Financial MGMT_Assgn_2

Anonymous
timer Asked: Apr 6th, 2017
account_balance_wallet $10

Question Description

Please see uploaded document

Unformatted Attachment Preview

Problem 3-13 Warner Company Balance Sheet Current Assets 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 Current Liabilities Long-term Liabilities Owners Equity Total liabilities and equity Q. What can you say about the firm’s financial condition based on these financial statements? 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. ome Statement cial ratio analysis. Briefly es, but Business Source Problem 3-15 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. Problem 4-25 Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 Step 9 Step 10 Step 11 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" Given J. P. Robard Mfg., Inc. Balance Sheet ($000) Cash Accounts receivable Inventories Current assets Net fixed assets Total assets Accounts payable Accrued expenses Short-term notes payable Current liabilities Long-term debt Owners’ equity Total liabilities and owners’ equity J. P. Robard Mfg., Inc. Income Statement ($000) Net sales (all credit) Cost of goods sold Gross profit Operating expenses (includes $500 depreciation) Net operating income Interest expense Earnings before taxes Income taxes (40%) Net income Solution Current ratio Times interest earned Inventory turnover Total asset turnover Operating profit margin Operating return on assets Debt ratio Average collection period Fixed asset turnover Return on equity Problem 4-25 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" Given Solution 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. ...
Purchase answer to see full attachment

Tutor Answer

FrankRose23
School: Duke University

Attached.

Problem 3-13
Warner Company Balance Sheet
Current Assets
Cash
Accounts Receivable
Inventory

Warner Company Income Statement
225.000
167.500
99.300

Long Term (fixed) assets
Buildings and Equipment
Accumulated depreciation
Total assets

Depreciation expense
895.000
-263.000
1.123.800

Current Liabilities
Accounts Payable
Notes Payable
Accrued expenses
Taxes payable

Sales
Cost of goods sold
Gross profit
General & Administrative expenses

102.000
75.000
7.950
53.000

Net operating income
Interest expense
Earnings before taxes
Taxes
Net income

Long-term Liabilities
Long-term debt

334.000

Owners Equity
Common Stock
Retained earnings

289.000
262.900

Total liabilities and equity
Total liabilities and equity

1.123.850

Q. What can you say about the firm’s financial condition based on these financial
statements?

From the balance sheet, we can note that the current ratio of 2.1 which indicates a strong liquidity position. The
return on assets is 6.7%, net margin equals 13.2%, Return on equity equals 13.7%. Based on this information, we
can conclude that BigBox is in as strong financial position, given the fact that the company is profitable, has good
liquidity position and has great efficiency.

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.

Article used: http://valumonics.com/wp-...

flag Report DMCA
Review

Anonymous
Good stuff. Would use again.

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors