Week 2 Homework
3.1
Greene Sisters has a DSO of 20 days. The company’s average daily sales are $20,000. What is the level of its accounts receivable? Assume there are 365 days in a year.

Day Sales Outstanding= Receivables / Average Sales per day

AR = 20 X $20000 = $400,000

3.2
Vigo vacations has an equity multiplier of 2.5.The company’s assets are financed assets with some combination of long-term debt and common equity. What is the company’s debt ratio?

Equity Multiplier = 2.5
Equity Ratio = 1/2.5 = 0.40
the formula is:
Debt Ratio + Equity Ratio = 1
Debt Ratio = 1 - Equity Ratio = 1 - 0.40 = 0.60 or 60%

3.3
Winston Washer’s stock price is $75 per share .Winston has $10 billion in total assets. Its balance sheet shows $1 billion in current liabilities, $3 billion in long-term debt and $6 billion in common equity. It has 800 million shares of common stock outstanding .What is Winston’s market/ book ratio?

Market value per share = $75
common equity = 6,000,000
number of shares outstanding = 800 million shares

Market-to-book ratio = market value per share/ (common equity/number of shares outstanding)

Market-to-book ratio = $75/ (6,000,000/800,000,000)
market-to-book ratio = $75/7.5
market-to-book ratio = 10
3.4
A company has an EPS of $1.50, a cash flow per share of $3.00, and a price /cash flow ratio of 8.0.What is its P/E ratio? First Formula:
Price /cash flow ratio = Price per share /cash flow per share Price per share = $8 x $3 = $24

Second Formula:
P.E = Price per share / EPS

P.E = $24 / 1.5 = 16

3.5
Needham Pharmaceuticals has a profit margin of 3% and an equity multiplier of 2.0. Its sales are $100 million and it has total assets of $50 million. What is its ROE? ROE= profit margin x asset turnover x equity multiplier

=3% asset turnover = sales/asset = 50/100= 2 equity multiplier=2 ROE= 3% x2x2= 12%
3.6
Equity Multiplier is equal to
ROE= ROA x Equity Multiplier
15=10 (Equity...

... 3720
Returns and allowances 10210
Lease payments 39270
Materials purchases 228580
R&D expenditures 4890
Repairs and maintenance costs 2910
What are YYY:
a) gross profit?
b) net Profit?
c) EBT ?
d) Net income?
2. Using the following accounts from Income statement for the year Ending December 31, 2012, answer the following questions:
Research and Development expenditures 50
Cost of Goods Sold 600
Lease payments 30
Advertising 20
Taxes 35
Repairs and maintenance expenses 40
Management salaries 100
Interest expense 30
Net Sales 1000
Depreciation 60
What was:
a) Gross profit?
b) Operating Profit
c) Net profit?
3. In 2009, the FFF purchased 180,000 units from its supplier at a cost of 42.50 per unit. FFF sold 192,000 units in 2009 at a price of 58.75. FFF began 2009 with 1,360,000 in inventory (inventory is carried at a cost of 42.50 per unit). Using this info, compute FFF gross profit for 2009 and compute 2009 ending inventory balance.
4. Consider the equity portion of the TTT balance sheet for December 31, 2012 and 2013
EQUITY SECTION OF Balance Sheet
December 31, 2012 and 2013
(in thousands)
2012 2013
Common stock ( $2 par) 1100 1250
Capital surplus 7600 9200
Retained earnings 2400 3200
Company reported net income for 2002 of 1100 and net income for 2003 of 1500. Answer the following questions:
a) How many new...

...TCO 1) What is the purpose behind the five primary activities in the value chain?
First, info flow diagrams and flowcharts argon the two most much utilize development and musical accompaniment tools employ today. Second, since systems developme nt is super complex, DFDs and flowcharts ar! e tools that are used to fix order from sanatorium and complexity.Â (Ch 3, p. 50)| | | Â | Points Received:| 4 of 5| Â | Comments:| First, data flow diagrams and flowcharts are the two most frequently used development and documentation tools used today. Second, since systems development is extremely complex, DFDs and flowcharts are tools that are used to create order from chaos and complexity.| |
TCO 1) Name two reasons why it is important to have a working knowledge of DFDs and flowcharting. (Points TCO 1) Name two reasons why it is important to have a working knowledge of DFDs and flowcharting. (Points
The flow diagram and the flowcharts are the two more common systems use. Also when it comes to the system development they can get very complex meaning that the DFD and the flowchart are tools that can be used to create order form chaos and complexity.
TCO 1) What is the purpose behind the five primary activities in the value chain?
First, info flow diagrams and flowcharts argon the two most much utilize development and musical accompaniment tools employ today. Second, since systems developme nt is super complex, DFDs and flowcharts ar! e tools that are used to fix order from...

...3-1 Days Sales Outstanding
Greene Sisters has a DSO of 20 days. The company’s average daily sales are $20,000. What is the level of its accounts receivable? Assume there are 365 days in a year.
Formula for DSO = Receivables/ Ave sales per day = Receivables/( Annual sales/365)
= 20 days x $20,000= $400,000
Solution: AR = $400,000
3-2 Debt Ratio
Vigo Vacations has an equity multiplier of 2.5. The company’s assets are financed with some combination of long-term debt and common equity. What is the company’s debt ratio?
Formula for Debt ratio = Debt Ratio + Equity Ratio = 1
Equity Multiplier = 2.5
Therefore Equity Ratio = 1/EM
Equity Ratio = 1/2.4 = 0.40
MEMORIZE this formula:
Debt Ratio + Equity Ratio = 1
There for Debt Ratio = 1 - Equity Ratio = 1 - 0.40 = 0.60%
Solution: D/A 60%
3-3 Market/Book Ratio
Winston Washers’s stock price is $75 per share. Winston has $10 billion in total assets. Its balance sheet shows $1 billion in current liabilities, $3 billion in long-term debt, and $6 billion in common equity. It has 800 million shares of common stock outstanding. What is Winston’s market/book ratio?
Winston market = $75 x 800 million = $60 billion
Book Value = Assets ($10b in total asset) – Liabilities ($1b current liabilities + $3b long term debt)
= $10b - $4b = $6b
M/B = $60b/$6b = $10b
Solution/B = $10b
3-4 PE Ratio
A company has an EPS of $1.50, a cash flow per share of $3.00, and a price/cash flow ratio of 8.0. What is its P/E ratio?...

...the expected growth rate of sales
Increasing the expected operating profitability (NOPAT/Sales)
Decreasing the capital requirements (Capital/Sales)
Decreasing the weighted average cost of capital
Increasing the expected rate of return on invested capital |
2. (TCO F) Which of the following statements is correct? (Points : 5) For a project with normal cash flows, any change in the WACC will change both the NPV and the IRR.
To find the MIRR, we first compound cash flows at the regular IRR to find the TV, and then we discount the TV at the WACC to find the PV.
The NPV and IRR methods both assume that cash flows can be reinvested at the WACC. However, the MIRR method assumes reinvestment at the MIRR itself.
If two projects have the same cost, and if their NPV profiles cross in the upper right quadrant, then the project with the higher IRR probably has more of its cash flows coming in the later years.
If two projects have the same cost, and if their NPV profiles cross in the upper right quadrant, then the project with the lower IRR probably has more of its cash flows coming in the later years. |
3. (TCO D) The Ramirez Company's last dividend was $1.75. Its dividend growth rate is expected to be constant at 25% for 2 years, after which dividends are expected to grow at a rate of 6% forever. Its required return (rs) is 12%. What is the best estimate of the current stock price? a. $41.58
b. $42.64
c. $43.71
d. $44.80
e. $45.92(Points :...

...Homework2
1. What common programming language statement, in your opinion, is most detrimental to readability and why do you think that?
The go to statement in my opinion can be the most detrimental to program readability, because it makes it difficult to keep track of where the program has been and will go during debugging. Extensive use of go to statements make it difficult to impossible to keep the program code in a top down format.2. How does the distinguishing between upper- and lowercase in identifiers affect the three criteria?
The affect to readability can be positive when it is used in conjunction with a cohesive programming technique. The use of upper case letters to help certain types of identifiers stand out in the code can be highly beneficial.
The affect on writability will be positive because the readability of a program helps to improve the writability.
The affect on reliability will also be positive because the more readable, and writable a language then there is a positive affect on the reliability.
3. How do type declaration statements for simple variables affect the readability of a language?
Having type declarations that are easy to understand are very important to the readability of a programming language. When the type declarations are cryptic or easily confused it degrades the readability because it is not as easy to identify the...

...Please submit your HW (Hardcopy) at the end of lecture OR to my office (L214)
QMDS 400 Project and Quality Management
HW#2
DUE 6:00pm 18 Nov 2014
Name:_______________________ Student ID:___________________
Note:
Late submission will NOT be accepted!
PROBLEMS
P1. After a number of complaints about its directory assistance, a telephone company examined
samples of calls to determine the frequency of wrong numbers given to callers. Each sample
consisted of 100 calls. The results to date are shown below. Analyze the data using an
appropriate control chart with a 5% risk of Type I error. Is the process stable (i.e., in control)
based on the limits?
Sample
# of errors
1
5
2
3
3
5
4
7
5
4
6
6
7
8
8
4
9
5
10
9
11
3
12
4
13
5
14
6
15
6
16
7
P2. A process had the following service times (in minutes) for 20 randomly selected
customers:
SAMPLE
1
2
3
4
4.5
4.6
4.5
4.7
4.2
4.5
4.6
4.6
4.2
4.4
4.4
4.8
4.3
4.7
4.4
4.5
4.3
4.3
4.6
4.9
a) Determine the mean of each sample.
b) Construct control charts for means and ranges using the table on page 26 (Slides 8). Is the
process in control?
c) If the process has a known mean of 4.4 and a known standard deviation of 0.18, what
would 3-sigma control limits be for the mean chart? Are any sample means beyond the
control limits?
P3. A process that makes chocolate candy bars has an output that is normally distributed with
a mean of 6 oz. and a standard deviation...

...FI515Homework#1
Ashley Wright
Problems pg 79:
2-6
In its most recent financial statements, Newhouse Inc. reported $50 million of net income and $810 million of retained earnings. The previous retained earnings were $780 million. How much in dividends was paid to shareholders during the year?
Dividend = $780 million + $50 million - $810 million= $830 million - $810 million= $20 million
2-7
The Talley Corporation had a taxable income of $365,000 from operations after all operating costs but before (1) interest charges of $50,000, (2) dividends received of $15,000, (3) dividends paid of $25,000, and (4) income taxes. What are the firm’s in- come tax liability and its after-tax income? What are the company’s marginal and average tax rates on taxable income?
Taxable operating income $ 365,000
Taxable interest ($ 50,000)
Taxable dividend received$ 4,500
15000*(1 - 0.70) Total taxable income$ 319,500
a. The marginal rate for this company is 39%
The non-taxable dividends are: $15,000 * 0.7 = $ 10,500
Tax Liability =$ 22,250 + (319,500 ± 100,000)*0.39 = $ 107,855After
Taxable income $ 319,500
Taxable ($ 107855)
b) Non-taxable dividend received 15000*(0.70) $ 10,500
Net income $ 222,145
Average tax rate = Taxable interest income / Taxable operating income= 107855 / 319500 = 0.337574 *100%= 33.7574 = 33.76 %Average tax rate is 33.8 %
2-9
The Shrieves Corporation...