Based on comprehensive reading of the financial statements issued by TANJA Corporation (TC) for the year...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Based on comprehensive reading of the financial statements issued by TANJA Corporation (TC) for the year 2020 (Sept) and its projections for the coming three years (2021, 2022, 2023), you have been requested to provide a professional opinions and views as could be spelled out by the Executive Financial Model (EFM) and the Kunt and Maks model. A summary of information are as follows: 2021 2022 2023 2020 72,000,000 0.45 TA 0,40 TA 0.10 TA Year ΤΑ FA CA LTI INT. A. Financial Leverage Current liab. Long-term liab. Growth Rate DPR NSI ROTA A FA ANWC ? 65% 1,800,000 15% 35% 0 17% 12% 16% 84,000,000 0.50 TA 0.41 TA 0.07 TA ? 67% 21,000,000 ? 17% 42% 0 17% 14% 18% 99,000,000 0.52 TA 0.40 TA 0.05 TA ? 67% 28,000,000 19% 45% 0 17% 14% 19% 110,000,000 0.60 TA 0.38 TA Zero ? 66% 39,000,000 18% 48% 0 17% 15% 20% It is clear that TANJA Corporation is adopting stable policy on expansion of capitalization, financial Leverage, DPR, A FA, A NWC, FA, CA, LTL and the trends of long-term investments. Required: 1- Based on comparison between the EFM and Kunt and Maks model, provide the financial scenarios of TC in 2020, 2021, 2022 and 2023. Based on comprehensive reading of the financial statements issued by TANJA Corporation (TC) for the year 2020 (Sept) and its projections for the coming three years (2021, 2022, 2023), you have been requested to provide a professional opinions and views as could be spelled out by the Executive Financial Model (EFM) and the Kunt and Maks model. A summary of information are as follows: 2021 2022 2023 2020 72,000,000 0.45 TA 0,40 TA 0.10 TA Year ΤΑ FA CA LTI INT. A. Financial Leverage Current liab. Long-term liab. Growth Rate DPR NSI ROTA A FA ANWC ? 65% 1,800,000 15% 35% 0 17% 12% 16% 84,000,000 0.50 TA 0.41 TA 0.07 TA ? 67% 21,000,000 ? 17% 42% 0 17% 14% 18% 99,000,000 0.52 TA 0.40 TA 0.05 TA ? 67% 28,000,000 19% 45% 0 17% 14% 19% 110,000,000 0.60 TA 0.38 TA Zero ? 66% 39,000,000 18% 48% 0 17% 15% 20% It is clear that TANJA Corporation is adopting stable policy on expansion of capitalization, financial Leverage, DPR, A FA, A NWC, FA, CA, LTL and the trends of long-term investments. Required: 1- Based on comparison between the EFM and Kunt and Maks model, provide the financial scenarios of TC in 2020, 2021, 2022 and 2023.
Expert Answer:
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
Posted Date:
Students also viewed these accounting questions
-
The following are some suspicions; you have been requested to select some effective extended procedures designed to confirm or deny the suspicions. Required: Write the suggested procedures for each...
-
You have been requested to compare four mutually exclusive alternatives using the B/C method and the results shown. Which alternative, if any, do you recommend? AB/C Ratlo When Compared Equivalent...
-
You are engaged in the audit of the financial statements of Holman Corporation for the year ended December 31, 20X6. The accompanying analyses of the Property, Plant, and Equipment and related...
-
The strike price of a compensation option is generally set on the day the option is issued. On November 10, 2000, the CEO of Analog Devices, Jerald Fishman, received 600,000 options. The stock price...
-
Several corporations were convicted of violating the Sherman Act as a result of an unlawful agreement among their agents that the suppliers who supported an association to attract tourists would be...
-
A factory machine was purchased for $375,000 on January 1, 2014. It was estimated that it would have a $75,000 salvage value at the end of its 5-year useful life. It was also estimated that the...
-
For a given data set containing 26 points, the assumptions of the linear model are satisfied. The following values are computed: b1 = 46.8 and sb = 15.2. Perform a test of the hypothesis H0 : 1 = 0...
-
Compare the optimal solutions obtained in Exercises 2 and 3. Specifically: a. How much higher (lower) is the optimal selling price when the two firms form a cartel to maximize industry profits,...
-
A company hired 200 employees to produced 5,000,000 units of bottled water in a year. Theaverage cost of an employee is birr 5,000 per year and the material cost is birr 500,000 per year. How much...
-
In the investment world, commodities are typically pretty boring. From livestock to grains to steel and other metals, commodities have their ups and downs. But long term, the world will always need...
-
Does the event cause demand or supply shift? does this curve increase or decrease? Lemonade producers expect demand for lemonade to increase 6 Lemonade Bowling balls A game of bowling drops from...
-
What are the three distinct types of sports consumers? What are the different types of spectators? How are sports participants categorized?
-
Compare and contrast the Internet sites of three professional sports teams. Which site has the strongest marketing orientation? Why?
-
Attend a high school, college, and professional sporting event and comment on the marketing orientation of the event at each level of competition.
-
When a traders financial decisions are affected by their emotions, is this rational or irrational or neither? Explain your answer.
-
What are the core American values, and why are they important to sports marketers?
-
that avoids the loss of precision: Propose an algorithm for computing the following expression f(x)= = 1 1-x 1 cos(x) for ~ 0.
-
For Problem estimate the change in y for the given change in x. y = f(x), f'(12) = 30, x increases from 12 to 12.2
-
Bailey Dry Cleaners has six employees who were paid the following wages during 2007: Frank Johnson ........ $ 27,000 Bill Long .......... 18,000 Duff Morse ......... 95,000 Laura Stewart ...........
-
Clark Companys capital structure consists of common stock and convertible bonds. At the beginning of 2007 the company had 15,000 shares of common stock outstanding; an additional 4,500 shares were...
-
The Marino Company had the following balance sheet on January 1, 2007: On January 2, 2007 the Paul Company purchased the Marino Company by acquiring all its outstanding shares for $300,000 cash. On...
-
Examine the financial data of Black Corporation. Show how to compute Black's current ratio from 2018 to 2020. Is the company's ability to pay its current liabilities improving or deteriorating? 1 23...
-
Vision Software Limited reported the following amounts on its balance sheets at December 31, 2020, 2019, and 2018: Sales and profits are high. Nevertheless, Vision is experiencing a cash shortage....
-
Use the Allstott, Inc., balance sheet data below. 1. Compute Allstott, Inc.'s quick (acid-test) ratio at December 31, 2020 and 2019. 2. Use the comparative information from the table on page 597 for...
Study smarter with the SolutionInn App