What is the profit margin on sales for 2014? Round the answer to the nearest whole percentage and show the percent (%) sign.

What is the current ratio for 2014?

What is the average collection period for 2014? Assume there are 365 selling days in the year. Show the answer rounded to the nearest whole number.

What is the fixed asset turnover for 2014?

The balance sheet (not shown in the excel document) as of 12/31/12 shows that Owner Equity was $798,918. If this amount were invested at 3% paid out annually for 40 years, what annual income would the investment produce? (Tip: His investment would be a payment).

The following are options for increasing the return on Mr. Moores retirement income (as calculated in number 5 ): Work a little longer, invest at a higher rate of return, sell the business for more (that is, increase PV), increase the number of years for which the money is invested, wait to become eligible for social security payments T/F

What is the Return on Equity for 2014?

What is the Return on Total Assets for 2014?

In your opinion is this a viable business that Mr. Moore can operate for as long as he wants to? Evaluate the business from 2009 to 2014 in the process of answering this question.

What is the net income figure to use as a starting point for the statement of cash flows?

The total adjustments to net income to determine cash flows from operating activities are(Hint: be sure to add up changes in current assets and current liabilities as noted on the balance sheet going from year 2013 to year 2014) to get the answer.

Net cash flows from operating activities are....(hint: dont forget about net income).

Cash flows from investing activities are.....

Net Cash flows from investing activities are....

Cash flows from financing activities are...(hint: since this is a partnership common and preferred stocks and bond financing does not exist).

Net increase/decrease in cash flows is....

What is to be the Sales budget for 2015?

What is to be the Cost of Product for 2015?

What is to be the Labor budget for 2015?

What is to be the Benefits budget for 2015?

What is to be the Cost of Services for 2015?

What are Total Costs to be budgeted for 2015?

What are Earnings before Interest, Taxes and Depreciation (EBITD) to be for 2015?

Mr. Moore is considering selling the business at the end of 2015 for his Owners Equity (projected to be at least $1,825,684) and using that amount to buy an investment that would pay him 6% per year (paid annually in one payment) for 40 years. What would the annual payment from such an investment be?

Will the combination of investment return and Social Security payments described in the text of the case meet Mr. Moores minimum retirement goals?

No, it will fall short of his goal by approximately $14,160

Yes, it exceeds his goal by approximately $14,160

Yes. It exceeds his goal by well over $40,000.

Not enough information to tell.

When he was 30 years old, about the time he took over the restaurant from his father, Mr. Moore bought an unusual insurance policy: it was in the form of a zero coupon bond. The bond paid 5% per year and guaranteed him $475,000 when it matured in 50 years. He paid a single premium amount and no further payments were necessary. What did Mr. Moore pay for the policy when he bought it? Hint: This is a problem in PV (present value).

Mr. More wants to get into the catering business, specifically by using his family's secret sauce recipe which can be used on any meat product (i.e. hamburgers, hotdogs, chicken, etc.). To transport food, he bought a small SUV as a delivery truck for $75,000. He financed it for 2 years at 12% and will make equal payments each month for the 6 years. What will the monthly payments be?

About the SUV that Mr. Moore was thinking of buying for $75,000.00 and financing at 12% for 2 years: When the vehicle is paid off, how much will have been paid for the truck?

When shopping to buy the SUV for a delivery truck, a competing dealer offered him two options to finance the purchase price of $65,000 for the same truck:

Cash Back Option - $10000 Cash Back and the balance paid in yearly installments at 5% (compound interest) per year for 5 years (to be applied as a downpayment to reduce the price)

Full Price Option - full price ($65,000) paid at no interest over 5 years.

Under which option will the truck cost the LEAST? Hint: Don't forget to take cash back into account.

Cant tell. Need more information about alternative investment and finance rates.

The Cash Back option

The Full Price option

Either option. They both produce the same result.

In your new position as head accountant (so OK - you're the only accountant but it will sound better on your resume) working for Mr. Moore, you note that last month on July 2, 2012 they bought "research equipment and certain special tools" for $60,000 (you don't want to know what they will do with those "special tools") anyway your job is to lower their corporate taxes if possible. So you decide to use MACRS for depreciation and you want to see if there is any possible depreciation that could be used. How much can they take for these years listed below? 2012, 2014, 2015, 2017.

Mr. Moore was thinking of taking a vacation and going to the Sun Highway in Glacier National Park - located in northwestern Montana - since it is one of the most spectacular drives in North America. Unfortunately he found out from some relatives in the area that the road needs to be resurfaced due to many harsh winters. Him being the finance wizard that he is, he was thinkint about how the state would finance such a project with bonds. If the State of Montana has decided to sell state bonds to cover the needed repairs, A Montana state savings bond can be converted to $100 at maturity six years from purchase. If the state bonds are to be competitive with U.S. savings bonds, which pay 8% annual interest (compounded annually), at what price must Montana sell its bonds? (Assume no cash payments on savings bonds prior to redemption.)

Mr. Moore is thinking about how much the return of Apple stock could be given it's beta of 1.11 for a possible investment he wants to make. Other data you have collected: the rate of return on 90 day T-Bills is 1.5%, on 5 year T-Notes it 3% and on the "long bond", the 30-year T- Bond = 6.5%. The Prime is 6%, LIBOR is 5.5% and the average return on the overall stock market is estimated to be 8%.After doing some research and crunching the numbers what would Mr. Moore expect the rate of return on Apple's stock to be?Hint: note that term "beta" - there's a classic formula that uses "beta"!

Mr. Moore plans on replacing and/or upgrading the furniture, fixtures and machinery (stoves, refrigerators, AC, etc) in 10 years when its expected to wear out at the end of its useful life. The estimated replacement cost is $350,000. How much must the company save each year at 3% to accumulate enough to replace the machine? (Hint: Switch mental gears to TVM?)

Moore's Family Restaurant
Assets & Liabilities as of 12/31/13					Assets & Liabilities projected to 12/31/14
	ASSETS				ASSETS
	Cash	$492,118.00			Cash	$589,118.00
	Accounts Receivable	$29,000.00			Accounts Receivable	$49,095.00
	Inventories	$30,000.00			Inventories	$30,000.00
	Prepaid Expenses	$2,000.00			Prepaid Expenses	$11,000.00
	Total Current Assets	$553,118.00			Total Current Assets	$679,213.00
	Building	$727,460.97			Building	$760,000.00
	Equipment	$14,500.00			Equipment	$18,000.00
	Fixtures	$33,320.00			Fixtures	$35,500.00
	Total Fixed Assets	$775,280.97			Total Fixed Assets	$813,500.00
	Total Assets	$1,328,398.97			Total Assets	$1,492,713.00
	LIABILITIES				LIABILITIES
	Accounts Payable	$57,432.00			Accounts Payable	$137,566.00
	Wages and Benefits Due	$16,516.59			Wages and Benefits Due	$29,543.00
	Estimated Taxes and Fees	$6,013.00			Estimated Taxes and Fees	$8,013.00
	Total Current Liabilities	$79,961.59			Total Current Liabilities	$175,122.00
	Long Term Loan	$70,000.00			Long Term Loan	$70,000.00
	Total Long-Term Liabilities	$70,000.00			Total Long-Term Liabilities	$70,000.00
	Owner Equity	$1,178,437.38			Owner Equity	$1,247,591.00
	Total Liabilities and Owner Equity	$1,328,398.97			Total Liabilities and Owner Equity	$1,492,713.00

Balance Sheet:

Moores Familay Restaurant Financial Data		2013	2014 (Present Day)	2015 Budget Forecast
Budget Worksgheet
Sales		$1,575,396	$1,696,296	Answer to number 17
Cost of Product		$697,211	$597,211	Answer to number 18
Labor		$330,772	$340,695	Answer to number 19
Benefits		$79,872	$114,519	Answer to number 20
Utilities		$54,340	$50,644	$58,241
Loan Principle Repayments		$0	$0	$0
Insurance & Property Taxes		$110,000	$110,000	$110,000
Services (accounting, trash, cleaning, etc.)		$41,051	$43,908	Answer to number 21
Other: SG&A, advertising, promostions		$77,629	$84,771	$93,248
Total Costs		$1,390,875	$1,341,748	Answer to number 22
Earnings Before Interest, Income Taxes, & Depreciation (EBITD)		$184,521	$354,548	Answer to number 23
Interest on loan		$3,500	$3,000	$3,000
Income Taxes		$51,666	$99,273	#VALUE!
Depreciation on values		$71,176	$61,777	$61,177
Earnings After Interest, Income Taxes, & Depreciation		$58,179	$190,497	#VALUE!
Meals Sold		233,392	242,328	261,714
Average Meal Value		6.75	7.00	7.35