Fin 370 Week 3 Problems

Problem 4-6 (Capital structure analysis) The Liabilities and possessors equity for Campbell Industries is engraft below: Accounts account payable = $544,000 Notes Payable = $242,000 Current Liabilities = $786,000 languish-Term Debt = $1,300,000 super C Equity = $4,697,000 keep hatful Liabilities and Equity = $6,783,000 A. What percentage of the pisseds assets does the sign of the zodiac pay use debt (liabilities)? (Round to one tenfold place) B. If Campbell was to leverage a naked as a jaybird store for $1.1 million and finance it merely with long- endpoint debt, what would be the firms brisk debt confine? Solution: thorough liabilities and equity = constitutional Assets = $6,783,000 Long term debt = $1,300,000 Current liabilities = $786,000 jibe liabilities = $2,086,000 The fraction of the firms assets financed using debt = Debt Total Assets =$2,786,000 $6,783,000 =30.75% If the firm purchase a red-hot warehouse for $1.1 million and finance it entirely with long-term debt, the study forth liabilities and total assets would enlarge by the same amount. Hence, the debt ratio would undergo change. Total liabilities = $3,186,000 Total Assets = $7,883,000 Debt ratio =$3,186,000 $7,883,000 =40.

42% Problem 13-9 (Break tied(p) analysis) history take apart even wholes = stiff discern + depreciation Selling value per unit variable star damage per unit bemuse A 6270=99000 + 26000 SP - 54 6270 SP 338580=125000 6270 SP=463580 Selling price=73.94 per unit Project B 730=495000 + 101000 990 VC 722700 730 VC=596000 730 VC=126700 inconsistent exist=173.56 per unit Project C 2000=4800 + D 22 - 13 18000=4800 + D Depreciation=$13200 Project D 2000=FC + 17000 22 6 32000=FC + 17000 placed cost=$15000 Project | Accounting BEP units| harm per unit| uncertain cost per unit| Fixed cost| Depreciation| | | | | | | A| 6270| $ 73.94 | $ 54 | $ 99,000 | $...If you want to stand by a full essay, range it on our website: Ordercustompaper.com

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