Accounting: What the Numbers Mean
11th Edition
ISBN: 9781259535314
Author: David Marshall, Wayne William McManus, Daniel Viele
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 3, Problem 3.5ME
Mini-Exercise 3.5
LO 6
Calculate current liabilities and
Required:
Calculate Firm N’s current liabilities and working capital.
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Data needed: SFP Asset section
1. Cash 16.3%
2. AR 6.3%
3. Short term investment 0.2%
4. Inventory 2.2%
5. Prepaid expenses 0.4%
6. PPE 74.7%
Data needed: SFP Liabilities and OE
section.
1. Current liab 16%
2. Non-current liab 34.2%
3. OE 49.9%
Data needed: SCI
1. COGS 38.6%
2. Selling and admin exp 6.8%
3. Interest exp 0.1%
4. Income tax exp 0.5%
5. Net income 54%
11:52
Investment Appraisal (Year 2 Column 2...
Project 1
Project 2
Project 3
8. When calculating NPV will using a higher
discount factor lead to ...?
A higher NPV
A lower NPV
The same NPV
9. Which method of investment appraisal
would be best for a business that has
liquidity problems?
NPV
ARR
...
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10
Question 8
Capital and asset types
Tier1 capital
Tier 2 capital
Corporate debenture
Mortgage loan
Loan to government
('000)
3000
1000
9000
45,000
4000
a) Calculate risk weighted asset
b) Calculating the Capital Adequacy Ratio (CAR)
c) Why Capital Adequacy Ratio Matters?
Risk weight
90%
75%
0
Chapter 3 Solutions
Accounting: What the Numbers Mean
Ch. 3 - Prob. 3.1MECh. 3 - Mini-Exercise 3.2 LO 3 ROI analysis using the...Ch. 3 - Mini-Exercise 3.3 LO 4 Calculate ROE Firm L had...Ch. 3 - Prob. 3.4MECh. 3 - Mini-Exercise 3.5 LO 6 Calculate current...Ch. 3 - Mini-Exercise 3.6 LO 6 Calculate working capital...Ch. 3 - Exercise 3.7 LO 2 Compare investment alternatives...Ch. 3 - Prob. 3.8ECh. 3 - Exercise 3.9 LO 2 Compare investment alternatives...Ch. 3 - Exercise 3.10 LO 2 Compare investment alternatives...
Ch. 3 - Exercise 3.11 LO 3 ROI analysis using the DuPont...Ch. 3 - Prob. 3.12ECh. 3 - Prob. 3.13ECh. 3 - Prob. 3.14ECh. 3 - Exercise 3.15 LO 6 Effect of transactions on...Ch. 3 - Exercise 3.16 LO 6 Effect of transactions on...Ch. 3 - Calculate profitability measures using annual...Ch. 3 - Prob. 3.18PCh. 3 - Problem 3.19 LO 6 Calculate and analyze liquidity...Ch. 3 - Problem 3.20 LO 6 Calculate and analyze liquidity...Ch. 3 - Problem 3.21 LO 3 Applications of ROI using the...Ch. 3 - Prob. 3.22PCh. 3 - Case 3.23 LO 3. 4, 6, 2 Focus company-analysis of...Ch. 3 - Case 3.24 LO 3, 4, 6, 7 Analysis of liquidity' and...
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