Homework_3_Operating_and_Financing (1)

Margaret O'Flaherty, a portfolio manager for MCF Investments, is considering investing in Alpine Chemical 7% bonds, which mature in 10 years. She asks you to analyze the company to determine the riskiness of the bonds. Alpine Chemical Company Financial Statements Years Ended December 31, ($ in millions) 20X1 20X2 20X3 20X4 20X5 20X6 Assets Cash $ 55 $ 1,637 2,021 190 $ 2,143 1,293 157 249 $ 1,394 1,258 3,493 1,322 Accounts receivable 3,451 1,643 2,087 Inventories 945 Other current assets 17 27 55 393 33 171 5,097 6,181 Current assets 3,114 5,038 2,543 2,495 3,986 5,757 3,138 3,865 2,707 5,619 2,841 2,778 5,265 4,650 2,177 2,473 Gross fixed assets 7,187 3,893 3,465 2,716 Less: Accumulated depreciation Net fixed assets 2,619 3,294 Total assets $6,338 $5,609 $5,485 $6,605 $7,813 $8,559 Liabilities and net worth Notes payable Accounts payable $1,300 338 $ 525 2$ 750 $1,750 $1,900 673 638 681 743 978 Accrued liabilities 303 172 359 359 483 761 Current liabilities 1,501 1,985 1,997 1,457…

Do the calculations in excel, attach excel screenshots and explain the steps and formulas used for solving the problem. Following are the particulars available

The condensed financial statements of Westward Corporation for 2009 and 2008 are presented below.Westward Corporation Westward CorporationBalance Sheet Income StatementDecember 31, 2009 For the Year Ended December 31, 2009Assets Revenues $2,000,000Current assets ExpensesCash and temporary Cost of goods sold 1,080,000investments $ 30,000Selling and administrativeAccounts receivable 70,000Expenses 495,000Inventories 120,000Interest expense 30,000Total current assets 220,000Total expenses 1,605,000Property, plant, and Incomebefore income taxes 395,000equipment (net) 780,000Income tax expense 140,000Total assets $1,000,000Net income $ 255,000Liabilities and Stockholders’ EquityCurrent liabilities $ 80,000Long-term liabilities 300,000Common stockholders’ equity 620,000Total liabilities and stockholders’ equity $1,000,000Westward Corporation Westward CorporationBalance Sheet Income StatementDecember 31, 2008 For the Year Ended December 31, 2008Assets Revenues $2,500,000Current assets…

Selected income statement and balance sheet data from Merck & Co. for Year 9 are reproduced below: MERCK & COMPANY, INC. Year 9 Selected Financial Data ($ millions) Merck & Co. Income Statement Data Sales revenue... Depreciation...... Interest expense. $7,120 230 10 Pretax income... 2,550 Income taxes.. 900 Net income. 1,650 Balance Sheet Data Current assets... $4,850 Fixed assets, net... 2,400 Total assets.. 7,250 Current liabilities... 3,290 Long-term debt... 100 Shareholders' equity... 3,860 Total liabilities & shareholders' equity.. Required: a. Calculate return on common equity for Year 9 using year-end amounts and assuming no preferred dividends. b. Disaggregate Merck's ROCE. Comment on Merck's use of leverage. (Assume all assets and current liabilities are operating and a 35% tax rate.). c. Disaggregate ROA and comment on that.

The extracts of the financial statements of Laki Project Specialists Limited for 2018 are provided below: Extract of the Statement of Comprehensive Income for the year ended 31 December 2018 R   Revenue (credit) 988 000 Less purchases 400 000 Gross profit 560 000 Less Operating expenses 160 000 Operating profit 400 000 Less interest expense 70 000 Profit before tax 330 000 Profit after tax 280 000   Extract of Statement of Financial Position as at 31 December 2018 R   Non-current assets 1 140 000 Inventories 266 000 Debtors 300 000 Bank 220 000 Total assets 1 926 000     Ordinary share capital 1 000 000 Retained earnings 482 000 Non-current liabilities 240 000 Creditors 215 000 Total liabilities 1 926 000   Required:   Calculate the following ratios for 2018. Where applicable, answers must be rounded off to two decimal places. Profit margin  Interest cover  Debtors…

Analyze, Forecast, and Interpret Income Statement and Balance SheetFollowing are the income statement and balance sheet of ADP Inc. DATA PROCESSING INC. Statement of Consolidated Earnings For Year Ended June 30, 2019, $ millions Total revenues $8,505.1 Operating expenses 4,287.5 Systems development and programming costs 381.8 Depreciation and amortization 182.6 Total cost of revenues 4,851.9 Selling, general, and administrative expenses 1,838.5 Interest expense 77.9 Total expenses 6,768.3 Other (income) expense, net (66.7) Earnings before income taxes 1,803.5 Provision for income taxes 427.7 Net earnings $1,375.8   DATA PROCESSING INC. Balance Sheet $ millions June 30, 2019 Current assets   Cash and cash equivalents $1,169.5 Accounts receivable, net 1,463.6 Other current assets 311.8 Total current assets before funds held for clients 2,944.9 Funds half for clients 17,660.5 Total current assets 20,605.4 Long-term receivables,…

Calculate the following ratios  from the income statement and balance sheet all are required 1-Equity Turnover   2-Gross Profit Margin   3-Operating Profit Margin   4-Net Profit Margin   5-ROA   6- ROE Statement of financial position as at 31 December 2018       2018 2017   Note   RO     RO ASSETS             Non-current assets             Property, plant and equipment 14 8,407,572 9,300,442 Deferred tax assets 12 40,977 18,550                   8,448,549 9,318,992 Current assets             Inventories 15 430,885 422,421 Trade and other receivables 16 1,129,440 1,235,724 Due from related parties 24 70,300 73,050 Cash and bank balances 17 6,856,734 6,439,709             Total current assets   8,487,359 8,170,904           Total assets   16,935,908 17,489,896 EQUITY…

In the income statement below, ABC Trade Inc. wants to find the resulting net income for the year 2018 (in million). What is the right amount? Income Statement ($ Million)   Year End   2015 2016 2017 2018 Sales 1,234.90 1,251.70 1,300.40 1,334.40 Cost of Sales (679.10) (659.00) (681.30) (667.00) Gross Operating Income                   Selling & Administration (339.70) (348.60) (351.20) (373.30) Depreciation (47.50) (52.00) (55.90) (75.20) Other Income/Expenses 11.80 7.60 7.00 8.20 Earnings Before Interest and Taxes                   Interest Income 1.30 1.40 1.70 2.00 Interest Expense (16.20) (15.10) (20.50) (23.70) Pre Tax Income                   Income Taxes (56.80) (64.20) (67.50) (72.60) Net Income                   Dividends (38.30) (38.70) (39.80) (40.10) Addition to Retained Earnings           Group of answer choices 121.8 108.7 132.7 132.8 No choice given

Statement of Financial Position ($ in thousands)     Statement of Comprehensive Income ($ in thousands)                        2011              2012                  2011              2012  ASSETS       Sales   1,327,610       1,501,726  Cash                    84,527           60,806    Less Cost of Sales  1,025,425)    (1,147,025) Accounts Receivables                 136,629         194,096    Gross Profit       302,185           354,701  Inventories                 107,876         137,448    Less Selling, general and administrative expense    (129,986)       (125,219) Prepaid Expenses                    21,727           32,413    Less Depreciation      (47,511)          (49,346) Other Current assets                    31,287           34,383    Operating Profit       124,688           180,136  Total Current Assets                 382,046         459,146    Less Interest…

The following information appeared in the annual financial statements of Havard Projects Limited: Statement of Comprehensive Income for the year ended 31 December 2019   R Revenue 1 250 000 Direct costs (786 000) Gross profit 464 000 Operating expenses (124 000) Operating profit 340 000 Interest expense (15 000) Profit before tax 325 000 Income tax (97 500) Profit after tax 227 500 Statement of Financial Position as at 31 December 2019 Assets R Non-current assets 314 000 Current assets 386 000 Total assets 700 000 Equity and liabilities   Shareholders’ equity 350 000 Non-current liabilities 205 000 Current liabilities 145 000 Total equity and liabilities 700 000 Note Current assets (R386 000) include accounts receivable of R160 000, inventories of R80 000 and cash of R146 000. Inventories as at 31 December 2018 amounted to R130 000. Current liabilities comprise…

The following information is taken Aiello Corporation's fiscal 2016 annual report.      Selected Balance Sheet Data 2016 2015 Inventories........................ $221,418 $226,893 Accounts Receivable........... $121,333 $122,087   Assume that Aiello Corporation had $1,003,881 sales on credit during fiscal year 2016. What amount did the company collect from credit customers during the year?    a. $1,003,881 b. $1,004,635 c. $1,003,127 d. $1,247,301

Calculating Ratios and Estimating Credit Rating The following data are from Kellogg's 10-K report dated December 29, 2018 ($ millions). Revenue Interest expense Tax expense Amortization expense Depreciation expense $13,547 Earnings from continuing operations $1,344 Capital expenditures (CAPEX) 578 287 181 Total debt 8,893 23 Average assets 17,066 493 a. Use the data above to calculate the following ratios: EBITA/Average assets, EBITA Margin, EBITA/ Interest expense, Debt/EBITDA, CAPEX/Depreciation Expense. Definitions for these ratios are in Exhibit 7.4. b. Refer to Exhibit 7.4 and the ratios you calculated in part a. Estimate the credit rating that Moody's might assign to Kellogg. Round answers to one decimal place (percentage ex: 0.2345 = 23.5%) Ratio Moody's rating EBITA/Avg. assets EBITA margin EBITA/Int. expense Debt/EBITDA CAPEX/Dep. expense Please answer all parts of the question. 0% 0% 0 0 0 ◆ ◆

Given the pro forma income statement and balance sheet below, find EFN. INCOME STATEMENT: Sales, $2,000. Costs: $1,467. NI: $533. BALANCE SHEET: Assets: $109,560. Debt: $41,650. Equity: $45,230.

Prepare the Pro-Forma Statement of Financial Position for the year ending 31 December 2023  INFORMATIONSibiya ProjectsStatement of Comprehensive Income for the year ended 31 December 2022 RSales 10 000 000Cost of sales (5 750 000)Gross profit 4 250 000Variable, selling and administrative costs (1 500 000)Fixed selling and administrative costs (500 000)Net profit 2 250 000 Statement of Financial Position for the year ended 31 December 2022ASSETS RNon-current assets 800 000Property, plant and equipment 800 000 Current assets 3 400 000Inventories 1 600 000Accounts receivable 600 000Cash 1 200 000TOTAL ASSETS 4 200 000 EQUITY AND LIABILITIESEquity 3 760 000 Current liabilities 440 000Accounts payable 440 000TOTAL ASSETS AND LIABILITIES 4 200 000 Additional informationA. The sales budget for 2023 is as follows:First Quarter Second Quarter Third Quarter Fourth QuarterR2 625 000 R2 750 000 R2 875 000 R2 750 000 B. 90% of sales is collected in the quarter of the sale and 10% in the quarter…

Question. If given the following information: 2,073 Current Assets Current Liabilities 1,634 Cash 1,182 Inventory 316 934 Net working capital Total Assets 3,873 Average Daily Operating Costs Find the Current Ratio.

Using the “Statement of Income” worksheet, center the financial statement titles across the data below and bold the company name   Thom-Pierre Consultants (TPC)       Quarterly Schedule of Revenue         For the year December 31, 2018                       QTR1 QTR2 QTR3 QTR4 2018 Sales 290000 320000 320000 490000        1,420,000 Interest 102500 175000 180000 54000          511,500 Investment Income 13000 9500 10000 20000            52,500 Other 16000 25000 19500 29000            89,500 Total       421,500       529,500       529,500       593,000        2,073,500         Thom-Pierre Consultants (TPC)       COMPARITIVE INCOME STATEMENT     for years ended 31 December             2018 2019   Revenues and gains         *Sales revenue         *Interest revenue         *Investment Income       *Other revenue         Total revenue and gains                   Expenses and losses       **Cost of goods sold          460,000     **Selling…

Return on Total Assets A company reports the following income statement and balance sheet information for the current year: Net income    $661,910Interest expense    116,810Average total assets    6,280,000Determine the return on total assets. If required, round the answer to one decimal place.fill in the blank 1 %

The following financial statements relate to Inna Projects Limited:Statement of Comprehensive Income for the year ended 30 June 2018R’000Sales (Credit)8 000Cost of sales2 000Gross profit6 000Operating expenses2 800Operating profit3 200Interest expense220Profit before tax2 980Tax (25%)745Profit after tax2 235Statement of Financial Position as at 30 June 2018ASSETSR’000R’000Non-current assets45 320Current assets13 980Inventory5 080Debtors7 600Bank1 30059 300EQUITY AND LIABILITIESOwners’ equity54 040Capital39 000Retained income15 040Non-current assets3 000Current liabilities2 260Creditors2 26059 300Note: Inventory on 1 July 2017 amounted R3 000 000.Required:Calculate the following ratios and where applicable round off answers correctly to two decimal places:2.1 Gross margin (5)2.2 Inventory turnover (5)2.3 Debtors collection period (5)2.4 Return on own capital (5)2.5 Acid test ratio (5

The summarized revenues and expenses information for Canadian Travel Inc. for the year 2018 states:1cost of goods sold CAD180,000, sales revenue CAD400,000, other (non-operating) revenues and gainsCAD30,000, sales general and administration expenses of CAD100,000. Net interest income is (+)CAD10,000 and the corporate income tax rate is 26,50%: Prepare the Income (i.e. Pro…t & Loss) Statement of Holiday Inc., showing Gross Pro…t, OperatingPro…t, Other gains/(losses), Earnings before Interest and Tax (EBIT), Pro…t before Tax and NetIncome i.e. Net Pro…t. Point out and explain which of all these revenue and expense items may imply/include non-cashtransactions or accounting records. If the ending balance in Retained Earnings on Canadian Travel Inc.’s 31. Dec 2017 balance sheetwas $1,000,000 and a cash dividend of $10,000 was paid in 2018, using the above information showthe balance sheet entries of Retained Earnings as of 31. Dec 2018.In addition to the above, assume that Canadian…

The following data are taken from the financial statements of Sheffield Company. Accounts receivable (net), end of year Net sales on account Terms for all sales are 1/10, n/45 (a1) X Your answer is incorrect. 2022 $555,000 3,997,500 2021 $470,000 3,122,250 Compute for each year the accounts receivable turnover. At the end of 2020, accounts receivable (net) was $435,000. (Round answers to 1 decimal place, e.g. 1.6.)

Computing NOPAT, NOPM and RNOA Selected information from the financial statements of GoPro, Inc. is provided below: ($ thousands) Revenue Operating income Net interest expense and other nonoperating expense Net income Operating assets Operating liabilities 2014 $ 121,573 2013 $ 64,157 Assume a statutory tax rate of 35%. a. Compute GoPro's net operating profit after taxes (NOPAT) for 2014 and 2013. Round answers to the nearest whole number. 2014 2013 2014 2013 $1,392,450 $984,725 b. Compute GoPro's net operating profit margin (NOPM) for each year. Round answers to one decimal place. (Ex: 0.2345 = 23.5%) 8.7% 6.5 % 187,035 98,703 6,032 7,357 125,888 60,758 815,643 439,716 276,487 254,227 33.6% c. Compute GoPro's return on net operating assets (RNOA) for 2014. Round answers to one decimal place. (Ex: 0.2345 = 23.5%) 2014

Niantic reported the following financial information (amounts in millions). $ 8,550 11,977 950 4,900 201 Current assets Total assets Current liabilities Net sales Net Income Compute the current ratio and profit margin. Note: Round your answers to 2 decimal places. Current ratio Profit margin %

Compute and Interpret Ratios Selected balance sheet and income statement information from Illinois Tool Works follows. $ millions 2019 2018 2017 Net operating profit after tax (NOPAT) $2,897 $3,009   Net income 2,798 2,845   Total assets 15,671 15,465 $17,451 Equity 3,147 3,384 3,384 Net operating profit after tax (NOA) 9,224 9,840 10,493 Treasury stock 21,070 19,475 17,274 a. Compute profitability measures: RNOA, ROA and ROE for 2019 and 2018 using the numbers as reported by the company.Note: Round answers to one decimal place (ex: 0.2345 = 23.5%). Metric 2019 2018 RNOA Answer   Answer   ROA Answer   Answer   ROE Answer   Answer     b. Adjust equity and total assets for the amount of treasury stock. $ millions 2019 2018 2017 Assets, restated Answer   Answer   Answer   Equity, restated Answer   Answer   Answer     Using these restated numbers, recompute RNOA, ROA and ROE for both years.Note: Round answers to one decimal…

The following information appeared in the annual financial statements of Hitashi Projects Limited:   Statement of Comprehensive Income for the year ended 31 December 2019     R Revenue 1 250 000 Direct costs (786 000) Gross profit 464 000 Operating expenses (124 000) Operating profit 340 000 Interest expense (15 000) Profit before tax 325 000 Income tax (97 500) Profit after tax 227 500       Statement of Financial Position as at 31 December 2019   Assets R Non-current assets 314 000 Current assets 386 000 Total assets 700 000 Equity and liabilities   Shareholders’ equity 350 000 Non-current liabilities 205 000 Current liabilities 145 000 Total equity and liabilities 700 000       Note     Current assets (R386 000) include accounts receivable of R160 000, inventories of R80 000 and cash of R146 Inventories as at 31 December 2018 amounted to R130 Current liabilities…

Selected balance sheet and income statement information for Home Depot follows. $ millions Jan. 31, 2016 Feb. 01, 2015 Operating assets $40,683 $38,573 Nonoperating assets 2,266 1,773 Total assets 42,949 40,346 Operating liabilities 15,043 13,552 Nonoperating liabilities 21,275 17,157 Total liabilities 36,318 30,709 Sales 89,234   Net operating profit before tax (NOPBT) 12,124   Nonoperting expense before tax 803   Tax expense 4,001   Net income 7,320   Round answers to two decimal places (ex: 0.12345 = 12.35%). a. Compute return on net operating assets (RNOA). Assume a statutory tax rate of 37%.Answer% b. Disaggregate RNOA into components of profitability and productivity and show that the product of the two components equals RNOA. Assume a statutory tax rate of 37%.NOPM Answer%NOAT Answer

Compute and Interpret Ratios Selected balance sheet and income statement information from Illinois Tool Works follows. $ millions 2019 2018 2017 Net operating profit after tax (NOPAT) $2,897 $3,009   Net income 2,798 2,845   Total assets 15,671 15,465 $17,451 Equity 3,147 3,384 3,384 Net operating profit after tax (NOA) 9,224 9,840 10,493 Treasury stock 21,070 19,475 17,274   b. Adjust equity and total assets for the amount of treasury stock. $ millions 2019 2018 2017 Assets, restated Answer   Answer   Answer   Equity, restated Answer   Answer   Answer

Compute and Interpret Ratios Selected balance sheet and income statement information from Illinois Tool Works follows. $ millions 2019 2018 2017 Net operating profit after tax (NOPAT) $2,897 $3,009   Net income 2,798 2,845   Total assets 15,671 15,465 $17,451 Equity 3,147 3,384 3,384 Net operating profit after tax (NOA) 9,224 9,840 10,493 Treasury stock 21,070 19,475 17,274   Using these restated numbers, recompute RNOA, ROA and ROE for both years.Note: Round answers to one decimal place (ex: 0.2345 = 23.5%). Metric 2019 2018 RNOA Answer   Answer   ROA Answer   Answer   ROE Answer   Answer