11. On 1/1/2015 ABC had the following: Machine 12,000 Land 120,000 Motor vehicle 16,250 Debtors 13,500 Short term loan 14,200 Cash 8,400 Creditors 18,000 Calculate: (a) the equity of the business on 1/1/2015 (b) prepare a balance sheet on 1/1/2015 (c) liquidity ratios and solvency ratios (d) comment on the profitability ratios calculated above in (c)
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- Financial statement analysis The financial statements for Nike, Inc., are presented in Appendix D at the end of the text. Use the following additional information (in thousands): Instructions 1. Determine the following measures for the fiscal years ended May 31, 2016, and May 31, 2015. Round ratios and percentages to one decimal place. a. Working capital b. Current ratio c. Quick ratio d. Accounts receivable turnover e. Number of days sales in receivables f. Inventory turnover g. Number of days sales in inventory h. Ratio of liabilities to stockholders equity i. Asset turnover j. Return on total assets. k. Return on common stockholders equity l. Price-earnings ratio, assuming that the market price was 54.90 per share on May 29, 2016, and 52.81 per share on May 30, 2015 m. Percentage relationship of net income to sales 2. What conclusions can be drawn from these analyses?FINANCIAL STATEMENTS, CASH FLOW, AND TAXES Laiho Industriess 2017 and 2018 balance sheets (in thousands of dollars) are shown. 2018 2017 Cash 102,850 89,725 Accounts receivable 103,365 85,527 Inventories 38,444 34,982 Total current assets 244,659 210,234 Net fixed assets 67,165 42,436 Total assets 311,824 252,670 Accounts payable 30,761 23,109 Accruals 30,477 22,656 Notes payable 16,717 14,217 Total current liabilities 77,955 59,982 Long-term debt 76,264 63,914 Total liabilities 154,219 123,896 Common stock 100,000 90,000 Retained earnings 57,605 38,774 Total common equity 157,605 128,774 Total liabilities and equity 311,824 252,670 a. Sales for 2018 were 455,150,000, and EBITDA was 15% of sales Furthermore, depreciation and amortization were 11%. of net fixed assets, interest was 8,575,000, the corporate tax rate was 40%, and Laiho pays 40% of its net income as dividends Given this information. construct the firms 2018 income statement. b. Construct the statement of stockholders equity for the year ending December 31, 2018, and the 2018 statement of cash flows. c. Calculate 2017 and 2018 net operating working capital (NOWC) and 2018 free cash flow (FCF). Assume the firm has no excess cash. d. If Laiho increased its dividend payout ratio, what effect would this have on corporate taxes paid What effect would this have on taxis, paid by the companys shareholders? e. Assume that the firms after-tax cost of capital is 10 5%. What is the firms 2018 EVA? f. Assume that the firms stock price is S22 per share and that at year-end 2018 the firm has 10 million shares outstanding. What is the firms MVA at year-end 2018?Real-world annual report The financial statements for Nike, Inc. (NKE), are presented in Appendix E at the end of the text. The following additional information is available (in thousands): Instructions 1. Determine the following measures for the fiscal years ended May 31, 2017, and May 31, 2016. Round ratios and percentages to one decimal place. a. Working capital b. Current ratio c. Quick ratio d. Accounts receivable turnover e. Number of days sales in receivables f. Inventory turnover g. Number of days sales in inventory' h. Ratio of liabilities to stockholders equity i. Asset turnover j. Return on total assets, assuming interest expense is 82 million for the year ending May 31. 2017, and 33 million for the year ending May 31, 2016. k. k. Return on common stockholders equity l. Price-eamings ratio, assuming that the market price was 52.81 per share on May 31, 2017, and 54.35 per share on May 31, 2016. m. m. Percentage relationship of net income to sales 2. What conclusions can be drawn from these analyses?
- Selected accounts and related amounts for Kanpur Co. for the fiscal year ended June 30, 2016, are presented in Problem 6-5B. Instructions 1. Prepare a single-step income statement in the format shown in Exhibit 11. 2. Prepare a statement of owners equity. 3. Prepare an account form of balance sheet, assuming that the current portion of the note payable is 7,000. 4. Prepare closing entries as of June 30, 2016.6/ Golden mart has calculated the Total liabilities of RO 275,800 and the Equity balance of RO 124,500 during the year ended 31st December 2017. The business wants to know the amount of assets for the year. As a finance advisor, determine the amount of Total Assets of the above business for the year 2017? a. RO 151,300 b. RO 124,500 c. RO 400,300 d. RO 275,800How do I determine the NNO for 2014? Dec. 31, 2016 Dec. 31, 2015 Dec. 31, 2014 Operating Assets 1,447,869 1,513,139 Operating liabilities 1,094,173 1,158,007 Net operating assets (NOA) 353,696 355,132 $ 397,299.00 NNO $ 490,548 $ 473,323 Equity $ 844,244 $ 828,455 $ 726,328.00 NOA= NNO + Equity $ 1,334,792 $ 1,301,778
- Below are the ratio results for Abcom for the year 2022. Performance Operating margin -18.66% Asset turnover 0.16 Return on Capital Employed -7.64% Working capital Inventory days 88.88 days Debtor days 46.18 days Trade creditor days 68.11 days Liquidity Current ratio 0.30 Acid test 0.25 Solvency Interest cover -2.56 Shareholder's view Return on equity 7.16% Required; Analyse and interpret the meaning of these results.The following was extracted from the accounting records of a trader on 28 February 2015: Extracts from the income statement: Total sales 217 750 Cost of sales 124 430 Net profit 54 430 After the capital account had been credited with the above net profit, the balance sheet reflected the following balances: Land and buildings…………………………………………………………218 400Equipment at carrying value.........................................................41 300Capital…………………………………………………………………………314 400Long term loan……………………………………………………………59 200Investment……………………………………………………………………54 600Current assets…………………………………………………………………134 900Creditors control……………………………………………………………75 600Debtors control………………………………………………………………36 400Bank (dr)…………………………………………………………………………33 600 ADDITIONAL INFORMATION: 1. Credit sales represent 60% of total sales.2. Creditors allow 3 months credit.3. Similar industries in South Africa have a stock turnover rate of 3 times per annum. REQUIRED: The formula for…The comparative balance sheet for Proctor Precision appears below: PROCTOR PRECISION Comparative Balance Sheet Dec. 31, 2017Dec. 31, 2016 Assets Cash................................................$30,500$6,000 Accounts receivable...................................2,5004,000 Inventory............................................5,5003,500 Prepaid expenses.....................................1,0001,500 Building.............................................10,00010,000 Accumulated depreciation—building....................... (1,500) (1,000) Total assets..........................................$48,000$24,000 Liabilities and Stockholders' Equity Accounts payable.....................................$ 1,000$ 2,000 Long-term note payable................................6,5007,000 Common stock........................................19,0009,000 Retained earnings..................................... 21,500 6,000 Total liabilities and stockholders'…
- Q1 Consider the given income statement and balance sheet and calculate the following ratios : Return on Assets Return on Equity Debt Ratio Current Ratio Write your comment about each of the ratios calculated what it describes. Following are the Financial Statements of CSU CORPORATION for the year ended Dec. 31, 2020 Assets : 2019 Cash $1400 Accounts Receivable 4000 Supplies 1800 Equipment 16000 Total Assets $23,200 Liabilities and Shareholders’ Equity : Liabilities : Notes Payable $5000 Accounts Payable…The following data were taken from the balance sheet of Mossberg Co. Dec. 31,2014 Dec. 31, 2013 Cash $700,000 $600,000 Marketable securities 800,000 620,000 Accounts and notes receivable (net) 920,000 780,000 Inventories 600,000 500,000 Prepaid expenses 500,000 500,000 --------------------- ------------------------- Total current assets $3,520,000 $3,000,000 ============== ================ Accounts and notes payable (short - term) $800,000 $750,000 Accrued liabilities 300,000 250,000 ---------------------------- ---------------------------- Total current liabilities $1,100,000 $1,000,000 a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place. b. What conclusion can be drawn from these data as to the company's ability to meet its currently maturing debts?Q3 The following was extracted from the accounting records of a trader on 28 February 2015: Extracts from the income statement: Total sales 217 750 Cost of sales 124 430 Net profit 54 430 After the capital account had been credited with the above net profit, the balance sheet reflected the following balances: Land and buildings…………………………………………………………218 400Equipment at carrying value.........................................................41 300Capital…………………………………………………………………………314 400Long term loan……………………………………………………………59 200Investment……………………………………………………………………54 600Current assets…………………………………………………………………134 900Creditors control……………………………………………………………75 600Debtors control………………………………………………………………36 400Bank (dr)…………………………………………………………………………33 600 ADDITIONAL INFORMATION: 1. Credit sales represent 60% of total sales.2. Creditors allow 3 months credit.3. Similar industries in South Africa have a stock turnover rate of 3 times per annum. REQUIRED:4.2.6.…
