FIN 419 ASSIST Career Path Begins/fin419assist.com FIN 419 ASSIST Career Path Begins/fin419assist.com | Page 20

taking out a loan for the whole amount for the condo for twenty years at
7.0% interest.
a. What is the monthly payment on the mortgage? Construct the
amortization of the loan for the twenty years in a spreadsheet to show
the interest cost, the principal reduction, and the ending balance each
month.
b. Then change the amortization to reflect that after ten years, Sherry
and Sam will increase their monthly payment to $7,500 per month.
When will they fully repay the mortgage with this increased payment if
they apply all the extra dollars above the original payment to the
principal?
Chapter 14: Problems 9, 10, 11 & 12 listed below:
9. Financial ratios: Liquidity. Calculate the current ratio, quick ratio,
and cash ratio for Tyler Toys for 2013 and 2014. Should any of these
ratios or the change in a ratio warrant concern for the managers of Tyler
Toys or the shareholders?
10. Financial ratios: Financial leverage. Calculate the debt ratio, times
interest earned ratio, and cash coverage ratio for 2013 and 2014 for
Tyler Toys. Should any of these ratios or the change in a ratio warrant
concern for the managers of Tyler Toys or the shareholders?
11. Financial ratios: Asset management. Calculate the inventory
turnover, days’ sales in inventory, receivables turnover, days’ sales in
receivables, and total asset turnover for 2013 and 2014 for Tyler Toys.
Should any of these ratios or the change in a ratio warrant concern for
the managers of Tyler Toys or the shareholders?