Accounting Help for College and University Students

Calculating change in net working capital and net cash flow.

Last year, Carl's Bail Bonds reported sales of $58,200 and costs of $22,700. The following information was also reported for the same period: Beginning Accounts Receivable: $24,880 Ending Accounts Receivable: $21,520 Beginning Inventory: 4,270 Ending Inventory: 6,512 Beginning Accts Payable: 40,680 Ending Accts Pay ...continues

Project Cash Flows & NPV

Pappy's Potato has come pu with a new product, the Pet Potato (they are freeze-dried to last longer). Pappy's paid $120,000 for a marketing survey to determine the viability of the product. It is felt that Pet Potato will generate sales of $270,000 per year. The fixed costs associated with this will be $115,000 per year, and ...continues

Analysis of Cost-Cutting Proposals

Cost-Cutting Proposals. Kurt's Auto Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $450,000 is estimated to result in $195,000 in annual pretax cost savings. The press falls in the MACRS five-year class, and it will have a salvage value at the end of the project of ...continues

Maximizing profit

You can sell widgets for $50/Y, where Y is the number of widgets you sell. In other words, the more widgets you sell, the lower the price. It costs $1.5Y to make Y widgets. Using Excel, how many widgets do you make to maximize your profits?

Financial Analysis of shares and company mergers

a. Compute the share exchange ratio and the combined expected earnings per share for ABC under an exchange of shares. b. Assume that all XYZ shareholders have held their shares for more than one year, have a 28% marginal capital gains tax rate, and paid an average of $14 for their shares. What cash price would have to be offere ...continues

Analysis of Lease or Buy option for a new truck

I don't understand how to incorporate the 70% owner's equity and 30% debt into the calculation. Can you please provide me step by step instructions on how to solve this question correctly or provide me with the solutions so I can verify it where I went wrong. Please see attachment.

Work in process

a.Prepare the accounts for Processes 1 and 2 (b) Calculate the cost of (i) One completed unit of production in Process 1. (ii) One competed unit of production in Process 2. (iii) One unit of work in progress in process 2. 6ooo units from Process 2 were used in Process 3. As a result of which two joint products X and Y ...continues

Borrowing Vs Lending

a. Referring to Figure 1 below, will all shareholders agree on the optimum production point if they face different interest rates at which they can borrow and lend?

Analysis CAPM model, Beta and Expected Return on Shares

What would you expect the effect to be of the following changes on the market price of a company's shares, all other things being the same? Provide an explanation of your expectation. a. Investors demand a higher required rate of return on shares in general b. The covariance between the company's rate of return and that for ...continues

Calculating the cost of capital from a given situation.

David Ortiz Motors has a target capital structure of a 40% debt and 60% equity. The yield to maturity on the company's outstanding bonds is 9%, and the company's tax rate is 40%. Ortiz's CFO has calculated the company's WACC as 9.96%. What is the company's cost of equity capital?