-ten years ago, Amanda Cortez invested $20,000 in an account paying an annual interest rate of 5%. What is the value of the investment today? What is the interest on interest earned on this investment? -You have just won a lottery that promises an annual payment of $130,000 beginning immediately. You will receive a total of 12 payments. If you can invest the cash flow in an investment that is paying 7% annually, what is the present value of this annuity? -A company had cash and marketable securities worth $100,000 accounts payables worth $60,000 inventory of $2,501,500, accounts receivables of $5,500,000 short-term notes payable worth $200,000, other current liabilities of 100,000, and other current assets of $212,800. Calculate the company net working capital and describe how managers manage the firm working capital. -Your parents have given you $2,500 a year before your graduation so that you can take a trip when you graduate. You wisely decide to invest the money in a bank CD that pays 8% interest. You know that the trip costs $2,600 right now and that inflation for the year is predicted to be 3%. Will you have enough money in a year to purchase the trip? Show your calculations. -If the following financial information related to XYZ Company. Total Revenues last year $870, depreciation expenses $40, costs of goods sold $350, and interest expenses $50. At the end of the year, current assets were $100 and current liabilities were $105. The company has an average tax rate of 30%. Calculate the net income for XYZ Company by setting up an income statement. Calculate the common-size balance sheet from the following information for the company: Cash 50,000 Accts/Pay 20,800 Acct/Rec 55,000 Accrued expenses 40,000 Inventories 300,500 Short-term N/P 9,700 Total Current assets 405,500 Current liabilities 70,500 Net fixed assets 102,000 Long-term debt 70,000 Total assets 507,500 Total liabilities 140,500 Owner's equity 367,000 Total liabilities and owners’ equity 507,500
-ten years ago, Amanda Cortez invested $20,000 in an account paying an annual interest rate of 5%. What is the value of the investment today? What is the interest on interest earned on this investment? -You have just won a lottery that promises an annual payment of $130,000 beginning immediately. You will receive a total of 12 payments. If you can invest the cash flow in an investment that is paying 7% annually, what is the present value of this annuity? -A company had cash and marketable securities worth $100,000 accounts payables worth $60,000 inventory of $2,501,500, accounts receivables of $5,500,000 short-term notes payable worth $200,000, other current liabilities of 100,000, and other current assets of $212,800. Calculate the company net working capital and describe how managers manage the firm working capital. -Your parents have given you $2,500 a year before your graduation so that you can take a trip when you graduate. You wisely decide to invest the money in a bank CD that pays 8% interest. You know that the trip costs $2,600 right now and that inflation for the year is predicted to be 3%. Will you have enough money in a year to purchase the trip? Show your calculations. -If the following financial information related to XYZ Company. Total Revenues last year $870, depreciation expenses $40, costs of goods sold $350, and interest expenses $50. At the end of the year, current assets were $100 and current liabilities were $105. The company has an average tax rate of 30%. Calculate the net income for XYZ Company by setting up an income statement. Calculate the common-size balance sheet from the following information for the company: Cash 50,000 Accts/Pay 20,800 Acct/Rec 55,000 Accrued expenses 40,000 Inventories 300,500 Short-term N/P 9,700 Total Current assets 405,500 Current liabilities 70,500 Net fixed assets 102,000 Long-term debt 70,000 Total assets 507,500 Total liabilities 140,500 Owner's equity 367,000 Total liabilities and owners’ equity 507,500
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 22P
Related questions
Question
- -ten years ago, Amanda Cortez invested $20,000 in an account paying an annual interest rate of 5%. What is the value of the investment today? What is the interest on interest earned on this investment?
-You have just won a lottery that promises an annual payment of $130,000 beginning immediately. You will receive a total of 12 payments. If you can invest the cash flow in an investment that is paying 7% annually, what is the present value of this
- -A company had cash and marketable securities worth $100,000 accounts payables worth $60,000 inventory of $2,501,500, accounts receivables of $5,500,000 short-term notes payable worth $200,000, other current liabilities of 100,000, and other current assets of $212,800. Calculate the company net working capital and describe how managers manage the firm working capital.
- -Your parents have given you $2,500 a year before your graduation so that you can take a trip when you graduate. You wisely decide to invest the money in a bank CD that pays 8% interest. You know that the trip costs $2,600 right now and that inflation for the year is predicted to be 3%. Will you have enough money in a year to purchase the trip? Show your calculations.
- -If the following financial information related to XYZ Company. Total Revenues last year $870,
depreciation expenses $40, costs of goods sold $350, and interest expenses $50. At the end of the year, current assets were $100 and current liabilities were $105. The company has an average tax rate of 30%. Calculate the net income for XYZ Company by setting up an income statement.
- Calculate the common-size balance sheet from the following information for the company:
Cash |
50,000 |
Accts/Pay |
20,800 |
Acct/Rec |
55,000 |
Accrued expenses |
40,000 |
Inventories |
300,500 |
Short-term N/P |
9,700 |
Total Current assets |
405,500 |
Current liabilities |
70,500 |
Net fixed assets |
102,000 |
Long-term debt |
70,000 |
Total assets |
507,500 |
Total liabilities |
140,500 |
|
|
Owner's equity |
367,000 |
|
|
Total liabilities and owners’ equity |
507,500 |
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