Free Essay

Fin 571 Final Exam

In:

Submitted By v123v
Words 485
Pages 2
Running head: ANALYZING PRO FORMA STATEMENTS

Analyzing Pro Forma Statements
Bridget Harvey and Keva Paul
FIN/571
February 09, 2015
Ms. Wendy Thomas

1

ANALYZING PRO FORMA STATEMENTS

2

Introduction
The Home Depot is the world’s largest home improvement retailer. The tagline for The Home
Depot is “More savings more doing that’s the power of The Home Depot.” The catchy and recognizable tagline can be heard on nearly every TV and radio station in the United States. The
Home Depot realizes that in order to maintain its title as the world’s largest home improvement retailer the company will need more than its catchy tagline. Therefore, The Home Depot has decided to extend the time in which small household appliances are available to its customers.
Analysis of Pro Forma Data
The Home Depot does not usually sell small house appliances like coffee pots, toasters, mini convection ovens, blenders, and irons through the year. The mentioned small appliances were only sold during the Christmas season. The Home Depot has decided to extend the time frame in which small appliances could be purchased. In 2014, The Home Depot sold the small appliances from the Christmas season until March 2015. The extension of the availability of the small appliances increased sales revenue by %. The increase in revenue prompted The Home Depot to employ the idea for the 2015 Christmas season until March 2016. There was an increase in revenue of % for 2016. The same model was used for the Christmas season of 2016 to March
2017, and again there was an increase in annual sales, %. The Home Depot decided that since sales revenues were increasing each year with the extension of having the small appliance available to its customers that the store would sell the small appliance year round. So in 2017
The Depot made the decision to sell small appliance all year. There was an increase in sales for
2017 of %. There was an increase in sales for 2018 of %. Sales revenue increased % in 2019, which proved to be the most successful year.

ANALYZING PRO FORMA STATEMENTS

3

Conclusion
The decision to extend the availability of small household appliances proved to be a very successful plan for The Home Depot. Annual revenue continued to increase each year that the small appliances were sold for a longer time frame to the customers. The decision to sell the small appliances throughout the year proved to be one of the best decisions that The Home Depot could have made. The company continues to run the catchy tagline “More savings more doing that’s the power of The Home Depot. The company also employed a new catchy tagline after the success of its 2014 plan. Now the new tagline “Let’s Do This” can also be heard on TV and radio stations through the United States. It is also proudly displayed on the infamous orange work buckets that only The Home Depot sells.

Similar Documents

Premium Essay

Fin 571 Final Exam

...571 FIN Final Exam. Chapter 1 The Goals and Functions of Financial Management Multiple Choice Questions 1. What is the primary goal of financial management? A) Increased earnings B) Maximizing cash flow C) Maximizing shareholder wealth D) Minimizing risk of the firm Answer: C Difficulty: Easy Type: Memorization 2. The partnership form of organization A) avoids the double taxation of earnings and dividends found in the corporate form of organization. B) usually provides limited liability to the partners. C) has unlimited life. D) simplifies decision making. Answer: A Difficulty: Easy Type: Memorization 3. Increased productivity due to technology has A) increased corporations' reliance on debt for capital expansion needs. B) created larger asset values on the firm's historical balance sheet. C) made it cheaper (in terms of interest costs) for firms to borrow money. D) helped to keep corporate costs in check. Answer: D Difficulty: Medium Type: Conceptual 4. Insider trading occurs when A) someone has information not available to the public which they use to profit from trading in stocks. B) corporate officers buy stock in their company. C) lawyers, investment bankers, and others buy common stock in companies represented by their firms. D) any stock transactions occur in violation of the Federal Trade Commissions restrictions on monopolies. Answer: A Difficulty: Medium Type: Memorization Chapter 2 Review of Accounting 5. When a firm's earnings are falling more rapidly than its stock...

Words: 3579 - Pages: 15

Premium Essay

Fin 571 Final Exam New Assignment

...FIN 571 Final Exam (Newest) – Assignment 1. In a general partnership, the general partners have _____ liability and have _____ control over day-to-day operations. • limited; no • no; total • unlimited; no • limited; total • unlimited; total 2. Which one of these is a correct definition? • Long-term debt is defined as a residual claim on a firm’s assets. • Net working capital equals current assets plus current liabilities. • Current liabilities are debts that must be repaid in 18 months or less. • Tangible assets are fixed assets such as patents. • Current assets are assets with short lives, such as inventory. 3. The owners of a limited liability company generally prefer: • being taxed personally on all business income. • having liability exposure similar to that of a general partner. • having liability exposure similar to that of a sole proprietor. • being taxed like a corporation. • being taxed like a corporation with liability like a partnership. 4. Which one of the following is least apt to help convince managers to work in the best interest of the stockholders?pay raises based on length of service • implementation of a stock option plan • threat of a proxy fight • management compensation tied to the market value of the firm’s stock • threat of a takeover of the firm by unsatisfied stockholders 5. a. Compute the future value of $2,000 compounded annually for 20 years at 4 percent. (Do not round intermediate calculations and round your answer...

Words: 3096 - Pages: 13

Premium Essay

Fin 571 Week 5 Connect Problems

...negative. • Any type of project with greater total cash inflows than total cash outflows, should always be accepted. • An investment project that has positive cash flows for every time period after the initial investment should be accepted. Find the Week 1 Connect Problems answers here FIN 571 Week 1 Connect Problems 3. The primary reason that company projects with positive net present values are considered acceptable is that: • they create value for the owners of the firm. • the project's rate of return exceeds the rate of inflation. • they return the initial cash outlay within three years or less. • the required cash inflows exceed the actual cash inflows. • the investment's cost exceeds the present value of the cash inflows. 4. Accepting a positive net present value (NPV) project: • indicates the project will pay back within the required period of time. • means the present value of the expected cash flows is equal to the project’s cost. • ignores the inherent risks within the project. • guarantees all cash flow assumptions will be realized. • is expected to increase the stockholders’ value by the amount of the NPV. Week 2 Connect problems Answers just a click away FIN 571 Week 2 Connect Problems 5. The net present value method of capital...

Words: 1035 - Pages: 5

Premium Essay

Fin 571 Week 1 Connect Problems

... 3. The primary goal of financial management is to: a) maximize current dividends per share of the existing stock. b) maximize the current value per share of the existing stock. c) avoid financial distress. d) minimize operational costs and maximize firm efficiency. e) maintain steady growth in both sales and net earnings. 4. Accounting concepts for a firm to create value it must: a) have a greater cash inflow from its stockholders than its outflow to them. b) create more cash flow than it uses. c) reduce its investment in fixed assets since fixed assets require the use of cash. d) avoid payments to the government so dividends can be increased. e) avoid the issuance of debt securities Find the week 1 connect problems answers here FIN 571 Week 1 Connect Problems 5. The primary goal of financial management is to: a) maximize current dividends per share of the existing stock. b) maximize the current value per share of the existing stock. c) avoid financial distress. d) minimize operational costs and maximize firm efficiency. e) maintain steady growth in both sales and net earnings. 6. Which one of the following business types is best suited to raising large amounts of capital? a) sole proprietorship b) limited liability company c) corporation d) general partnership e) limited partnership 7. Accounting profits and cash flows are generally: a) the same since they reflect current laws and accounting standards. b) the same since accounting...

Words: 1254 - Pages: 6

Premium Essay

Fin 571 Week 1 Connect Problem

... 3. The primary goal of financial management is to: a) maximize current dividends per share of the existing stock. b) maximize the current value per share of the existing stock. c) avoid financial distress. d) minimize operational costs and maximize firm efficiency. e) maintain steady growth in both sales and net earnings. 4. Accounting concepts for a firm to create value it must: a) have a greater cash inflow from its stockholders than its outflow to them. b) create more cash flow than it uses. c) reduce its investment in fixed assets since fixed assets require the use of cash. d) avoid payments to the government so dividends can be increased. e) avoid the issuance of debt securities Find the week 1 connect problems answers here FIN 571 Week 1 Connect Problems 5. The primary goal of financial management is to: a) maximize current dividends per share of the existing stock. b) maximize the current value per share of the existing stock. c) avoid financial distress. d) minimize operational costs and maximize firm efficiency. e) maintain steady growth in both sales and net earnings. 6. Which one of the following business types is best suited to raising large amounts of capital? a) sole proprietorship b) limited liability company c) corporation d) general partnership e) limited partnership 7. Accounting profits and cash flows are generally: a) the same since they reflect current laws and accounting standards. b) the same since accounting...

Words: 1254 - Pages: 6

Premium Essay

Fin 571 Week 2 Connect Problems Assignment

...balance sheet? • intangible asset • accounts payable • preferred stock • inventory • net plant and equipment Complete FIN 571 week 2 connect problems Answers here FIN 571 Week 2 Connect Problems 3. It is easier to evaluate a firm using its financial statements when the firm: • is a conglomerate. • is global in nature. • uses the same accounting procedures as other firms in its industry. • has a different fiscal year than other firms in its industry. • tends to have one-time events such as asset sales and property acquisitions. 4. The cash flow resulting from a firm's ongoing, normal business activities is referred to as the: • operating cash flow. • net capital spending. • additions to net working capital. • cash flow to retained earnings. • cash flow to investors. FIN 571 final exam (Newest) download now FIN 571 Final Exam (Newest) 5. Which one of these is a non-cash item? • depreciation • interest expense • current taxes • dividends • selling expenses 6. Sankey, Inc., has current assets of $5,000, net fixed assets of $23,300, current liabilities of $4,450, and long-term debt of $11,000. (Do not round intermediate calculations.) What is the value of the shareholders' equity account for this firm? Shareholders' equity $_________ How much is net working capital? Net working capital $_________ FIN 571 complete paper here FIN 571 7. Shelton, Inc., has sales of $401,000, costs of $189,000, depreciation expense of...

Words: 1999 - Pages: 8

Premium Essay

Fin 571 Week 3 Connect Problems - Assignment

...statements. • reconciled statements. • aggregated statements. • comparative statements. 4. One of the primary weaknesses of many financial planning models is that they: • rely too much on financial relationships and too little on accounting relationships. • are iterative in nature. • ignore the goals and objectives of senior management. • ignore cash payouts to stockholders. • ignore the size, risk, and timing of cash flows. 5. The maximum rate at which a firm can grow while maintaining a constant debt-equity ratio is bestdefined by its: • rate of return on assets. • internal rate of growth. • average historical rate of growth. • rate of return on equity. • sustainable rate of growth. Find The Complete Answers just a click away FIN 571 Week 3 Connect Problems - Assignment 6. The external funds needed (EFN) equation projects the addition to retained earnings as: • PM × ? Sales. • PM ×? Sales × (1 - d). • PM × Projected sales...

Words: 1573 - Pages: 7

Free Essay

Hist 415

...Entire,final,Week,1,2,3,4,5,6, ,dq,discussion,question,assignment,midterm, ,exam,quiz,Strayer,Latest,New,Project,Keller,Homework,Phoenix,Ashford, ACC 307,Course,Complete,All,Entire,final,Week,1,2,3,4,5,6, ACC 307,dq,discussion,question,assignment,midterm, ,exam,quiz,Strayer,Latest,New,Project,Keller,Homework,Phoenix,Ashford, ACC 344,Course,Complete,All,Entire,final,Week,1,2,3,4,5,6, ACC 344,dq,discussion,question,assignment,midterm, ,exam,quiz,Strayer,Latest,New,Project,Keller,Homework,Phoenix,Ashford, ACC 346,Course,Complete,All,Entire,final,Week,1,2,3,4,5,6, ACC 346,dq,discussion,question,assignment,midterm, ,exam,quiz,Strayer,Latest,New,Project,Keller,Homework,Phoenix,Ashford, ACC 403,Course,Complete,All,Entire,final,Week,1,2,3,4,5,6, ACC 403,dq,discussion,question,assignment,midterm, ,exam,quiz,Strayer,Latest,New,Project,Keller,Homework,Phoenix,Ashford, ACC 504,Course,Complete,All,Entire,final,Week,1,2,3,4,5,6, ACC 504,dq,discussion,question,assignment,midterm, ,exam,quiz,Strayer,Latest,New,Project,Keller,Homework,Phoenix,Ashford, ACC 560,Course,Complete,All,Entire,final,Week,1,2,3,4,5,6, ACC 560,dq,discussion,question,assignment,midterm, ,exam,quiz,Strayer,Latest,New,Project,Keller,Homework,Phoenix,Ashford, ACC 561,Course,Complete,All,Entire,final,Week,1,2,3,4,5,6, ACC 561,dq,discussion,question,assignment,midterm, ,exam,quiz,Strayer,Latest,New,Project,Keller,Homework,Phoenix,Ashford, ACC 565,Course,Complete,All,Entire,final,Week,1...

Words: 5653 - Pages: 23

Premium Essay

Fin 571 Week 4 Connect Problems

...FIN 571 Week 4 Connect Problems – Assignment 1. Microhard has issued a bond with the following characteristics: Par: $1,000 Time to maturity: 11 years Coupon rate: 9 percent Semiannual payments Calculate the price of this bond if the YTM is (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.): Price of the Bond a. 9 percent $ _____ b. 11 percent $ _____ c. 7 percent $ _____ 2. Watters Umbrella Corp. issued 20-year bonds 2 years ago at a coupon rate of 8.4 percent. The bonds make semiannual payments. If these bonds currently sell for 90 percent of par value, what is the YTM? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) YTM _____ % 3. Grand Adventure Properties offers a 7 percent coupon bond with annual payments. The yield to maturity is 5.85 percent and the maturity date is 8 years from today. What is the market price of this bond if the face value is $1,000? • $1,071.84 • $788.73 • $1,082.17 • $1,019.29 • $947.45 4. The next dividend payment by ECY, Inc., will be $1.64 per share. The dividends are anticipated to maintain a growth rate of 8 percent, forever. The stock currently sells for $31 per share. What is the required return? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Required return _____ % 5. The Starr Co. just paid a dividend...

Words: 1258 - Pages: 6

Free Essay

Engl 230

...Entire,final,Week,1,2,3,4,5,6, ACC 560,dq,discussion,question,assignment,midterm, ,exam,quiz,Strayer,Latest,New,Project,Keller,Homework,Phoenix,Ashford, ACC 561,Course,Complete,All,Entire,final,Week,1,2,3,4,5,6, ACC 561,dq,discussion,question,assignment,midterm, ,exam,quiz,Strayer,Latest,New,Project,Keller,Homework,Phoenix,Ashford, ACC 565,Course,Complete,All,Entire,final,Week,1,2,3,4,5,6, ACC 565,dq,discussion,question,assignment,midterm, ,exam,quiz,Strayer,Latest,New,Project,Keller,Homework,Phoenix,Ashford, ACCT 346,Course,Complete,All,Entire,final,Week,1,2,3,4,5,6, ACCT 346,dq,discussion,question,assignment,midterm, ,exam,quiz,Strayer,Latest,New,Project,Keller,Homework,Phoenix,Ashford, ACCT 434,Course,Complete,All,Entire,final,Week,1,2,3,4,5,6, ACCT 434,dq,discussion,question,assignment,midterm, ,exam,quiz,Strayer,Latest,New,Project,Keller,Homework,Phoenix,Ashford, ACCT 567,Course,Complete,All,Entire,final,Week,1,2,3,4,5,6, ACCT 567,dq,discussion,question,assignment,midterm, ,exam,quiz,Strayer,Latest,New,Project,Keller,Homework,Phoenix,Ashford, PHI 200,Course,Complete,All,Entire,final,Week,1,2,3,4,5,6, PHI 200,dq,discussion,question,assignment,midterm, ,exam,quiz,Strayer,Latest,New,Project,Keller,Homework,Phoenix,Ashford, Res 301,Course,Complete,All,Entire,final,Week,1,2,3,4,5,6, Res 301,dq,discussion,question,assignment,midterm, ,exam,quiz,Strayer,Latest,New,Project,Keller,Homework,Phoenix,Ashford BA 215,Course,Complete,All,Entire,final,Week...

Words: 4565 - Pages: 19

Premium Essay

Get Online Help with Ur Assignment Ashford a+Material

...http://homeworktimes.com/downloads/acc-206-entire-course-new/ http://homeworktimes.com/downloads/acc-206-new-week-1-assignment-chapter-one-problems/ http://homeworktimes.com/downloads/acc-206-new-week-2-assignment-chapter-two-three-problems/ http://homeworktimes.com/downloads/acc-206-new-week-2-journal-institute-management-accounting/ http://homeworktimes.com/downloads/acc-206-new-week-3-assignment-chapter-four-five-problems/ http://homeworktimes.com/downloads/acc-206-new-week-3-journal-hershey-company/ http://homeworktimes.com/downloads/acc-206-new-week-4-assignment-chapter-six-seven-problems/ http://homeworktimes.com/downloads/acc-206-new-week-5-assignment-chapter-eight-problems/ http://homeworktimes.com/downloads/acc-206-new-week-5-assignment-final-paper/ http://homeworktimes.com/downloads/acc-212-financial-accounting/ http://homeworktimes.com/downloads/acc-250-complete-course-acc-205-entire-course/ http://homeworktimes.com/downloads/acc-290-complete-course-acc-290-entire-course/ http://homeworktimes.com/downloads/acc-291-complete-course-acc-290-entire-course/ http://homeworktimes.com/downloads/acc-340-entire-course-acc-340-complete-course/ http://homeworktimes.com/downloads/acc-400-complete-course-acc-400-entire-course/ http://homeworktimes.com/downloads/acc-407-entire-course/ http://homeworktimes.com/downloads/acc-455-complete-course/ http://homeworktimes.com/downloads/acc-492-complete-course-acc-492-entire-course/ http://homeworktimes.com/downloads/acc-548-entire-course-acc-548-complete-course/ ...

Words: 3197 - Pages: 13

Premium Essay

Str581

...STR581 – Strategic Planning and Implementation – Final Exam Study Guide 2013 200 Correctly Answered Questions Remember to check out ACCNerd.com for the latest updates. Section 1 1. “Power prices” use price as a key strategic tool. These “power prices” have discovered the highly ________ effect of price on the bottom line. A. direct B. dramatic C. soothing D. Leveraged E. abrasive 2. Some intermediaries use the following: strategic planning, advanced information systems, sophisticated marketing tools, measure performance on a return-on-investment basis, segment their markets, improve their target marketing and positioning, and ________. A. dominant the manufacturers they do business with B. contend with dwindling customer bases C. aggressively pursue market expansion and diversification strategies D. aggressively pursue take over strategies E. aggressively “squeeze” manufacturer margins 3.  Price has operated as the major determinant of buyer choice among poorer nations, among poorer groups, and with ________ products. A. similar B. identical C. commodity-type D. over the Internet | 4.  Major retailer types include the following EXCEPT ________. A. the Internet B. specialty store C. superstore D. catalog showroom E. discount store 5.  Following the ________ approach to target market selection encompasses a strong knowledge of the segment’s needs, a strong market presence, and operating economies through...

Words: 9097 - Pages: 37

Premium Essay

Cataolog

...ork2012 - 2013 Catalog A Message from the President “Sullivan University is truly a unique and student success focused institution.” I have shared that statement with numerous groups and it simply summarizes my basic philosophy of what Sullivan is all about. When I say that Sullivan is “student success focused,” I feel as President that I owe a definition of this statement to all who are considering Sullivan University. First, Sullivan is unique among institutions of higher education with its innovative, career-first curriculum. You can earn a career diploma or certificate in a year or less and then accept employment while still being able to complete your associate, bachelor’s, master’s or doctoral degree by attending during the day, evenings, weekends, or online. Business and industry do not expand or hire new employees only in May or June each year. Yet most institutions of higher education operate on a nine-month school year with almost everyone graduating in May. We remained focused on your success and education, and continue to offer our students the opportunity to begin classes or to graduate four times a year with our flexible, year-round full-time schedule of classes. If you really want to attend a school where your needs (your real needs) come first, consider Sullivan University. I believe we can help you exceed your expectations. Since words cannot fully describe the atmosphere at Sullivan University, please accept my personal invitation to visit and experience...

Words: 103133 - Pages: 413

Premium Essay

Scavenger Hunt Questions and Answers

...2012 Catalog Volume 20 Issue 1 March 5, 2012 – December 31, 2012 This Catalog contains information, policies, procedures, regulations and requirements that were correct at the time of publication and are subject to the terms and conditions of the Enrollment Agreement entered into between the Student and ECPI University. In keeping with the educational mission of the University, the information, policies, procedures, regulations and requirements contained herein are continually being reviewed, changed and updated. Consequently, this document cannot be considered binding. Students are responsible for keeping informed of official policies and meeting all relevant requirements. When required changes to the Catalog occur, they will be communicated through catalog inserts and other means until a revised edition of the Catalog is published. The policies in this Catalog have been approved under the authority of the ECPI University Board of Trustees and, therefore, constitute official University policy. Students should become familiar with the policies in this Catalog. These policies outline both student rights and student responsibilities. The University reserves the right and authority at any time to alter any or all of the statements contained herein, to modify the requirements for admission and graduation, to change or discontinue programs of study, to amend any regulation or policy affecting the student body, to increase tuition and fees, to deny admission, to revoke an offer...

Words: 130938 - Pages: 524

Premium Essay

Ca Exam Prep

...California EXAM PREP The SMART Guide to Passing Kor Real Estate California Real Estate Exam Prep: The SMART Guide to Passing Cengage Learning Vice President/Editor-in-Chief: Dave Shaut Executive Editor: Scott Person Acquisitions Editor: Sara Glassmeyer Senior Marketing Manager: Mark Linton Manager of Technology, Editorial: John Barans Frontlist Buyer, Manufacturing: Kevin Kluck Art Director: Bethany Casey Content Project Manager: D. Jean Buttrom Production Service: Pre-Press/PMG-India Cover Designer: Pop Design Works, www.popdesignworks.com Cover Images: © Getty Images © 2009 Cengage Learning ALL RIGHTS RESERVED. No part of this work covered by the copyright hereon may be reproduced or used in any form or by any means—graphic, electronic, or mechanical, including photocopying, recording, taping, Web distribution, information storage and retrieval systems, or in any other manner—except as may be permitted by the license terms herein. For product information and technology assistance, contact us at Cengage Learning Customer & Sales Support, 1-800-354-9706 For permission to use material from this text or product, submit all requests online at www.cengage.com/permissions Further permissions questions can be emailed to permissionrequest@cengage.com Library of Congress Control Number: 2008926512 Student Edition ISBN 13: 978-0-324-64498-2 Student Edition ISBN 10: 0-324-64498-1 Student Edition with CD ISBN 13: 978-0-324-64497-5 Student Edition with CD ISBN 10: 0-324-64497-3...

Words: 64373 - Pages: 258