Principles of Finance 101 assignment 1
please see below all the Qs for the assignment (materials attached)(need reference) :
Q1. XZY has net sales of 5,320,140; net income of 2,145,700; cost of goods sold 1,300,000; and EBIT 2,200,000. Calculate the gross profit and the operating profit margin for the firm. (Show your calculations) (1 Mark)- Ch 4
Q2. Prepare a common sized Balance Sheet for the below Balance sheet? (Show your calculations) (1 Mark)- Ch 4
Cash
21,000
Acct/Rec
52,000
Inventories
200,500
Current assets
273,500
Net fixed assets
132,000
Total assets
405,500
Accts/Pay
22,800
Accrued expenses
21,000
Short-term N/P
8,700
Current liabilities
52,500
Long-term debt
150,000
Total liabilities
202,500
Owner's equity
203,000
Total liabilities and owners’ equity
405,500
Q3. ABC company generated total sales of $32,565,420 during fiscal 2021. Depreciation and amortization for the year totaled $1,278,120, and cost of goods sold was $21,400,000. Interest expense for the year was $6,341,250 and selling, general, and administrative expenses totaled $2,556,610 for the year. If the company's tax rate was average 30 percent, what is its net income after taxes? (Show your calculations) (1 Mark)- Ch 3
Q4. BBB company had cash and marketable securities worth $400,134 accounts payables worth $2,490,357, inventory of $1,321,500, accounts receivables of $2,188,128, short-term notes payable worth $120,000, other current liabilities of 200,000, and other current assets of $521,800. What is the company's net working capital? (Show your calculations) (1 Mark)-Ch 3
Q5. In your own words, explain the difference between Brokers and Dealers? (Show your calculations) (1 Mark)-Ch 2
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College of Administrative and Financial Sciences
Assignment 1
Principles of Finance (FIN101)
Deadline for students: (25/02/2022@ 23:59)
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Course Name: Principles of Finance |
Student’s Name: |
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Course Code: FIN101 |
Student’s ID Number: |
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Semester: 2nd |
CRN: |
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Academic Year: 1443/1444 H, Second Semester |
For Instructor’s Use only
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Students’ Grade: /5 |
Level of Marks: High/Middle/Low |
Instructions – PLEASE READ THEM CAREFULLY
· This assignment is an individual assignment.
· The Assignment must be submitted only in WORD format via the allocated folder.
· Assignments submitted through email will not be accepted.
· Students are advised to make their work clear and well presented. This also includes filling in your information on the cover page.
· Students must mention question numbers clearly in their answers.
· Late submitted assignments will NOT be entertained.
· Avoid plagiarism; the work should be in your own words; copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
· All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).
Submissions without this cover page will NOT be accepted.
Assignment Questions: (Marks: 05)
Q1. XZY has net sales of 5,320,140; net income of 2,145,700; cost of goods sold 1,300,000; and EBIT 2,200,000. Calculate the gross profit and the operating profit margin for the firm. (Show your calculations) (1 Mark)- Ch 4
Q2. Prepare a common sized Balance Sheet for the below Balance sheet? (Show your calculations) (1 Mark)- Ch 4
|
Cash |
21,000 |
|
Acct/Rec |
52,000 |
|
Inventories |
200,500 |
|
Current assets |
273,500 |
|
Net fixed assets |
132,000 |
|
Total assets |
405,500 |
|
Accts/Pay |
22,800 |
|
Accrued expenses |
21,000 |
|
Short-term N/P |
8,700 |
|
Current liabilities |
52,500 |
|
Long-term debt |
150,000 |
|
Total liabilities |
202,500 |
|
Owner's equity |
203,000 |
|
Total liabilities and owners’ equity |
405,500 |
Q3. ABC company generated total sales of $32,565,420 during fiscal 2021. Depreciation and amortization for the year totaled $1,278,120, and cost of goods sold was $21,400,000. Interest expense for the year was $6,341,250 and selling, general, and administrative expenses totaled $2,556,610 for the year. If the company's tax rate was average 30 percent, what is its net income after taxes? (Show your calculations) (1 Mark)- Ch 3
Q4. BBB company had cash and marketable securities worth $400,134 accounts payables worth $2,490,357, inventory of $1,321,500, accounts receivables of $2,188,128, short-term notes payable worth $120,000, other current liabilities of 200,000, and other current assets of $521,800. What is the company's net working capital? (Show your calculations) (1 Mark)-Ch 3
Q5. In your own words, explain the difference between Brokers and Dealers? (Show your calculations) (1 Mark)-Ch 2
,
The Role of the Financial Manager
دور المدير المالي
Three Key Financial Decisions
Choose the long-term assets that will yield
The Greatest Net Benefits for the firm
.
اختر األصول طويلة األجل التي ستحقق أكبر فوائد صافي
.للشركة
decide which Long-term Assets to acquire
تقرر أي األصول طويلة األجل للحصول عليها
Capital Budgeting
الميزانية الرأسمالية
Finance assets with the optimal Combination
of Short-term Debt, Long-term Debt, And
Equity.
قم بتمويل األصول من خالل الدمج األمثل للديون قصيرة
.األجل والديون طويلة األجل واألسهم
decide how to Pay For Short-term and
Long-term Assets
لتحديد كيفية الدفع لألصول قصيرة األجل وطويلة األج
Financing
تمويل
Adjust Current Assets And Current
Liabilities as needed to promote Growth In
Cash Flow.
ضبط األصول الحالية والخصوم الحالية حسب الحاجة
.لتعزيز النمو في التدفق النقدي
decide how to Manage Short-term
Resources and Obligations
تيقرر كيفية إدارة الموارد قصيرة األجل وااللتزاما
Working Capital
القوى العاملة
➢ Poor Decisions about capital budgeting, financing, or working capital May Lead
To Bankruptcy or Business Failure
شل العملقد تؤدي القرارات الرديئة المتعلقة بميزانية رأس المال أو التمويل أو رأس المال العامل إلى اإلفالس أو ف➢
Basic Forms of Business Organization
Business Structure
DisadvantagesAdvantagesDefinationType
1) owner’s personal assets at Risk
2) owner’s Unlimited liability for
firm Obligations
3) Equity Only from owner or
business profit
4) business income taxed as Personal
Income
5) Difficult To Transfer ownership
1) Easiest to Create
2) Easiest to Control
3) Easiest to Dissolve
4) Right To All Profit
Owned by a Single
Person who is
financially
Responsible:
A. Actions
B. Obligations
1. Sole
Proprietorship
Disadvantages VS Sole
Proprietorship
Advantages VS Sole
Proprietorship
A business owned by More Than One Person; one or more of them Financially Responsible for the Actions and Obligations of the business
2. Partnership
1) Shared control & profit
2) Harder to dissolve
1. Limited Protection of
owners’ personal Assets
2. owners’ Limited Liability
For Firm Obligations
3. More Sources of Equity
& Expertise
Business Structure
DisadvantagesAdvantagesDefinationType
1. Most Difficult And
Expensive to Establish
2. Dilutes Individual
Control over the firm
3. overall Higher Taxes
on Income For
Shareholders
1) Protects personal
Assets
2) No shareholder
Liability for
business
3) easiest to Change
Ownership
1) Greatest access to
Sources Of Funds
A business owned by more than one
person; None Of Them Financially
Responsible For The Actions And
Obligations of the business. The
Corporation Is Responsible For Its
Obligations And Actions.
3. Corporation
➢ All have The Limited liability Of A
Corporation
➢ All have the Tax Advantage Of A
Partnership.
A. Limited Liability Partnerships
(LLPs)
B. Limited Liability Companies
(LLCs)
C. Professional Companies (PCs)
4. Hybrid
Forms of
Business
Organization
