Did you know that you can get lots of financial information free of charge? Go to finance.yahoo.com. Use the quote lookup located on the left side to get financial information about any publicly traded company. 1. For your company of choice, obtain the most recent income statement and balance sheet information by clicking on the financials in the bottom left hand corner. 2. Click on competitors to obtain a direct competitor comparison with your company of choice. Select a competing company and obtain their most recent income statement and balance sheet information. 3. Calculate the following risk ratios for both companies for the most recent year. Based on these calculations, which company appears to be more risky? a. Receivables turnover ratio. b. Inventory turnover ratio. c. Current ratio. d. Acid-test ratio. e. Debt to equity ratio. 4. Calculate the following profitability ratios for both companies for the most recent year. Based on these calculations, which company appears to be more profitable? a. Gross profit ratio. b. Return on assets. c. Profit margin. d. Asset turnover. e. Return on equity.

What were the long-term effects of slavery in the Americas?

What are two theories about migration to the Americas?

Dragonfly Limited (Dragonfly), a diversified electronics firm headquartered in Singapore, reported the following income statement information for its year ended December 31, Year 7. Dragonfly applies Singapore financial reporting standards and reports its results in thousands of Singapore dollars ($). In answering this problem, assume Dragonfly uses either U.S. GAAP or IFRS; for purposes of this problem, this choice will not matter.$

$$\begin{array}{lr} &{\text { Year } 7} \\ \hline \text{Sales}&\$ 460,830 \\ \text{Cost of Sales}&(416,378) \\ \hline\text{Gross Profit}& 44,452 \\ \text{Other Income }&1,558 \\ \text{Selling and Marketing Costs}&(20,714) \\ \text{General and Administrative Costs}&(20,254) \\ \text{Development Costs}&(1,232) \\ \text{Finance Costs, net}&(6,692) \\ \text{Gain on Sale of Land}&6,546 \\ \text{Share in Results of Associated Companies}&(2) \\ \hline \text{Profit Before Tax}&3,662 \\ \text{Taxation}&(1,094) \\ \hline \text{Profit (Loss)}& \$2,568 \\ \hline \hline \text{Portion of Profit Owned by Minority Interests}&(567) \\ \text{Portion of Profit Owned by Shareholders}&3,135 \\ \hline \end{array}$$

$Assume that Dragonfly supplied additional information about the following six hypothetical transactions or events that happened during Year 7, with all monetary amounts reported in thousands of Singapore dollars.

For each transaction, determine whether revenues and expenses for Year 7 are over- or understated.

e. In December Year 7, Dragonfly recognized interest income on investments in marketable securities of$230. The firm included this income in sales revenues.

Tom Ajax purchases a tiny home for his elderly mother. After a large down payment, he finances $\$88,600$ at $7\frac{1}{4}$ for $10$ years. Prepare a repayment schedule for the first two payments. (See the Example discussed before .)

$$\begin{array}{ccccc} \begin{array}{}\text{Payment}\\\text{Number}\end{array}& \begin{array}{}\text{Total}\\\text{Payment}\end{array}& \begin{array}{}\text{Interest}\\\text{Payment}\end{array}& \begin{array}{}\text{Principal}\\\text{Payment}\end{array}& \begin{array}{}\text{Remaining}\\\text{Balance}\end{array}\\ \end{array}$$

Benchmark Metrics, Inc. (BMI), an all-equity financed firm, just reported EPS of $\$ 4.43$ in $2008$. Despite the economic downturn, BMI is confident regarding its current investment opportunities. But due to the financial crisis, BMI does not wish to fund these investments externally. The Board has therefore decided to suspend its stock repurchase plan and cut its dividend to $\$ 1.44$ per share (vs. almost $\$2$ per share in $2007$), and retain these funds instead. The firm has just paid the 2008 dividend, and BMI plans to keep its dividend at $\$ 1.44$ per share in $2009$ as well. In subsequent years, it expects its growth opportunities to slow, and it will still be able to fund its growth internally with a target $45 \%$ dividend payout ratio, and reinitiating its stock repurchase plan for a total payout rate of $58 \%$. (All dividends and repurchases occur at the end of each year.) Suppose BMI's existing operations will continue to generate the current level of earnings per share in the future. Assume further that the return on new investment is $15 \%$, and that reinvestments will account for all future earnings growth (if any). Finally, assume BMI's equity cost of capital is $10 \%$.

a. Estimate BMP's EPS in $2009$ and $2010$ (before any share repurchases).

b. What is the value of a share of BMI at the start of $2009$ ?

Why do you think early peoples in the Americas migrated south?

Better at Getting Deals. To better understand how husbands and wives feel about their finances, Money magazine conducted a national poll of 1,010 married adults age 25 and older with household incomes of $\$ 50,000$ or more (Money website). Consider the following example set of responses to the question, "Who is better at getting deals?"

$$\begin{aligned} &\text { Who Is Better? }\\ &\begin{array}{lccc} \text { Respondent } & \text { I Am } & \text { My Spouse } & \text { We Are Equal } \\ \text { Husband } & 278 & 127 & 102 \\ \text { Wife } & 290 & 111 & 102 \end{array} \end{aligned}$$

a. Develop a joint probability table and use it to answer the following questions.

What did Europeans want from the Americas?

What territories in the Americas did Spain control?

What were the first crops grown in the Americas?

Having saved $\$ 1,000$ from her summer job, Sasha responded to an ad for "Like New! OneOwner Used Cars." A salesperson for A-$1$ Used Cars watched Sasha wander around the lot until she was attracted to a bright-red compact car. Sasha told the salesperson that this car looked just right for her. He replied, "You've made a good choice. This is an excellent car. It will give you many years of good service." Although the sticker price was $\$ 3,550$, the salesperson thought that he might be able to get Sasha a $\$ 50$ discount because she was "a nice young kid getting her first car." After conferring with the sales manager, he explained to Sasha that she could have the car for $\$ 3,500$ and that the dealer could arrange to finance the car and sell her all the necessary auto insurance. Sasha knew that she would need a loan and that auto insurance was required by law. Her excitement increased as it appeared that all her needs could be met in one stop. Sasha saw a sticker on the car's window indicating that this car came with a warranty. The salesperson told her that A-$1$ Used Cars would make any repairs to the engine for damage not caused by her misuse for $30$ days or $10,000$ miles, whichever came first. Now she felt confident about using all of her savings as a down payment. After all, what repair bills could she have with such a nice car accompanied by a terrific warranty?

Taking into account your lists, role-play Sasha's encounter with the salesperson.

The Robinson Corporation has $\$ 43$ million of bonds outstanding that were issued at a coupon rate of $113 / 4$ percent seven years ago. Interest rates have fallen to $10^{3 / 4}$ percent. Mr. Brooks, the vice president of finance, does not expect rates to fall any further. The bonds have 17 years left to maturity, and Mr. Brooks would like to refund the bonds with a new issue of equal amount also having 17 years to maturity. The Robinson Corporation has a tax rate of 30 percent. The underwriting cost on the old issue was $2.4$ percent of the total bond value. The underwriting cost on the new issue will be $1.7$ percent of the total bond value. The original bond indenture contained a five-year protection against a call, with a 9 percent call premium starting in the sixth year and scheduled to decline by one-half percent each year thereafter. (Consider the bond to be seven years old for purposes of computing the premium.) Assume the discount rate is equal to the aftertax cost of new debt rounded up to the nearest whole number. Compute the discount rate.

Sandburg Company requires additional cash for its business. Sandburg has decided to use its accounts receivable to raise the additional cash and has asked you to determine the income statement effects of the following contemplated transactions.

1. On July 1, 2020, Sandburg assigned $400,000 of accounts receivable to Keller Finance Company. Sandburg received an advance from Keller of 80% of the assigned accounts receivable less a commission of 3% on the advance. Prior to December 31, 2020, Sandburg collected$220,000 on the assigned accounts receivable, and remitted $232,720 to Keller,$12,720 of which represented interest on the advance from Keller.

2. On December 1, 2020, Sandburg sold $300,000 of net accounts receivable to Wunsch Company for$270,000. The receivables were sold outright on a without recourse basis.

3. On December 31, 2020, an advance of $120,000 was received from First Bank by pledging$160,000 of Sandburg's accounts receivable. Sandburg's first payment to First Bank is due on January 30, 2021.

Prepare a schedule showing the income statement effects for the year ended December 31, 2020, as a result of the above facts.