• Q : Construct income statement....
    Finance Basics :

    Payne Urology (PU), a non-profit business, had revenues in 2012 of $96,000. Expenses other than depreciation were 75% of revenues and Depreciation was $10,000.

  • Q : Determine best method of finance....
    Finance Basics :

    Alpha Waffles need to expand and increase their market share by 40% in the next 2 years. They would need to improve their packaging and spend money on advertising.

  • Q : Improving the financial performance....
    Finance Basics :

    ABC Construction LLC is a construction company owned by Mr. Mohammad (a civil engineer by profession). Mr. Mohammad established the company seven years ago in Dubai.

  • Q : Different types of financing on the financial statements....
    Finance Basics :

    Explain what the information needs of various stakeholders are for their respective decision making needs. Explain the effects of the different types of financing on the financial statements.

  • Q : Realizing defeasance of the present issue....
    Finance Basics :

    You have decided to advance refund $10,000,000 of outstanding debt that is callable in five years. The interest rate on these bonds is 8 percent. You can issue new bonds at 6 percent.

  • Q : Essential for financial reporting....
    Finance Basics :

    Some crooked top management companies are tempted to falsify their financial information in order to look better than they are. Therefore it is essential for financial reporting to have integrity.

  • Q : Prepare income statement and balance sheet....
    Finance Basics :

    The Fast Track Sports Company was started by John Ross early in 2012. Initial capital was acquired by issuing shares of common stock to various investors and by obtaining a bank loan.

  • Q : Calculate the lump sum required today....
    Finance Basics :

    Your daughter is a beginning freshman in high school. By the time she enters her freshman year in college, you would like to have savings accumulated to pay her tuition for her next four years of coll

  • Q : Calculate the wacc and price of the bond....
    Finance Basics :

    Company is purchasing new equipment for $120,000. You estimate the life of this equipment is 6 years and you will depreciate it in a straight line over 5 years to be conservative and assume no termina

  • Q : Determination of annual savings....
    Finance Basics :

    Community Hospital has annual net patient revenues of $150 million. At the present time, payments received by the hospital are not deposited for six days on average.

  • Q : Computing maximum loss risk....
    Finance Basics :

    John has just started investing, and one of his friends was mentioning how he could use short selling as an effective method to drive up his returns when the market started to go down.

  • Q : Compute benefit received by the nursing home....
    Finance Basics :

    A not-for profit nursing home has total expenses of $20 million, sales tax in the state is 7%, expenses are broken down into salaries ($12 million), supplies ($6 million), and pharmacy ($2 million).

  • Q : Calculating pmpm rates....
    Finance Basics :

    You are trying to establish a PMPM rate for Primary Care Physicians. Actuarial estimates project 2,500 visits per 1,000 members per year. You have contracted with a Primary Care Medical group at $45.0

  • Q : Predictions of inflation or deflation....
    Finance Basics :

    Predictions of inflation or deflation can lead you to make completely different investment decisions. For example, if you think inflation will increase dramatically it is a good idea to invest in real

  • Q : Evaluate the var in a historical simulation....
    Finance Basics :

    National Bank Asia wants to hire fresh young graduates to work in their Market Risk Management department. As you are preparing your interview, you need to understand some key questions,

  • Q : Explain importance of operational risk....
    Finance Basics :

    Explain why operational risk is important. Though the cost of implementing a new operational risk management system is expensive, determine why it could also improve the efficiency of financial instit

  • Q : Explain the duration model....
    Finance Basics :

    You have been freshly hired and your line manager is asking you to use the duration model in order to assess the interest rate risk related to the loan portfolio.

  • Q : Determine bootstrap financing....
    Finance Basics :

    What is bootstrap financing it? Why don't all firms use bootstrap financing? Are there any dangers with this approach? What are the benefits of having some financial slack

  • Q : Determine the long position gain or loss....
    Finance Basics :

    Greg recently inherited a large, family-run farm that primarily produces grain for harvest each year. Greg has recently been researching the use of futures contracts to improve his returns on his crop

  • Q : Preparing a loan application....
    Finance Basics :

    The CEO of Smartphone Apps, LLC is preparing a loan application. Using the data below (only), prepare an Income Statement. Within this Income statement, include totals for Gross Margin,

  • Q : Threats for financial environment of healthcare organization....
    Finance Basics :

    What trends or threats are or will impact the financial environment of healthcare organizations? These may include legislative changes, lack of primary care providers, or changing demographics.

  • Q : Comparing a capitated environment....
    Finance Basics :

    Comparing a capitated environment to a fee-for-service environment; in a capitated environment:

  • Q : Determine dollar amount of the maintenance margin....
    Finance Basics :

    An American company sells yen futures contracts to cover possible exchange losses on its export orders denominated in Japanese yen. The amount of the initial margin is $20,000, and the maintenance mar

  • Q : Overemphasis on short-term and long-term profits....
    Finance Basics :

    Managers should not focus on the current stock value because doing so will lead to overemphasis on short-term profits at the expense of long-term profits.

  • Q : Calculating real cost....
    Finance Basics :

    A US company negotiated a forward contract to buy 100,000 British pounds in 90 days. The company was supposed to use the £100,000 to buy British supplies.

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