Finance homework help

Posted on 2014-03-18 09:57:00 in Finance by GINA IN TEXAS

I need some homework help in my finance class. Please do not chime in with a stupid answer if you are not here to genuinely help.



1. Sarah’s Computer City sells 5,000 boxes of CD-RW compact discs per year. She determined that she pays $50 to process an order for discs. Her purchase price is $6 for each box of discs and she has determined that storage costs for one year are 25 percent of the purchase price. Sarah’s vendor said that if she purchased 1,000 boxes at a time, she would receive a 10 percent discount.

What is her total cost if she orders her Economic Order Quantity without the discount?

A. $27,866

B. $27,925

C. $28,000

D. $30,866



2 Using information above for Sarah's Computer City. What is her approximate total carrying cost if she orders her EOQ?

A. $216.75

B. $306.75

C. $432.75

D. $2,167.50

E. $4,327.50

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3. Sam’s Discount Appliance Company just received a shipment of 30 washing machines. The invoice list price for each washing machine is $365. The manufacturer’s catalogue indicates that Sam can take the following discounts: 30/15/10 with 30 percent being the normal mark up, 15 percent for free delivery and hook up, and 10 percent for local advertising and point-of-sale displays. If Sam provides free delivery and hook up, advertises these washers in the Sunday paper and has a prominent display in his store, he will pay the vendor ______ for each washing machine.

A. $255.50

B. $229.95

C. $200.75

D. $195.46



4. Larry's Hardware Store sells 10,000 weed eaters per year. He determined that he pays $30 to process an order for the weed eaters. His purchase price is $50 for each weed eater. He has determined that storage costs for one year are 20 percent. What is his approximate economic order quantity?

A. 155 weed eaters.

B. 290 weed eaters,

C. 245 weed eaters.

D. 600 weed eaters.



5. XYZ Company has assets that are traditionally 80% of sales, and its liabilities traditionally are 30% of sales. Sales for this year are $70,000 and sales for next year are projected to be $120,000 with a profit margin of 6%. Using the percentage of sales method, XYZ will need _______ of additional financing.

A. $30,000

B. $17,800

C. $7,200

D. $25,000

E. No financing is required.



6. You have a current balance sheet with liabilities of $50,000 and assets of $75,000. You estimate that you will have to purchase a new vehicle nest year for $20,000. You believe you will be able to pay 20% down and can finance the remainder through your bank. If nothing else changes, your proforma balance sheet will show assets of ______ and liabilities of ______.

A. $95,000; $70,000

B. $95,000; $66,000

C. $91,000; $66,000

D. $91,000; $54,000



7. If a corporation's DOL is 3 then

A. for every 1% change in sales, operating income will change by 3%.

B. for every 10% change in sales, operating income will change by 30%.

C. for every 5% change in sales, operating income will change by 15%.

D. all of the above.



8. In a leveraged approach, a company will have

A. a wide contribution margin.

B. high variable costs.

C. lowed fixed costs.

D. none of the above.



9. Sam quit his job as an accountant with We Keep Books Accurately to open his own accounting firm. He earned $40,000 with the accounting firm We Keep Books Accurately. During the current year Sam had revenues of $150,000 and total expenses of $110,000. For Sam the opportunity cost of going into business was

A. $40,000.

B. $110,000.

C. $150,000.

D. zero because he has a profitable business.

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