FIN 486 Entire Course
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FIN 486 Week 1 Assignment Part 3 JJ’s Jammers Summary FIN 486 Week 1 Assignment Part 1 Financial Statement Construction and Part 2 Cash Flow Reconciliation FIN 486 Week 1 Video Summary (350 Words) FIN 486 Week 2 Individual Assignment (Chapter 5, Chapter 8) FIN 486 Week 2 Team Assignment (P4-6, P4-19) FIN 486 Week 3 Individual Assignment (P10–2,P10–7, P10–10, P10–14, P10– 21, P11–1, P11–4, P11–7, P11–8, P11–9) FIN 486 Week 3 Video Summary Short Term Finance FIN 486 Week 3 Team Assignment FIN 486 Week 4 Individual Assignment P12-1, P12-3, P12-6, P12-17, P12-19) FIN 486 Week 4 Team Assignment Case Study O’Grady Apparel Company FIN 486 Week 4 Risk and Return Summary FIN 486 Week 5 Individual Assignment Eboy Corporation FIN 486 Week 5 Team Assignment Case Study Casa de Diseno FIN 486 Week 5 Summary Long Term Financing FIN 486 Week 5 Team Assignment Asor Products, Inc FIN 486 Week 1 DQ 1 FIN 486 Week 1 DQ 2 FIN 486 Week 1 Individual Assignment Business Ethics (2 Papers) FIN 486 Week 2 DQ 1 FIN 486 Week 2 DQ 2 FIN 486 Week 2 Learning Team Assignment Department Budgets (2 Papers) FIN 486 Week 3 DQ 1 FIN 486 Week 3 DQ 2 FIN 486 Week 3 Individual Assignment Long-Term Financial Needs (2 Papers) FIN 486 Week 4 DQ 1 FIN 486 Week 4 DQ 2
FIN 486 Week 4 Individual Assignment Capital Budgeting Scenarios FIN 486 Week 5 Learning Team Assignment Strategic Financial Plan (2 Papers) ******************************************************* FIN 486 Week 1 Assignment Part 1 Financial Statement Construction and Part 2 Cash Flow Reconciliation
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Part 1: Financial Statement Construction Exercise Take the following results for JJ’s Jammers and create a Balance Sheet and Income Statement in the 2012 columns of the template showing JJ’s Jammers 2011 results (In alphabetical order). Make sure you make the embedded calculations for the caption accounts (like total Current Assets or Gross Profit) Accounts Receivable 77251: Cash and Securities 315954: Goodwill and Other Assets 448484: Inventories 40712: less: Accumulated Depreciation -594200: Other Current Assets 21349: Plant & Equipment 1023458: Accounts payables and accruals 373807: Accrued Taxes 19: Additional Paid in Capital 842967: Common Stock 179798: Long Term Debt 563748: Notes payable 10578: Retained Earnings 166634: Treasury stock (571,320) shares -25303. Cost of Goods sold 1158228: Depreciation and Amortization 83729: Dividends 5310: Interest (5.5%) 56000: Net Sales 1701013: Selling and Admin Expenses 247637: Taxes (33%) 51287. ******************************************************* FIN 486 Week 1 Assignment Part 3 JJ’s Jammers Summary
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Write a 525- to 700-word summary that includes the following: Explain how the three different parts of the Financial Statement work together to provide a picture of how the business is operating. Explain the role of the Financial Manager in stewarding the company’s resources. ******************************************************* FIN 486 Week 1 DQ 1 For more classes visit www.snaptutorial.com
FIN 486 Week 1 DQ 1 What are a chief financial officer’s (CFO) two roles? Use real-world examples to explain why these roles are important to a company’s success. ******************************************************* FIN 486 Week 1 DQ 2
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FIN 486 Week 1 DQ 2
Explain business ethics in your own words. Why are business ethics important in strategic planning? Howdobusinessethicsaffecttheworkplace? ******************************************************* FIN 486 Week 1 Individual Assignment Business Ethics (2 Papers)
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This Tutorial contains 2 Different Papers Write a 700- to 1,050-word paper describing the demise of Enron Corporation® and WorldCom®. Identify major factors that led to the dissolution of Enron Corporation® and WorldCom®. Explain specific ethical violations in accounting practices at Enron Corporation® and WorldCom®. Describe the role of business ethics in strategic financial planning. Cite readings and at least one other source, including the Internet. ******************************************************* FIN 486 Week 1 Individual Assignment Business Ethics For more classes visit www.snaptutorial.com
FIN 486 Week 1 Individual Assignment Business Ethics Write a paper of no more than 1,000 words, describing the demise of Enron Corporation® and WorldCom®.
Identify major factors that led to the dissolution of Enron Corporation® and WorldCom®. Explain specific ethical violations in accounting practices at Enron Corporation® and WorldCom®. ******************************************************* FIN 486 Week 1 Video Summary (350 Words) For more classes visit www.snaptutorial.com
FIN 486 Week 1 Video Summary ******************************************************* FIN 486 Week 2 DQ 1
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FIN 486 Week 2 DQ 1 Why are financial ratios used to assess a company’s financial performance? Why are sales reports, profits, debts, or current liability reports insufficient? How have financial ratios been used in your company? Do you think they are an effective assessment of financial performance? If so, why? If not, why? ******************************************************* FIN 486 Week 2 DQ 2
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FIN 486 Week 2 DQ 2 If you had to pick three commonly calculated ratios to analyze the financial health of a company, which would you analyze? Why would you choose those ratios? ******************************************************* FIN 486 Week 2 Individual Assignment (Chapter 5, Chapter 8)
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FIN 486 Week 2 Individual Assignment (5-1,5-4,5-5,5-8,5-10,5-17,5-21,P83,P8-4,P8-9,P8-10,P8-13,P8-24,P8-25,P8-26) P8–3 Risk preferences Sharon Smith, the financial manager for Barnett Corporation, wishes to evaluate three prospective investments: X, Y, and Z. Sharon will evaluate each of these investments to decide whether they are superior to investments that her company already has in place, which have an expected return of 12% and a standard deviation of 6%. The expected returns and standard deviations of the investments are as follows: ******************************************************* FIN 486 Week 2 Learning Team Assignment Department Budgets (2 Papers)
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This Tutorial contains 2 Different Papers Your Learning Team is the financial management team for Huffman Trucking, responsible for creating the financial portion of a strategic plan. You must obtain information from the marketing, sales, operations, and human resources departments to complete it. Resource: Virtual Organizations Review Huffman Trucking's financial information within the Virtual Organizations web link located on the course materials page. Create a spreadsheet for each department manager to complete his or her budget. Refer to the finance and accounting information for budget examples. ******************************************************* FIN 486 Week 2 Learning Team Assignment Department Budgets
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FIN 486 Week 2 Learning Team Assignment Department Budgets Review Huffman Trucking's financial information within the Virtual Organizations web link located on the course materials page. Create a spreadsheet for each department manager to complete his or her budget. Refer to the finance and accounting information for budget examples.
Include an area in each spreadsheet for managers to list major assumptions. Draft a memo directed to department managers, containing the following information: A summary of team players and their role in creating a strategic plan Instructions explaining how managers should complete their budgets in the spreadsheets, including information needed to prepare a cash flow budget, and to time cash coming in and going out ******************************************************* FIN 486 Week 2 Team Assignment (P4-6, P4-19)
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P4–6 Finding operating and free cash flows Consider the following balance sheets and selected data from the income statement of Keith Corporation. Keith Corporation Balance Sheets December 31 Assets 2015 2014 Cash $ 1,500 $ 1,000 Marketable securities 1,800 1,200 Accounts receivable 2,000 1,800 Inventories 2,900 2,800 $ 8,200 $ 6,800 Gross fixed assets $29,500 $28,100 Less: Accumulated depreciation 14,700 13,100 Net fixed assets $14,800 $15,000 Total assets $23,000 $21,800 Total current assets Liabilities and stockholders’ equity Keith Corporation Balance Sheets December 31 Assets 2015 2014 Cash $ 1,500 $ 1,000 Accounts payable $ 1,600 $ 1,500 Notes payable 2,800 2,200 200 300 $ 4,600 $ 4,000 5,000 5,000 $ 9,600 $ 9,000 $10,000 $10,000 3,400 2,800 Total stockholders’ equity $13,400 $12,800 Total liabilities and stockholders’ equity $23,000 $21,800 Accruals ******************************************************* FIN 486 Week 2 Video Summary
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FIN 486 Week 2 Video Summary ******************************************************* FIN 486 Week 3 DQ 1
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FIN 486 Week 3 DQ 1 In your own words, explain capital budgeting. Why is it important to a company’s long-term success? Provide an example of poorly performed capital budgeting. How does this affect a company’s long-term success? ******************************************************* FIN 486 Week 3 DQ 2
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FIN 486 Week 3 DQ 2 Why is capital budgeting part of a company’s long-term strategic planning process? What are the pros and cons of these methods: o NPV o Simple payback IRR ******************************************************* FIN 486 Week 3 Individual Assignment (P10–2,P10–7, P10–10, P10–14, P10– 21, P11–1, P11–4, P11–7, P11–8, P11–9)
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10–2 Payback comparisons Nova Products has a 5-year maximum acceptable payback period. The firm is considering the purchase of a new machine and must choose between two alternative ones. The first machine requires an initial investment of $14,000 and generates annual after-tax cash inflows of $3,000 for each of the next 7 years. The second machine requires an initial investment of $21,000 and provides an annual cash inflow after taxes of $4,000 for 20 years. a. Determine the payback period for each machine. b. Comment on the acceptability of the machines, assuming that they are independent projects. c. Which machine should the firm accept? Why? d. Do the machines in this problem illustrate any of the weaknesses of using payback? Discuss. ******************************************************* FIN 486 Week 3 Individual Assignment Long-Term Financial Needs (2 Papers)
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This Tutorial contains 2 Different Papers You are the head of the Huffman Trucking accounting department. The chief executive officer (CEO) has asked you to prepare a financial report addressing long-term financial needs. Resource: Virtual Organizations Examine financial information for Huffman Trucking, within the Virtual Organization web link located on the course materials page. Read the New Strategic Directions Memo. Calculate external funds needed (EFN) to create the pro forma balance sheet. Calculate the following year-end ratios for the pro forma statements: · Profit as a percentage of sales · Current ratio · Asset ratio ******************************************************* FIN 486 Week 3 Individual Assignment Long-Term Financial Needs
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FIN 486 Week 3 Individual Assignment Long-Term Financial Needs Examine financial information for Huffman Trucking, within the Virtual Organization web link located on the course materials page. Read the New Strategic Directions Memo. Calculate external funds needed (EFN) to create the
pro forma balance sheet. Calculate the following year-end ratios for the pro forma statements: Profit as a percentage of sales Current ratio Asset ratio Prepare a 500-word financial report for the CEO containing the EFN calculation, the ratio calculations, and an explanation of how you reached the calculations. Explain which income statement and balance sheet items you assumed were variable instead of fixed. ******************************************************* FIN 486 Week 3 Team Assignment
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a) Calculate the after-tax cost of debt
b) Calculate the cost of preferred stock c) Calculate the cost of retained earnings d) calculate the cost of common stock e) calculate the firms weighted average cost of capital using retained earnings and the capital structure weights f) calculate the firms weighted average cost of capital using new common stock and the capital structure weights
a. Cost of debt: Proceeds from sale of $1,000 par value bond: b. Cost of preferred stock: rp = Dp ÷ Np c. Cost of common stock: rj = RF + [bj × (rm − RF)] ******************************************************* FIN 486 Week 3 Video Summary Short Term Finance
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FIN 486 Week 3 Video Summary Short Term Finance ******************************************************* FIN 486 Week 4 DQ 1
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FIN 486 Week 4 DQ 1
What are major areas of risk in financial management? What are major areas of financial risk in your company? Which risk management techniques are important to your company? Why? ******************************************************* FIN 486 Week 4 DQ 2 For more classes visit www.snaptutorial.com
FIN 486 Week 4 DQ 2 What is capital structure? Why does it matter in terms of a company’s financial performance? How does a company’s capital structure affect overall risk? ******************************************************* FIN 486 Week 4 Individual Assignment (P12-1, P12-3, P12-6, P12-17, P12-19)
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P12–1 Recognizing risk Caradine Corp., a media services firm with net earnings of $3,200,000 in the last year, is considering the following projects. LG 1 The media services business is cyclical and highly competitive. The board of directors has asked you, as chief financial officer, to do the following: a.Evaluate the risk of each proposed project and rank it “low,” “medium,” or “high.”
b.Comment on why you chose each ranking. P12–3 Breakeven cash inflows and risk Blair Gasses and Chemicals is a supplier of highly purified gases to semiconductor manufacturers. A large chip producer has asked Blair to build a new gas production facility close to an existing semiconductor plant. Once the new gas plant is in place, Blair will be the exclusive supplier for that semiconductor fabrication plant for the subsequent 5 years. Blair is considering one of two plant designs. The first is Blair’s “standard” plant, which will cost $30 million to build. The second is for a “custom” plant, which will cost $40 million to build. The custom plant will allow Blair to produce the highly specialized gases that are required for an emerging semiconductor manufacturing process. Blair estimates that its client will order $10 million of product per year if the traditional plant is constructed, but if the customized design is put in place, Blair expects to sell $15 million worth of product annually to its client. Blair has enough money to build either type of plant, and, in the absence of risk differences, accepts the project with the highest NPV. The cost of capital is 12%. ******************************************************* FIN 486 Week 4 Individual Assignment Capital Budgeting Scenarios For more classes visit www.snaptutorial.com
FIN 486 Week 4 Individual Assignment Capital Budgeting Scenarios Choose a scenario from the Capital Budgeting Worksheet to review and analyze. Using net present value, determine the proposal’s appropriateness and economic viability. Prepare a 500-word report explaining your calculations and conclusions. Answer the following in your report: Explain the effect of a higher or lower cost of capital on a firm’s long-term financial decisions. ******************************************************* FIN 486 Week 4 Risk and Return Summary
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FIN 486 Week 4 Risk and Return Summary ******************************************************* FIN 486 Week 4 Team Assignment Case Study O’Grady Apparel Company
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O’Grady Apparel Company was founded nearly 160 years ago when an Irish merchant named Garrett O’Grady landed in Los Angeles with an inventory of heavy canvas, which he hoped to sell for tents and wagon covers to miners headed for the California goldfields. Instead, he turned to the sale of harder-wearing clothing. Today, O’Grady Apparel Company is a small manufacturer of fabrics and clothing whose stock is traded in the OTC market. In 2015, the Los Angeles–based company experienced sharp increases in both domestic and European markets resulting in record earnings. Sales rose from $15.9 million in 2014 to $18.3 million in 2015 with earnings per share of $3.28 and $3.84, respectively. ******************************************************* FIN 486 Week 5 Individual Assignment Eboy Corporation For more classes visit www.snaptutorial.com
The current balance in accounts receivable for Eboy Corporation is $443,000. This level was achieved with annual (365 days) credit sales of $3,544,000. The firm offers its customers credit terms of net 30. However, in an effort to help its cash flow position and to follow the actions of its rivals, the firm is considering changing its credit terms from net 30 to 2/10 net 30. The objective is to speed up the receivable collections and thereby improve the firm’s cash flows. Eboy would like to increase its accounts receivable turnover to 12.0. The firm works with a raw material whose current annual usage is 1,450 units. Each finished product requires one unit of this raw material at a variable cost of $2,600 per unit and sells for $4,200 on terms of net 30. It is estimated that 70% of the firm’s customers will take the 2% cash discount and that, with the discount, sales of the finished product will increase by 50 units per year. The firm’s opportunity cost of funds invested in accounts receivable is 12.5%. ******************************************************* FIN 486 Week 5 Individual Assignment Final
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FIN 486 Week 5 Individual Assignment Final ******************************************************* FIN 486 Week 5 Learning Team Assignment Strategic Financial Plan (2 Papers)
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This Tutorial contains 2 Different Papers Resource: The previously completed budgeting spreadsheets Create the financial portion of the strategic plan. The plan must include 3 years of income statements, balance sheets, and cash flow statements. Write a 700- to 1,050-word memo that explains the plan’s major assumptions and identifies areas of risk. The memo must include the following: · A review of cash flow statements and a recommendation of implementing new short-term working capital strategies on long-term cash flow · An explanation of corporate risk mitigation techniques used in capital budgeting · An analysis of the effect of a company’s capital structure on strategic financial planning and how it affects risk Refer to the Mergent Online database available in the University Library for financial plan examples. Format your memo consistent with APA guidelines. Click the Assignment Files tab to submit your assignment. ******************************************************* FIN 486 Week 5 Learning Team Assignment Strategic Financial Plan
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FIN 486 Week 5 Learning Team Assignment Strategic Financial Plan Create the financial portion of the strategic plan. The plan must include 3 years of income statements, balance sheets, and cash flow statements. Write a memo of 1200-1500 words that explains the plan’s major assumptions and identifies areas of risk. The memo must include the following:
A review of cash flow statements and a recommendation of implementing new short-term working capital strategies on long-term cash flow ******************************************************* FIN 486 Week 5 Summary Long Term Financing
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N 486 Week 5 Summary Long Term Financing ******************************************************* FIN 486 Week 5 Team Assignment Asor Products, Inc For more classes visit www.snaptutorial.com
evaluation of a proposed capital expenditure for equipment that would expand the firm's manufacturing capacity. Using the traditional NPV methodology, she found the project unacceptable because NPV traditional = -$1,700 < $0 Before recommending rejection of the proposed project, she has decided to assess whether there might be real options embedded in the firm's cash flows. Her evaluation uncovered three options: Option 1; Abandonment; The project could be abandoned at the end of 3 years, resulting in an addition to NPV of $1,200. Option 2; Expansion; If the project outcomes occurred, an opportunity to expand the firm's product offerings further would become available at the end of 4 years. Exercise of this option is estimated to add $ 3,000 to the projects NPV. Option 3: Delay; Certain phases of the proposed project could be delayed if market and competitive conditions caused the firm's forecast revenues to develop more slowly than planned. Such a delay in implementation at that point has a NPV of $10,000.
Jenny estimated that there was a 25% chance that the abandonment option would need to be exercised, a 30% chance that the expansion option would be exercises, and only a 10% chance that the implementation of certain phases of the project would have to be delayed. a) use the information provided to calculate the strategic NPV, NPV strategic , for Asor Products' proposed equipment expenditure. b) judging on the basis of the findings in part a, what action should jenny recommend to management with regard to the proposed equipment expenditure? c) In general, how does this problem demonstrate the importance of considering real options when making capital budgeting decisions? ******************************************************* FIN 486 Week 5 Team Assignment Case Study Casa de Diseno
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Chapter 16 Case Study: Casa de Diseno In January 2012, Teresa Leal was named treasurer of Casa de Diseno. She decided that she could best orient herself by systematically examining each area of the company’s financial operations. She began by studying the firm’s short-term financial activities. Casa de Diseno is located in Southern California and specializes in a furniture line called “Ligne Moderna.” Of high quality and contemporary design, the furniture appeals to the customer who wants something unique for his or her home or apartment. Most Ligne Miderna furniture is built by special order because a wide variety of upholstery, accent trimming, and colors is available. The product line is distributed through exclusive dealership arrangements with well-established retail stores. Casa de Diseno’s manufacturing process virtually eliminates the use
of wood. Plastic and metal provide the basic framework, and wood is used only for decorative purposes. *******************************************************