MGFB10H3 Study Guide - Midterm Guide: Solling, Owo
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Year201x | Jan | Feb | Mar | Apr | May | June | July | Aug | Sep | Oct | Nov | Dec |
total assets | $500,000 | $475,000 | $460,000 | $470,000 | $475,000 | $485,000 | $495,000 | $555,000 | $600,000 | $650,000 | $700,000 | $750,000 |
Current assets | $250,000 | $220,000 | $199,900 | $204,698 | $204,392 | $208,980 | $213,459 | $262,829 | $307,085 | $351,227 | $395,251 | $439,156 |
year 201x+1 | jan | feb | mar | apr | may | june | july | aug | sep | oct | nov | dec |
total assets | $600,000 | $570,000 | $552,000 | $564,000 | $564,000 | $582,000 | $594,000 | $660,000 | $720,000 | $780,000 | $840,000 | $900,000 |
Current assets | $350,000 | $350,000 | $352,100 | $359,302 | $365,808 | $373,020 | $380,541 | $397,171 | $412,915 | $428,773 | $444,749 | $460,844 |
a.Estimate the levels of permanent and temporary current assets for Comfin over these months.
Find the average amount for fixed assets, permanent current assets, and temporary current
assets in the year 201X and year 201X + 1.
b. what average amounts of short-term and long- term financing should Comfin have during each year if it wants to follow a maturity-matching financing strategy over time?
c. what average amounts of short-term and long-term financing should Comfin have during each year if it wants to follow an aggressive financing strategy over time?
d. suppose Comfin's cost of short-term funds is 8 percent and its cost of long -term funds is 15 percent. Use your answer in (b) and (c) to compute the cost each strategy.
e. what are the pro and con arguments towrd each strategy in terms of profitability, risk, and company liquidity
I will appreciate if i get will get my answer in a.b.c
Thanks
The production of Reliable Manufacturing Company for 2012 and part of 2013 follows.
2012 | 2013 | 2012 | 2013 | ||||||
Production | Production | Production | Production | ||||||
Month | (thousands) | (thousands) | Month | (thousands) | (thousands) | ||||
January | 6 | 7 | July | 1 | 2 | ||||
February | 5 | 9 | August | 6 | |||||
March | 13 | 12 | September | 15 | |||||
April | 8 | 6 | October | 5 | |||||
May | 4 | 4 | November | 9 | |||||
June | 4 | 5 | December | 3 |
a. | Using the ratio-to-moving-average method, determine the specific seasonals for July, August, and September 2012. (Round your answers to 1 decimal place.) |
July__________ , August _________, September ________ |
b. | Assume that the specific seasonal indexes in the following table are correct. Insert in the table the specific seasonals you computed in part (a) for July, August, and September 2012, and determine the 12 typical seasonal indexes. (Round your answers to 1 decimal place.) |
Year | Jan. | Feb. | Mar. | Apr. | May | June | July | Aug. | Sept. | Oct. | Nov. | Dec. |
2012 | ? | ? | ? | 92.8 | 106.2 | 92.2 | ||||||
2013 | 88.5 | 102.3 | 178.4 | 118.2 | 60.7 | 43.4 | 44.0 | 74.0 | 200.9 | 90.0 | 101.9 | 90.9 |
2014 | 87.6 | 103.7 | 170.2 | 125.9 | 59.4 | 48.6 | 44.8 | 77.7 | 196.1 | 89.1 | 113.8 | 80.3 |
2015 | 79.4 | 105.6 | 165.2 | 124.5 | 62.1 | 41.6 | 48.2 | 72.1 | 203.6 | 80.2 | 103.0 | 94.2 |
2016 | 89.0 | 112.1 | 182.9 | 115.1 | 57.6 | 56.9 | ||||||
Month | Seasonal index | |
Jan. _____ | ||
Feb. _____ | ||
March ______ | ||
April ______ | ||
May ______ | ||
June ______ | ||
July ______ | ||
August ______ | ||
Sept. _______ | ||
Oct. ________ | ||
Nov. _______ | ||
Dec. _______ | ||
c. | Interpret the typical seasonal index. |
The highest month above average was ___________ the lowest month below average was . (Use the number of the month for your answer. E.g. April = 4.) |