#1. Information: Instagram Trading has 2 billion in sales and 0.6 billion in fixed asset. As of now, the companys fixed assets are operating at 80% of capacity.

Questions:

Question 1: What level of sales could Instagram Trading have obtained if it have been operating at full capacity?

Question 2: What is Instagram Tradings target fixed assets to sales ratio?

Question 3: If Instagram Tradings sales increased by 30%, how large is the increase in fixed assets will the company need to meet its target fixed assets to sales?

2. Pia Corporation has a total sale of 20 million, a total debt of 1.5 million, and a debt ratio of 40%. How much is the total asset turnover? 3. Lambda Corporation found out that its earnings per share were 3.00. The corporation has 400 000 shares of common stock outstanding, its interest expense was 500,000 and its corporate tax is 40%. How much is the Earnings Before Interest and Taxes?

4 . Crazy Rich Asian Company reported 24 000 000 sales last year. Total asset turnover was 6.0 times. Interest Expense was 100,000 (10% of 1 million debt). The Company is financed entirely with debt and common equity. What is the debt ratio? 5. Earnings Before Interest and Taxes (EBIT) was 700 000 000; Earnings before interest, taxes, depreciation and amortization (EBITDA) was 850 000 000 interest expense was 200 000 000 and tax rate is 40%. Determine the operating cash flow 6. Ernst and Young Company sales are forecasted to double from 1 000 000 in 2020 to 2 000 000 in 2021. See the reported balance sheet on Dec 31 2020

Current Asset 500 000

Net Fixed Asset 500 000

Accounts Payable and Accruals 100 000

Notes Payable 150 000

Long Term Debt 400 000

Common Stock 100 000

Retained Earnings 250 000

Ernst and Young Company fixed assets were used to only 50% of capacity in 2020, but its current assets were at their proper level in relation to sales. All assets except fixed assets must increase in the same rate as sales and fixed assets would also have to increase at the same rate if the current excess capacity did not exist. Ernst and Young after tax profit margin is forecasted to be 5% and its payout ratio to be 60%. What is Ernst and Young Additional Fund Needed for the coming year?

7. Great Gatsby Trading has reported on its balance sheet amounting to 5 million of retained earnings at the end of 2001. A year later, it had 8 million of retained earnings. The Great Gatsby Trading had one million shares of common stock outstanding and paid dividend 0.80 per share in 2002. How much is Great Gatsbys earning per share in 2002?

8. The certified public accountant has forecasted the following number for La Carmela De Boracays

Sales 70 000 000

Ebitda 20 000 000

Depreciation 7 000 000

Tax rate 40%

The company does not expect any changes in its net operating working capital. This year the companys planned gross expenditure will total 12 million. What is La Carmela De Boracays forecasted free cash flow for the year?

9. Earthquake has destroyed a huge percentage of financial reports of Seda Corporation. The accountant has found out the return on equity to be 18%. Sales were 4 000 000, the debt ratio was 0.40 and the total liabilities were 2 million, find the Return on Assets.

10. XYZ Company has the following balance sheet amounts:

Total Current Liabilities --------- 805

Total Asset ------------------------- 2,655

Fixed and Other Asset ----------- 1,770

Long Term Debt ------------------- 200

Note: Amounts in the balance sheet are all in thousands

Required: Look for the Net Working Capital