Financial Institutions Management Sample Examination

Short Term Investments – totaled $220,000.00 in year 6, a gain of $21,500.00 or +10.8%.

each element in your Question 1 pro forma profit and loss statement. Are there any items that

2. List the four basic types of financial ratios used to measure a company’s performance, give an example of each type of ratio and explain its significance.

Retail Segment Retail Segment Results (millions) Sales Cost of sales Gross margin SG&A expenses (a) EBITDA

2. List the four basic types of financial ratios used to measure a company’s performance, give an example of each type of ratio and explain its significance.

(TCO A) Construct a balance sheet from the following information. Be sure the format is correct. (Show all work.) Cash on hand 1,000 Bank credit

The annual budget 2011/12 yielded a profit for the company, however, by looking into its quarterly performance it will be noted that the organisation will incur a net loss.

will generate after-tax (year-end) cash flows of $8 million for five years. The firm has a debt-to-equity

(b) operating income for the year ended December 31, 20X7. (Do not prepare a statement.)

After reviewing our income statement for the ended month of September, our revenues were greater than our expenses. For our revenues, our rent revenue totaled $2600; utilities revenue $36; miscellaneous revenue $3,498; and our gain on sale was $515. For our expenses, our rent expense was $1802; utilities expense $80; miscellaneous expense $880; depreciation expense $74.25; other expense $62; property tax expense $258; luxury tax expense $300; and federal income tax expense

* Net Operating Income (NOI), Cash Flow from Operations (CFO) and Cash Flow after Financing (CFAF)

Before beginning an analysis of a company it is necessary to have a complete set of financial statements, preferably for the pas few years so that historical trends can be obtained. Ratios are a way for anyone to get an idea of the financial performance of a company by using the information contained in the financial statements. Ratios are grouped into four basic categories, liquidity, activity, profitability, and financial leverage. This document will use a variety of these ratios to analyze the firm, Sample Company, as of December 31,2000.

net sales: $1,000,000 cost of goods sold: $700,000 rent: $20,000 wages: $100,000 other operating expenses: $50,000 net sales – all operating expenses = 530,000

YEAR 0 2009 1 2010 2 2011 3 2012 4 2013 5 2014 6 2015 7 2016 8 2017 9 2018 10 Initial Investment Gross Revenue 2 COGS 3 Add'l revenue Less: COGS Loan down payment 4 Loan repayment Depreciation Additional workers Land square required Moving cost 5 Operating Expenses Total Expenses Net Income Before Tax Income Tax Net Income After Tax After Tax Cash Flow ATCF Cummulative ATCF NPV through Year N

It is important for every business to carry out financial statement analysis in order to gain an understanding of their current financial status. There are two main types of financial statements that businesses commonly use when it comes to financial analysis. These are known as the Profit and Loss Account and the Statement of Financial Position. A profit and loss account consists of a list of expenses incurred by the company, against their revenues over a certain period of time. It shows whether the organisation