One year ago, the Jenkins Family Fun Center deposited $5,000 into an investment account for the purpose of buying new equipment four years from today. Today, they are adding another $6,800 to this account. They plan on making a final deposit of $9,000 to the account next year. How much will be available when they are ready to buy the equipment, assuming they earn a rate of return of 8 percent?

Teddy’s Pillows had beginning net fixed assets of $459 and ending net fixed assets of $526. Assets valued at $307 were sold during the year. Depreciation was $18. What is the amount of net capital spending?

You made an investment of $12,500 into an account that paid you an annual interest rate of 2.4 percent for the first 7 years and 6.8 percent for the next 4 years. What was your annual rate of return over the entire 11 years? (Assume annual compounding.)

Use the following information to answer this question: Windswept, Incorporated2024 Income Statement($ in millions)Net sales$ 10,200Cost of goods sold8,050Depreciation480Earnings before interest and taxes$ 1,670Interest paid104Taxable income$ 1,566Taxes329Net income$ 1,237 Windswept, Incorporated2023 and 2024 Balance Sheets($ in millions) 20232024 20232024Cash$ 300$ 335Accounts payable$ 1,670$ 1,895Accounts received1,1501,050Long-term debt1,0901,415Inventory1,8201,775Common stock3,4003,050Total$ 3,270$ 3,160Retained earnings670920Net fixed assets3,5604,120 Total assets$ 6,830$ 7,280Total liabilities & equity$ 6,830$ 7,280 What is the return on equity for 2024?

Which one of the following questions involves a working capital management decision?

Use the following information to answer this question: Windswept, Incorporated2024 Income Statement($ in millions)Net sales$ 10,100Cost of goods sold8,000Depreciation475Earnings before interest and taxes$ 1,625Interest paid102Taxable income$ 1,523Taxes320Net income$ 1,203 Windswept, Incorporated2023 and 2024 Balance Sheets($ in millions) 20232024 20232024Cash$ 290$ 325Accounts payable$ 1,640$ 1,850Accounts received1,1301,030Long-term debt1,0801,405Inventory1,8001,760Common stock3,3803,040Total$ 3,220$ 3,115Retained earnings660910Net fixed assets3,5404,090 Total assets$ 6,760$ 7,205Total liabilities & equity$ 6,760$ 7,205 What is the return on equity for 2024?

During the past year, a company had cash flow to stockholders, an operating cash flow, and net capital spending of $15,367, $36,076, and $15,420, respectively. The net working capital at the beginning of the year was $6,213 and it was $7,430 at the end of the year. What was the company’s cash flow to creditors during the year?

You have just started a new job and plan to save $5,450 per year for 31 years until you retire. You will make your first deposit in one year. How much will you have when you retire if you earn an annual interest rate of 9.19 percent?

Use the following information to answer this question: Windswept, Incorporated2024 Income Statement($ in millions)Net sales$ 10,400Cost of goods sold8,150Depreciation430Earnings before interest and taxes$ 1,820Interest paid108Taxable income$ 1,712Taxes360Net income$ 1,352 Windswept, Incorporated2023 and 2024 Balance Sheets($ in millions) 20232024 20232024Cash$ 310$ 340Accounts payable$ 1,750$ 1,992Accounts received1,1901,090Long-term debt1,1101,423Inventory1,8601,815Common stock3,4403,070Total$ 3,360$ 3,245Retained earnings690940Net fixed assets3,6304,180 Total assets$ 6,990$ 7,425Total liabilities & equity$ 6,990$ 7,425 What is the cash coverage ratio for 2024?

Todd can afford to pay $425 per month for the next 5 years in order to purchase a new car. The interest rate is 7.5 percent compounded monthly. What is the most he can afford to pay for a new car today?