FILL IN THE INCOME, CASH FLOW AND BALANCE SHEET STATEMENTS AS WELL AS CALCULATE

Question

FILL IN THE INCOME, CASH FLOW AND BALANCE SHEET STATEMENTS AS WELL AS CALCULATE THE RATIOS FOR 2014 INPUT OUTPUT Income Statement 201 50,000 300,000 20,000 150,000 2013 Cash Flovw Sales Cost of Good Sold 2013 2014 2014 Sales COGS NI Plus Depreciation Cash Income Depreciation Interest Expense Tax Rate 20,000 36,000 8,000 40.0% 0,000 9,000 40.0% 50,00055,000 Gross margin WC Change in A/R EBITDA Depreciation EBIT nterest Change in Inventory Change in A/P Change Working Capital Long Term Debt Initial Equity Investment Accounts Receivable Inventory Gross Fixed Assets Accumulated Depreciation Accounts Payable Retained Earnings 40,000 230,00 150,000 150,000 40,000 42,000 14,500 800,000 820,000 15,000 Taxes Inv Capex Fin Debt 35,000 100,000 Equity Fin Activity 36,000 Balance Sheet 2013 2014 Cash Account Receivable Cash Flow Beginning Cash Flow Ending Cash Flow Financial Ratios (2014) Gross Profit Total CIA Gross Fixed Assets Accumulated Depreciation Net Fixed Assets Total Assets Accounts Payable Long Term Debt Accounts Receivable Days Inventory Turnover Days ROA ROE Total Liabilities Initial Equity Investment Retained Earnings Total Equity Total Liability+ Equity

Explanation / Answer

Income Statement (Amounts in $)

Cash Flow (Amounts in $)

Balance Sheet (Amounts in $)

Financial Ratios (2014)

(i) Gross Profit = Gross Margin/Sales = $150,000/300,000 = 50%

(ii) Average Accounts Receivable = ($40,000+$42,000)/2 = $41,000

Accounts Receivable Days = (Days in Year*Average Accounts Receivable)/Sales for 2014

= (365 days*$41,000)/$300,000 = 50 days (approx.)

(iii) Average Inventory = ($15,000+$14,500)/2 = $14,750

Inventory Turnover Days = (Days in Year*Average Inventory)/Cost of Goods Sold

= (365 days*$14,750)/$150,000 = 36 days (approx.)

(iv) Return on Assets = Net Income/Average Total Assets

= $27,600/[($525,000+$543,600)/2] = $27,600/$534,300 = 5.17%

(v) Return on Equity = Net Income/Average Total Equity

= $27,600[($250,000+$277,600)/2] = $27,600/$263,800 = 10.46%

2013 2014 Sales 250,000 300,000 Less: COGS (120,000) (150,000) Gross Margin 130,000 150,000 Less:SG&A (50,000) (55,000) EBITDA 80,000 95,000 Less: Depreciation (36,000) (40,000) EBIT 44,000 55,000 Less: Interest (8,000) (9,000) EBT 36,000 46,000 Less: Taxes (@40%) (14,400) (18,400) Net Income (NI) 21,600 27,600

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