Fundamentals Of Accounting And Financial Analysis 1st Edition Anil Chowdhury - Solutions

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Using the Yahoo! Finance Web site (http://quote.yahoo.com) get the current price and five-year dividend history for PPG Industries, Inc. (NYSE: PPG). Use the same procedure as in the Internet Exercise of Chapter 8 to gather this data. In addition, get the beta for PPG from its profile page on
Identify the relevant cash flows in capital budgeting. L01
Demonstrate the use of Excel in calculating the after-tax cash flows used as inputs to the various decision making techniques. L01
Compare and contrast the six major capital budgeting decision techniques (payback period, discounted payback, NPV, PI, IRR, and MIRR). L01
Explain scenario analysis, and show how it can be done in Excel. L01
Use Excelís Solver to determine the firmís optimal capital budget under capital rationing. L01
Chicago Turkey is considering building a new turkey farm to service their western region stores. The stores currently require 500,000 turkeys per year, and they are purchased from various local turkey farms for an average price of $7 per bird. The managers of Chicago Turkey believe that their new
You are considering an investment in two projects, A and B.Both projects have an initial cash outlay of $50,000 and the projected cash flows are as follows:a. Assuming that the WACC is 15%, calculate the payback period, discounted payback period, NPV, PI, IRR, and MIRR.If the projects are mutually
The Chief Financial Officer of Eaton Medical Devices has determined that the firmís capital investment budget will be$5,000,000 for the upcoming year. Unfortunately, this amount is not sufficient to cover all of the positive NPV projects that are available to the firm. You have been asked to
Explain how risk can be incorporated into capital budgeting decisions, and show how to calculate the ìrisk-adjusted discount rateî(RADR) in Excel. L01
Explain five alternative techniques for incorporating risk into the analysis. L01
Explain diversification and give an example using Excel. L01
Calculate portfolio risk measures with Excel. L01
Choose two stocks from different industries that you think would have a low correlation. Get the closing prices for each month over the past five years for both stocks. To get the prices from Yahoo! Finance (http://quote.yahoo.com), follow the same procedure as was used in Chapter 8 to get the
1.1 Which of the following is considered an entity in an REA data model? (a) Customer (b) Sale (c) Finished goods (d) All of the above are correct.
1.2 A construction company always let its customers make installment payments. When the company signs a contract with a customer, the customer is required to pay one percent of the total price as down payment. So far, no customer has paid in full at once. Which set of cardinality correctly shows
1.3 A construction company only builds custom homes. So far, none of its customers has ordered two houses at one time. Which set of cardinality correctly shows the relationship between inventory and sales? (a) Inventory (0,1)-(1,1) Sales (b) Inventory (1,1)-(1,1) Sales (c) Inventory (1,1)-(1,N)
1.4 A grocery store accepts cash, checks, and credit card payments from customers. Which set of cardi- nality correctly shows the relationship between sales and cash receipts? (a) Sales (0,1)-(0,1) Cash receipts - (b) Sales (1,1) (0,1) Cash receipts (c) Sales (1,1)-(1,1) Cash receipts (d) Sales
1.5 A large company with several business lines has different types of bank accounts with a few banks. Each business line has its own checking account for cash disbursements and cash receipts. Which set of cardinality correctly shows the relationship between cash (bank accounts) and cash disburse-
1.6 A traditional book store just started its e-business using a Web site to take customer orders. Which set of cardinality correctly shows the relationship between sales and salespeople? (a) Sales (0,1) (0,1) Salespeople (b) Sales (0,1)-(1,1) Salespeople (c) Sales (0,1)(0,N) Salespeople (d) Sales
1.7 A real estate company has many agents buying and selling residential properties and business sites. The company has quite high turnover rates of these agents. Which set of cardinality correctly shows the relationship between sales and agents? (a) Sales (0,1)-(0,1) Agents (b) Sales (1,1)(0,1)
1.8 A retail company would like to store information about current and potential vendors who supply inventories to the company. Which set of cardinality correctly shows this relationship? (a) Inventory (1,1)-(0,N) Vendor (b) Inventory (1,N) (1,N) Vendor(c) Inventory (1,N) -(0,N) Vendor (d)
1.9 Which one of the following statements about the REA data model is true? (a) Each resource is generally linked to at least two agents. (b) Each event is generally linked to at least three agents. (c) Each event is generally linked to at least one resource. (d) Each agent is generally linked to
1.1 Cherokee Art and Antique Store Develop an REA diagram for Cherokee Art and Antique Store's expenditure cycle to model its pur- chasing and payment events related to artists/sellers given the following new fact that Jesse likes to collect information on potential artists/sellers for future
1.2 Cherokee Art and Antique Store Develop an REA diagram for Cherokee Art and Antique Store's acquisition activities to model its expenditures related to the purchasing of store furniture, office equipment, and other fixed assets only. Assume that Jesse always makes installment payments for asset
1.3 Cherokee Art and Antique Store Develop an REA diagram for Cherokee Art and Antique Store's expenditure cycle to model its pur- chasing and payment events in general (not to include the acquisition event in Problem 1.2). That is, not only buying art pieces and paying the artists, Cherokee also
1.4 Velvet Lounge Background: Velvet Lounge is a premier upscale nightclub located in the heart of San Francisco. It has two levels, which are fully stocked with two bars on each level. Velvet Lounge is richly decorated with velvet furniture, mahogany walls, and giant chandeliers to create a very
1.5 Worifree Properties, Inc. Background: Worifree Properties is a small start-up company that came into existence in the spring of 2005 with a total of six employees. Headquartered in San Jose, California, the company has expe- rienced moderate growth in its first year. Its core business focuses
2.1 In designing a database, what is the referential integrity rule? (a) The primary key in a table should not be null. (b) The foreign key in a table should not be null.(c) Each table must have a primary key and a foreign key. (d) Two of the above are correct. (e) None of the above is correct.
2.2 In designing a database, what is the entity integrity rule? (a) The primary key in a table should not be null. (b) The foreign key in a table should not be null. (c) Each table must have a primary key and a foreign key. (d) Two of the above are correct. (e) None of the above is correct.
2.3 Which table has repeating groups? (a) Student Table (Student ID, Student Name, Major, GPA) (b) Student Table (Student ID, Student Name, Major, Course#, Course Title) (c) Student Table (Student ID, Student Name, Major, Faculty Advisor) (d) Two of the above have repeating groups. (e) None of the
2.4 Which table has transitive dependency? (a) Student Table (Student ID, Student Name, Major, Courses Taken, Grade) (b) Student Table (Student ID, Student Name, Major, Course#, Course Title, Grade) (c) Student Table (Student ID, Student Name, Major, Faculty Advisor, Faculty Office#) (d) Two of the
2.5 How many tables are necessary to build a database according to the following data model? (a) 6 (b) 7 (c) 8 (d) 9 (e) 10 (0, N) Inventory Outflow Cash (1, N) (Bank Account) Inflow (1, N) Sale (0, 1) Duality (1,1) (1, N) Cash Receipt (1, 1) (1, 1) (1,1) (1, 1) Inside (0, N) participation
2.1 Creating an REA Diagram based on given tables Examine the following tables and indicate the primary key (using PK) and the foreign key(s) (using FK) for each table. Based on the given tables, draw a complete REA diagram for the database. Inventory Item No 2010 2015 Description Unit Cost Unit
2.2 Cardinalities Considering each business situation, indicate the maximum and minimum cardinalities for the following events. The first one is done for you. Business situations 1. Cash sales 2. Installment sales for firms like car dealers; down payment is required. 3. The company often has credit
2.3 Normalize a wholesale company's database Given below is the design of a Sales table for a wholesale company. Indicate the primary key for the table. Given the current design of this table, list two violations of the basic requirements of a relational data model. Indicate possible anomalies in
2.4 Normalize a library's database Given below is the table of data for a library. First, determine which attribute is the best primary key. Second, examine the table and indicate the anomalies that may occur with the original design of this database. Why? Third, normalize the table into the third
2.5 Quest, Inc. The following tables and attributes exist in a relational database of Quest, Inc. First, draw a complete REA diagram for this database. You must include cardinalities. Determine the proper cardinalities based on the given design of each table and the additional information. Next,
3.1 Which of the following are the objects in Access? (a) Tables (b) Forms (c) Queries (d) Reports (e) All of the above.
3.2 In Access, we use tables in a database for (a) Data entry (b) Data storage (c) Data retrieval (d) Two of the above are correct.
3.3 In Access, we use forms in a database for (a) Data entry (b) Data storage (c) Data retrieval (d) Two of the above (e) None of the above.
3.1 Cherokee Art and Antique Store-Tables and Relationships You have created the Purchase Table, Artist Table, and Customer Table. Now, create the remaining tables and relationships for Cherokee using the established table structure. Inventory Table (Item #, Inventory Description, Inventory Cost,
3.2 Cherokee Art and Antique Store-Forms Create a form for Cherokee to enter data into the Inventory Table.
4.1 To convert a conceptual model with a maximum cardinality relationship of "many to many" into relationship database tables, you must (a) Create a foreign key in one of the tables to link the two tables (b) Create a relation with no attributes of its own(c) Create a separate table with a
4.2 A control in which you can type a value or can click on a pull-down menu to display a list and then select an item from that list is called a (a) Control Box (b) Text Box (c) Combo Box (d) Source Box (e) None of the above
4.3 A query that displays its own dialog box prompting the user for information for retrieving records is called a(n) (a) Select Query (b) Parameter Query (c) Crosstab Query (d) Action Query (e) None of the above
4.4 To ensure that users cannot enter data in certain fields, the Locked and Enabled properties should be set to (a) Locked=Yes, Enabled = No (b) Locked Yes, Enabled = Yes (c) Locked=No, Enabled = Yes (d) Locked=No, Enabled = No
4.1 Create a query for Tragg's Custom Surfboards to sum the cash receipts (grand total for the year) as of December 31, 2006. Save the query so that you can easily provide them with this information for other months in the future.
4.2 Alter the query created in Problem 4.1 to sum the cash receipts for each customer as of December 31, 2006. Save the query.
4.3 Tragg's Custom Surfboards needs to know how many inventory items were sold during the month of October 2006. Create the query to provide this information. Save the query.
4.4 Tragg's also wants to know the cost of inventory sold during the month of October 2006. Create the query to provide this information. Save the query.
4.5 Tragg's has asked you for the total sales (in dollars) for the month of October 2006. Save this query so that you can easily provide them with this information for other months in the future.
4.6 Create a Daily Cash Report for Tragg's Custom Surfboards showing the customer number, invoice number, date, customer check number, and amount of payment.
5.1 When we convert an REA diagram (a conceptual model) into a relational database, (a) We should implement all relationships, regardless of maximum cardinalities, by posting the pri- mary key of one entity into the other entity's table as a foreign key. (b) We should implement a 1:1 (one-to-one)
5.2 A company purchases unique (i.e., one-of-a-kind) inventory. The company purchases multiple items from its supplier as part of the same purchase to take advantage of lower shipping costs. The cardi- nality relationship (based on maximum cardinalities) between purchase and inventory is: (a) 1:0
5.3 What is the purpose of the Nz (null-to-zero) function? (a) The Nz function enables Access to treat null values as if they are zeroes for calculation purposes. (b) The Nz function enables Access to treat non-null values as if they are null or zero for calcula- tion purposes. (c) The Nz function
5.1 Dan Tragg has asked you to calculate the total purchases of each inventory item as of October 31, 2006. Create a query to do this. Your query should include the Inventory ID, quantity, unit cost, and total dollar amount.
5.2 There are many items of inventory listed in the Inventory Table. It is hard to keep remembering the item numbers when you are ordering goods. It might make the Purchase Order more user-friendly if we incorporated a pull-down menu for the Purchase Order Form. Revise the Purchase Order Form to
5.3 Calculate the balance account payable by supplier as of October 31, 2006.
5.4 Create a Cash Disbursements Form. The form should include the Cash Disbursement ID, CD Date, Supplier ID, Supplier Name, Cash Account No., Receiving Report No., Amount Applied, and the total of the Amount Applied (with appropriate labels). Once the form has been created, pay PO No. 1001 on
5.5 Calculate the cash balance as of October 31, 2006.
6.1 Tables in the payroll cycle can (a) Store reference data for use in calculating gross pay and payroll tax (b) Link employees and departments (c) Store payroll registers (d) Contain only one primary key (e) All of the above
6.2 The primary key for the Hours Worked Table should be: (a) The employee number (b) The department number (c) The employee number and the pay period (d) The employee number and the department number (e) None of the above
6.1 Dan Tragg has asked you to create a Payroll Register as of September 30, 2006.
6.2 Tragg's has also decided to print their Payroll checks and related earnings statements for their employees each period. Design this report. Create it so that it is one report that would result in the Payroll check being torn off the bottom for deposit in the bank. An example of this report is
6.3 Query the system and find out how much Brenda Chan earned (net) as of September 30, 2006. Tragg's Custom Surfboards 8713 Montauk Drive La Selva Beach, CA 95075 Employee No 1001 Dept No 10 Earnings Statement Pay Period Ended Pay Date: 1/30/2006 Dan W Tag $713 Maak Place Social Security No
Copy the Aspen Industries financial statements from Problem 1 in Chapter 2 into a new workbook.a. Set up a ratio worksheet similar to the one in Exhibit 4-4, page 121, and calculate all of the ratios for Aspen Industries.b. Identify at least two areas of potential concern using the ratios. Identify
Choose your own company and repeat the analysis from Problem 1. You can get the data from MoneyCentral Investor at http://moneycentral.msn.com/investor/home.asp. To retrieve the data for your company, go to the Stocks area and enter the ticker symbol. Now choose Financial Results and then
Choose three activities that are important to you in “getting started”.
Suppose that in August 1997 you purchased shares in Staples, Inc. (NASDAQ: SPLS). It is now five years later and you decide to evaluate your holdings to see if you have done well with this investment. The table below shows the market prices of SPLS.a. Enter the data, as shown, into a worksheet and
In your position as research assistant to a portfolio manager, you need to analyze the profitability of the companies in the portfolio.Using the data for Bed Bath & Beyond, Inc., below:a. Calculate the net profit margin for each year.b. Calculate the average annual growth rates for sales and net
Repeat Problem 2 using the data below for Loweís Companies, Inc. However, this time you should create a copy of your worksheet to use as a template. Replace the data for Bed Bath &Beyond with that of Loweís.Fiscal Year 2002 2001 2000 1999 1998 Sales 22,111.1 18,778.6 15,905.6 12,244.9 10,136.9
Using the data in the file P&G.xls (downloadable from the test support site at http://mayes.swlearning.com) forecast the June 30, 2003, income statement and balance sheet for Proctor & Gamble.Use the percent of sales method and the following assumptions:(1) Sales in FY 2003 will be $41,736; (2) The
Use the same data as in Problem 1.a. Recalculate the percentage of sales income statement, but this time use the TREND function to forecast depreciation expense, other income, and interest expense.b. Recalculate the percentage of sales balance sheet, but this time use the TREND function to forecast
What is the role of accounting as an aid to management in solving strategic business problems?
Explain how an adequate management control is possible with the use of accounting?
What are the normal sources of quantitative and non-quantitative information required for decisionmaking and what information is available from each category?
Explain how past and future events are relevant to managerial decision-making?
How would you enlarge the scope of accounting in your organization?
Management accounting is an integral part of the system of management control. Give in brief the various constituents of management control and also point out the importance of management accountant in relation thereto.
Explain the term management accounting and state what you understand to be its main objectives.
Financial accounting has the basic objective of providing financial information to parties outside the business. Parties inside the business also need information of the monetary character and otherwise.Which system of accounting provides this information, and what information is generated for the
Explain the normal functions of accounting? How could it be used as a tool in the hands of the management to exercise effective and efficient control within the organization?
Why do accounting principles emphasize the use of historical cost as the basis of preparation of accounting statements, to arrive at the surplus or deficit in the business undertaking for a specific accounting period?
Littleton Electronicsí ending cash balance as of January 31, 2005, (the end of its fiscal year 2004) was $25,000. Its expected cash collections and payments for the next six months are given in the following table.TABLE 3-5 FUNCTIONS INTRODUCED IN THIS CHAPTER Purpose Function Page Returns a value
Huggins and Griffin Financial Planners have forecasted revenues for the first six months of 2005 as shown in the following table.The firm collects 60% of its sales immediately, 39% one month after the sale, and 1% are written off as bad debts two months after the sale. The firm assumes that wages
You have recently been hired to improve the financial condition of Idaho Springs Hardware, a small chain of three hardware stores in the mountain communities of Colorado. On your first day the owner, Chuck Vitaska, told you that the biggest problem facing the firm has been periodic unexpected cash
What are the International Accounting Standards? Who sets these standards?
What do you understand by the Indian GAAP (Generally Accepted Accounting Practice)?
What are the eight differences between U.S. GAAP and Indian GAAP?
What are the similarities between the Indian Accounting Standards and the International Accounting Standards?
What are the situations where differences exist in the accounting treatment recommended in the Indian Accounting Standards (A.S.) and the International Accounting Standards (I.A.S.)?
What are the accounting standards (A.S.) formulated by ASB in India and the corresponding International accounting standards (I.A.S.)?
Which accounting standards are statutory/mandatory requirements of the corporate sector?
Using the data presented below:Aspen Industries Income Statement For the Years Ended December 31, 2004 and 2003 2004 2003 Sales 285,000 190,000 Cost of Goods Sold 215,000 143,000 Gross Profit 70,000 47,000 Operating Expenses Variable Expenses 28,500 19,000 Fixed Expenses 21,000 20,000 Depreciation
Using the data from the previous problem:a. Create a common-size income statement for 2003 and 2004.This statement should be created on a separate worksheet with all formulas linked directly to the income statement.b. Create a common-size balance sheet for 2003 and 2004.This statement should be
Meyersonís Bakery is considering the addition of a new line of pies to its product offerings. It is expected that each pie will sell for $10 and the variable costs per pie will be $3. Total fixed operating costs are expected to be $20,000. Meyersonís faces a marginal tax rate of 35%, will have
Income Statements for Caterpillar, Inc., from 1997 to 2001 appear below.a. Enter the data into your worksheet. Assume that 50% of SG&A expense is a variable cost, with the balance being a fixed cost.b. Given that Caterpillar is a manufacturing company, would you expect that it would have more
Following the instructions from Internet Exercise 2 in Chapter 5, get the income statements for the company of your choice for the past five years from MSN Investor. Choose a company that is not in a manufacturing industry. Now repeat the analysis from Problem 2 above. What differences do you note
What is double-entry system of accounting?

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Fundamentals Of Accounting And Financial Analysis 1st Edition Anil Chowdhury - Solutions

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