Economics Homework Solutions

Financial ratios

If we divide users of financial ratios into short-term lenders, long-term lenders, and stockholders, which ratios would each group be most interested in, and for what reasons?

Receipts and receivables

US Sports Company projects the following sales: April May June $75,000 $95,000 $110,000 Ninety percent of US' sales are on credit with 60 percent of receivables collected in the month after the sale and the rest of receivables are collected in the second month after the sale. February sales were ...continues

Inventory and cost of goods

During 2003, A Company and Z Company made the following identical purchases in the order shown: 100 units @ $10.00 each 200 units @ $10.50 each 200 units @ $11.50 each 100 units @ $12.00 each Each company sold 400 units but A Company uses LIFO inventory costing and Z Company uses FIFO inventory costing. Assume there was ...continues

Projected Growth and % of Sales

Following is the balance sheet for 2003 for Tall Tree Company: Assets Cash $ 15,000 Accounts Receivable 90,000 Inventory 60,000 Current Assets 165,000 Fixed Assets 60,000 Total Assets 225,000 Liabilities Accounts Payable 90,000 Notes Payable 30,000 Accrued Expenses 7,500 Curr ...continues

Break-even point and profit/loss: Money Corporation produces class rings. The rings sell for $75 each and cost $35 each to produce. Money's fixed costs are $50,000. a) What is Money's break-even point in rings? b) How much profit or loss will Money have if it sells 8,000 rings?

Money Corporation produces class rings. The rings sell for $75 each and cost $35 each to produce. Money's fixed costs are $50,000. a) What is Money's break-even point in rings? b) How much profit or loss will Money have if it sells 8,000 rings?

Branch office

Outdoor Sports Company, with its main office in Iowa, is considering opening a branch office in Los Angeles. Under normal economic conditions, which have a 45% chance of occurring, Outdoor can expect to earn a net income in that branch office of $50,000. If there is a mini-recession, which has a 25% chance of occurring, Outdoor ...continues

Cash discount

Bright Flashlight Company needs $300,000 to take a cash discount of 2/10, net 70. A bank will loan the money for 60 days at a total interest cost of $5,500. a. What is the effective rate on the bank loan? b. How much would it cost (as a percentage) if the company did not take the cash discount, but paid the bill in 70 days r ...continues

Rate of return

In January, 1950, Billy Bob bought 100 shares of Stock in Ben's Barbeque, Inc. for $37.50 per share. He sold them in January, 2004 for a total of $9,715.02. What is Billy Bob's annual rate of return?

Yellow Fruit Company

Yellow Fruit Company's bonds are currently selling for $1,157.75 per $1,000 par-value bond. The bonds have a 10% coupon rate and will mature in 10 years. What is the approximate yield to maturity of the bonds?

Bar T Ranches, Inc.

I cannot find any help in the textbook for this problem. As I'm taking an online course, finding alternative forms of help proves difficult. Here's the problem: Bar T Ranches, Inc. is considering buying a new helicopter for $350,000. The company's old helicopter has a book value of $85,000, but will only bring $60,000 if it ...continues

Browse