Blanace sheet Cash Short-term investment Accounts Receivable Inventories Total current assests Gross fixed assets Less: Accumulated depreciation Net fixed assets Total assests 2012 9.000 48000 351200 715200 1124000 491000 146200 344800 1468800 2013 7.282 20000 632160 1287360 1946802 1202950 263160 939790 2886592 2014 14.000 71632 878000 1716480 268112 1220000 383160 836840 3516952 Liabilities and Equity Accounts payable Notes Payable Accruals Total current Liabilities Long-term debt Common stock (100,000 shares) Retained earnings Total equity Total liabilities and equity 145600 200000 136000 481600 323432 460000 203768 663768 1468800 324000 720000 284960 1328960 1000000 460000 97632 557632 2886592 359800 300000 380000 1039800 500000 1680936 296216 1977152 3516952 Income Statements Sales Cost of goods sold except depre. Depreciation and amortization other expenses Total operating costs EBIT Interests expense EBT Taxes (40%) Net income 2012 2013 3432000 5834400 2864000 4980000 18900 116960 340000 720000 3222900 5816960 209100 17440 62500 176000 146600 ($158.560) 58640 -63424 87960 ($95.136) 2014 7035600 5800000 120000 612960 6532960 502640 80000 422640 169056 253584 Other Data Stock Price Shares outstanding EPS DPS Tax rate Book value per share Lease payments 2012 $8,50 100000 $0,88 $0,22 40% $6,64 $40.000 2014 $12,17 250000 $1,10 0,22 40% $7,91 $40.000 2013 $6,00 100000 ($0,95) 0,11 40% $5,58 $40.000 Ratio Analysis Current Quick Inventory turnover Days sales outstanding Fixed assets turnover Total assets turnover Debt ratio Liabilities-to-assets ratio TIE EBITDA coverage Profit margin Basic earning power ROA ROE Price/Earning (P/E) Price/Cash flow Market/Book 2012 2,3 0,8 4 37,3 10 2,3 35,60% 54,80% 3,3 2,6 2,60% 14,20% 6,00% 13,30% 9,70% 8,00% 1,30% 2013 Industry Average 1,5 2,7 0,5 1 4 6,1 39,6 32 6,2 7 2 2,5 59,60% 32,00% 80,70% 50,00% 0,1 6,2 0,8 8 -1,60% 3,60% 0,60% 17,80% -3,30% 9,00% -17,10% 17,90% -6,30% 16,20% 27,50% 7,60% 1,10% 2,90% Directions: Answer the following questions on a separate document. Explain how you reached the answer or show your work 1. What is the free cash flow for 2014? 2. Suppose Congress changed the tax laws so that Berndt’s depreciation expenses doubled. No changes in operations occurre 3. Calculate the 2014 current and quick ratios based on the projected balance sheet and income statement data. What can yo 4. Calculate the 2014 inventory turnover, days sales outstanding (DSO), fixed assets turnover, and total assets turnover. 5. Calculate the 2014 debt ratio, liabilities-to-assets ratio, times-interest-earned, and EBITDA coverage ratios. What can you c 6. Calculate the 2014 profit margin, basic earning power (BEP), return on assets (ROA), and return on equity (ROE). What can 7. Calculate the 2014 price / earnings ratio, price / cash flow ratio, and market / book ratio. 8.Use the extended DuPont equation to provide a summary and overview of company’s financial condition as projected for 2 d the answer or show your work if a mathematical calculation is needed, or both. Use the following information for Questions 1 through 8 mation for Questions 1 through 8: Assume that you recently graduated and have just reported to work as an investment advisor at the on as an investment advisor at the one of the firms on Wall Street. You have been presented and asked to review the following Income State review the following Income Statement and Balance Sheets of one of the firm’s clients. Your boss has developed the following set of ques eveloped the following set of questions you must answer.
Purchase answer to see full attachment