Question
Does anyone know the answers to these finance questions?And can you show the work? Thanks. 1. Cash Coverage, Inc. had net sales of $500,000 last
Does anyone know the answers to these finance questions?And can you show the work? Thanks.
1.
Cash Coverage, Inc. had net sales of $500,000 last year, and increased its retained earnings by $25,000 for the year after paying a dividend of $2 per share on 20,000 outstanding shares. The tax rate for the company is 40%. The company had cost of goods sold of $225,000 and its accumulated depreciation increased by $75,000. What is its cash coverage ratio?
A. | 8.50 |
B. | 3.00 |
C. | 6.00 |
D. | 3.71 |
E. | 4.31 |
F. | 4.67 |
G. | 5.45 |
H. | 2.50 |
2.
You are 20 years old and plan to retire with $1,000,000. You have $32,500 available for investment now. You deposit this into an account that pays 10.25% interest compounded annually? How old will you be when the account has the target amount? (Answers are rounded.)
A. | 55 |
B. | 61 |
C. | 57 |
D. | 65 |
E. | 52 |
F. | 63 |
G. | 54 |
H. | 59 |
3.
Ms. Ieda Silva plans to retire in 35 years and expects to live for 20 years after retirement. She is preparing a savings plan to meet the following objectives. First, after retirement she would like to be able to withdraw $20,000 per month. The first withdrawal will occur at the end of the first month after retirement. Second, she would like to leave her son an inheritance of $1,000,000 when she passes on. Finally, she would like to set up a fund that will pay $5,000 per month forever to her favorite charity after she passes on. These payments to the charity will start one month after she passes on. All monies can earn 10 percent annual rate compounded monthly. How much will she have to save per month to meet these objectives? She wishes to make the first deposit a month from now and the last deposit on the day she retires.
A. | $1,550.51 |
B. | $1,306.52 |
C. | $1,202.17 |
D. | $603.38 |
E. | $983.24 |
F. | $1,105.11 |
G. | $430.71 |
H. | $1,014.02 |
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