finance help for TVM

1.

You need to complete this problem in a spreadsheet and show all your work.  Create an excel file that shows your calculations.  Clearly indicate your final answer(s).  Name the file with the following convention:  Lastname-Problem#.xlsx.  For instance, Roark-Problem2.xlsx.

You are buying a car on a 4-year loan, with an interest rate of 4.99% per year.  You make monthly payments and borrowed a total of $19,900 for the car.

(a) What is the payment for the car?

(b) What is the total interest you would pay over the 4-year loan period if you only made the required payments each month?

(c) How quickly would you pay off the loan if you added $150 in extra principal to each month’s payments?  How many months would it take?

2.

You need to complete this problem in a spreadsheet and show all your work.  Create an excel file that shows your calculations.  Clearly indicate your final answer(s).  Name the file with the following convention:  Lastname-Problem#.xlsx.  For instance, Roark-Problem2.xlsx.

If you wanted to have $2,000,000 set aside for retirement in 25 years, how much would you have to save EACH MONTH if you currently had investments totaling $200,000 and you expected your investments to earn an average rate of return of 8.25% per year.

What if you wanted to retire in only 20 years?  How would your answer change?

3. 

You need to complete this problem in a spreadsheet and show all your work.  Create an excel file that shows your calculations.  Clearly indicate your final answer(s).  Name the file with the following convention:  Lastname-Problem#.xlsx.  For instance, Roark-Problem2.xlsx.

You have the year-end balance sheets for Wolken Enterprises (note that the most recent year is in the left column)

20132012
Sales5,000,0004,800,000
COGS3,300,0003,150,000
Selling, General & Administrative386,000296,000

Interest

1,200,0001,200,000
Taxes30,00048,000
Net Income84,000106,000

Assets:

2013

2012

Cash

$  200,000

$  170,000

Accounts receivable

    864,000

    700,000

Inventories

  2,000,000

  1,400,000

  Total current assets

$3,064,000

$2,270,000

Net fixed assets

  6,000,000

  5,600,000

Total assets

$9,064,000

$7,870,000

Liabilities and equity:

Accounts payable

$1,400,000

$1,090,000

Notes payable

  1,600,000

  1,800,000

  Total current liabilities

$3,000,000

$2,890,000

Long-term debt

2,400,000

2,400,000

Common stock

3,000,000

2,000,000

Retained earnings

  664,000

  580,000

  Total common equity

$3,664,000

$2,580,000

Total liabilities and equity

$9,064,000

$7,870,000

Calculate appropriate ratios and comment on the following:

(a) How did the liquidity of Wolken change from 2012 to 2013?

(b) How did Wolken’s use of leverage change from 2012 to 2013?

(c) How did Wolken’s profitability change from 2012 to 2013?

(d) How did the asset management of Wolken (defined as how effeciently they used their assets) change from 2012 to 2013?  In particular pay attention to Inventory Turnover, Days Sales Outstanding and TATO.

(e) How did the ROE change?  What caused the change in ROE?

 
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