1) Given the financial information for the Cambridge Manufacturing Inc., A) Prepare a Statement of Cash Flows for the year ended December 31, 2022. (25 marks) B) What is the dividend payout ratio? (2 marks) C) If we increased the dividend payout ratio to 100%, what would happen to retained earnings? ( 3 marks) Chapter 2 1. Earnings per share (e.p.s.) =NumberofsharesoutstandingEarningavailabletocommonshareholders (2-1) 2. Payout ratio =EarningspershareDividendpershare (22) 3. P/E ratio =EarningspershareMarketshareprice (23) 4. Dividend yield =MarketsharepriceDividendspershare(24) 5. BookvalueMarketvalue=BVMV=BookvaluepershareMarketvaluepershare (25) Chapter 3 A. Profitability ratios 1. Profit margin =SalesNetincome(31a) Gross profit margin =SalesGrossprofit(31b) 2. Return on assets (investment) (ROA) = a. TotalassetsNetincome b. SalesNetincomeTotalassetsSales 3. Return on equity (ROE) = Net income a. ShareholdersequityNetincome b. Equity multiplier =EquityTotalassets c. ROA Equity multiplier (3-3) B. Asset utilization ratios 4. Receivables turnover =ReceivablesSales(credit)(34a) Average collection period =AveragedailycreditsalesAccountsreceivable 5. Inventory turnover =InventoryCostofgoodssold or InventorySales(35a) Inventory holding period =AveragedailyCOGSInventory(35b) 6. Accounts payable turnover =AccountspayableCostofgoodssold(36a) Accounts payables period =Averagedailypurchases(COGS)Accountspayable(36b) 7. Capital asset turnover =CapitalassetsSales (37) 8. Total asset turnover =TotalassetsSales (38) C. Liquidity ratios 9. Current ratio =CurrentliabilitiesCurrentassets (39) 10. Quick ratio =CurrentliabilitiesCurrentassetsInventory D. Debt utilization ratios 11. Debt to total assets =TotalassetsTotaldebt(311) 12. Times interest earned =InterestIncomebeforeinterestandtaxes (312) 13. Fixed charge coverage =FixedchargesIncomebeforefixedchargesandtaxes (313) Chapter 4 1. RNF=S1A(S)S1L(S)PS2(1D) (41) 2. SGR =S1AP(1D)(1+EDT)P(1D)(1+EDT) (42) Chapter 5 1. CM=PVC (51) 2. BE=CMFC 3. DOL=EBITCM (54) 4. DFL=EBTEBIT (56) 5. EBIT =SBSASBIASAIB (57) 6. DCL=DOLDFL (59) 7. DCL=EBTCM (510) Formula Alternatives 8. DOL=Q(PVC)FCQ(PVC)=STVCFCSTVC 9. DFL=EBIT1EBIT 10. DCL=Q(PVC)FC1Q(PVC)=STVCFC1STVC Chapter 7 1. P100Pd365=r(71a) 2. (1+P100P)d3651=r(71b) 3. EOQ=C2SO(72) 4. TC=QSO+2CQ(73) Chapter 8 1. KDIS=100%d%d%f(date)d(date)365 (81) 2. Amount to be borrowed =(1c)Amountneeded 3. RANNUAL=P1d365 (82) 4. RDIS=P11d365 (83) 5. ROMP=(1c)1 (84) 6. RcOMP=(PB)1d365 (85) 7. RINSTAL=(Totalnumberofpayments+1)P2Annualnumberofpayments1 (86)