FIN 303 AL Buraimi University College Increase Capital Payment Worksheet I attached here tow assignments in financial management class, In Academic Affilia

FIN 303 AL Buraimi University College Increase Capital Payment Worksheet I attached here tow assignments in financial management class, In Academic Affiliation with California State University – Northridge
Department of Business and Accounting
Second Individual Assignment
Second Semester 2019-’20
Course Code
Course Name
Course Instructor
Handout Date
Duration
Student Name
I.D. Number
Section
: FIN 303
: Financial Management
: Dr. Arshed Altameemi
: 23/4/2020
: One Week
: …………………………………………………………………….
: ………………….….………………………………………………
:1
Question No.
Marks Obtained
O1 O2 O3
Maximum Marks Comments if any
1
2
3
4
5
Outcomes Total
/2
/2
/3
/15
/8
/30
Total Marks(in figures)
Total Marks(in words)
Evaluator’s Signature
Remark: Candidates are advised to read all instructions before answering
The following student learning outcomes of the course are tested during in this Assignment:
1. Explain the importance of financial statement (income, balance sheet and cash flow
statement) as databases to financial analysis.
Description of the Tool: The aim of this assignment is to send students searching and
collecting data about Company Performance, prepare a completed report of financial position
of company.
Submission Date (s): Thursday 30/4/2020
1
Assignment questions
Question1:-
Choose the correct Option from the following
(1 x 2 = 2 Marks)
1- Which of the following will increase the current ratio:a) Increase capital payment to pay long-term debt.
b) Long-term debt is issued to pay off a part of current liabilities.
c) Accounts receivable are collected.
d) None of the Options.
2- Which of the following actions will decrease a company’s quick ratio?
a) Reduce inventories and use the proceeds to pay off a part of current liabilities.
b) Receivable collected and use the proceeds to pay off a part of current liabilities.
c) A short-term debt is issued and uses the proceeds to purchase inventory.
d) None of the Options.
Question No. 2
Evaluate the following statement True or False:
(1 x 2 = 2 Marks)
1) Selling period explains the trade credit policy regarding the days’ number of account
receivable collection. (
)
2) The current and quick ratios provide fast and big picture-to-use measures of a firm’s
liquidity position and safety margin. (
)
Question3:-
(3 Marks)
Omani Industries has financial multiplayer equal to 2 times. Calculate the debt ratio.
Question 4:-
(3 x 5 = 15 Marks)
The following data apply to Omani’s Company:
Total Current Asset
400 (OMR Thousand)
Quick ratio
2 Times
Sales
1400 (OMR Thousand)
Current ratio
3 Times
Net Fixed assets
550 (OMR Thousand)
Financia Leverage Multiplier
1.67 Times
Net Profit Margin
15% (OMR Thousand)
Days Sales Outstanding (DSO) 36 days
Calculate the following:1. Return on Asset (ROA). And Return on Equity (ROE).
2. Selling Period and Inventory Turnover.
3. If Omani’s could reduce its DSO from 36 days to 25 days while holding other things
constant, how much cash would it generate (Account Receviable)?
2
Question 5:-
(2 x 4 = 8 Marks)
The Manor Corporation has OMR (500) thousand of debt outstanding, and it pays an interest
of OMR (50) thousand annually: Manor’s annual sales are OMR (2) million, its tax rate is
30%, and its net profit margin (NPM) on sales is 5%. If the company does not maintain a
TIE ratio of at least 5, then its bank will refuse to renew the loan and bankruptcy will result.
1. Calculate the current Manor’s TIE ratio.
2. Is the current Manor’s TIE ratio will qualify the company to renew the loan?
And why?
Assessment Criteria:
No.
Assessment Criteria
Mark
1
Knowledge , conventions, terminology, and strategies of literary texts
8
2
Critical and creative thinking skills
12
3
Communication of information and ideas
5
4
Spelling and grammar
5
Total Mark
End of the Assignment
3

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