1) Describe the cash flow cycle in detail.

2. Calculate the present value of a 1 year annuity with monthly payments starting at $1000 increasing at 10% per month. The yearly interest rate is 12%.

3) Create a break-even graph using the following:

a. Fixed expenses of $25,000

b. Variable Expense:

i. Labor: $0.25 ea.

ii. Materials: $0.35 ea.

iii. Profit: $0.50

c. Price: $5.00

4) Using the Following Chart Calculate:

a. Degree of Operating Leverage

b. Degree of Financial Leverage

Quanity	Operating income	General Expense	Taxes	Interest	Shares Oustanding
5000	10000	2000	2000	1000	500
7000	15000	3000	3000	1000	500

5) What is the risk of leverage?

6) Explain the risk of short term financing with respect to the following graph:

7) Please complete the chart below:

a. 25% of sales this month are collected. 75% are collected in the prior month.

	December	january	February	March	April	May	June
Sales	10,000	11,000	12,100	13,310	14,000	15,400	16,940
Cost	-	6,000	7,000	10,000	15,000	10,000	30,000
Cash This Month	-
Cash Last Month	-
Starting Cash	-	500
Delta Cash	-			2,403
Loan	-
Cumulative Loan	-
End Cash	-						5,000

b. What is the accounts receivable on July 1^st?

8) Calculate the two Liquidity Ratios of:

a. The following two companies:

i. https://finance.yahoo.com/quote/HD/financials?p=HD

ii https://finance.yahoo.com/quote/LOW/financials?p=LOW

b. What can you conclude about the differences in the current ratio?

c. What can you conclude about the differences in the quick ratio?

d. Why am I making you calculate both? Hint: there is a distinct purpose

9) Calculate the following for FitBit:

i. Use the following Assumptions for both calculations:

1. Revenue=Sales

2. All assets and liabilities are variable to sales

3. Profit Margin=40%

4. Dividend Payout Ratio=25%

5. Use: https://finance.yahoo.com/quote/FIT/financials?p=FIT

b. Calculate Required New funds via the percent of sales under full capacity

c. Calculate required new funds via the percent of sales not at full capacity

10) Given the following, can you afford the rent on Forsythe Ave?

a. You buy $500 of groceries per month

b. You pay $100 for gas for your car per month

c. You have $100 of utilities per month

d. You save $500 for retirement per month

e. You make $3000 per month

f. 25-year mortgage

g. 10% interest per year

h. You make a down payment of $50,000

House 119 Forsythe Ave

Columbus Ohio 43201

2 beds 1.5 baths1,056 sqft

Fore Sale 249,000

FRED Commercial and Industrial Loans, All Commercial Banks (BUSLOANS) May 2017: 2,097.5402 | Billions of U.S. Dollars | Monthly I Updated: Jun 16, 2017 1Y 5Y |10Y | Max FRED-Commercial and Industrial Loans, All Commercial Banks 2,200 2,000 1,800 1,600 1,400 2 1,200 1,000 800 2004 2006 2008 2010 2012 2014 2016 1950 Source: Board of Governors of the Federal Reserve System (US)