Question: hello, i met some problems with these questions, can you help me with them?? FINANCE 3101 WORKSHEET: CHAPTER 2 TUID __________________ NAME __________________ 1. Label

 hello, i met some problems with these questions, can you help

hello, i met some problems with these questions, can you help me with them??

me with them?? FINANCE 3101 WORKSHEET: CHAPTER 2 TUID __________________ NAME __________________

FINANCE 3101 WORKSHEET: CHAPTER 2 TUID __________________ NAME __________________ 1. Label each of the following with numbers to indicate the order in which they would appear in the Income Statement (#1 at top followed in order) NI, SGA, Depreciation, Taxable Income, COGS, Revenue, Interest, EBIT, Taxes 2. Assume a tax rate of 35% and make up numbers for NI, SGA, Depreciation, Taxable Income, COGS, Revenue, Interest, EBIT, and Taxes that are correct in terms of position and arithmetic on the Income Statement. 3. Place the following in the correct spots in the Balance Sheet: L.T. Debt, CA, AD, CL, RE, GFA, and Common Stock 4. Make up numbers for L.T. Debt, CA, AD, CL, RE, GFA, and Common Stock that are correct in terms of position and arithmetic on the Balance Sheet. 5. Using the Balance Sheet Identity, write out the formula using the items in #s 3 and 4 to solve for RE. 6. Based on the formula for CFFA determine how a change in each of the 3 components by themselves (\"ceteris paribus\") would affect the Cash Available for Distribution to Investors (i.e. in the same or opposite direction). Note CAFDTI is just another name for CFFA. 7. Assume: CFFA = -$1,500; Interest = $400; Dividends = $200; Change in Common Stock = - $600. What did this company do with its L.T. Debt for this same period? 8. Make up numbers to illustrate the relationship between NI, cash dividends and the change in RE. 9. With a tax rate of 35%, what is the impact on NI and a firm's amount of cash from (a) an increase of depreciation expense of $100; and (b) a decrease in interest expense of $100? FINANCE 3101 WORKSHEET: CHAPTER 10 TUID ________________ NAME ____________________ 1. What are the two main reasons that in Finance we focus on cash flows instead of accounting profits? 2. What are the four main pieces needed to estimate a project's incremental cash flows? 3. After you receive your BA degree from Temple, your lifetime earnings are $3 million. A friend who is identical in every way but with no college degree has lifetime earnings over the same period of $2 million. What are your incremental lifetime earnings attributable to your Temple BA? 4. Make up an example of sunk, erosion and opportunity costs and an example of a synergy gain. 5. For an asset in the 5-year MACRS category with an acquisition cost of $2 million and installation costs of $500,000, what is the difference in the first year's depreciation expense between straight line and MACRS? How about in the first two years combined? 6. Assuming no interest expense, if EBIT is $5 million, depreciation expense is $1.5 million and the tax rate is 35%, what is OCF? 7. Make up a numerical example to illustrate cash flow from salvage where the asset is sold at (a) a gain; and (b) a loss. How does the cash flow from salvage compare to the selling price of the asset in each of these cases? 8. Incremental cash flows are estimated to be in order -$2 million, $0.5 million, $4.0 million and $0.75 million. If the cost of capital is 8%, what is the NPV of this project

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!