Assignment

Anonymous
timer Asked: Jul 2nd, 2018
account_balance_wallet $10

Question description

Please open and find the below links to find a managerial finance problems.

I want a solution for both questions in seperate excel sheets.


Solution Chapter: Problem: 2 14 a. Cumberland Industries' most recent sales were $455,000,000; operating costs (excluding depreciation) were equal to 85% of sales; net fixed assets were $67,000,000; depreciation amounted to 10% of net fixed assets; interest expenses were $8,550,000; the state-plus-federal corporate tax rate was 40% and Cumberland paid 25% of its net income out in dividends. Given this information, construct Cumberland's income statement. Also calculate total dividends and the addition to retained earnings. The input information required for the problem is outlined in the "Key Input Data" section below. Using this data and the balance sheet above, we constructed the income statement shown below. Key Input Data for Cumberland Industries (Thousands of dollars) Sales Revenue Expenses (excluding depreciation) as a percent of sales Net fixed assest Depr. as a % of net fixed assets Tax rate Interest expense Dividend Payout Ratio Cumberland Industries: Income Statement (Thousands of dollars) Sales Operating costs excluding depreciation EBITDA Depreciation (Cumberland has no amortization charges) EBIT Interest expense EBT Taxes (40%) Net income 2016 $455.000 85,0% $67.000 10,0% 40,0% $8.550 25% 2016 Common dividends Addition to retained earnings b. Cumberland Industries' partial balance sheets are shown below. Cumberland issued $10,000,000 of new common stock in the most recent year. Using this information and the results from part a, fill in the missing values for common stock, retained earnings, total common equity, and total liabilities and equity. Dollar value of common stock issued (in thousands of dollars) $10.000 Cumberland Industries December 31 Balance Sheets (in thousands of dollars) Assets Cash and cash equivalents Short-term investments Accounts Receivable 2016 2015 $91.450 11.400 108.470 $74.625 15.100 85.527 Inventories Total current assets Net fixed assets Total assets Liabilities and equity Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total liabilities Common stock Retained earnings Total common equity Total liabilities and equity 38.450 $249.770 67.000 $316.770 34.982 $210.234 42.436 $252.670 $30.761 30.405 12.717 $73.883 80.263 $154.146 $23.109 22.656 14.217 $59.982 63.914 $123.896 $90.000 38.774 $128.774 $252.670 Check for balancing (this should be zero): c. Construct the statement of cash flows for the most recent year. Statement of Cash Flows (in thousands of dollars) 2016 Operating Activities Net Income Adjustments: Noncash adjustment: Depreciation Due to changes in working capital: Due to change in accounts receivable Due to change in inventories Due to change in accounts payable Due to change in accruals Net cash provided (used) by operating activities Investing Activities Cash used to acquire gross fixed assets Due to change in short-term investments Net cash provided (used) by investing activities Financing Activities Due to change in notes payable Due to change in long-term debt Due to change in common stock Payment of common dividends Net cash provided (used) by financing activities Net increase/decrease in cash Add: Cash balance at the beginning of the year Cash balance at the end of the year Check: cash balance in statement of cash flows should equal the cash on balance sheets as shown here: $91.450 7/16/2015 uding depreciation) were 0% of net fixed assets; and Cumberland paid d's income statement. ow. Using this data and d $10,000,000 of new rt a, fill in the missing and equity.
Solution Chapter: Problem: 7/16/2015 3 15 Joshua & White Technologies: December 31 Balance Sheets (Thousands of Dollars) Assets Cash and cash equivalents Short-term investments Accounts Receivable Inventories Total current assets Net fixed assets Total assets 2016 $21,000 3,759 52,500 84,000 $161,259 218,400 $379,659 2015 $20,000 3,240 48,000 56,000 $127,240 200,000 $327,240 Liabilities and equity Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total liabilities Common stock Retained Earnings Total common equity Total liabilities and equity $33,600 12,600 19,929 $66,129 67,662 $133,791 183,793 62,075 $245,868 $379,659 $32,000 12,000 6,480 $50,480 58,320 $108,800 178,440 40,000 $218,440 $327,240 Joshua & White Technologies December 31 Income Statements (Thousands of Dollars) 2016 2015 Sales $420,000 $400,000 COGS except excluding depr. and amort. 300,000 298,000 Depreciation and Amortization 19,660 18,000 Other operating expenses 27,600 22,000 EBIT $72,740 $62,000 Interest Expense 5,740 4,460 EBT $67,000 $57,540 Taxes (40%) 26,800 23,016 Net Income $40,200 $34,524 Common dividends Addition to retained earnings Other Data $18,125 $22,075 2016 $17,262 $17,262 2015 Year-end Stock Price $90.00 # of shares (Thousands) 4,052 Lease payment (Thousands of Dollars) $20,000 Sinking fund payment (Thousands of Dollars)$5,000 Ratio Analysis 2016 Liquidity Ratios Current Ratio Quick Ratio Asset Management Ratios Inventory Turnover (Total COGS/Inventories) Days Sales Outstanding Fixed Assets Turnover Total Assets Turnover Debt Management Ratios Debt Ratio (Total debt-to-assets) Liabilities-to-assets ratio Times-interest-earned ratio EBITDA coverage ratio Profitability Ratios Profit Margin Basic Earning Power Return on Assets Return on Equity Market Value Ratios Earnings per share Price-to-earnings ratio Cash flow per share Price-to-cash flow ratio Book Value per share Market-to-book ratio $96.00 4,000 $20,000 $5,000 2015 Industry Avg 2.58 1.53 7.69 47.45 2.04 1.23 20.0% 32.1% 15.33 4.18 8.86% 19.48% 10.93% 16.10% NA 10.65 NA 7.11 NA 1.72 a. Has Joshua & White's liquidity position improved or worsened? Explain. b. Has Joshua & White's ability to manage its assets improved or worsened? Explain. c. How has Joshua & White's profitability changed during the last year? d. Perform an extended Du Pont analysis for Joshua & White for 2008 and 2009. ROE = PM xTA Turnover x Equity Multiplier 2016 2015 e. Perform a common size analysis. What has happened to the composition (that is, percentage in each category) of assets and liabilities? Common Size Balance Sheets Assets Cash and cash equivalents Short-term investments Accounts Receivable Inventories Total current assets Net fixed assets Total assets 2016 2015 Liabilities and equity Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total liabilities Common stock Retained Earnings Total common equity Total liabilities and equity 2016 2015 Common Size Income Statements Sales COGS except excluding depr. and amort. Depreciation and Amortization Other operating expenses EBIT Interest Expense EBT Taxes (40%) Net Income 2016 2015 f. Perform a percent change analysis. What does this tell you about the change in profitability and asset utilization? Percent Change Balance Sheets Assets Cash and cash equivalents Short-term investments Accounts Receivable Inventories Total current assets Net fixed assets Total assets Liabilities and equity Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total liabilities Common stock Retained Earnings Total common equity Total liabilities and equity Percent Change Income Statements Sales COGS except excluding depr. and amort. Depreciation and Amortization Other operating expenses EBIT Interest Expense EBT Taxes (40%) Net Income 2016 Base 2015 2016 Base 2015 2016 Base 2015

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Drfranz
School: New York University

hey there 😃 . i have...

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Anonymous
Outstanding Job!!!!

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