TOPIC: Financial Statement Analysis 1. Calculate the debt ratio of a company that as an equity multiplier of 2.5 2. A company's sales last year were $615,000 and its net income was $45,800. It has $465,000 in assets financed only by common equity. Determine the profit margin needed to achieve a 14.5% ROE. Use 4 decimal places in your final answer. Express in percentage 3. Net income for 2020 was P1,825,600. In 2021, it decreased by 53%. Still using the 2020 net income as the base year, by 2022, net income increased by 130%. Determine the net income for 2021 and 2022, respectively. 4. P240,000 will be deposited in a fund at the beginning of each six months for 5 yrs. Using 11% as the interest rate compounded semiannually, compute how much is in the fund at the end of 4 ½ years just after the last deposit. (use 2 decimal places for your final answer) 5. A company has $6,435,000 in common equity and 1,063,000 in outstanding shares. Shares sell at a price of $30.70 each. Calculate the difference of the firm's market and book values per share. (2 decimal places) 6. The balance sheet showed the following: Total current assets $3,250, accounts payable $470, 8% notes payable $260, and accrued wages of $180. Calculate the net operating working capital. 7. The financial statements showed the following: Operating income $2,750,000, Depreciation $1,350,000, Expenditures on fixed assets and net operating working capital $860,000. Tax rate is 35%. Compute for the free cash flow.
TOPIC: Financial Statement Analysis
1. Calculate the debt ratio of a company that as an equity multiplier of 2.5
2. A company's sales last year were $615,000 and its net income was $45,800. It has $465,000 in assets financed only by common equity. Determine the profit margin needed to achieve a 14.5% ROE. Use 4 decimal places in your final answer. Express in percentage
3. Net income for 2020 was P1,825,600. In 2021, it decreased by 53%. Still using the
2020 net income as the base year, by 2022, net income increased by 130%.
Determine the net income for 2021 and 2022, respectively.
4. P240,000 will be deposited in a fund at the beginning of each six months for 5 yrs.
Using 11% as the interest rate compounded semiannually, compute how much is in
the fund at the end of 4 ½ years just after the last deposit. (use 2 decimal places for
your final answer)
5. A company has $6,435,000 in common equity and 1,063,000 in outstanding shares.
Shares sell at a price of $30.70 each. Calculate the difference of the firm's market and
book values per share. (2 decimal places)
6. The balance sheet showed the following: Total current assets $3,250, accounts
payable $470, 8% notes payable $260, and accrued wages of $180. Calculate the net
operating
7. The financial statements showed the following: Operating income $2,750,000,
capital $860,000. Tax rate is 35%. Compute for the
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