The following information are related to Al Noor Company for the projected year 2020 Account Amount (Projected) Total current assets apart from cash RO 15,450,000 Total non-current assets RO 25,100,000 Total assets RO 41,514,000 REQUIRED: A. Calculate the projected cash balance for the year 2020 B. Assume year 2019 cash balance was RO 2,694.000 and total assets was RO 38,751,600. Comment on the level of project cash found in A above for Al Noor Company and suggest the correct policy the company needs to follow with the projected cash balance
Q: Consider the following projects cash flows: End of Year (n) Project A Project B Project C Project D…
A: given, year A B C D 0 -1000 -3000 2000 -4000 1 200 2000 -600 -1000 2 500 2000 -600 6000…
Q: The Riverside Company is evaluating two mutually exclusive assets: Black and White, at the end of…
A: Note: Hi! Thank you for the question, As per the honor code, we are allowed to answer three…
Q: Assuming that the desired rate of return is 12%, prepare a net present value analysis for each…
A: Net present value (NPV) is the difference between the present value of cash inflows and the present…
Q: Renaissance Capital Group is considering allocating a limited amount of capital investment funds…
A: Hi, since you have asked a question with multiple sub-parts, we will answer the first three as per…
Q: Cash inflow—2021 20,000 Cash inflow—2022 8,000 Cash inflow—2022 30,000 Cash inflow—2023…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: : According to the data given in the table below and to the annual equivalent expenditure method,…
A: The equivalent annual cost method is a method used to analyze projects with different life span and…
Q: A Company is attempting to select the best of three mutually exclusive projects. The initial…
A: WACC- = Wp*kp+ Wd*kd (1-t)+We*ke = 0.12*0.20+0.07*0.30+0.15*0.50 =0.12 or 12% (12% will be be used…
Q: The following cash flows have been identified by Company A for a potential capital investment…
A: Present value of cash inflows = [Year 1 cash flow/(1 + r)1] + [Year 2 cash flow/(1 + r)2]…
Q: Renaissance Capital Group is considering allocating a limited amount of capital investment funds…
A: Payback Period = Initial investment / Cash flow per year
Q: You are given the following data for a project that is to be evaluated using the APV method. 1 Year…
A: Unlevered cost of capital is 11.8% Cost of debt is 8% To Find: Value of Project at t=0 using APV…
Q: Consider the following sets of investment projects: Compute the equivalent annual worth of each…
A: Given information: The below table shows the investment and revenue generated of different projects.…
Q: Continental Railroad Company is evaluating three capital investment proposals by using the net…
A: SOLUTION- NET PRESENT VALUE- IT IS THE DIFFERENCE BETWEEN PRESENT VALUE OF CASH INFLOWS AND PRESENT…
Q: The following were taken from the proposed investment plan of Satue Incorporated: Cost of…
A: Bailout Period: In accounting, the bailout repayment technique demonstrates the length of time…
Q: Beyer Company is considering the purchase of an asset for $205,000. It is expected to produce the…
A: Net present value is the difference between the present value of cash inflows and present value of…
Q: Beyer Company is considering the purchase of an asset for $210,000. It is expected to produce the…
A: Payback period is the period within which the company recovers its investment amount in a project.
Q: ABC Company is considering a project that has the following cash flow data. Year…
A: Payback method is one of the capital budgeting technique which helps in evaluating profitability of…
Q: Profitability index of Proposal B Answer 1 Payback period in years and months of Proposal B Answer…
A: Profitability Index = Present Value Cash inflow / Present Value Cash outflow
Q: BIRD COMPANY has a group of machines having an aggregate carrying amount at December 31, 2021 of…
A: Calculation of value in use : Particulars Year 2022 Year 2023 Year 2024 Year 2025 Total…
Q: 1. Compute the cash payback period for each of the four proposals. Cash Payback Period Proposal…
A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
Q: Piercy, LLC, has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Provide an evaluation of the three proposed projects whose cash flow forecasts were found below:…
A: given, requires a rate of return on each project equal to 24 percent. YEARS product A product B…
Q: could someone please help me out
A: As per the guidelines, the solution for the first three parts is given. For getting answers for the…
Q: LLC has received the following information for a Project The Present Value of Cash Inflow is OMR…
A: Present value of cash inflow = OMR 10000 Present value of cash outflow = OMR 7000
Q: Continental Railroad Company is evaluating three capital investment proposals by using the net…
A: Net Present Value (NPV) is the value of the project obtained after deducting the present value of…
Q: Renaissance Capital Group is considering allocating a limited amount of capital investment funds…
A: Payback Period = Initial investment / Cash flow per year Average Rate return = Average Annual…
Q: Sweet Tooth Candy Company has computed the net present value for capital expenditure at two…
A: The question is based on the concept of Financial Management.
Q: Fox Co. has identified an investment project with the following cash flows. Year Cash Flow $1,290…
A: Present value is the current value of future payment at a given rate of return. Given: Year 1 cash…
Q: The Riverside Company is evaluating two mutually exclusive assets: Black and White, at the end of…
A: Net present value(NPV) is the difference between the present value of all future cash flows and…
Q: Provide an evaluation of the three proposed projects whose cash flow forecasts were found below:…
A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…
Q: The Riverside Company is evaluating two mutually exclusive assets: Black and White, at the end of…
A: The profitability index is capital budgeting method which will help in selecting project on the…
Q: Thorley Inc. is considering a project that has the following cash flow data. The project's IRR is…
A: IRR is the rate of return which makes project NPV equal to zero. formula: NPV=∑NCFN1+RN0=∑NCFN1+IRRN
Q: The followings are cash flows of two mutually exclusive projects: Projects I and II. Project I:…
A: a) Computation of the payback period:
Q: Consider the following cash flow of a company: Year Cash flow -600 10 -5000 11-40 1000 a) Compute…
A: Cash flows show the value of cash which a company can either receive or pay to other company. When…
Q: Continental Railroad Company is evaluating three capital investment proposals by using the net…
A: Note: None of the three capital investments has a negative NPV or PI less than 1. Hence, answer for…
Q: Consider the following project-balance profiles for proposed investment projects, where the…
A: Since you have asked us a question with multiple sub-parts, we will solve the first three sub-parts…
Q: PharmPic is considering the following project with the following cash flows:…
A: Cash flows for Pharmpic project: Cash flows for DosageDoc project To Find: Payback period…
Q: The following data are given for Encino Aluminium Company: Initial cost of proposed equipment…
A: Present Value of Estimated Cash inflow Present value Factor @12% seen from present value Table
Q: Mester Corporation has provided the following Information concerning a capital budgeting project:…
A: Answer - Working Note : Depreciation expense = (Original cost – Salvage value) ÷ Useful life=…
Q: ssume a RM300,000 investment and the following cash flows for two products: Product X RM 70,000…
A: IRR is the return given by investment.At IRR Net present value will be zero
Q: Given the following incomplete sensitivity analysis, what is the net present value of annual cash…
A: Sensitivity Analysis: Sensitivity Analysis involves the study of the impact of one factor on a…
Q: Consider the following project balances for a typical investment project with athe service life of…
A: Calculate the interest rate as shown below Where t-1 is equal to previous period. t is equal to…
Q: Piercy, LLC, has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash…
A: NPV or Net present value is determined by adding the discounted value of all inflows and outflows to…
Q: The following table summarizes cash flows for a project: Year Cash Flow at End of Year $-5,100 1…
A: The student has particularly asked for part'c' of the question. Internal rate of return refers to…
Q: Oxford Company has limited funds available for investment and must ration the funds among four…
A: Capital Budgeting plays a significant role in evaluating long term projects that facilitates the…
Q: Tasty Doughnuts has computed the net present value for capital expenditure at two locations.…
A: Present value index = (Total present value of net cash flow/ Amount to be invested)
Q: The following project has cash flows as follows: Year Project A 0 -$705,000 1 $225,000…
A: IRR is the rate at which NPV is zero
Step by step
Solved in 2 steps with 2 images
- Preparing a Statement of Cash Flows Volusia Company reported the following comparative balance sheets for 2019: Required: Prepare a statement of cash flows for Volusia using the indirect method to compute net cash flow from operating activities.Suppose the following financial data were reported by 3M Company for 2019 and 2020 (dollars in millions). 3M CompanyBalance Sheets (partial) 2020 2019Current assets Cash and cash equivalents $3,200 $1,845Accounts receivable, net 3,450 3,180Inventories 2,639 3,042Other current assets 1,872 1,549Total current assets $11,161 $9,616Current liabilities $4,853 $5,893 (a)Calculate the current ratio and working capital for 3M for 2019 and 2020. (Round current ratio to 2 decimal places, e.g. 1.25 : 1. Enter working capital answers to million.) Current ratio 2019 :12020 :1 Working capital 2019 $ million2020 $ million (b)The parts of this question must be completed in order. This part will be available when you complete the part above.Suppose the following financial data were reported by 3M Company for 2019 and 2020 (dollars in millions). 3M CompanyBalance Sheets (partial) 2020 2019Current assets Cash and cash equivalents $3,180 $1,836Accounts receivable, net 3,600 3,180Inventories 2,738 3,019Other current assets 1,932 1,590Total current assets $11,450 $9,625Current liabilities $4,830 $5,887 Calculate the current ratio and working capital for 3M for 2019 and 2020. (Round current ratio to 2 decimal places, e.g. 1.25 : 1. Enter working capital answers to million.) Current ratio 2019 :12020 :1 Working capital 2019 $ million2020 $ million Link to Text
- Prepare the income statements and balance sheets for years 2018 and 2019 for Thompson Company using the following information. The balance sheet numbers are at the end of year figures.Item20182019Accounts Payable120.0150.0Accounts Receivable150.0180.0Accumulated Depreciation330.0360.0Cash & Cash Equivalents10.012.0Common Stock150.0200.0Cost of Goods Sold750.0850.0Depreciation25.030.0Interest Expense30.033.0Inventory200.0180.0Long-term Debt150.0150.0Gross Plant & Equipment650.0780.0Retained Earnings208.5225.0Sales1,500.01,700.0SG&A Expenses500.0570.0Notes Payable51.567.0Tax Rate21%21%(2) Answer the following questions:(a) How much did Thompson Company spend in acquiring fixed assets in 2019?(b) How much dividend did Thompson Company pay out during 2019?(c) Using the end of year numbers, did the long-term solvency ratios improve or deteriorate from 2018 to 2019? Answer this question using at least two long-term solvency ratios.(d) Using the end of year numbers, did the asset…Below are the financial statements for the financial year 2020 and 2021. Statement of Financial Position as at January 31, 2019 and 2020 2021 2020 Current Assets Cash and cash balane:es 33,500 2,550 Account rocoivable 110.100 108,150 Inventories 17.000 7,140 Olher Teceivubles and prepaid experises 83,700 176.320 228.500 167,240 461,400 Fixod doposits with licenscd banks Total current assets 472,800 Properly, plant and cxquiprnenl 1,860,000 619,500 Total Assets 2,332,800 1,080,900 Current Liabilities Account Payables 60,400 27.410 Other payables and accriies expenses 65.600 56,390 Notes payables 27.800 46,800 Total current liabilities 153,800 130,600 Long term Liabilities Long term barrowings 490.500 144,700 Conveitible bonds 342.980 Hire purchase payables 106.920 76,600 Total long term liabilities 940,400 221,300 Shareholders' equity: Issued capital 253.500 201,000 Sharo promium 541.800 425.000 Retaincd carnings 443.300 103,000 Total liabilities and owners' equity 2,332,800 1,080,900Presented below is selected information pertaining to the Cassie Inc:Cash balance, January 1, 2020- P13,000Accounts receivable, January 1, 2020- P19,000Collections from customers in 2020- P210,000 Capital account balance, January 1, 2020- P38,000Total assets, January 1, 2020- P75,000Cash investment added, July 1, 2020-P5,000Total asset, December 31, 2020- P101,000 Cash balance, December 31, 2020- P20,000Accounts receivable, December 31, 2020- P36,000Merchandise taken for personal use during 2020- P11,000Total liabilities, December 31, 2020- P41,000How much is the net income for 2020?
- Suppose the following financial data were reported by 3M Company for 2021 and 2022 (dollars in millions). Current assets 3M Company Balance Sheets (partial) Cash and cash equivalents Accounts receivable, net Inventories Other current assets Total current assets Current liabilities Screenshot Current ratio Working capital 2022 $ $3,180 3,600 2,738 1,932 $11,450 $4,830 2021 $1,836 3,180 3,019 1,590 Suppose that at the end of 2022, 3M management used $183 million cash to pay off $183 million of accounts payable. How would its current ratio and working capital have changed? (Round current ratio to 2 decimal places, e.g. 1.25: 1. Enter working capital answer to million.) $9,625 $5,887 :1 million DoneREQUIREDUse the information provided below to prepare the Cash Flow Statement for the year ended 30 June 2020.INFORMATIONThe information given below was extracted from the books of Siyakha Limited for the financial year ended30 June 2020.1. STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE:2020R2019RASSETSProperty, plant and equipment (See note to the financial statements below.) 14 826 000 13 998 000Inventory 1 539 000 1 638 000Accounts receivable 6 243 000 4 572 000Bank 861 000 480 00023 469 000 20 688 000EQUITY AND LIABILITIESOrdinary Share Capital 9 300 000 8 220 000Retained Income 2 031 000 1 701 000Loan: OVS Bank 8 100 000 5 940 000Accounts payable 3 795 000 3 549 000Company tax payable 150 000 564 000Dividends payable 93 000 714 00023 469 000 20 688 0002. STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2020RDepreciation on Vehicles 1 233 000Depreciation on Equipment 1 083 000Operating profit 3 801 000Interest on Loan 1 404 000Profit before tax 2 397 000Profit after tax…Suppose you collected the following information of ABC corp. from the financial statements published in 2019. Entry Total Current Assets 14050001206000 Current Liabilities Notes Payable Earning before Interest and Taxes Depreciation Capital expenditures Tax rate Select one: @a. 1279990X b. 187578 0c Estimate the Free Cash Flow available for ABC corp. at the end of 2019. 60030 2019 d. 1092412 e 30 2018 602000 571500 476990 457912 97680 159000 -30000 40%
- REQUIRED Use the information provided below to prepare the Cash Flow Statement for the year ended 30 June 2020. INFORMATION The information given below was extracted from the books of Siyakha Limited for the financial year ended 30 June 2020. STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE: 2020 R 2019 R ASSETS Property, plant and equipment (See note to the financial statements below.) 14 826 000 13 998 000 Inventory 1 539 000 1 638 000 Accounts receivable 6 243 000 4 572 000 Bank 861 000 480 000 23 469 000 20 688 000 EQUITY AND LIABILITIES Ordinary Share Capital 9 300 000 8 220 000 Retained Income 2 031 000 1 701 000 Loan: OVS Bank 8 100 000 5 940 000 Accounts payable 3 795 000 3 549 000 Company tax payable 150 000 564 000 Dividends payable 93 000 714 000 23 469 000 20 688 000 STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR…Suppose the following financial data were reported by 3M Company for 2019 and 2020 (dollars in millions). 3M CompanyBalance Sheets (partial) 2020 2019 Current assets Cash and cash equivalents $3,200 $1,881 Accounts receivable, net 3,500 3,175 Inventories 2,702 3,044 Other current assets 1,896 1,582 Total current assets $11,298 $9,682 Current liabilities $4,791 $5,869 1.Calculate the current ratio and working capital for 3M for 2019 and 2020. 2.Suppose that at the end of 2020, 3M management used $198 million cash to pay off $198 million of accounts payable. How would its current ratio and working capital have changed?Suppose the following financial data were reported by 3M Company for 2019 and 2020 (dollars in millions). 3M CompanyBalance Sheets (partial) 2020 2019 Current assets Cash and cash equivalents $3,040 $1,908 Accounts receivable, net 3,370 3,180 Inventories 2,774 3,016 Other current assets 1,956 1,628 Total current assets $11,140 $9,732 Current liabilities $4,882 $5,875 Calculate the current ratio and working capital for 3M for 2019 and 2020.