Corporation that vary directly with sales and the profit margin are as follows:
Percent
Cash 9%
Accounts receivable 11%
Inventory 22%
Net fixed assets 32%
Accounts payable 12%
Accruals 9%
Profit margin after taxes 5%
2009 Sales $2,200 thousand
2010 Sales Increase 14%
Dividend Payout Ratio 40%
2009 Retained Earnings Balance 620.00 thousand
Common Stock 120.00 thousand
Long Term Bonds 80.00 thousand
Notes Payable 346.00 thousand
You must show your work in order to receive credit
a . How much additional external capital will be required for next year given the sales increase as noted above? (Assume that the company is already operating at full capacity.)
b . What will happen to external fund requirements if The Niara Corporation reduces the payout ratio, grows at a slower rate, or suffers a decline in its profit margin? Discuss each of these separately.
c. Prepare a pro forma balance sheet for 2010 assuming that any external funds being acquired will be in the form of notes payable. Disregard the information in part b in answering this question (that is, use the original information and part a in constructing your pro forma balance sheet).
Click here for the SOLUTION
Axia College of University of Phoenix (UoP)
Introduction to Finance: Harvesting the Money Tree
Finance 200 Assignment Workbook Week 3 Solution
Week 3 Assignment: Pro Forma Financial Statements
Click here for the SOLUTION
The Niara Corporation
The balance sheet items of The Niara Corporation that vary directly with sales and the profit margin are as follows:
Percent
Cash 9%
Accounts receivable 11%
Inventory 22%
Net fixed assets 32%
Accounts payable 12%
Accruals 9%
Profit margin after taxes 5%
2009 Sales $2,200 thousand
2010 Sales Increase 14%
Dividend Payout Ratio 40%
2009 Retained Earnings Balance 620.00 thousand
Common Stock 120.00 thousand
Long Term Bonds 80.00 thousand
Notes Payable 346.00 thousand
You must show your work in order to receive credit
a . How much additional external capital will be required for next year given the sales increase as noted above? (Assume that the company is already operating at full capacity.)
b . What will happen to external fund requirements if The Niara Corporation reduces the payout ratio, grows at a slower rate, or suffers a decline in its profit margin? Discuss each of these separately.
c. Prepare a pro forma balance sheet for 2010 assuming that any external funds being acquired will be in the form of notes payable. Disregard the information in part b in answering this question (that is, use the original information and part a in constructing your pro forma balance sheet).
Click here for the SOLUTION
Sunday, January 24, 2010
*NEW* ACC 225: Week Three Solution
ACC 225
Axia College of University of Phoenix (UoP)
Financial Accounting
Larson, K. D., Wild, J. J., & Chiappetta B. (2005). Fundamental accounting principles (17th ed.)
ACC 225 Week 3 Solution
2. CheckPoint: Adjustments and Accrual and Cash Basis Accounting (Post in the Individual Forum – Due Day 5)
• Resource: Fundamental Accounting Principles, pp. 116–118 & 120
• Complete Quick Study questions 3-1 & 3-9 on pp. 116 & 117 and Exercises 3-1 & 3-7 on pp. 118 & 120.
Click here for the SOLUTION
DQ2 – Due Day 4 (Post in the Main forum in the thread I have created for DQ2)
Post must be 150-300 words.
• The Ritz Manor is a popular seaside resort. A double room costs $250 for one night. To reserve a room, guests must pay one night’s stay in advance. On each floor of the hotel, Vendalite Company operates vending machines with energy bars, juices, and other snacks for guests. Vendalite stocks the machines and collects revenue every week. Total average weekly revenue from these machines is $750. The Ritz Manor is entitled to 30% of the revenue from the machines. Vendalite sends a check to the Ritz Manor once at the end of each quarter for the resort’s share of the revenue.
o Based on this information, what are the adjusting entries Ritz Manor will need to record?
o Include in your response the amounts of the adjustments, which accounts are affected and why, and explain in detail how you determined the amounts.
Click here for the SOLUTION
Axia College of University of Phoenix (UoP)
Financial Accounting
Larson, K. D., Wild, J. J., & Chiappetta B. (2005). Fundamental accounting principles (17th ed.)
ACC 225 Week 3 Solution
2. CheckPoint: Adjustments and Accrual and Cash Basis Accounting (Post in the Individual Forum – Due Day 5)
• Resource: Fundamental Accounting Principles, pp. 116–118 & 120
• Complete Quick Study questions 3-1 & 3-9 on pp. 116 & 117 and Exercises 3-1 & 3-7 on pp. 118 & 120.
Click here for the SOLUTION
DQ2 – Due Day 4 (Post in the Main forum in the thread I have created for DQ2)
Post must be 150-300 words.
• The Ritz Manor is a popular seaside resort. A double room costs $250 for one night. To reserve a room, guests must pay one night’s stay in advance. On each floor of the hotel, Vendalite Company operates vending machines with energy bars, juices, and other snacks for guests. Vendalite stocks the machines and collects revenue every week. Total average weekly revenue from these machines is $750. The Ritz Manor is entitled to 30% of the revenue from the machines. Vendalite sends a check to the Ritz Manor once at the end of each quarter for the resort’s share of the revenue.
o Based on this information, what are the adjusting entries Ritz Manor will need to record?
o Include in your response the amounts of the adjustments, which accounts are affected and why, and explain in detail how you determined the amounts.
Click here for the SOLUTION
Sunday, January 17, 2010
ACC 225: Week Three Solution
ACC 225
Axia College of University of Phoenix (UoP)
Financial Accounting
Larson, K. D., Wild, J. J., & Chiappetta B. (2005). Fundamental accounting principles (17th ed.)
ACC 225 Week 3 Solution
Discussion Question 2
• Due Date: Day 4 [Main] forum
• Post your response to the following: The Ritz Manor is a popular seaside resort. A
double room costs $220 for one night. In order to reserve a room, guests must pay one
night’s stay in advance. On each floor of the hotel, Vendalite Company operates vending
machines with energy bars, juices, and other snacks for guests. Vendalite stocks the
machines and collects revenue every week. Total average weekly revenue from these
machines is $720. The Ritz Manor is entitled to 30% of the revenue from the machines.
Vendalite sends a check to the Ritz Manor once at the end of each quarter for the resort’s
share of the revenue.
o Based on this information, what type of adjusting entries does the Ritz Manor have?
o How are the amounts of these adjustments determined?
o Which accounts are affected?
Click here for the SOLUTION
CheckPoint: Adjustments and Accrual and Cash Basis Accounting
• Resource: Fundamental Accounting Principles, pp. 116-118 and 120
• Due Date: Day 5 [Individual] forum
• Complete Quick Study questions QS 3-1 and QS 3-9 on pp. 116 and 117 and Exercises
3-1 and 3-7 on pp. 118 and 120.
• Post your answers as an attachment.
Click here for the SOLUTION
Axia College of University of Phoenix (UoP)
Financial Accounting
Larson, K. D., Wild, J. J., & Chiappetta B. (2005). Fundamental accounting principles (17th ed.)
ACC 225 Week 3 Solution
Discussion Question 2
• Due Date: Day 4 [Main] forum
• Post your response to the following: The Ritz Manor is a popular seaside resort. A
double room costs $220 for one night. In order to reserve a room, guests must pay one
night’s stay in advance. On each floor of the hotel, Vendalite Company operates vending
machines with energy bars, juices, and other snacks for guests. Vendalite stocks the
machines and collects revenue every week. Total average weekly revenue from these
machines is $720. The Ritz Manor is entitled to 30% of the revenue from the machines.
Vendalite sends a check to the Ritz Manor once at the end of each quarter for the resort’s
share of the revenue.
o Based on this information, what type of adjusting entries does the Ritz Manor have?
o How are the amounts of these adjustments determined?
o Which accounts are affected?
Click here for the SOLUTION
CheckPoint: Adjustments and Accrual and Cash Basis Accounting
• Resource: Fundamental Accounting Principles, pp. 116-118 and 120
• Due Date: Day 5 [Individual] forum
• Complete Quick Study questions QS 3-1 and QS 3-9 on pp. 116 and 117 and Exercises
3-1 and 3-7 on pp. 118 and 120.
• Post your answers as an attachment.
Click here for the SOLUTION
Saturday, October 17, 2009
FIN 200: Week Three Solution
FIN 200
Axia College of University of Phoenix (UoP)
Introduction to Finance: Harvesting the Money Tree
Fin 200 Week 3 Solution
Assignment: Pro Forma Statements
The Landis Corporation had 2008 sales of $100 million. The balance sheet items that
vary directly with sales and the profit margin are as follows:
Chapter 4 Financial Forecasting
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5%
Accounts receivable. . . . . . . . . . . . . . . . . . . . . . 15
Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Net fixed assets . . . . . . . . . . . . . . . . . . . . . . . . . 40
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . 15
Accruals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Profit margin after taxes . . . . . . . . . . . . . . . . . . 6%
.com/bhd13e
The dividend payout rate is 50 percent of earnings, and the balance in retained earnings
at the end of 2008 was $33 million. Common stock and the company’s long-term
bonds are constant at $10 million and $5 million, respectively. Notes payable are currently
$12 million.
a. How much additional external capital will be required for next year if sales
increase 15 percent? (Assume that the company is already operating at full
capacity.)
b. What will happen to external fund requirements if Landis Corporation reduces
the payout ratio, grows at a slower rate, or suffers a decline in its profit margin?
Discuss each of these separately.
c. Prepare a pro forma balance sheet for 2009 assuming that any external funds
being acquired will be in the form of notes payable. Disregard the information in
part b in answering this question (that is, use the original information and part a
in constructing your pro forma balance sheet).
Click here for the SOLUTION
Axia College of University of Phoenix (UoP)
Introduction to Finance: Harvesting the Money Tree
Fin 200 Week 3 Solution
Assignment: Pro Forma Statements
- Resource: Ch. 4 of Foundations of Financial Management
- Due Date: Day 7 [post to the Individual forum]
- Complete the Comprehensive Problem: Landis Corporation on p. 118.
- Post the assignment as an attachment.
The Landis Corporation had 2008 sales of $100 million. The balance sheet items that
vary directly with sales and the profit margin are as follows:
Chapter 4 Financial Forecasting
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5%
Accounts receivable. . . . . . . . . . . . . . . . . . . . . . 15
Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Net fixed assets . . . . . . . . . . . . . . . . . . . . . . . . . 40
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . 15
Accruals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Profit margin after taxes . . . . . . . . . . . . . . . . . . 6%
.com/bhd13e
The dividend payout rate is 50 percent of earnings, and the balance in retained earnings
at the end of 2008 was $33 million. Common stock and the company’s long-term
bonds are constant at $10 million and $5 million, respectively. Notes payable are currently
$12 million.
a. How much additional external capital will be required for next year if sales
increase 15 percent? (Assume that the company is already operating at full
capacity.)
b. What will happen to external fund requirements if Landis Corporation reduces
the payout ratio, grows at a slower rate, or suffers a decline in its profit margin?
Discuss each of these separately.
c. Prepare a pro forma balance sheet for 2009 assuming that any external funds
being acquired will be in the form of notes payable. Disregard the information in
part b in answering this question (that is, use the original information and part a
in constructing your pro forma balance sheet).
Click here for the SOLUTION
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