Warner Company Balance Sheet
Warner Company Income Statement
Recall from reading checkpoint 3.1
to construct an income statement
in this space, adjusting as needed.
(You may delete these instructions.)
Long Term (fixed) assets
Total liabilities and equity
Q. What can you say about the firm’s financial condition based on these financial
Q. Using the CSU Online Library find one article that discuses financial statements, cash flow, or ratio analysis. Briefly
summarize the key points of the article as it relates to this unit. You may use any of the databases, but Business Source
Complete is a good starting place.
ratio analysis. Briefly
es, but Business Source
Answer the following four questions using the information found in the statements.
a. Does BigBox generate positive cash flow from its operations?
b. How much did BigBox invest in new capital expenditures over the last four years?
c. Describe BigBox’s sources of financing in the financial markets over the last four years.
d. Based solely on the cash flow statement for 2010 through 2013, write a brief narrative that
describes the major activities of BigBox’s management team over the last four years.
Instructions to use the Solution Template
Enter the given values from the textbook on page 116 in the yellow colored cells below.
In Cell E52, Calculate Current ratio using formula "Current Assets / Current Liabilities"
In Cell E53, Calculate Times interest earned using formula "Net Operating Income/ Interest
In Cell E54, Calculate Inventory Turnover using formula "Cost of goods sold/ Inventory"
In Cell E55, Calculate Total Asset turn Over using formula "Net Sales / Total Assets"
In Cell E56, Calculate Operating Profit Margin using formula "Net Operating Income / Net S
In Cell E57, Calculate Operating Return on Assets using formula "Net Operating Income / To
In Cell E58, Calculate Debt Ratio using formula "( Current Liabilities + Long-term debt) / Tot
In Cell E59, Calculate Average Collection Period using formula "( Accounts Receivable * 365
In Cell E60, Calculate Fixed Asset Turnover using formula "Net Sales / Net Fixed Assets "
In Cell E61, Calculate Return on Equity using formula "Net Income / Owner's Equity"
J. P. Robard Mfg., Inc.
Balance Sheet ($000)
Net fixed assets
Short-term notes payable
Total liabilities and owners’ equity
J. P. Robard Mfg., Inc.
Income Statement ($000)
Net sales (all credit)
Cost of goods sold
Operating expenses (includes $500 depreciation)
Net operating income
Earnings before taxes
Income taxes (40%)
Times interest earned
Total asset turnover
Operating profit margin
Operating return on assets
Average collection period
Fixed asset turnover
Return on equity
ctions to use the Solution Template
ge 116 in the yellow colored cells below.
a "Current Assets / Current Liabilities"
g formula "Net Operating Income/ Interest Expense"
ormula "Cost of goods sold/ Inventory"
g formula "Net Sales / Total Assets"
ing formula "Net Operating Income / Net Sales"
s using formula "Net Operating Income / Total Assets"
( Current Liabilities + Long-term debt) / Total Assets"
using formula "( Accounts Receivable * 365 ) / Credit Sales "
formula "Net Sales / Net Fixed Assets "
mula "Net Income / Owner's Equity"
BBA 3301, Financial Management
1. Unit II Assignment
Use the provided Excel template to submit your responses to each of the study problems
from the textbook below:
3-13, p. 72. Review of financial statements
3-15, p. 73. Analyzing the cash flow statement
4-25, p. 116. Calculating financial ratios
Each question has a corresponding worksheet (look for the tab along the bottom of the
workbook). The cells can be adjusted, added, or removed as necessary.
Note: Reference: Titman, S., Keown, A. J., & Martin J. D. (2014). Financial management:
Principles and applications (12th ed.). Upper Saddle River, NJ: Pearson.
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