Financial Management assignment 1 Essay Example | Topics and Well Written Essays - 1500 words

Financial Management assignment 1 - Essay Example Long-term lenders will also be interested on the long-term profitability of the organization. Stockholders will be interested on shareholder ratios like return on equity, earnings per share, and dividend yield. These ratios became the sole measure of the profitability of the stock. Stockholders also look at the company's leverage through its debt to assets and debt to equity ratios. Companies which are highly dependent on debt faces higher risks. Question 5. a. Monthly Schedule of Cash Receipts Cash Receipts for April From Sales (10%) $7,500 Collection March (60%) $42,000 February (30%) $18,000 Total $67,500 Cash Receipts for May From Sales (10%) $9,500 Collection April (60%) $45,000 March (30%) $21,000 Total $75,500 Cash Receipts for June From Sales (10%) $11,000 Collection May (60%) $57,000 April (30%) $22,500 Total $90,500 b. Accounts Receivables at end of June May (30%) $28,500 June (60%) $66,000 Total $94,500 Question 6. A Company (LIFO) Value of Cost of Goods Sold 100 units @ $12 each $1,200 200 units @ $11.50 each $2,300 100 units at $10.50 each $1,050 Total $4,550 Value of Ending Inventory 100 units @ $10 each $1000 100 units @ $10.50 each $1050 Total $2050 Z Company (FIFO) Value of Cost of Goods Sold 100 units @ $10 each $1000 200 units @ $10.50 each $2100 100 units @ $11.50 each $1150 Total $4250 Value of Ending Inventory 100 units @ $11.50 each $1150 100 units @ $12 each $1200 Total $2350 Question 7. Tall Tree Percentage of Sales Table $300,000 Sales Assets Liabilities Cash 5% Accounts Payable (90) 30% Accounts Receivable 30% Notes Payable (30) 10% Inventory 20% Accrued Expenses (7.5) 2.5% Currents Assets 55% Current Liabilities 42.5% Equipments 25% Common Stock (127.5) 42.5% Total