代写r语言作业投资管理分析Investment Analysis and Portfolio Management Case 2
Investment Analysis and Portfolio Management Case 2
Ada Lam is the founder and sole stockholder of AL Gifts, Co. Ltd., Ada is a recent divorcee and realizes that her finances may need to be revised now that her divorce has been settled. Her former husband, Kelvin, is the father of her two children and the major stockholder of GOOD Manufacturing, Co. Ltd., GOOD Manufacturing has been in business 15 years, is financially stable, and currently has a book value in excess of $380M. Kelvin has agreed to pay for 50% of their children’s education.
President - AL Gifts, Co. Ltd.
President - GOOD Manufacturing, Inc.
STATEMENT OF FINANCIAL POSITION
As at Aug 31, 2018
Credit cards 1
NAV of AL Gifts, Co. Ltd.
Residence (bought 5 yrs ago, 763 sq. ft 3-Bedroom apt)
Auto (BMW 325is, bought 1/2 year ago)
AND NET WORTH
1 Variable rate, currently 35.71% APR.
2 25 years left with P-2.95% (2.05%)
3 2.5 years left with fixed flat rate at 2.15% for 3 years
PROJECTED MONTHLY CASH FLOW STATEMENT
Savings and investments
Mortgage payment (P+I)
Maintenance and repairs on the home
Textbook and miscellaneous (2 Kids)
Food and supplies
Utilities (Electricity, water, gas)
Transportation (gas, oil, repairs)
Travel and entertainment
Credit card payments
SURPLUS/(DEFICIT) CASH FLOW
AL GIFTS, CO.LTD.
As at March 31, 2018
Furniture and fixtures, net of depreciation
Prepaid expenses & other
TOTAL LIABILITIES AND SHAREHOLDER EQUITY
1 All assets are listed at fair market value (FMV)
2 $2,000 a month payable to Kelvin Lam at 4.8% interest, which is the going market rate on similar loans.
AL GIFTS, CO. LTD
PROJECTED MONTHLY INCOME STATEMENT
Cost of goods sold
Advertising and promotion
Interest on loan
Insurance - business
Rent (300 sq. ft.)
Salaries (1part time staff & herself)
Supplies and miscellaneous
Ms. Lam’s investment objective is to ensure financial security for herself, her business & her children. She plans to send her children to Australia for 5 years (last 2 year of high school and 3 years university) to receive western education.
Ms. Lam wants to pay off the $500,000 loan borrowed from Kelvin (her ex-husband) and be able to save enough funding (approx. $1.5M) to expand her business. She finally would like to retire when she turns 65 years old.