The stock-sales ratio in the men's department has been set at 3.4 for June. Sales are planned at $34,500. What is the BOM stock for June? $112,500 $123,570 $117,300 $121,235
Q: You are a consultant who has been hired to evaluate a new product line for Markum Enterprises. The…
A: The net present value illustrates a project's profitability. A useful metric for assessing an…
Q: Preferred stock Common equity (retained earnings) Debt Additional information: Corporate tax rate…
A: WACC means Weighted average cost of capital.It is calculated as follows:-WACC…
Q: Fuji Software Inc. has the following mutually exclusive projects. Project Project Year 0 4…
A: Project A:Cash flow 0 =-$32,000Cash flow 1 = $18,000Cash flow 2 = $14,500Cash flow 3 = $4,100Project…
Q: Find the delta of the chooser option.
A: The delta of a chooser option is the rate of change of its price with respect to the price of the…
Q: Portfolio rebalancing is the process of bringing your different asset classes (stocks, bonds, and…
A: Variables in the question: Asset ClassBeginning Investment ProgramOne Year…
Q: A binomial tree prices an American option at $3.12 and the corresponding European option at $3.04.…
A: In this question, we are required to determine the Control Variate Price.
Q: The Campbell Company is considering adding a robotic paint sprayer to its production line. The…
A: NPV is also known as Net Present Value.. It is a capital budgeting technique which helps in decision…
Q: You observe a premium of $5.38 for a call option on Birdwell Enterprises common stock, which is…
A: The objective of this question is to calculate the implied volatility of a stock given the details…
Q: Informics, Inc. is building fifth-generation software. The software quality initiatives will cost…
A: A capital-budgeting approach termed net present value (NPV) is commonly employed for assessing…
Q: 13. Duration Calculate the durations and volatilities of securities A, B, and C. Their cash flows…
A: The duration of a security represents a weighted average of the time it takes to receive its cash…
Q: Grayson purchased his primary residence for $260,000. As part of the closing procedure, he paid…
A: Variables in the question:Cost of purchase =$260,000Loan origination fees=$2,900 Lawyer's…
Q: An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected…
A:
Q: At a 16% interest rate, you will triple your money in approximately years when compounding every six…
A: Future value of money is due to the compounding of interest over the period of time and it is much…
Q: ane Zahrley’s request for a five-year automobile loan for $39,000 has been approved. Reston Bank…
A: Annual percentage rate refers to the interest rate that is being charged by the borrower by the…
Q: (Related to Checkpoint 12.1) (Calculating changes in net operating working capital) Tetious…
A: Free cash flow is the free money that a business or organization has available, This money is used…
Q: A bond that settles on June 7, 2016, matures on July 1, 2036, and may be called at any time after…
A: Yield to maturity can be calculated by following function in excel=RATE (nper, pmt, pv, [fv],…
Q: Using the data in the table to the right, calculate the return for investing in the stock from…
A: In this question, we are required to determine the percentage return for the entire period.
Q: Required: (1) Gaewelyn estimates that, if the economic is booming at the end of the 15 years, she…
A: Net Present Value (NPV):Net Present Value (NPV) is a financial concept widely used in investment…
Q: You are a pension fund manager who has obligations over the years to come of: t: 2 CF: 11.5 2.5 The…
A: Here, YearCash Inflow1 $ 7.002 $ 11.503 $ 2.504 $ 6.50
Q: one-year futures price on a particular stock - index portfolio is 1,124.91, the stock index…
A: The future contracts are to be settled in the future but contracts are done for future delivery at…
Q: Lacy has a $41,500.00 student loan when she graduates on May 4, and the prime rate is set at 5.5%.…
A: A student loan refers to a loan that is extended only to students to finance their education fees.…
Q: Assume that the following quote for the Walt Disney Company, a NYSE stock, appeared on some…
A: Variables in the question:The Walt Disney Company (DIS) - NYSE136.55 +2.76 (+2.06%)Prev Close:133.79…
Q: Preston Corporation has a bond outstanding with an annual interest payment of $80, a market price of…
A: Annual Coupon Payment = p = $80Market Price of Bond = pv = $1270Time = t = 9 YearsFace Value = fv =…
Q: Even though most corporate bonds in the United States make coupon payments semiannually, bonds…
A: Compound = Annually Face Value = fv = 1000Time = 12 YearsCoupon Rate = c = 8%Yield to Maturity = r =…
Q: XYZ Limited has 30 million equity shares outstanding. The book value per share is ₹60 and the market…
A: Capital structure refers to the mix of long-term funding sources that a company uses to operate and…
Q: 2. A one year long forward contract on a non-dividend-paying stock is entered into when the stock…
A: Forward Price = Spot Price x etrwheret=Time Periodr= Rate of Interest
Q: (Related to Checkpoint 9.3) (Bond valuation) Pybus, Inc. is considering issuing bonds that will…
A: Bond price can be determined by using the PV function in the Excel sheet where the rate or YTM will…
Q: A firm's current profits are $450,000. These profits are expected to grow indefinitely at a constant…
A: Current Profit = p = $450,000Growth rate = g = 3%Cost of Fund = r = 6%
Q: A manufacturing company has annual sales of $180,000 and inventory of $40,000. The inventory…
A: Inventory turnover ratio indicates how many times the inventory can be sold in one year.Inventory…
Q: The LeMond Corporation just purchased a new production line. Assume that the fir planned to…
A: In straight line depreciation there is uniform annual depreciation of equipment over the life of…
Q: Which of the following statements is true? I. Incremental analysis is an analytical approach that…
A: In this set of statements, we will examine the accuracy of each statement in the context of…
Q: You find the following corporate bond quotes. To calculate the number of years until maturity,…
A: The corporate bond issued by Company X will have a future worth of $2000. The bond is priced at a…
Q: Bianca invested $2,100 at the beginning of every 6 months in an RRSP for 11 years. For the first 8…
A: Future value of money is the amount that was being deposited and amount of compounded interest…
Q: $17.50 per share is the current price for Foster Farms' stock. The dividend is projected to increase…
A: Accroding to Gordon's grwoth model, P =whereP= current stock priceD= expected dividendr= required…
Q: A fully amortizing mortgage loan is made for $100,000 for 15 years. The interest rate is 6 percent…
A: Loan installment is that which is paid by borrower to lender for a specified period of time. This…
Q: Assume perfect markets. TMX Corporation has 4 million shares outstanding and a share price of $50…
A: In perfect capital markets, investors are indifferent between the firm distributing funds via any…
Q: What is the price per share based on the equity free cash flow model?
A: The stock price per share is the amount of money that you would have to pay to buy one share of a…
Q: project L costs $65,000, its expected cash inflows are $10,000 per year for 8 years, and its WACC is…
A: The tool called "MIRR" is one of the capital budgeting methods which is the advanced version of the…
Q: Consider two mutually exclusive new product launch projects that Nagano Golf is considering. Assume…
A: Cash flow for NP-30Year 0 =$995,000Year 1=$452,000Year 2=$452,000Year 3=$452,000Year 4=$452,000Year…
Q: Required information [The following information applies to the questions displayed below) On January…
A: Here,Details of Part c:First Payment in $75,000Second Payment is $112,500Third Payment is $150,000
Q: Over the last five years, the returns on ABC stock and the S&P/TSX Composite Index were as follows:…
A: The formula for beta is =SLOPE (known_ys,known_xs) where known Y values and known X values stand for…
Q: Assume the spot Swiss franc is $0.7070 and the six-month forward rate is $0.7090. What is the Value…
A: Here, Spot Price $ 0.7070Strike Price $ 0.6870Risk Free…
Q: Using the data in the table to the right, calculate the return for investing in the stock from…
A: In this question, we are required to determine the percentage return for the entire period.
Q: There are three stocks, A, B, and C. You can either invest in these stocks or short sell them. There…
A: Expected return from stock A =39+17-5/3=17%Expected return from stock B =30+5+0/3=11.67%Expected…
Q: A company has $2 million in net income, of which it pays $500,000 in dividends. At the beginning of…
A: Net Income = ni = $2 millionDividend = d = $500,000Equity = e = $10 million
Q: A financier has made a loan of $13 million. The contract for the loan calls for payment of interest…
A: Future value refers to the value of the present asset at some future date affected by inflation,…
Q: Suppose Caterpillar, Inc., has 671 million shares outstanding with a share price of $72.97, and…
A: The objective of the question is to calculate the amount of debt Caterpillar, Inc., will have in…
Q: A machine costing $32,000 to buy and $5,000 per year to operate will mainly save labor expenses in…
A: NPV is also known as Net Present Value.. It is a capital budgeting technique which helps in decision…
Q: You invest 60% in a stock portfolio that has an expected return of 14% and a standard deviation of…
A: To calculate the expected return, standard deviation, and Sharpe ratio of the complete portfolio, we…
Q: Accents Associates sells only one product, with a current selling price of $160 per unit. Variable…
A: Contribution per unit = Selling price per unit- variable cost per unit= $160- ($160*20%)= $128
Gadubhai
Step by step
Solved in 3 steps
- A buyer's sales for October are estimated at $15,000. Her stock on October 1 is $38,000, and she has $21,600 stock at retail on-order for the month. Markdowns are planned at 8% for the month, and the planned EOM stock is $40,000. Can the buyer receive an additional order of $3,000 on October 15t? [Hint: Convert Markdown percent to Markdown in dollars, review chapter 3 or chapter 5 notes] Answer the following: a.) Open-to-buy at retail b.) Can the buyer receive an additional order?The home buyer is planning their basic towel assortment for the fall season. The sales plan is $304,800 with a planned turnover for the fall season of 0.96. The planned sales by month are: August $44,450 September $57,150 October $47,625 November $63,500 December $76,200 January $28,575 Calculate the basic stock needed for each month.Given the following information for the Fall season: Planned season sales = $128,000 Planned turn for the season of 4 Planned sales for December of $30,000 Calculate the December BOM using the basic stock method.
- A company forecasts that the following sales: in May, 321 BD in June and 243 in JulySales will be paid in three parts, 30% will be paid in cash another 30% will be paid after one month and the remining 40% will be paid after two monthsAdditionally, the company will receive 145 BD in dividends in Julyand from the sale of stocks in MayBased on the information given what is the anticipated total cash receipts for the month of July?The men's buyer has June sales of $895,000 and June markdowns of $340,000. June BOM is $2,080,000 and July BOM is $1,700,000. The on order for June is $935,000. Calculate the remaining OTB for June. Planned Actual Over/Under June BOM Stock $2,080,000 $895,000 $340,000 $1,700,000 June Sales June MDs July BOM Stock June receipts Planned On order Over/Under $935,000Neon Inc.’s forecast sales for July is $72,000. It has $15,000 in accounts receivable at the end of June. 30% of its total sales are expected to be cash sales. Of the remaining 70%, 80% are expected to be collected in the month of the sale and the remaining 20% in the month following the sale. Determine the amount of accounts receivable at the end of July. Group of answer choices $79,200 $61,920 $10,080 $40,320
- The business has RM3,000 closing stock as at 30 November 2021. The expected sales for the month of December are RM10,000. The cost of sale is 60% of the total sales. It is the business policy to prepare 50% of inventories for the following month’s sales. Calculate the value of purchases to be made if the expected sales for the month of January is RM12,000. a.RM7,200 b.RM6,000 c.RM6,600 d.RM3,600 The amount that contributes to profit after covering all expenses is called ___. a.contribution margin b.net sales c.gross profit d.operating marginJoel Brown & Associates Limited produces and sells two products, vita 120 and vita 220. The following table provides information on the sales forecast for 2018: Sales Forecast Product Qrt1 Qrt2 Qrt3 Qrt4 Total Vita 120 5,000 6,000 4,800 5,500 21,300 Vita220 6,500 4,600 5,400 6,200 22,700 Notes: It is the company policy to have stock on hand at the end of each quarter equalling to 10% of sales for the next quarter. Budgeted sales for the first quarter of 2019 were: 7,000 units for Vita 120 and 5, 800 units for Vita 220 During 2016, the company sold one unit of Vita 120 for $600 and one unit of Vita 220 for $700 Opening inventory for the first quarter of 2018 was 320 units of Vita 120 and 420 units for Vita 220 To make one unit of Vita 120 four (4) units of raw material B20 is required while five (5) units of raw material B12 is required to make one unit of Vita 220. Prepare the sales budget Prepare the…The CFO of an internet service provider gets the estimates of the company's sales forecast for the coming quarter (September, October, and November) as $120,000, $150,000, and $130,000, respectively. The collections team estimates that 20% of the customers pay in the month of the sales (Month 1) and get a discount of 2%, 70% of the customers pay in Month 2, and 10% of the customers pay in Month 3. The bad debt, as a percentage of the sales, is 2% and is written off after two months of the sale. What is the expected cash flow in November? Less $26,000 $130,000 $140,080 $143,000 YOUR ANSWER CORRECT ANSWER
- Jamaica Co’s sales forecast for the first five months of 2018 are as follows: January February March April May $ 32,000 $ 36,000 $ 48,000 $ 46,000 $ 55,000 Additional information provided is as follows: (i) Sales for November and December of the previous year were $40,000 and $45,000 respectively. (ii) Sixty percent of sales will be for cash; 30% will be collected in the first month following the sale; and the remaining 10% will be collected in the second month following the sale. (iii) Raw material purchases are settled a month after purchase. Each month’s purchases is shown below: December January February March April $22,400 $25,200 $33,600 $32,200 $38,500 (iv) Wages total $4,200 monthly. (v) Other expenses are $1,800 in January but is expected to increase by $550 each month; (vi) Equipment costing $15,000 will be ordered in January. A…Star Ltd operates a retail business where Purchases are sold at cost plus 25%. The information below are forecast for the first 4 months of the year 2020. Month Sales Labour Expenses GH¢ GH¢ GH¢ Jan 40,000 3,000 4,000 Feb 60,000 3,000 6,000 Mar 160,000 5,000 7,000 Apr 120,000 4,000 7,000 1. It is management policy to have stock in hand at the end of each month to meet sales demand in the next half month 2. Creditors for materials and expenses are paid in the month after the purchases are made and expenses incurred; labour is paid in full at the end of each month. Labour cost and expenses are treated as period cost in the P & L Accounts. 3. Expenses include a monthly depreciation charge of GHS2,000.00 4. 75% of sales are for cash and 25% of Sales are one month credit. 5. The company will buy equipment for cash costing GHS18,000.00 in February and will pay a dividend of GHS20,000.00 in March, the opening Cash balance at 1st February, is GHS1,000.00 Required: a. Prepare a Cash Budget for…Star Ltd operates a retail business where Purchases are sold at cost plus 25%. The information below are forecast for the first 4 months of the year 2020. Month Sales Labour Expenses GH¢ GH¢ GH¢ Jan 40,000 3,000 4,000 Feb 60,000 3,000 6,000 Mar 160,000 5,000 7,000 Apr 120,000 4,000 7,000 It is management policy to have stock in hand at the end of each month to meet sales demand in the next half month Creditors for materials and expenses are paid in the month after the purchases are made and expenses incurred; labour is paid…