FIN 300 Study Guide - Final Guide: Compound Interest, Quick Ratio, Accounts Payable

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harlequinswan221

4 Dec 2014

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Earnings per share = net income / shares. Addition to retained earnings = net income . Atr = tax paid/ net income the average tax rate is the total tax paid divided by net income. Ocf operating cash flow = ebit + depreciation . Net capital spending = nfaend nfabeg + Cash flow to creditors = interest paid net new borrowing. Cash flow to shareholders = dividends paid net new equity. Cash flow from assets = cash flow to creditors + cash flow to shareholders. Cfa = ocf net capital spending change in nwc. Net capital spending = increase in nfa + depreciation. Ebt (ebt tax rate) = net income. Net income = dividends + addition to ret. earnings. Quick ratio = (ca inventory) / cl. Days" sales in receivables = 365 days / receivables turnover. Days" sales in inventory = 365 days / inventory turnover. Total debt ratio =td / ta = (x)

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I just need help with the chart at the bottom. Here is all the information for the company.

Accounts receivable for 2015__$300____

Total current assets= cash and marketable securities + account rec + inventory

1,542=347+a/r+895

Accounts rec = $300

Accounts payable for 2014__$319_____

Total Current Liabilities = Accrued Wages and taxes + Accounts Payable + Notes Payable
997 = 257 + Accounts Payable + 421
Accounts Payable = $319

c. Gross plant and equipment for 2015_$3,159______

Net Plant and Equipment = Gross Plant and Equipment â Depreciation
2,872 = Gross Plant and Equipment â 287
Gross Plant and Equipment = $3,159

d. Long-term debt for 2014__$132_____

Total Debt = Long-term Debt + Current Liabilities
1,129 = Long-term Debt + 997
Long-term Debt = $132

e. Common stock and paid-in surplus (250 million shares) for 2014 $300

Total Equity = Preferred Stock + Common Stock and paid surplus + Retained Earnings
1,472 = 30 + Common Stock and paid surplus + 1,142
Common Stock and paid surplus = $300

f. Total FA for 2015 $3,393

Total FA = Net Plant and Equipment + Other long-term assets
Total FA = $2,872 + 521
Total FA = $3,393

g. Net sales for 2015_______

Net Sales â Cost of Goods Sold = Gross Profit

Net Sales â 987 = 1,396

Net Sales = $2,383

h. Less: Cost of goods sold for 2014_______

Net Sales â Cost of Goods Sold = Gross Profit
2,018 - Cost of Goods Sold = 1,189
Cost of Goods Sold = $829

i. Less: Interest for 2015_______

EBIT- Interest = EBT
1,086 â Interest = 949
Interest = $137

j. Less: Taxes for 2015_______

Net Income = EBT â Taxes
644 = 949 â Taxes
Taxes = $305

k. Earnings per share (EPS) for 2015_______

Earning per share for 2015 = Net Income available to Common Stockholders / No of Common Stocks

Earning per share =566 / 250

Earning per share = $2.27 per share

l. Dividends per share (DPS) for 2014_______

Dividend per share = Common stock Dividend/ No of Common Stocks

Dividend per share = 219/250

Dividend per share = $0.88 per share

m. Book value per share (BVPS) for 2015_______

Book value per share= total common stockholderâs equity/No of Common Stocks

Book value per share= 1,789/250

Book value per share= 7.16

n. Net income $664

o. Increase in accrued wages and taxes $309-$257= $52

p. Increase in inventory â(895-797)= $ -98

q. Net cash flow from operating activities 664+287+52+62-41-98=$926

r. Increase in other long-term assets â(521-487)= $-34

s. Net cash flow from investing activities -343-34=-377

t. Increase in notes payable 492-421= 71

u. Pay dividends 98+219= 317

v. Net cash flow from financing activities 71+147-317= -99

w. Plus: Net income for 2015 $664

x. Preferred stock $98

Worldwide Widget Manufacturing, Inc.

	Company	Industry	Comparison
Current Ratio		2.2 times
Quick Ratio		1.1 times
Cash Ratio		0.35 times
Inventory Turnover		2 times or 1 time
Days' sales in inventory		135 days or 335 days
Average payment period		110 days
Sales to working capital		3 times
total asset turnover		0.6 times
debt to equity		1.1 times
profit margin		16.5%
gross profit margin		48.13%
ROA		8.78%
ROE		19.45%
Dividend payout		32%

A. Use the information found in Worldwide Widget Manufacturingâs financial statements to calculate all of the listed financial ratios in the above table for your company. Then, for each ratio, provide a comparison of the companyâs result with the industry standards, indicating if your companyâs results are lower than, higher than, slower than, or faster than the industry standards.

B. Calculate your companyâs internal and sustainable growth rates.

lemonleopard215

INCOME STATEMENT

Sales: $700.00

less Cost of Goods Sold: (blank)

less Other Expenses: $100.00

EBITDA: $300.00

less Depreciation and Amortization this year:$30.00

EBIT: $270.00

less Interest Expense: (blank)

EBT: $245.50

less Taxes: (blank)

Net Income before preferred dividends:($171.85)

less Preferred Dividends: $10.00

NI: $161.85

less Common Dividends: $100.00

Addition to Retained Earnings: (blank)

Tax Rate: 30.00%

Interest Rate on Notes Payable: 7.00%

Interest Rate on Long Term Bonds: 7.00%

Market Price of Stock: $15.00

Shares Outstanding: 200

Common Dividends Per Share: (blank)

1. Consider the income statement above:

A. What is the value for cost of goods sold?

B. What is the value for interest expense?

C. What is the value for taxes?

D. What is the value for Addition to Retained Earnings?

E. What is the value for common dividends per share?

Thank you in advance!!

violeteel399

Millions of USD (except for per share items)	2015	2014
Sales	$ 114,826	$ 114,960
Cost of Goods Sold	86,483	86,714
Gross Profit	28,343	28,246
Selling/General/Admin. Expenses, Total	22,663	22,053
Operating Income	5,680	6,193
Interrest and Taxes	2,336	2,600
Net Income	$ 3,344	$ 3,593


Market Price/Share	$ 65.68	$ 84.26
Shares Outstanding	3,210	3,210

Millions of USD (except for per share items)	As of 2015	As of 2014
Cash & Equivalents	$ 7,759	$ 6,012
Total Receivables, Net	5,813	6,096
Total Inventory	46,310	45,315
Prepaid Expenses	2,251	1,811
Total Current Assets	62,133	59,687
Property/Plant/Equipment, Total - Gross	138,614	142,830
Total Assets	$ 200,747	$ 202,517

Accounts Payable	37,224	36,347
Accrued Expenses	18,685	17,807
Notes Payable/Short Term Debt	799	3,517
Current Port. of LT Debt/Capital Leases	6,468	3,566
Other Current liabilities, Total	6,448	6,684
Total Current Liabilities	69,624	67,921
Total Long Term Debt	42,964	48,233
Deferred Income Tax	8,169	8,164
Minority Interest	3,416	5,111
Total Liabilities	124,173	129,429
Total Equity	76,574	73,088
Total Liabilities & Shareholders' Equity	200,747	202,517
	-	-
Total # Common Shares Outstanding	$ 3,227	$ 3,230

Category	Two Ratios from Each Category	Ratio	Formula	2015	2014
Liquidity	Current and Quick Ratio	Current	Current Assests/Current Liabilites
		Quick	(CA - Inventories)/Current Liabilites
Asset Management	Total Assets Turnover, Total Fixed Asset Turnover	Total Assets Turnover,	Sales/Total Assets
		Total Fixed Asset Turnover	Sales/Total Fixed Assets
Debt Management	Debt to Assets and Debt to Equity	Debt to Assets	Total Liabilities / Total Assests
		Debt to Equity	Total Liabilities / Common Stockholders Equity
Profitability Ratio	Return on Assets and Return on Equity	Return on Assets	Net Income/Total Assets
		Return on Equity	Net Income/Common Equity
Market Ratio	Earnings Per Share and Price to Earnings Ratio	Earnings Per Share	Net Income / Common Shares Outstanding
		Price to Earnings Ratio	Market Price of Shares/Earning Per Share

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FIN 300 Study Guide - Final Guide: Compound Interest, Quick Ratio, Accounts Payable

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