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Unit

2

Exercise

1

Finance to Non-

Finance

Managers

Rubrics for the Assignment

Scoring Standard:

Students must achieve total ratings of

at-least 60% of marks

to demonstrate written

competence.

Any Assignment submission made after

Three

days from the deadline will

not be accepted and will receive a zero mark.

Rating Scale:

81 - 100

Excellent

Well Done

In this assignment, the student has gone beyond the

requirements in all areas and no improvements necessary.

There is mature evidence of the criterion. The students work is

highly neat, methodical, accurate, correct answers and are/or

inventive.

61 - 80

Very Good

In this assignment, the student has demonstrated a clear

understanding of the requirements. There is detailed and correct

and methodical, correct answers in all aspects.

41 - 60

Good

Satisfactory

Pass

In this assignment, the student has met the basic requirements

(Pass / Satisfactory), but many areas are in need of

improvements. There is detailed and consistent evidence of the

criterion in some aspects, but incorrect methods and other

aspects such as formula errors, neatness of their work.

21 - 40

Needs

Improvement

Effort Noted

In this assignment, the student has almost met the basic

requirements, but evidence of the criterion is incorrect and

missing. Effort noted.

10 - 20

In this assignment, the student has not met the basic

requirements. There is little evidence of criterion and / or

information are missing, incorrect and incomplete.

0

In this assignment, the student has not met the basic

requirements and not submitting the assignments.

Assignment Guidelines:

1.

Instructions:

For this assignment is based on calculation with formulas and

principles, you will do by adopting step by step method either by word document

using tables or excel sheet.

2.

This assignment has been done with the help of word document using tables or

excel sheet.

3.

This assignment is worth of 10% of your of Final Marks.

4.

Clarity and neatness of your assignment is ensured

.

5.

Citation:

The response uses additional reference materials where necessary

and includes proper citations. The citations follow APA rules.

6.

Formatting:

-

Cover page: with your name, the title of the case, course, instructor, and

submission date.

-

Font style and size: Times New Roman 12 pt. Double spaced.

-

7.

Submission:

The last day for submission of this assignment is

October 23th

2020

. Please save the document in a word file and send it in your Moodle. Save

a copy of your file for future clarification.

Question 1: 50%

1.

Ford Motors Inc

had the following operating results for 201

9

: sales $29,580; cost of

goods sold = $19,610; depreciation expense = $5,140; interest expense = $2,490;

dividends paid = $1,300. At the beginning of the year, net assets were $17,030, current

assets were $5,830, and current liabilities were $3,400. At the end of the year, net fixed

assets were $20,510, current assets were $7,604, and current liabilities were $3,950.

The tax rate for 201

9

was 30 percent.

a) What is net income for 201

9

?

b) What is the operating cash flow for 201

9

?

c) What is the cash flow from assets for 201

9

? Is this possible? Explain.

d) If no new debt was issued during the year, what is the cash flow to creditors?

What is the cash flow to shareholders? Explain and interpret the positive and

negative signs of your answers in (a) through (d).

Question 2: 50%

2 Net Fixed Assets and Depreciation (LO3)

On the statement of financial position, the

net fixed assets (NFA) account is equal to the gross fixed assets (FA) account (which

records the acquisition cost of fixed assets) minus the accumulated depreciation (AD)

account (which records the total depreciation taken by the firm against its fixed assets).

Using the fact that NFA = FA AD, show that the expression given in the chapter for

net capital spending, NFAend

NFAbeg

+ D (where D is the depreciation expense

during the year), is equivalent to FAend

FAbeg.

Use the following information for Clarington Inc. for

Problems 24

and

25

(assume the

tax rate is 34 percent):

Calculating Cash Flow (LO3)

For 2015, cal