Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / 1)Compute the monthly payment for a $82,510 home loan

1)Compute the monthly payment for a $82,510 home loan

Finance

1)Compute the monthly payment for a $82,510 home loan. The interest of the loan is 5% with monthly payments. The loan amortization is over 25 years.

Can you show how to enter into excel?

2)DuPont Analysis You are considering investing in Nuran Security Services. You have been able to locate the following information on the firm: Total assets are $24 million, accounts receivable are $3.3 million, ACP is 25 days, net income is $3.5 million, and debt-to-equity is 1.2 times. Calculate the ROE for the firm. 

3)Upton Computers makes bulk purchases of small computers, stocks them in conveniently located warehouses, ships them to its chain of retail stores, and has a staff to advise customers and help them set up their new computers. Upton's balance sheet as of December 31, 2018, is shown here (millions of dollars):

Cash $   3.5   Accounts payable $   9.0
Receivables 26.0   Notes payable 18.0
Inventories 58.0   Line of credit 0
Total current assets $ 87.5   Accruals 8.5
Net fixed assets 35.0   Total current liabilities $ 35.5
      Mortgage loan 6.0
      Common stock 15.0
      Retained earnings 66.0
Total assets $122.5   Total liabilities and equity $122.5

Sales for 2018 were $475 million and net income for the year was $14.25 million, so the firm's profit margin was 3.0%. Upton paid dividends of $5.7 million to common stockholders, so its payout ratio was 40%. Its tax rate was 40%, and it operated at full capacity. Assume that all assets/sales ratios, (spontaneous liabilities)/sales ratios, the profit margin, and the payout ratio remain constant in 2019. Do not round intermediate calculations.

a. If sales are projected to increase by $90 million, or 18.947368%, during 2019, use the AFN equation to determine Upton's projected external capital requirements. Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10.55. Round your answer to two decimal places.
$ ______ million

b. Using the AFN equation, determine Upton's self-supporting growth rate. That is, what is the maximum growth rate the firm can achieve without having to employ nonspontaneous external funds? Round your answer to two decimal places.
______ %

c .Use the forecasted financial statement method to forecast Upton's balance sheet for December 31, 2019. Assume that all additional external capital is raised as a line of credit at the end of the year and is reflected (because the debt is added at the end of the year, there will be no additional interest expense due to the new debt).
Assume Upton's profit margin and dividend payout ratio will be the same in 2019 as they were in 2018. What is the amount of the line of credit reported on the 2019 forecasted balance sheets? (Hint: You don't need to forecast the income statements because the line of credit is taken out on last day of the year and you are given the projected sales, profit margin, and dividend payout ratio; these figures allow you to calculate the 2019 addition to retained earnings for the balance sheet without actually constructing a full income statement.) Round your answers to two decimal places.

Upton Computers
Pro Forma Balance Sheet
December 31, 2019
(Millions of Dollars)
Cash $  
Receivables $  
Inventories $  
Total current assets $  
Net fixed assets $  
Total assets $  
Accounts payable $  
Notes payable $  
Line of credit $  
Accruals $  
Total current liabilities $  
Mortgage loan $  
Common stock $  
Retained earnings $  
Total liabilities and equity $  

Option 1

Low Cost Option
Download this past answer in few clicks

2.89 USD

PURCHASE SOLUTION

Already member?


Option 2

Custom new solution created by our subject matter experts

GET A QUOTE