finance

Inventory on Dec 31,2004 is understated by 66,000 inventory on dec 31, 2005 is overstated by 30,000 year sold 2004 2005 2006 a.cost of good 715,000 847000 770000 b.net income 220,000 275000 231000 c.total current assets 1,15,000 1,265,000 1,100,000 d.total equity 1,287,000 1,430,000 1,232,000 for each financial statement a,b,c,d prepare a table similar to the following figure 2004 2005 2006 reported amount Adj for error 12/31/04 12/31/05 corrected amount 2. what is the error in total net income for the combined three year period resulting fro... click for more

Buy or lease: depreciation and interest calc

1. Lease or Buy. Your company wants to purchase a new network file server for its wide-area computer network. The server costs $75,000. It will be completely obsolete in three years. Your options are to borrow the money at 10 percent or to lease the machine. If you lease, the payments will be $27,000 per year, payable at the end of each of the next three years. If you buy the server, you can depreciate it straight-line to zero over three years. The tax is 34 percent. Should you lease or buy?

Relative PPP

For the coming year, inflation in Brazil is expected to be 15% while the US inflation is expected to be 3%. Spot Brazil Real is 2.86BRL/USD. Based on relative PPP, what would you expect BRL/USD to do and by how much in one year?

interest rates, forward exchange rates

CAD/USD is quoted 1.2237. IF USD interest rate is 3%, CAD interest rate 4%, what is CAD/USD one year forward? And CAD/USD 3M forward?

spot-forward exchange rates

The current spot exchange rate is $1.55/£ and the 3M forward rate is $1.50/£. On the basis of your analysis of the exchange rate, you are pretty sure the spot will be $1.52/£ in 3M time. Assume that you'd like to buy or sell £1million. a) what actions do you need to take to speculate in the forward market? What is the expected dollar profit? b)If in 3M the spot turns out to be $1.46/£, what is your profit/loss in dollar terms?