Analyze the case study, “Frank Smith Plumbing.”

Analyze the “Frank Smith Plumbing’s Financial Statement” spreadsheet.

Compare the cost of the truck to the cash flow records

Compile your calculations in a Microsoft® Excel® document

Develop a 1,050-word analysis and include the following:

  • Explain why limited leverage is good for business. Show the profitability of the project so that Stephanie can convince her father to purchase the truck by borrowing money.
  • Explain how Stephanie should convince her mother that it is inappropriate to call the bank manager and his wife for assistance in getting the loan approval?
  • Analyze whether the investment in the truck is profitable.
  • Explain whether it is more beneficial for Frank to close his business.
  • Explain what you would do in this same situation.

Format your assignment consistent with APA guidelines.

  • Attachment 1
  • Attachment 2

Running Head: CASH FLOW ANALYSIS 1 Assignment TitleStudent NameCourse NameInstructor NameDate CASH FLOW ANALYSIS 2 Limited leverage is good for the organization. Frank Smith has considerable…

 
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2. The Ajax Co. just decided to save $1,500 a month for the next five years as a safety net for recessionary periods. The money will be set aside in a separate savings account which pays 3.25% interest compounded monthly. It deposits the first $1,500 today. What is the value of this investment in 5 years? 

3. You are scheduled to receive annual payments of $10,000 for each of the next 25 years. Your interest rate is 8.5%. What is the value of this stream of payments at year 25

4. What is the net present value of a project with the following cash flows and a required return of 12%?

5. Leslie’s Unique Clothing Stores offers a common stock that pays an annual dividend of $2.00 a share. The company has promised to maintain a constant dividend. How much are you willing to pay for one share of this stock if you want to earn 12% return on your equity investments? 

 
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Frank’s Barber Shop is a popular local barber shop. He estimates that the time required to serve a customer on each visit has a uniform distribution between 15 minutes and 45 minutes.

  1. Simulate the service times for five customers by using the following five random numbers: 0.6905, 0.1740, 0.0443, 0.5975, 0.1178.
  2. Calculate the average of the five service times and compare it to the mean of the service-time distribution.
  3. Use Excel to generate 500 random observations and calculate the average. Compare this average to the mean of the service-time distribution.
 
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Frank’s automobile (adjusted basis of $8,000) is used exclusively for business and is damaged in an accident. The fair market value before the accident is $10,000, and the fair market value after is $500. If the insurance recovery is $9,500, what is Frank’s adjusted basis in the automobile after the casualty?

 
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Frank is lending $1,000 to Sarah for two years. Frank and Sarah agree that Frank should earn a real return of 2 percent per year.Instruction: Enter your responses as integer values.a. The CPI (times 100) is 100 at the time that Frank makes the loan. It is expected to be 108 in one year and 117 in two years. What nominal rate of interest should Frank charge Sarah?The nominal rate of interest charged should be %.b. Suppose Frank and Sarah are unsure about what the CPI will be in two years. How should Frank index Sarah’s annual repayments to ensure that he gets an annual 2 percent rate of return?Frank should charge Sarah % (Click to select)equal tomore thanless than the inflation rate.

 
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frank has been fasting for several days and he begins to notice a strong smell of ammonia in his urine. he begins to worry and borrows some PH paper from the chemistry lab and finds that his urine is also very acidic. What could account for these observation?

 
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Frank Gunter owns an apple orchard. He employs 87 apple pickers and pays them $8 per hour to pick apples, which he sells for $1.60 per box. If Frank is maximizing profits, what is the marginal revenue product of the last worker he hired? What is that worker’s marginal product? 

 
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Fred buys flags from a manufacturer for F dollars each and then sells the flags in his store for a 26% markup. Write an expression for the retail price of a flag?

 
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Read the article “The effects of minimum wages on employment” and answer the questions below:

a) Through which channels does a binding minimum wage affect employment? Illustrate this effect with a diagram.

b) According to recent research what are the employment effects of minimum wages?

 
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39. Frazier and Roz are partners. Frazier contributes $30,000 to the partnership, and Roz contributes $10,000. They agree that Frazier will assume 70 percent of partnership losses and that Roz will assume 30 percent. They make no agreement about how to share profits. The partnership has a profit of $60,000 in its first year. How much of the profits is Frazier entitled to receive?

QuestionFrazier and Roz are partners. Frazier contributes $30,000 to the partnership, and Roz contributes $10,000. They agree that Frazier will assume 70 percent of partnership losses and that Roz…

 
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