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Name__________________________________ Fin 3334 Financial Statement Analysis Comprehensive Final Exam You are given the following information for X Corporation, including an income statement, a balance sheet, and a statement of cash flow. You are also given a Penman Decomposition. And are asked to answer a number of questions. Income Statement Sales Cost of sales Operating expense Depreciation expense Tax on operating profit Net operating profit after tax Net interest expense, net of tax Net income Prior Year Current Year 36,251 (18,121) (4,158) (1,896) (4,830) 7,246 (584) 6,662 38,567 (17,156) (5,211) (2,011) (5,765) 8,424 (623) 7,801 Cash Accounts receivable Inventory Marketable securities Net fixed assets Total assets 901 1,802 2,016 1,456 19,654 25,829 927 1,915 2,435 2,821 21,787 29,885 Accounts payable Accrued expense Long term debt Common stock Retained earnings Treasury stock Accumulated other comp. inc. Total liabilities and equity 1,211 2,014 16,983 1,502 5,556 (862) (575) 25,829 1,313 2,321 12,033 1,502 13,211 (1,465) 970 29,885 Balance Sheet Statement of cash flows for the current year Net income Accounts receivable Inventory Accounts payable Accrued expense Depreciation expense Cash flow from operations 7,801 (113) (419) 102 307 2,011 9,689 Fixed asset additions (Purchase) of marketable sec. Increase in AOCI Cash flow from investment (4,144) (1,365) 1,545 (3,964) Long term debt retired Dividends paid Treasury stock purchased Cash flow from financing activities (4,950) (146) (603) (5,699) Net cash flow 26 You are also given the Penman Decomposition for X Corporation for the prior year and for the current year. Prior Current Year Year NOPAT Net interest after tax Net income 7,246 (584) 6,662 8,424 (623) 7,801 Total assets Marketable securities Accounts payable Accrued expense Net operating capital Marketable securities Book value of the firm 25,829 (1,456) (1,211) (2,014) 21,148 1,456 22,604 29,885 (2,821) (1,313) (2,321) 23,430 2,821 26,251 Long term debt Common Stock Retained earnings Treasury stock Accumulated other comp. inc. Total stakeholder claims 16,983 1,502 5,556 (862) (575) 22,604 12,033 1,502 13,211 (1,465) 970 26,251 (1) Compute FCF for the current year, using NOPAT as your starting point. (2) Compute dispositions of FCF (3) Compute FCF using cash flow from operations as your starting point. (4) Using the information included in the Penman Decomposition of X corporation, perform a GAP analysis for the current year and interpret your results. Compute ROIC Compute net after tax interests expense. Perform a "gap analysis" (5) X Corporation trades at 12.6 times earnings, it has 2,000 shares outstanding and has 863 options outstanding with an exercise price of 32. Compute the primary and fully diluted earnings per share. (6) X has just purchases 60 percent of the shares of T Corporation. It has paid a total of 3260 for its shares. You are given the balance sheet and selected market values for assets and liabilities. Compute the opening balance of T Corporation upon \ consolidation with X. Assume that X will adopt the full consolidation method. Book Values Cash Accounts rec Inventory Fixed assets Trademarks Patents Goodwill Total assets Accounts payable Accrued expense Restructuring reserve Long term debt Common equity Minority interest Total liabilities and equity 4,500 128 450 512 Market Values 300 1,257 200 150 5,590 450 212 2,012 1,728 3,200 5,590 Opening Balances
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