Login

Contact Us
Homework
Homework Questions? Ask a Tutor for Answers ASAP
Not a Homework Question?
How JustAnswer Works:
Ask an Expert
Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
Get a Professional Answer
Via email, text message, or notification as you wait on our site.
Ask follow up questions if you need to.
100% Satisfaction Guarantee
Rate the answer you receive.
Ask tutormba Your Own Question
tutormba
,
MBA
Category:
Homework
Satisfied Customers:
41
Experience:
MBA(Finance), Middle management excutive in Fortune500 company
14368189
Type Your Homework Question Here...
tutormba is online now
Case Study Questions for Finance Class. Please help!
Customer Question
Case Study Questions for Finance Class. Please help!
46A. (Cash budget) The Sharpe Corporation’s projected sales for the first eight months of 2004
are as follows:
January $ 90,000 May $300,000
February 120,000 June 270,000
March 135,000 July 225,000
April 240,000 August 150,000
Of Sharpe’s sales, 10 percent is for cash, another 60 percent is collected in the month following
sale, and 30 percent is collected in the second month following sale. November and December
sales for 2003 were $220,000 and $175,000, respectively.
Sharpe purchases its raw materials two months in advance of its sales equal to 60 percent of their
final sales price. The supplier is paid one month after it makes delivery. For example, purchases
for April sales are made in February and payment is made in March.
In addition, Sharpe pays $10,000 per month for rent and $20,000 each month for other expenditures.
Tax prepayments of $22,500 are made each quarter, beginning in March.
The company’s cash balance at December 31, 2003, was $22,000; a minimum balance of $15,000
must be maintained at all times. Assume that any shortterm financing needed to maintain the cash
balance is paid off in the month following the month of financing if sufficient funds are available.
Interest on shortterm loans (12 percent) is paid monthly. Borrowing to meet estimated monthly
cash needs takes place at the beginning of the month. Thus, if in the month of April the firm expects
to have a need for an additional $60,500, these funds would be borrowed at the beginning of April
with interest of $605 (.12 ??1/12 ??$60,500) owed for April and paid at the beginning of May.
a. Prepare a cash budget for Sharpe covering the first seven months of 2004.
b. Sharpe has $200,000 in notes payable due in July that must be repaid or renegotiated for
an extension. Will the firm have ample cash to repay the notes?
51A. (Compound interest) To what amount will the following investments accumulate?
a. $5,000 invested for 10 years at 10 percent compounded annually
b. $8,000 invested for 7 years at 8 percent compounded annually
c. $775 invested for 12 years at 12 percent compounded annually
d. $21,000 invested for 5 years at 5 percent compounded annually
52A. (Compound value solving for n) How many years will the following take?
a. $500 to grow to $1,039.50 if invested at 5 percent compounded annually
b. $35 to grow to $53.87 if invested at 9 percent compounded annually
c. $100 to grow to $298.60 if invested at 20 percent compounded annually
d. $53 to grow to $78.76 if invested at 2 percent compounded annually
53A. (Compound value solving for i) At what annual rate would the following have to be invested?
a. $500 to grow to $1,948.00 in 12 years
b. $300 to grow to $422.10 in 7 years
c. $50 to grow to $280.20 in 20 years
d. $200 to grow to $497.60 in 5 years
54A. (Present value) What is the present value of the following future amounts?
a. $800 to be received 10 years from now discounted back to the present at 10 percent
b. $300 to be received 5 years from now discounted back to the present at 5 percent
c. $1,000 to be received 8 years from now discounted back to the present at 3 percent
d. $1,000 to be received 8 years from now discounted back to the present at 20 percent
55A. (Compound annuity) What is the accumulated sum of each of the following streams of
payments?
a. $500 a year for 10 years compounded annually at 5 percent
b. $100 a year for 5 years compounded annually at 10 percent
c. $35 a year for 7 years compounded annually at 7 percent
d. $25 a year for 3 years compounded annually at 2 percent
56A. (Present value of an annuity) What is the present value of the following annuities?
a. $2,500 a year for 10 years discounted back to the present at 7 percent
b. $70 a year for 3 years discounted back to the present at 3 percent
c. $280 a year for 7 years discounted back to the present at 6 percent
d. $500 a year for 10 years discounted back to the present at 10 percent
Submitted:
7 years ago.
Category:
Homework
Share this conversation
Expert:
tutormba
replied 7 years ago.
THIS ANSWER IS LOCKED!
You need to spend $3 to view this post.
Add Funds
to your account and buy credits.
tutormba, MBA
Category:
Homework
Satisfied Customers:
41
Experience:
MBA(Finance), Middle management excutive in Fortune500 company
tutormba and 4 other Homework Specialists are ready to help you
Ask your own question now
Customer:
replied 7 years ago.
Thank you. Would you mind clarifying the work for solution 51 to 55? I'm trying to understand which answers go to what? Sorry a bit confused.
Customer:
replied 7 years ago.
Sorry nevermind, I think I may have figured it out. Thank you again.
Expert:
tutormba
replied 7 years ago.
Explanation:
Ans 51
Future Value FV = PV(1+r)^n
Here PV, r and n are given. We have calculated FV in last column. 4 rows correspond to 4 questions (a,b,c,d) in this qs.
Ans 52:
This qs requires calculation of n. We have used same formula as used in qs 51. Here we have calculated FV for n = 1,2,3 .... and see for what n we get required FV.
For four qs of this qs we have separate calculation. Answers are
a) 15 years
b) 5 yrs
c) 6 yrs
d) 20 yrs
Ans 53:
Again we have used same formula. Here I have written i instead of r as in question you have mentioned calculation of i. Both represent same thing interest rate.
Formula is FV = PV(1+i) ^n
=> i = (FV/PV)^(1/n)  1
Ans 54:
using same formula we have to calculate PV.
Formula is FV = PV(1+i) ^n
=> PV = FV/ (1+i)^n
Ans 55:
This is annuity problem.
Formula is:
Accumulated FV = (R(1+i)^n 1)/i
Ans 56:
here we have one additional job. We have to find the PV of accumulated FV.
So first we calculate FV . (second last column).
Accumulated FV = (R(1+i)^n 1)/i
then we find PV of that FV using formula:
PV = FV/ (1+i)^n
Ask Your Own Homework Question
Share this conversation
JustAnswer in the News:
Askadoc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses workfromhome jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
What Customers are Saying:
Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.
Mary C.
Freshfield, Liverpool, UK
<
Previous

Next
>
Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.
Mary C.
Freshfield, Liverpool, UK
This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!
Alex
Los Angeles, CA
Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.
GP
Hesperia, CA
I couldn't be more satisfied! This is the site I will always come to when I need a second opinion.
Justin
Kernersville, NC
Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around.
Esther
Woodstock, NY
Thank you so much for taking your time and knowledge to support my concerns. Not only did you answer my questions, you even took it a step further with replying with more pertinent information I needed to know.
Robin
Elkton, Maryland
He answered my question promptly and gave me accurate, detailed information. If all of your experts are half as good, you have a great thing going here.
Diane
Dallas, TX
Meet The Experts:
LogicPro
Engineer
Satisfied Customers:
4925
Expert in Java C++ C C# VB Javascript Design SQL HTML
<
Last

Next
>
http://ww2.justanswer.com/uploads/ComputersGuru/20100213_051118_Photo41.JPG
LogicPro's Avatar
LogicPro
Engineer
Satisfied Customers:
4925
Expert in Java C++ C C# VB Javascript Design SQL HTML
http://ww2.justanswer.com/uploads/BU/BusinessTutor/201222_115741_Kouki2.64x64.jpg
Manal Elkhoshkhany's Avatar
Manal Elkhoshkhany
Tutor
Satisfied Customers:
4538
More than 5000 online tutoring sessions.
http://ww2.justanswer.com/uploads/LI/lindaus/2012610_04811_IMG20120609164157.64x64.jpg
Linda_us's Avatar
Linda_us
Finance, Accounts & Homework Tutor
Satisfied Customers:
3138
Post Graduate Diploma in Management (MBA)
http://ww2.justanswer.com/uploads/chooser77/20090818_162025_Chris.jpg
Chris M.'s Avatar
Chris M.
M.S.W. Social Work
Satisfied Customers:
2602
Master's Degree, strong math and writing skills, experience in oneonone tutoring (college English)
http://ww2.justanswer.com/uploads/JawaadAhmed/2009627_12137_SIs_SHadi.jpg
F. Naz's Avatar
F. Naz
Chartered Accountant
Satisfied Customers:
2126
Experience with chartered accountancy
http://ww2.justanswer.com/uploads/JK/jkcpa/2011116_182614_jkcpa.64x64.jpg
Bizhelp's Avatar
Bizhelp
CPA
Satisfied Customers:
1887
Bachelors Degree and CPA with Accounting work experience
http://ww2.justanswer.com/uploads/avremote/photoa.jpg
Seanna's Avatar
Seanna
Tutor
Satisfied Customers:
1781
3,000+ satisfied customers, all topics, A+ work
Related Homework Questions
Question
Date Submitted
Last question of the session, due Sunday, May 7th.1)
5/5/2016
5/5/2016
LogicPro
Unit 1 VCASTLE Lab Activity: Installing and Configuring
5/4/2016
5/5/2016
David L.
Examination Questions 1. Write
5/4/2016
5/4/2016
Cher
I need some help I answer 130 questions from a questioner
5/3/2016
5/4/2016
GLENN
My friend, I have C# ***** it due May 4th
5/3/2016
5/5/2016
Ingo U
I need help with thisYour goal ( encode portion):
5/3/2016
5/3/2016
Ingo U
D is employed as a regional sales representative ,
5/3/2016
5/3/2016
Chris M.
Instructions: The following programming problem can be solved
5/2/2016
5/2/2016
LogicPro
Onlyare you available work ? its a
5/2/2016
5/2/2016
LogicPro
JA: . What seems to be the problem? Customer: needed
5/2/2016
5/5/2016
Chris M.
X
Ask a Tutor
Get a Professional Answer. 100% Satisfaction Guaranteed.
54 Tutors are Online Now
Type Your Homework Question Here...
characters left: