Given the following financial statements, please answer what is highlighted in y

Question

Given the following financial statements, please answer what is highlighted in yellow. 1) Please complete the financial statements of the company (see Dataset) and provide the following 2017 2016 Net income Retained earning EPS Book value per share EBITDA 2) What effect had the company's business activities in 2017 have on the following figures: 2017 2016 Change Capex NOWC Dividends 3) Calculate the free cash flow of the company in 2017 2017 FCF 4) Calculate the change of the following leverage ratios: 2017 2016 Change Long-term Debt/Equity Total Debt Capital Assume that the firm's stock price is $2.14 per share at the end of Q1 2018 and the firm has 308,000 shares outstanding. What is the firm's MVA if we assume that the book value is unchanged since 2017? 5) Q1 2018 MVA

Explanation / Answer

In this question we have multiple sub questions to be solved. So for this, ill first tell u the amounts which will arrive at the balance sheet. we will firt complete the balance sheet , then P&L account. after that we will solve the parts of the question.

Here is the balance sheet. Refr to the working notes attached by me below, to find out how a particular figure is arriving in the balance sheet or the statement of profit and loss.

                                    3,08,509

Now, refer the profilt and loss account

248441.87

;ets us now solve the question requirements

I hopethe figures are clear to you...that is from where are they coming....if you have any queries please let me know...ill be happy to help. all the best :)

          9,43,000

Balance Sheet Particulars 2017 2016 Cash and Cash Equivalents Refer Working Note           3,11,000 Accounts Receivable                                     4,71,288           4,76,000 Inventories                                   10,72,764           9,99,000 Other ST Assets                                         66,719              71,000 Total Current Assets        18,57,000 Plant Property Equipment'                                     8,14,441        12,37,000 -Accumulated Depreciation                                     4,35,870           3,00,000                                     3,78,571           9,37,000 Other Long term Assets                                         70,214              72,000 Total Non Current Assets                                     4,48,785        10,09,000 Liabilities Accounts Payable                                     1,51,050           1,50,000 Accruals                                     2,59,954           2,36,000 Notes Payable                                     5,86,765           5,88,000 Total Current Liab                                     9,97,769           9,74,000 Long Term Debt                                     9,10,838           9,40,000 Total Liabilities                                   19,08,607        19,14,000 Preferred Equity                                         46,000              46,000 Common Equity                                     4,83,000           4,70,000 Retained Earnings                                   -2,20,491           4,27,000 Total Equity

                                    3,08,509

Now, refer the profilt and loss account

Income Statement 2017 2016 Sales 3036000 3765000 COGS 20,57,200 (Balancing Figure by Sales-Gross Pft) 2460800 Gross Profit 978800 1304200 Operating Expenses : Selling and Admin Expense 287800 414200 Research and Development 331800 196900 Other Operating Expense 141500 189400 761100 800500 Operating Income / Loss 217700 503700 Depreciation and Amortisation 108967.74 EBIT 217700 394732.26 Interest Expense 61000 59000 Pre Tax Income/ Loss 156700 335732.26 Income Tax Expense 4790.9 87290.39 Net Income 151909.1

248441.87

;ets us now solve the question requirements

Q1 2017 2016 Notes 1 Net Income 151909.1 248441.87 Refer Working Note 1 2 Retained Earnings -220490.9 427000 Refer Working Note 2 Balance Sheet 3 EPS 0.5425325 1 EPS of Previous Year is given in the question = 151909.1/ 280000( given in question) Current Year EPS can be Cal by Net Income after Tax/ No of Shares Outstanding 4 Book Value per Share A Total Equity 308509.1 943000 B No of Equity Shares Outstanding 280000 248000 =A/B 1.101818214 3.802419355

1 Long Term Debt/ Equity A Long Term Debt                                     9,10,838           9,40,000 B Total Equity                                     3,08,509           9,43,000 =A/B                                             2.95                   1.00 2 Total Debt/ Capital A Total Liabilities                                   19,08,607        19,14,000 Preferred Equity                                         46,000              46,000 Common Equity                                     4,83,000           4,70,000 B Capital                                     5,29,000           5,16,000 =A/B                                             3.61                   3.71 Market Value Added a No of Shares Outstanding (as given in the question)                                     3,08,000 b Stock Price per share' 2.14 Market Value of the Firm                                     6,59,120 =a*b

I hopethe figures are clear to you...that is from where are they coming....if you have any queries please let me know...ill be happy to help. all the best :)

          9,43,000

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