EBK FOUNDATIONS OF FINANCE
10th Edition
ISBN: 9780135160473
Author: KEOWN
Publisher: PEARSON CO
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Chapter 3, Problem 15SP
a)
Summary Introduction
To determine: Net working capital and debt ratio of the firm.
b)
Summary Introduction
To prepare: Common size income statement, common size
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You are given the financial statements of a company for over the 6-year periods (2016 –2021).
Considering 2016 as the base year, compute the trend index for the following items:a. Revenue, cost of goods sold, total expenses and net earnings. Comment on the trends of each of the items.b. Total assets, total liabilities and shareholders’ equity. Comment on the trends of each of the items.c. Cash flow from operation, cash flow from investing, cash flow from financing and closing cash balances. Comment on the trends of each of the items.
Select 2017 Year From The Given Data In Image And Find The Following thing:1) Balance Sheet Growth - (TOTAL ASSETS CURRENT YEAR- TOTAL ASSETS CURRENT YEAR) / TOTAL ASSETS PREVIOUS YEAR.2) Sales.3) Financial Exp as a % of Sales4) EBIT5) Financial Cost / Interest Expense
The below tables shows Dynamic Mattress’s year-end 2016 and 2018 balance sheets, and its income statement for 2017.
Dynamic MattressYear-End Balance Sheet for 2016(figures in $ millions)
Assets
Liabilities and Shareholders’ Equity
Current Assets:
Current Liabilities:
Cash
$
22
Bank loans
$
22
Marketable securities
11
Accounts payable
80
Accounts receivable
111
Inventory
155
Total current assets
$
299
Total current liabilities
$
102
Fixed assets:
Gross investment
$
251
Long-term debt
26
Less depreciation
71
Net worth (equity and retained earnings)
351
Net fixed assets
$
180
Total assets
$
479
Total liabilities and net worth
$
479
Dynamic MattressYear-End Balance Sheet for 2017(figures in $ millions)
Assets
Liabilities and Shareholders’ Equity
Current Assets:
Current Liabilities:
Cash
$
32.0
Debt due within a year (bank…
Chapter 3 Solutions
EBK FOUNDATIONS OF FINANCE
Ch. 3.A - (Computing free cash flows) Given the following...Ch. 3.A - Prob. 2SPCh. 3.A - Prob. 3SPCh. 3.A - Prob. 4SPCh. 3 - A companys financial statements consist of the...Ch. 3 - How do gross profits, operating profits, and net...Ch. 3 - How do dividends and interest expense differ?Ch. 3 - Why is it that the preferred stockholders equity...Ch. 3 - Prob. 5RQCh. 3 - Prob. 6RQ
Ch. 3 - Prob. 7RQCh. 3 - Prob. 8RQCh. 3 - Prob. 9RQCh. 3 - Prob. 1SPCh. 3 - Prob. 2SPCh. 3 - (Preparing an income statement) Prepare an income...Ch. 3 - (Preparing a balance sheet) Prepare a balance...Ch. 3 - Prob. 5SPCh. 3 - Prob. 6SPCh. 3 - Prob. 7SPCh. 3 - (Working with income statement and balance sheet)...Ch. 3 - (Working with a statement of cash flows) Given the...Ch. 3 - Prob. 10SPCh. 3 - Prob. 11SPCh. 3 - Prob. 12SPCh. 3 - Prob. 13SPCh. 3 - Prob. 14SPCh. 3 - Prob. 15SPCh. 3 - Prob. 16SPCh. 3 - Prob. 1MCCh. 3 - Prob. 2MCCh. 3 - Prob. 3MC
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