# Corporate Finance – Math Problem Example

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CORPORATE FINANCEQUESTION NUMBER 1Investment Managers aiming at higher returns concentrate on bill discounting commercial paper, certificate of deposits and inter corporate investment. But ajudicious combination of investment in call money for higher returns and in theTreasury Bills for quick liquidity would be necessary for a balanced investment. Besides he has to balance the maturities of asset instruments with the liabilities falling due and secure a proper asset liability mix for the company. Income and Expenditure Statement (For the Year Ended. ... )IncomeExpenditureSalesMaterials consumedOther Income+ Excise DutyTotal+ Manufacturing Expenses+ Other Factory ExpensesLike Factor) WagesTotal Factory CostSales - Factory Cost = Gross Operating ProfitGross Operating ProfitSalaries & Wages of Staff+ Administrative Expenses+ Selling and Distribution ExpensesTotal Non-Factory Cost orSelling ExpensesGross Operating Profit - Non-Factory Costs = Earnings BeforeInterest, Depreciation and Taxes(EBIDT)= Gross ProfitGross Profits (EBIDT) = Profits after meeting Factory Cost andNon-Factory ExpensesNet Profit (PAT)= EBIDT - Interest, Depreciation and Taxes.

Analysis of Financial StatementsThe principal financial statements summarize the financial position, net cost of operations, and changes in net position, provide information on budgetary resources and financing, and present the sources and disposition of custodial revenues 2008 to 2018.

Highlights of the financial information presented in the principal financial statements are shown below. Financial PositionThe Balance Sheet presents its financial position through the identification of agency assets, liabilities, and net position. The total assets increased from \$71.5 billion in 2008 to \$83.5 billion. The increase in total assets primarily was account for in the investments. The invests in non-marketable, special issue Treasury securities balances held in the Unemployment Trust Fund. It did not experience major changes in liabilities during 2008. Liabilities totalled \$20 billion at the end of 2008.

Beginning in 2008, agencies were required to report earmarked non-exchange revenue and other financing sources, including appropriations. This was also required to report the portions of cumulative results of operations and unexpended appropriations on the face of the Balance Sheet. If it looked at normally distributed data on a graph, it would look something like this: The x-axis (the horizontal one) is the value in question. And the y-axis (the vertical one) is the number of data points for each value on the x-axis. Now, not all sets of data will have graphs that look this perfect.

Some will have relatively flat curves, others will be pretty steep. Sometimes the mean will lean a little bit to one side or the other. But all normally distributed data will have something like this same "bell curve" shape. The standard deviation is a statistic that tells how tightly all the various examples are clustered around the mean in a set of data. When the examples are pretty tightly bunched together and the bell-shaped curve is steep, the standard deviation is small.

When the examples are spread apart and the bell curve is relatively flat, that tells a relatively large standard deviation. QUESTION NUMBER 2RETURN ON EQUITYA measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have investedCalculated as: NET INCOME SHARE HOLDER’S EQUITY

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