1. Assignment: Forecast the Income Statement and Balance Sheet for 2008. Replicate Balancing Forecasted Assets and Liabilities to Find Funding###.
Assume sales and related items increase by 12%
PP&E rises by $9,000,000
Depreciation Expense rises by 450,000
SG&A can rise by any amount you assume.
| Income Statement |
| |
|
| |
2007 |
| Sales |
30,000,000 |
| COGS |
24,000,000 |
| Gross Margin |
6,000,000 |
| SG&A |
3,000,000 |
| Depreciation |
600,000 |
| EBIT |
2,400,000 |
| **Interest |
669,400 |
| EBT |
1,730,600 |
| Taxes |
605,710 |
| Net Income |
1,124,890 |
| Dividends |
200,000 |
| Additon to Retained Earnings |
924,890 |
| |
|
| Balance Sheet |
| |
|
| |
2007 |
| Cash & Marketable Securities |
1,000,000 |
| Accounts Receivable |
2,000,000 |
| Inventories |
6,000,000 |
| Net PP&E |
4,000,000 |
| Total Assets |
13,000,000 |
| Accounts Payable |
2,500,000 |
| Accruals |
700,000 |
| Notes Payable |
1,000,000 |
| Long Term Debt |
7,100,000 |
| *Plug |
|
| Common Paid in Capital |
500,000 |
| Retained Earnings |
1,200,000 |
| Total Liabilities and Equity |
13,000,000 |
2. Assignment: "Price a bond by discounting cash flows. Then use the Excel formula to price the bond. Finally, given the bond price, use the Excel formula to get the yield to maturity: Replicate Bond Pricing in Excel### in Sakai using the same Excel formulas and functions. "
The bond: This is for a 8 year bond with semiannual payments. The coupon rate is 7% and the stated yield to maturity is 7.4%.
3. Assignment: Create an Amortization Schedule by replicating Amortization Schedule###, including formulas and Excel functions. Only replicate one sheet where the payment is known.
Loan Length: 25 years
APR 7.2%
Monthly Payment 3,800
4. You are saving to buy a second honeymoon for your parents. Starting today you will put $440 into a savings account. Each monthly contribution thereafter will be .6% (.006) larger than the one before. The APR (a stated rate) on the account is 9% and compounding is monthly. How much will you have saved in four years?
Attachment:- finance.rar