Using TVM tables such as those found in your text\'s appendix, calculate the fol

Question

Using TVM tables such as those found in your text's appendix, calculate the following values. Show the formula you are using, and cite the appropriate factor.

5. What is the fv of $1 compounding for 10 years @ 8% ?

6. What is the pv of $10,000 discounted for 20 years at 6% ?

7. What is the present value of an annuity (pva) that will pay you $20,000 every year for the next 10 years ? Assume an 8% rate.

8. Calculate the fv of a 401-k into which you invest $5,000 per year for the next 30 years. Assume a 7% average annual rate of return on your investments.

Create and submit an income statement and a balance sheet for Hitchcock Productions. Then, answer the questions that follow. Assume a 30% tax rate for Hitchcock.

Cash...512 Depreciation...85 Cost of Goods Sold...128 Accounts Receivable...700 Sales...689 Interest Paid on Bonds...86 Long-term Debt...847 Net Plant & Equipment...1776 Inventory...301 Accounts Payable...540 Dividends Paid...57 Notes Payable...144

9. What is Hitchcock's net income ?

10. What is Hitchcock's Owners' Equity ?

11. What is Hitchcock's Operating Cash Flow ?

12. What is the quick ratio for Hitchcock ?

13. What is Hitchcock's profit margin ?

Explanation / Answer

5. fv = 1*(1.08)^10 = 2.15

6. pv = 20000*(1.06)^20 = 64142.70

7.pv = 20000*pvifa(8,10) = 20000*6.7101 = 134202

8.fv = 5000*fvifa(7,30) = 5000*94.4608 = 472304

9.operating income = 689-85-128-86 = 390

pat = .7*390 = 273

net cash flow = 273+85 = 358

10.

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