GB 550 University of Phoenix Total Net Operating Capital and Balance Sheet Analysis

User Generated

TveyQnq2012

Business Finance

GB 550

University of Phoenix

GB

Description

Unformatted Attachment Preview

GB550: Financial Management | Unit 2 Details and Rubric Prepare this Assignment responding to the problems as a Word® document. Number each question, followed by your answer. Problems: 1. Complete problem: Total Net Operating Capital o XYZ, Inc. reported $20 million in operating current assets, $25 million in net fixed assets, and $6 million in operating current liabilities. How much total net operating capital does XYZ, Inc. have? o Show your work. 2. Complete problem: Balance Sheet Analysis o Complete the balance sheet and sales information in the table that follows for XYZ, Inc., using the following financial data: o Show your work. Total assets turnover: 1.5 Gross profit margin on sales: (Sales – Cost of goods sold)/Sales = 25% Total liabilities-to-assets ratio: 40% Quick ratio: 0.80 Days sales outstanding (based on 365-day year): 36.5 days Inventory turnover ratio: 3.75 Partial Income Statement Information _______________________________________________________________________________________ Sales Cost of goods sold ____________ ____________ Balance Sheet Information ______________________________________________________________________________________ Cash Accounts receivable Inventories Fixed assets Total assets ___________ ___________ ___________ ___________ $400,000___ Accounts payable Long-term debt Common stock Retained earnings Total liabilities and equity ___________ 50,000 ___________ 100,000 ___________ 3. In the provided scenario, you address the time value of money also known as discounted cash flow analysis. This type of analysis is crucial to being able to viably analyze financial statements. The start-up firm you founded is trying to save $10,000 in order to buy a parcel of land for a proposed small warehouse expansion. In order to do so, your finance manager is authorized to make deposits of $1250 per year into the company account that is paying 12% annual interest. The last deposit will be less than $1250 if less is needed to reach $10,000. GB550: Financial Management | Unit 2 o How many years will it take to reach the $10,000 goal and how large will the last deposit be? Show your work. Once completed, submit your Assignment to the Unit 2 Assignment Dropbox. The Assignment is due Tuesday 11:59 p.m. ET of their assigned unit. GB550: Unit 2 Assignment details and rubric Item criteria: Points Possible Provides correct and complete answers for questions and problems. Clearly shows the reasoning and/or calculations used to arrive at the answer or conclusion for: ● Complete problem: Total Net Operating Capital 20 ● Chapter problem: Balance Sheet Analysis 20 ● Scenario problem: How many years will it take to reach the $10,000 goal and how large will the last deposit be? 20 Demonstrates excellent college-level organization and style; presents work in Excel® or Microsoft Word, showing all necessary formulas and steps. 25 Total Points 85 Points Earned
Purchase answer to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

Attached. Please let me know if you have any questions or need revisions.

1

Financial Analysis
Student’s Name
Institution’s Name
Lecture’s Name
Date

2

Financial Analysis
1. Complete problem: Total Net Operating Capital


XYZ, Inc. reported $20 million in operating current assets, $25 million in net
fixed assets, and $6million in operating current liabilities. How much total
net operating capital does XYZ, Inc. have?

Solution
The net operating working capital (NOWC) is given by taking the current assets in
operation less current liabilities in operation
NOWC = $ 20000000 - $ 6000000
= £ B14000000
The total net operation is given by NOWC + fixed assets ...


Anonymous
Great! Studypool always delivers quality work.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Similar Content

Related Tags