Finance - 1071 Words

INSTRUCTIONS: | 1. Answer all questions. 2. Answer in ENGLISH. 3. Arithmetic calculators are allowed. (Cellular phones may not be used as calculators). 4. Only answers written in the answer booklet will be marked. 5. Dictionaries are not permitted. Question 1 Listed below are multiple choice questions. Read the statements and select the most appropriate Answer. Write the numbers 1.1 to 1.10 and then only the alphabet of your choice. Eg 1.11 C 1.1. _________ analysis involves the comparison of different firms’ financial ratios at the same point in time. (a) Timeseries (b) Crosssectional (c) Marginal (d) Quantitative 1.2. _________ analysis involves comparison of current to past performance and the†¦show more content†¦| | | | | Industry Average | Ratio | 2009 | 2010 | 2011 | 2011 | Current ratio | 1.6 | 1.7 | — | 1.6 | Quick ratio | 0.9 | 1.0 | — | 0.9 | Inventory turnover | 6.0 | 5.0 | — | 8.4 | Average collection period | 40 days | 50 days | — | 40 days | Total asset turnover | 1.5 | 1.5 | — | 1.75 | Debt ratio | 60% | 56% | — | 50% | Times interest earned | 2.5 | 3.5 | — | 4.0 | Gross profit margin | 20% | 19.7% | — | 20% | Operating profit margin | 4.7% | 4.8% | — | 6% | Net profit margin | 2.0% | 2.3% | — | 3% | Return on investment | 3.0% | 3.5% | — | 5.25% | Return on equity | 7.5% | 7.95% | — | 10.5% | (a) Calculate the firm’s 2011 financial ratios. (b) Analyze the firm’s performance from both time-series and cross-sectional viewpoints. (c) Comment on the firm’s overall financial condition and performance. Question 3 Senayshia’s House of Fashion wants to prepare a cash budget for months of September through December. Sales were R50 000 in June; R60 000 in July and R65 000 in August. Sales have been forecasted to be, R72 000, R63 000, R59 000, and R56 000 for months of September, October, November, and December, respectively. In the past, 10 percent of sales were on cash basis, and the collections were 50 percent in theShow MoreRelatedFinance1352 Words   |  6 Pagesfinancial manager differ from the traditional financial manager? Does the modern financial managers role differ for the large diversified firm and the small to medium size firm? The traditional financial manager was generally involved in the regular finance activities, e.g., banking operations, record keeping, management of the cash flow on a regular basis, and informing the funds requirements to the top management, etc. But, the role of financial manager has been enhanced in the todays environment;Read MoreFinance1074 Words   |  5 PagesCORPORATE FINANCE COURSE CORPORATE FINANCE 2.1 Working Capital Management Sept. 2014 Ir Frank W. van den Berg mba Vrije Universiteit, Amsterdam ALYX Financial Consultancy bv, Aerdenhout FWvdB/2014 1 OUTLINE CORPORATE FINANCE FWvdB/2014 †¢Ã¢â‚¬ ¯ Basics Guiding principles †¢Ã¢â‚¬ ¯ Time value of money + Capital Budgeting †¢Ã¢â‚¬ ¯ Valuation of CF + Bonds †¢Ã¢â‚¬ ¯ Valuation of shares (+ co.’s) †¢Ã¢â‚¬ ¯ Financial Analysis (Ratios) †¢Ã¢â‚¬ ¯ Financial Planning (EFN) †¢Ã¢â‚¬ ¯ à  Ã¯Æ'   Working Cap. Mgt. (A/R,Read MoreThe Finance1054 Words   |  5 Pagesrequires intentional short-term and long-term planning. More importantly, in order for capital management to be deemed successful, it is required that all members of an organization are on board. â€Å"Capital budgeting is not only important to people in finance or accounting, it is essential to people throughout the business organization†lt; /spangt; (Block, Hirt, amp; Danielsen, 2011). As the duration of the investment period increases, and the size of investment increases, the residual risk also increasesRead MoreEquity Finance And Debt Finance823 Words   |  4 PagesStockholders are those entities who provide a company with the risk capital such as preference share owners and ordinary share owners (Freeman and Reed, 1983). Generally, stockholderis one of long-term finance providers with the aim to maximize their wealth.According toBrickleyet al. (1985), long-term finance provi ders are more likely to focus on the matter whether the financial structure in the company is sound or not and the durability of profitabilityrather than temporary profits that a potentiallyRead MoreFinance, Economics, And Finance Essay1245 Words   |  5 Pagesalso studied business, management, economics, and finance. These courses impressed upon me the importance of the financial sector in the economy. Finance professionals have the unique responsibility of managing assets and analyzing risks to ensure the future success of a company or organization. It is difficult to overstate the importance of this role, as the financial crisis of 2009 showed. It is due to my understanding of the importance of finance and investment, coupled with my longstanding interestRead MoreFinance : Finance A Carry Trade1144 Words   |  5 PagesIn finance a carry trade is a strategy that consists of borrowing at a low interest rate currency to fund investment in higher yielding currencies. (Moffett) Th e country in which the investors borrow from is called the funding country and the country where the investment occurs is called the target country. (4) Carry trade is also termed currency carry trade; this strategy is speculative in that the currency risk is present and not managed or hedged. (Moffett) Although there are several complicatedRead MoreFinance, Banking And Finance Industry2170 Words   |  9 Pagescomplete your transaction and move on with your day. The last thing on your mind is how that transaction is taking place. You don’t care what happens behind the scenes as long as your money is where it needs to be and is safe. As the banking and finance industry has transformed, so has the process of how your money is handled. To accompany those changes, regulators and lawmakers create laws designed to protect consumers, banks, and the economy as a whole. As you will learn, the history of the bankingRead MoreFinance : Finance A Carry Trade Essay1144 Words   |  5 Pages In finance a carry trade is a strategy that consists of borrowing at a low interest rate currency to fund investment in higher yielding currencies. (Moffett) The country in which the investors borrow from is called the funding country and the country where the investment occurs is called the target country. (4) Carry trade is also termed currency carry trade; this strategy is speculative in that the currency risk is present and not managed or hedged. (Moffett) Although there are several complicatedRead MoreFinance998 Words   |  4 PagesPlant Improvements Total Investments: total investment in plant and equipment brought forward from the Production spreadsheet. Sales of Plant and Equipment : total sales of plant and equipment brought foraad from the Production spreadsheet. Common Stock * Shares Outstanding: The number of shares of common stock in the hands of shareholders. Reflect any issue/ retire stock transaction at the beginning of this year * Price Per Share: stock price as of yesterday’s close. Stock will be issuedRead MoreInternal Sources Of Finance And Finance Essay2349 Words   |  10 PagesInternal sources of finance: Internal sources of finance are funds that arise from within the business such as profits as they can be retained to grow the finance and selling assets. Retained profit Retained profit is the money kept in the company after paying dividends. It is used to reinvest in the business or to pay debt. It comes by a business after it makes profit and is kept separate to use in other ways such as expanding the business by developing new buildings or certain areas, buying new

The Components of an Information System Free Essays

The Components of an Information System A system is a group of components that work together to achieve a purpose. There are five components that make up an information system. The five components are Hardware, Software, Data, Procedures, and People. We will write a custom essay sample on The Components of an Information System or any similar topic only for you Order Now These five components make up every information system from the smallest system to the most complex system. The first component is the hardware, which are electronic components and related gadgetry that input, process, output, store, and communicate data according to the instructions encoded in computer programs or software. The second component is the software, which are the instructions for computers. The third component is Data, which are recorded facts or figures. The fourth components are procedures, which are instructions for humans to follow when working within an information system. The last components are the people that are involved. This includes those who operate and service the computers, those who maintain the data, those who support the networks, and those who use the system. All of these components make up an Information System. These five components together make up the Five Component framework, which are the five fundamental components of an information system. First you will need the hardware in order to start off your system. Then you must use the software in order to run you hardware. After you have set up your hardware and loaded up the software to run it, you will need data to input into your hardware. Once you have your data ready you will need procedures set in play to properly store your data within the system, and last you will need people in order to put in the data and keep the system up and running properly at all times. As you can see, you will need every component in order to ensure that you have a functional running information system Reference: Kroenke, D. M. (2013). Using MIS (5th ed. ). Upper Saddle River, NJ: Prentice Hall. How to cite The Components of an Information System, Essay examples