Finance 340 - 2057 Words

FINC 340 Financial Management Homework Assignment I You can provide your answers by expanding the space between questions. You must show your work and/or explain your answers sufficiently to get credit. Points for each question are the same. Chapter 01 1. What is the goal of the firm? Explain. Ans: A firm’s goals usually include (1) stockholder wealth maximization, (2) profit maximization, (3) Managerial reward maximization, (4) behavioral goals, and (5) social responsibility. However, the primary goal of the business is to maximize the wealth of its stockholders, which translates into maximizing the price of the firm‘s common stock. The traditional goal frequently stressed by economists--profit maximization--is not†¦show more content†¦Smith Company Balance Sheet (in millions of USD) December 31, 2XX1 And 2XX2 Assets | 2XX2 | 2XX1 | Liabilities and Equity | 2XX2 | 2XX1 | Current Assets | | | Current Liabilities | | | Cash | $270 | $305 | Accounts Payable | $200 | $150 | Accounts Receivables | 290 | 275 | Income Tax Payable | 0 | 0 | Inventories | 630 | 600 | Accrued Wages and Salaries | 0 | 0 | Other Current Assets | 0 | 0 | Notes Payable (interest bearing) | 0 | 125 | Total Current Assets | $1,190 | $1,180 | Total Current Liabilities* | $200 | $275 | Fixed Assets | | | Long–Term Debt | 500 | 500 | Plant and Equipment | $1,990 | $1,700 | Total Liabilities | $700 | $775 | Accumulated Depreciation | -700 | -500 | Common Stock | $1,080 | $940 | Patents | 0 | 0 | Retained Earnings | 700 | 665 | Total Net Fixed Assets | $1,290 | $1,200 | Total Stockholder’s Equity | $1,780 | $1,605 | Total Assets | $2,480 | $2,380 | Total L. Equity | $2,480 | $2,380 | Smith Company Income Statement (in millions of USD) December 31, 2XX2 | | | Sales | | $1,330 | Cost of Goods Sold | | 760 | Gross Profit on Sales | | 570 | Operating Expenses | | | Marketing Expenses | $15 | | General and Administrative | 15 | | Depreciation | 200 | | Total Operating Expenses | $230 | $230 | Earnings Before Interest and Taxes (EBIT) or OperatingShow MoreRelatedfinance 340 exam study guide2722 Words   |  11 PagesMidterm Practice Problems Chapter One: CR 1.2, 1.6, 1.13 2. Disadvantages: unlimited liability, limited life, difficulty in transferring ownership, hard to raise capital funds. Some advantages: simpler, less regulation, the owners are also the managers, sometimes personal tax rates are better than corporate tax rates. 6. In the corporate form of ownership, the shareholders are the owners of the firm. The shareholders elect the directors of the corporation, who in turn appoint the firm’s managementRead MoreHsm-340 Health Services Finance Midterm Exam Answers6611 Words   |  27 PagesHSM-340 Health Services Finance Midterm Exam Answers Follow Link Below To Get Tutorial https://homeworklance.com/downloads/hsm-340-health-services-finance-midterm-exam-answers/ HSM-340 Health Services Finance Midterm Exam Answers Question 1.1. (TCO 4) Which of the following is part of a statistics budget? (Points : 5) Output expectations Responsibility for estimation Estimation methodology All of the above Question 2.2. 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