College of Administrative and Financial Sciences
Principles of Finance (FIN101)
For Instructor’s Use only
Instructions – PLEASE READ THEM CAREFULLY
- This assignment is an individual assignment.
- The Assignment must be submitted only in WORD format via allocated folder on Blackboard.
- Assignments submitted through email will not be accepted.
- Students are advised to make their work clear and well presented. This also includes filling your information on the cover page.
- Students must mention question number clearly in their answer.
- Late submitted assignments will NOT be entertained.
- Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
- All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).
Submissions without this cover page will NOT be accepted.
Q1 (1.5 marks)
Ahlam Company’s net income for the year 2000, is $3,700,214. The company had an EBITDA of $ 10,125,300, and its depreciation and amortization expense was equal to $2,543,790. The company’s average tax rate is 35 percent.
- What is the amount of interest expenses for the firm? (Show the details of your calculations).
- Prepare a common sized Income Statement if net sales equal $12,000,000.
Q2. (1 Mark)
The following are accounts balance (in thousands) for Malak Company. Calculate Net Income after-tax (show intermediate steps) t=35% for the year ended December 31, 2020.
|Net property and equipment||$ 2,000|
|Supply expenses||$ 255,000|
|Depreciation expenses||$ 35,000|
|Cash & cash equivalents||$97,000|
Q3. Calculate the following ratios from the Balance Sheet and the Income Statement given below: (1.5 Mark)
- Current Ratio
- Debt Ratio
- Fixed asset turnover
- Total asset turnover
- Operating profit margin
|Net fixed assets||240,000|
|Total liabilities and owners equity||392,500|
|Net operating income||102,000|
Q4. Using the values below, answer the questions that follow: (1mark)
Amount of annuity: $500
Interest rate: 9%
- Calculate the future value of the annuity, assuming that it is
- An ordinary annuity.
- An annuity due.
- Compare your findings in parts a(1) and a(2). All else being identical, which type of annuity—ordinary or annuity due—is preferable as an investment? Explain why.
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