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...
-
Grant Company performed services on account for $80,000 in 2013. Grant collected $50,000 cash from accounts receivable during 2013, and the remaining $30,000 was collected in cash during 2014....
-
The tall vertical pump example was successfully brought down to acceptable vibration levels by placing a long 2- 4-inch beam between the top of the motor and a cinder block wall. What else could...
-
Discuss some of the key reasons for studying anthropology.
-
Robert Day has decided to run for a seat as Congressman from the House of Representatives, District 34, in Connecticut. He views his 8- month campaign for office as a major project and wishes to...
-
Consider the following article: https://www.employment-studies.co.uk/system/files/resources/files/mp116.pdf Question: 1. What kind of managerial/leadership style would be most conducive to successful...
-
W&S Partners has just won the January 31, 2026, audit for Cloud 9. As a part of the risk assessment phase for the new audit, the audit team needs to gain an understanding of Cloud 9's structure and...
-
Incremental analysis is the process of identifying the financial data that a. do not change under alternative courses of action. b. change under alternative courses of action. c. are mixed under...
-
Record adjusting entries for the following information. Merchandise inventory Store supplies 33,600 1,915 975 Office supplies Prepaid insurance 5,255 Equipment 63,490 Accumulated depreciation,...
-
Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company's inventory balances were as follows: Raw materials Work in process Finished goods $ 59,500 $ 37,600...
-
On January 1 of Year 1, Innovative Lab issued a 4-year $50,000 note to a local bank with fixed interest payments based on 6%, payable annually on December 31. To hedge the risk of a fixed interest...
-
If I invest a single amount of $14,000 in an account earning 8% p.a. compounding quarterly for 5 years, how much interest will I have earned in those 5 years?
-
Manvir had to make payments of $1,125 every 6 months to settle a $22,000 loan that he received at 4.52% compounded semi-annually. a. How long did it take to settle the loan?
-
Classify each of the following costs as a Manufacturing cost or a Nonmanufacturing cost. For each manufacturing cost, further classify it by selecting Direct Materials, Direct Labor or Manufacturing...
-
Determine the values of the given trigonometric functions directly on a calculator. The angles are approximate. tan 0.8035
-
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...
-
Explain some important methods for the estimation of the fugacity coefficient of a pure substance.
-
Estimate the residual entropy, enthalpy and internal energy at 298 K and 10 bar for nitrogen obeying the van der Waals equation of state, given that T c = 126.2 K and P c = 34.0 bar.
-
What is thermodynamic diagram? How can it be categorized? What is its importance? How is the thermodynamic diagram constructed?
Study smarter with the SolutionInn App