Can Anyone help me for this please with typing (Q1-4 ), need it asap!!! (Finance

Question

Can Anyone help me for this please with typing (Q1-4 ), need it asap!!! (Finance-working capital management) thanks!!!!!!!!!!

Answer the question with typing, thank you!!!

Use the following financial statements for problems 1 through !5 JW, Inc.: Income Statement 2016 2015 Sales CGS Gross Profit Operating Expenses Depreciation EBIT Interest Expense EBT Taxes NI Dividends ARE 5,700.00 $4,560.00) $1,140.00 $ 500.00) ($ 27.00) 613.00 $ 35.00) 578.00 $ 231.20) 346.80 5,050.00 $4,040.00) 1,010.00 $ 420.00) $ 26.00) 394.00 S 30.00) 364.00 ($ 145.60) $218.40 346.80 $218.40 JW, Inc.: Balance Sheet 2016 2015 Cash and Equivalents Accounts Receivable Inventory Total Current Assets Fixed Assets Accumulated Depreciation Net Fixed Assets Total Assets 714.80 500.00 300.00 $1,514.80 660.00 $227.00) 433.00 $ 1,947.80 120.00 500.00 340.00 960.00 800.00 (S 200.00) 600.00 1,560.00 Accounts Payable Short-Term Notes Payable Accruals Total Current Liabilities Long-Term Debt Total Liabilities 320.00 40.00 11.00 371.00 780.00 1,151.00 300.00 50.00 10.00 360.00 750.00 1,110.00 Common Stock Retained Earings Total Shareholders' Equity 120.00 $676.80 $796.80 120.00 330.00 450.00 Liabilities and Shareholders'Equity 1,947.80 1,560.00

Explanation / Answer

1. Calc, JW's CCE, Cash Ratio, DCH, and NLB, and interp. The 2 yr trend. How would you describe the liquidity position? CCE = Operating CF/Rev Operating CF = NI + Dep - rec -inv +accrual + payables 2016 CCE = [346.8 + 27 - 0 - (-40) + 1 + 20]/5700 434.8 = 7.63% 0.076280702 2015 CCE = [218.4 + 26 - 0 - (-40) + 1 + 20]/5050 305.4 = 6.05% 0.060475248 Cash Ratio = Cash and Equivalents/ Total Assets 2016 Cash Ratio = (714.8/1947.8) = 36.7% 0.366978129 2015 Cash Ratio = 120/1560 =7.69% 0.076923077 DCH= Cash and Equivalents/ [COGS/365] 2016 DCH = 714.8/[4560/365) = 57.22 57.21535088 2015 DCH = 120/(4040/365) =10.84 10.84158416 NLB = Cash and Equivalents - current financial liabilities 2016 NLB = 714.8 - 40 = 674.8 674.8 2015 NLB = 120 - 50 = 70 70 Interpret: For each dollar they made in revenue in 2016 they gained 7.63% and in 2016, 6.05%. For ever dollar of assets the company has they have 36.7% in cash in 2016 and 7.69% in 2015. For their DCH in 2016 they would go 57 days without cash, in 2015 they could go 10.84 days without cash. The NLB shows us that they have more cash than their current liabilities for both years. Describe Liquidity position: Their liquidity greatly increased from 2015 increasing their NLB over $500. 2. Suppose that JW target DCH of 250 days. a. Assume that CGS are expected to remain unchanged from 2016 what is change in cash? 250= Cash and equivalents / (4560/365) Cash and equivalents = $3123.29 b. Assuming cash will remain unchanged from 2016, what CGS would be warranted? 250 = 714.8/(COGS/365) 250(COGS/365) = 714.8 COGS/365= 2.8592 COGS = 1043.6 3. Level of cash required to generate following values for the Cash Ratio? Cash Ratio = Cash and Equivalents/ Total Assets a. 20% 20% = Cash/ 1947.8 Cash = 389.56 389.56 b. 15% 15% = Cash/ 1947.8 Cash = 292.17 292.17 c. 10% 10% = Cash/ 1947.8 Cash = 194.78 194.78 d. 5% 5% = Cash/ 1947.8 Cash = 97.39 97.39 4. what level of operating CF will be required to generate the following values for CCE? CCE = Operating CF/Rev Operating CF = NI + Dep - rec -inv +accrual + payables a. 10% 10% = Operating CF / 5700 OP CF = 570 570 b.15% 15% = Operating CF / 5700 OP CF = 855 855 c. 20% 20% = Operating CF / 5700 OP CF = 1140 1140 d. 25% 25% = Operating CF / 5700 OP CF = 1425 1425

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