All Matches
Solution Library
Expert Answer
Textbooks
Search Textbook questions, tutors and Books
Oops, something went wrong!
Change your search query and then try again
Toggle navigation
FREE Trial
S
Books
FREE
Tutors
Study Help
Expert Questions
Accounting
General Management
Mathematics
Finance
Organizational Behaviour
Law
Physics
Operating System
Management Leadership
Sociology
Programming
Marketing
Database
Computer Network
Economics
Textbooks Solutions
Accounting
Managerial Accounting
Management Leadership
Cost Accounting
Statistics
Business Law
Corporate Finance
Finance
Economics
Auditing
Ask a Question
AI Tutor
New
Search
Search
Sign In
Register
study help
business
intermediate financial management
Questions and Answers of
Intermediate Financial Management
Name and discuss four principal tools of financial analysis.
Give two examples of an activity ratio. What do these ratios reflect?(a) Plotting significant times and ratios of your choice aid in your analysis. What is your assessment of the financial health of
Given the balance sheet in Table P3.2, calculate the following ratios:(a) Current ratio(b) Quick ratio(c) Debt-equity ratio TABLE P3.2 Balance Sheet, Cyclone Construction Co. (31 December 2012)
How does trend analysis supplement the basic financial ratio calculations and their interpretation?
Given a current ratio of 1.7, to which percentage of book value would you have to liquidate current assets to be able to pay off current liabilities?
Given that the current ratio (i.e., current assets/current liabilities) for a company over the years is as shown, what can you say about the operation of this company?
What is the difference between journalizing and posting?
Is it possible to post into an asset account and a revenue account? Give two examples with debiting and crediting an asset account.
Today is 3 February 20XX. You are using the accrual method of accounting. You have received an invoice from Halco Industries in the amount of $565 for work performed on Project 101.You also mailed an
Journalize the transactions shown in Table P4.2 for Tip Top Associates, Inc., incurred during the month of July 20XX (assume accrual basis). TABLE P4.2 Transactions for Tip Top Associates 6-Jul
Transactions during the period 1 December 2015 to 30 November 2016 are given below for ABC Construction.Using the transactions presented in Appendix B as a guide:Journalize all of the above
What is a “real” account? How does it differ from a nominal account?
What is the reason for closing accounts?
Can you think of construction contractors who can use the CompletedContract method on a regular basis due to the type of contracts that they normally undertake?
How are the Income Statement and Balance Sheet linked when closing accounts?
The Balance Sheet of CPM Construction Company as of 31 December 2013 is given in Table P4.3. Assume that this company is using the POC method of income recognition. Further, assume that 65% of the
As a construction project manager, what general categories of information would you want to have on a cost control report to properly evaluate what you think is a developing overrun on an operation,
List advantages and disadvantages of the MasterFormat coding system.
Assume that you are the cost engineer on a new $12 million commercial building project. Starting with your company’s standard cost code, explain how you would develop a project cost code for this
Develop a cost code system that gives information regarding:When project started Project number Physical area on project where cost accrued Division in Uniform Construction Index Subdivision Resource
The following planned figures for a trenching job are available: The amount of excavation is 100,000 cubic yards. The resource hours and cost are shown in Table P5.1.At a particular time during the
Calculate the cost and scheduling variances for each of the work packages shown in Table P5.3. What is the percent complete for the entire package? Work Hours Quantities EST ACT Forecast EST ACT
Draw a Hierarchical diagram of the work packages A.00 and B.00. Finally, compute the total percent complete of given, using the WBS code values. Calculate the BCWP and the project percent complete
Given the diagrams in Figure P5.1 of progress on individual work packages of a project, answer the following questions:For Case 1, is the project ahead or behind schedule?For Case 2, is the project
Given the following cost expenditures (see Table P6.1) for a small warehouse project (to include direct and indirect changes):A. Calculate the peak financial requirement.B. Sketch a diagram of the
The contract between Ajax Construction Co. and Mr. Jones specifies that the contractor will bill Mr. Jones at the end of each month for the amount of work finished that month. Mr. Jones will then pay
Can you think of additional strategies to bring closer the payments and disbursements curves (as discussed for Figure 6.8)?
Direct costs of a project are shown on the following bar chart(see Table P6.2). Assume $500 per month indirect cost and 10% retainage with payment time lag of one month.Calculate the project’s net
Given the following cost expenditures (see Table P6.3) for a small bridge job to include direct and indirect charges (but not bank interest):A. Calculate the peak financial requirement.B. Sketch a
A contractor is preparing to bid for a project. He has his cost estimate and the work schedule. Table P6.4 gives his expected expenses and their time of occurrence. Other expenses such as insurance,
Based on the definition of fixed cost, list costs in the main office that are not really fixed, and field office costs that are fixed.
The following data are available on Del Fabbro International, Inc.What bid price should be submitted to insure proper coverage of fixed overhead?The fixed (home office) overhead for the past year was
Using the data of the previous problem, calculate the breakeven point for Del Fabbro International in the present year.
What is the future value 8 years from now of $2,000 invested today at a periodic interest rate of 12% compounded annually?
What would be the result of the previous problem, if simple interest were used?
Repeat the preceding problem, considering an inflation of 4.0%. How does inflation affect the results of the previous problem?
Develop Table P7.1 comparing the monthly payments for a 30-year$200,000 mortgage loan with its APR compounded monthly. TABLE P7.1 Worksheet for Problem 9 APR Monthly Payment 0% 4% 8% 12% 16%
The total monthly payment for a home mortgage loan is affected by the property tax and insurance. This amount is around 15% of the principal plus interest payment that you calculated in the previous
Develop Table P7.3 comparing the monthly payments for a $200,000 mortgage loan with an 8.00% APR compounded monthly. TABLE P7.3 Worksheet for Problem 11 Years Monthly Payment 100 30 30 15 10 5
Find the minimum amount that a family should earn to afford the mortgage loan in the preceding loan scenarios. Use the same assumptions of the previous similar problem, and Table P7.4. TABLE P7.4
What is the present value of the truck described in Question 13?
CPM Construction plans to charge $100,000/year for the truck described in Question 13 (since the annual operating cost is estimated at $60,000, this means that the annual income will be $40,000).
Suppose that for the multipurpose sports stadium example considered in the Owner Financing Using Bonds section, the bond issue was 40 years and the annual interest rate is 9% of the bond principal.
What does it mean when it is said that a company is “excessively leveraged?” What could be the effects of excessive leverage? You may want to search the phrase “effect of excessive leverage”
An entrepreneur is considering a new project consisting of an apartment building with 50 units. Each unit can be rented for $1,000/month. It is expected to have an average vacancy rate of 10%. Net
How much would be the value of the long-term loan for the preceding project? How would this amount change if the entrepreneur offers to put a $100 million hotel as collateral for the loan?
A line of credit has a balance of $700,000 during the first 10 days of June, and $300,000 during the remaining 20 days. If the agreed-upon APR is 10% compounded daily, what is the total interest for
A line of credit has a limit of $500,000 and had an average of $200,000 for July. How much is the commitment fee for the month, if it has an APR of 0.5% compounded daily?
Find the effective annualized discount rate offered by a supplier with payment terms of “1/15, net 30.”
What is the monthly amortization of a 5-year term loan with a principal of $50,000 and an APR of 12% compounded monthly?
Find the monthly payment to amortize the balloon payment of $79,836.34 remaining after 5 years for the example developed in Table 8.1. Assume that the balloon amount must be repaid over 5 years, with
Are construction contractors used as financing sources by project owners?What would be the terms of a “perfect” contract between a project owner and a construction contractor, concerning
Under what circumstances would you take the balloon payment scheme discussed in Table 8.3?
Does a single individual making $500,000 pay the same marginal tax rate as another making $1,000,000? Explain.
What is the average tax rate paid by a single person with a $60,000 AGI for 2008?
What is the name of the amount of money that can be deducted directly from the computed tax, instead of from the gross adjusted income?
Peachtree Construction Inc., which is incorporated as a corporation, reported a net operating loss (NOL) of $500,000 in 2008. Given the following data, how much of this NOL is likely to be available
A corporation had a net income before taxes of $1,200,000 for 2008.Find the tax liability for this company.
Pegg Construction, a partnership of three brothers, had a net income before taxes of $300,000. The brothers have agreed that all profit will be shared in equal parts. John Pegg is single, and has an
Verify the 5- and 7-year property class percentages given in Table 9.2 by applying the 200% DB approach to a piece of equipment with a nominal value of $1,000. For the 7-year property class, in what
Why do you think the 150% DB method is used as the basis for depreciation for 15- and 20-year classes of equipment, as given in Table 9.2?
What attracted you to the construction industry? Discuss the advantages and disadvantages of a career in construction. List in descending order what you like the most about this industry. Develop a
Write a one-page review of the financial challenges for a major ongoing construction project or for a current issue in the construction industry involving the management of finances. You can use
Contrast the effort of building a car and building a residential unit. Which one requires more initial capital? What kinds of resources are involved?What are the main differences in their management
Would the cost of residential construction benefit from a greater use of prefabricated building components? Why is it that prefabrication is not more widely used in this industry?
Interview a construction professional, and report the financial controls that he or she currently uses. In that person’s opinion, how could these controls be used more effectively?
This chapter discusses some important differences between the manufacturing and construction industries. Can you think of issues that are common to both industries?
At the end of the fiscal year 20X2, Rainer Construction Co., Inc. has the following financial profile (all figures are in dollars):(a) What is the total net worth of this company?(b) Did the net
Define in your words the difference between a Balance Sheet and an Income Statement.
The following Balance Sheet figures are available on the Cougar Construction Company:(a) Find the total net worth of the company. Current Long-Term Total Assets $100,000 $100,000 $200,000 Liabilities
The following data regarding Atlas Construction Company are available:What is the value of the company’s fixed assets? Current assets $300,000 Current liabilities 200,000 Long-term liabilities
Name three accounts typical of the liability side of a Balance Sheet. In what side would you enter “discounts earned?”
How are the Balance Sheet and Income Statement related? Discuss the pattern of information flow between these two documents.
During the last few years, Jana Industries has been too constrained by the high cost of capital to make many capital investments. Recently, though, capital costs have been declining, and the company
Shrieves Casting Company is considering adding a new line to its product mix, and the capital budgeting analysis is being conducted by Sidney Johnson, a recently graduated MBA. The production line
The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer’s base price is $920,000, and it would cost another $20,000 to install it. The machine falls
Talbot Industries is considering launching a new product. The new manufacturing equipment will cost $17 million, and production and sales will require an initial $5 million investment in net
Allen Air Lines must liquidate some equipment that is being replaced. The equipment originally cost $12 million, of which 75% has been depreciated. The used equipment can be sold today for $4 million
The president of MorChuck Enterprises has asked you to evaluate the proposed acquisition of a new chromatograph for the firm’s R&D department. The equipment’s basic price is $70,000, and it
The Gilbert Instrument Corporation is considering replacing the wood steamer it currently uses to shape guitar sides. The steamer has 6 years of remaining life. If kept, the steamer will have
St. Johns River Shipyard’s welding machine is 15 years old, fully depreciated, and has no salvage value. However, even though it is old, it is still functional as originally designed and can be
DeYoung Entertainment Enterprises is considering replacing the latex molding machine it uses to fabricate rubber chickens with a newer, more efficient model. The current machine has a book value of
The following table gives the current balance sheet for Travelers Inn Inc. (TII), a company that was formed by merging a number of regional motel chains.The following facts also apply to TII.(1) The
A company’s 6% coupon rate, semiannual payment, $1,000 par value bond that matures in 30 years sells at a price of $515.16. The company’s federal-plus-state tax rate is 25%. What is the firm’s
Start with the partial model in Ch08 P26 Build a Model.xlsx on the textbook’s Web site. Traver-Dunlap Corporation has a 15% weighted average cost of capital (WACC). Its most recent sales were $980
Hatfield Medical Supply’s stock price had been lagging behind its industry averages, so its board of directors brought in a new CEO, Jaiden Lee. Lee had brought in Ashley Novak, a finance MBA who
Broussard Skateboard’s sales are expected to increase by 15% from $8 million in 2021 to $9.2 million in 2022. Its operating assets were $5 million at the end of 2021. Broussard is already at full
Maggie’s Muffins Bakery generated $5 million in sales during 2021, and its year-end operating assets were $2.5 million. Also, at year-end 2021, current liabilities were $1 million, consisting of
At year-end 2021, Wallace Landscaping’s total assets, all of which are used in operations, were $2.17 million, and its accounts payable were $560,000. Sales, which in 2021 were $3.5 million, are
The Booth Company’s sales are forecasted to double from $1,000 in 2021 to $2,000 in 2022. Here is the December 31, 2021, balance sheet: Booth’s fixed assets were used to only 50% of capacity
Upton Computers makes bulk purchases of small computers, stocks them in conveniently located warehouses, ships them to its chain of retail stores, and has a staff to advise customers and help them
Start with the partial model in the file Ch09 P10 Build a Model.xlsx on the textbook’s Web site, which contains the 2021 financial statements of Zieber Corporation. Forecast Zieber’s 2022 income
Start with the partial model in the file Ch09 P11 Build a Model.xlsx on the textbook’s Web site, which contains Henley Corporation’s most recent financial statements. Use the following ratios and
David Ortiz Motors has a target capital structure of 40% debt and 60% equity. The yield to maturity on the company’s outstanding bonds is 9%, and the company’s tax rate is 25%. Ortiz’s CFO has
Garlington Technologies Inc.’s 2021 financial statements are shown here. Suppose that in 2022 sales increase to $4.4 million and that 2022 dividends will increase to $200,000. Forecast the
Stevens Textile Corporation’s 2021 financial statements are shown here. Stevens grew rapidly in 2021 and financed the growth with notes payable and long-term bonds. Stevens expects sales to
Conroy Consulting Corporation (CCC) has a current dividend of D0 = $2.50. Shareholders require a 12% rate of return. Although the dividend has been growing at a rate of 30% per year in recent years,
Reizenstein Technologies (RT) has just developed a solar panel capable of generating 200% more electricity than any solar panel currently on the market. As a result, RT is expected to experience a
What does it mean for growth, operating profitability, and capital utilization to be value drivers? How do changes in these drivers impact estimated intrinsic value in the free cash flow valuation
Brushy Mountain Mining Company’s coal reserves are being depleted, so its sales are falling. Also, environmental costs increase each year, so its costs are rising. As a result, the company’s free
Showing 1 - 100
of 175
1
2