1. Use the Financial Statements provided for ABC Inc., DEF Co. and GHI Corporation in the Excel Files provided to compute the ratios that are listed below Tests of Liquidity 1. Current Ratio - (Current Assets / Current Liabilities) 2. Quick Ratio - (Quick Assets / Current Liabilities) Quick Assets = Cash + Short term iny + Ac Rec OR Current Assets - Inventory 3. Receivables Turnover Ratio - (Net Credit Sales / Average Net Receivables) If credit sales are not shown separately, consider total sales revenue as credit sales 4. Inventory Turnover Ratio - (COGS / Average Inventory) 5. Payables Turnover ratio (COGS / Average Accounts payable). 6. Average age of receivables (365/Receivables Turnover Ratio) 7. Average age of payables (365/Payables Turnover Ratio) 8. Average age of inventory (365/Inventory Turnover Ratio) 9. Working capital cycle (Ave age of Inv. + Ave age of Rec. Ave age of Payables) Income Statement for the year ended All numbers in millions Date 12/31/2016 5,931 12/31/2017 7,933 12/31/2015 DEF GHI 12/31/2017 12/31/2016 12/31/2015 12/31/2017 12/31/2016 12/31/2015 21,171 20,425 19,820 7,015 6,632 6,416 5,598 5,931 (4,582) 1,349 7,933 (6,673) 1,260 51 (103) 20,425 (16,665) 21,171 (17,656) 3,515 5,598 (4,300) 1,298 55 (42) 7,015 (6,015) 1,000 Net Revenue COGS* Gross Profit Selling Admin and General Exp Operating Income or Loss Other revenues Interest Exp Other Exp Income Before Tax Income tax benefit (expense) Net Income 6,416 (5,200) 1,216 3,760 6,632 (5,320) 1,312 15 (111) 52 84 16 19,820 (15,704) 4,116 40 (121) (556) 3,479 (1,298) (55) (95) (128) (1) (1) 71 (122) (162) 3,547 (1,303) 2,244 (114) (234) 3,251 1,345 1,216 1,207 (173) 1,034 1,312 (464) 848 (531) 1,097 (420) 921 226 1,147 237 (457) 759 814 3,488 2,1811 677 *As the companies are service companies, no COGS are stated. Balance Sheet as of All numbers in millions ABC DEF 12/31/201712/31/2016 GHI 12/31/2016 12/31/2017 1 2/31/2016 12/31/2015 12/31/2015 12/31/2017 12/31/2015 318 558 136 Period Ending date Current Assets Cash And Cash Equivalents Short Term Investments Net Acc Receivables Inventory Other Current Assets Total Current Assets Long Term Assets Long Term Investments Property Plant and Equipment net Other Assets Total Assets 194 1427 341 57 127 2,146 73 1255 212 51 328 1252 302 47 121 2,050 1,495 1,778 662 420 460 4,815 1,680 1,625 546 337 310 4,498 1,583 1,468 474 311 188 4,024 303 390 245 55 213 1,206 433 538 172 47 213 1,403 72 317 1,663 1,373 90 18,539) 7,271 6,284 2,310 10,740 5,666 2,246 9,962 4,802 68 6,533 17,044 1,744 23,286 1,756 15,601 1,687 21,312 49 6,652 586 8,660 8,049 524 9,781 559 9,323 25,110 120 378 307 Current Liabilities Accounts Payable Short/Current Long Term Debt Other Current Liabilities Total Current Liabilities Long Term Debt Other Liabilities Total Liabilities 3,426 3,853 2,262 904 7,019 92 319 3,227 3,638 2,645 748 7,031 63 115 2,741 2,919 571 596 4,086 1,320 348) 7,595 9,263 3,3201 2,097 14,680 1,178 566 8,474 10,218 2,821 1,806 14,845 1,188 637 8,071 9,896 2,541 1,517 13,954 196 2,854 3,428 1,003 516 4,947 242 189 1,783 2,214 1,195 1,901 5,310 205 448 2,840 3,493 1,395 562 5,450 Stockholders' Equity Common Stock Retained Earnings Treasury Stock Total Stockholder Equity 165 4,074 (518) 3,721 111 3,263 (443) 2,931 74 2,587 (250) 2,411 2,259 14,633 (6,462) 10,430 2,218 11,741 (4,872) 9,087 2,182 8,358 (3,182) 7,358 2,131 3,593 (890) 4,834 2,054 2,459 (500) 4,013 1,900 1,676 (366) 3,210 Total Assets + Stock Holders Eq Average shares OS 10,740 123,194,345 9,962 124,251,688 6,497 128,328,399 25,110 601,000,000 23,932 627,000,000 21,312 661,000,000 9,781 329,000,000 9,323 329,500,000 8,660 316,000,000 88.53 22.34 22.14 23.42 Market price of share at end of year Dividend/share 72.39 1.2 82.77 0.8 65.45 0.475 49.42 0.375 44.34 0.285 1.1 ABC 12/31/2017 12/31/2016 12/31/2015 1,034 814 848 DEF 12/31/2017 | 12/31/2016 3,488 2,244 12/31/2015 2,181 GHI 12/31/2017 | 12/31/2016 1,147 759 12/31/2015 677 363 320 1,015 345 25 372 55 (39) 168 1,221 276 (50) 351 47 393 293 (21) 224 (88) 1,218 1,225 (102) 591 0 (67) 3,929 26 (46) 115 0 114 1,386 506 11 144 1,010 446 (284) (50) 148 15 (24) 1,398 0 131 0 213 1,584 O (5) 0 1,590 251 4,293 (929) 3,238 (17) 1,632 (23) 1,598) Cashflow Statement as of all numbers in thousands Period Ending Net Income Operating Activities, Cash Flows Provided By or Used In Depreciation Adjustments To Net Income Changes In Accounts Receivables Changes In Liabilities Changes In Inventories Changes In Other Operating Activities Total Cash Flow From Operating Activities Investing Activities, Cash Flows Provided By or Used In Capital Expenditures Investments Other Cash flows from Investing Activities Total Cash Flows From Investing Activities Financing Activities, Cash Flows Provided By or Used In Dividends Paid Sale / Purchase of Stock Net Borrowings Other Cash Flows from Financing Activities Total Cash Flows From Financing Activities Effect Of Exchange Rate Changes Change In Cash and Cash Equivalents Beginning cash balance Ending cash balance (2,041) (831) (152) 237 (1,026) (181) 75 (1,132) (678) 2 (1,946) (2,622) (2,123) (159) (126) (2,408) (2,038) (125) (109) (2,272) (1,074) 236 (137) (975) (850) (23) (172) (1,045) (837) (187) (110) (1,134) 53 (109) (1,913) (930) (148) (75) (397) 28 (592) (136) (193) 1,795 25 1,491 (102) (505) (116) 35 (688) (222) (1,721) (8) 95 (1,924) (180) (1,134) 287 0 (157) (328) (9) (274) (1,571) 8 131 (1,706) 0 (185) 1680 1,495 0 (343) (194) (16) (553) 0 (130) (2) 0 (89) (368) (15) (472) 0 115 318 (1,024) (487) 0 0 09 0 255 (34) (23) (134) 328 194 73 107 97 1583 1680 301 1282 1583 433 341 328 73 303 433 318 1. Use the Financial Statements provided for ABC Inc., DEF Co. and GHI Corporation in the Excel Files provided to compute the ratios that are listed below Tests of Liquidity 1. Current Ratio - (Current Assets / Current Liabilities) 2. Quick Ratio - (Quick Assets / Current Liabilities) Quick Assets = Cash + Short term iny + Ac Rec OR Current Assets - Inventory 3. Receivables Turnover Ratio - (Net Credit Sales / Average Net Receivables) If credit sales are not shown separately, consider total sales revenue as credit sales 4. Inventory Turnover Ratio - (COGS / Average Inventory) 5. Payables Turnover ratio (COGS / Average Accounts payable). 6. Average age of receivables (365/Receivables Turnover Ratio) 7. Average age of payables (365/Payables Turnover Ratio) 8. Average age of inventory (365/Inventory Turnover Ratio) 9. Working capital cycle (Ave age of Inv. + Ave age of Rec. Ave age of Payables) Income Statement for the year ended All numbers in millions Date 12/31/2016 5,931 12/31/2017 7,933 12/31/2015 DEF GHI 12/31/2017 12/31/2016 12/31/2015 12/31/2017 12/31/2016 12/31/2015 21,171 20,425 19,820 7,015 6,632 6,416 5,598 5,931 (4,582) 1,349 7,933 (6,673) 1,260 51 (103) 20,425 (16,665) 21,171 (17,656) 3,515 5,598 (4,300) 1,298 55 (42) 7,015 (6,015) 1,000 Net Revenue COGS* Gross Profit Selling Admin and General Exp Operating Income or Loss Other revenues Interest Exp Other Exp Income Before Tax Income tax benefit (expense) Net Income 6,416 (5,200) 1,216 3,760 6,632 (5,320) 1,312 15 (111) 52 84 16 19,820 (15,704) 4,116 40 (121) (556) 3,479 (1,298) (55) (95) (128) (1) (1) 71 (122) (162) 3,547 (1,303) 2,244 (114) (234) 3,251 1,345 1,216 1,207 (173) 1,034 1,312 (464) 848 (531) 1,097 (420) 921 226 1,147 237 (457) 759 814 3,488 2,1811 677 *As the companies are service companies, no COGS are stated. Balance Sheet as of All numbers in millions ABC DEF 12/31/201712/31/2016 GHI 12/31/2016 12/31/2017 1 2/31/2016 12/31/2015 12/31/2015 12/31/2017 12/31/2015 318 558 136 Period Ending date Current Assets Cash And Cash Equivalents Short Term Investments Net Acc Receivables Inventory Other Current Assets Total Current Assets Long Term Assets Long Term Investments Property Plant and Equipment net Other Assets Total Assets 194 1427 341 57 127 2,146 73 1255 212 51 328 1252 302 47 121 2,050 1,495 1,778 662 420 460 4,815 1,680 1,625 546 337 310 4,498 1,583 1,468 474 311 188 4,024 303 390 245 55 213 1,206 433 538 172 47 213 1,403 72 317 1,663 1,373 90 18,539) 7,271 6,284 2,310 10,740 5,666 2,246 9,962 4,802 68 6,533 17,044 1,744 23,286 1,756 15,601 1,687 21,312 49 6,652 586 8,660 8,049 524 9,781 559 9,323 25,110 120 378 307 Current Liabilities Accounts Payable Short/Current Long Term Debt Other Current Liabilities Total Current Liabilities Long Term Debt Other Liabilities Total Liabilities 3,426 3,853 2,262 904 7,019 92 319 3,227 3,638 2,645 748 7,031 63 115 2,741 2,919 571 596 4,086 1,320 348) 7,595 9,263 3,3201 2,097 14,680 1,178 566 8,474 10,218 2,821 1,806 14,845 1,188 637 8,071 9,896 2,541 1,517 13,954 196 2,854 3,428 1,003 516 4,947 242 189 1,783 2,214 1,195 1,901 5,310 205 448 2,840 3,493 1,395 562 5,450 Stockholders' Equity Common Stock Retained Earnings Treasury Stock Total Stockholder Equity 165 4,074 (518) 3,721 111 3,263 (443) 2,931 74 2,587 (250) 2,411 2,259 14,633 (6,462) 10,430 2,218 11,741 (4,872) 9,087 2,182 8,358 (3,182) 7,358 2,131 3,593 (890) 4,834 2,054 2,459 (500) 4,013 1,900 1,676 (366) 3,210 Total Assets + Stock Holders Eq Average shares OS 10,740 123,194,345 9,962 124,251,688 6,497 128,328,399 25,110 601,000,000 23,932 627,000,000 21,312 661,000,000 9,781 329,000,000 9,323 329,500,000 8,660 316,000,000 88.53 22.34 22.14 23.42 Market price of share at end of year Dividend/share 72.39 1.2 82.77 0.8 65.45 0.475 49.42 0.375 44.34 0.285 1.1 ABC 12/31/2017 12/31/2016 12/31/2015 1,034 814 848 DEF 12/31/2017 | 12/31/2016 3,488 2,244 12/31/2015 2,181 GHI 12/31/2017 | 12/31/2016 1,147 759 12/31/2015 677 363 320 1,015 345 25 372 55 (39) 168 1,221 276 (50) 351 47 393 293 (21) 224 (88) 1,218 1,225 (102) 591 0 (67) 3,929 26 (46) 115 0 114 1,386 506 11 144 1,010 446 (284) (50) 148 15 (24) 1,398 0 131 0 213 1,584 O (5) 0 1,590 251 4,293 (929) 3,238 (17) 1,632 (23) 1,598) Cashflow Statement as of all numbers in thousands Period Ending Net Income Operating Activities, Cash Flows Provided By or Used In Depreciation Adjustments To Net Income Changes In Accounts Receivables Changes In Liabilities Changes In Inventories Changes In Other Operating Activities Total Cash Flow From Operating Activities Investing Activities, Cash Flows Provided By or Used In Capital Expenditures Investments Other Cash flows from Investing Activities Total Cash Flows From Investing Activities Financing Activities, Cash Flows Provided By or Used In Dividends Paid Sale / Purchase of Stock Net Borrowings Other Cash Flows from Financing Activities Total Cash Flows From Financing Activities Effect Of Exchange Rate Changes Change In Cash and Cash Equivalents Beginning cash balance Ending cash balance (2,041) (831) (152) 237 (1,026) (181) 75 (1,132) (678) 2 (1,946) (2,622) (2,123) (159) (126) (2,408) (2,038) (125) (109) (2,272) (1,074) 236 (137) (975) (850) (23) (172) (1,045) (837) (187) (110) (1,134) 53 (109) (1,913) (930) (148) (75) (397) 28 (592) (136) (193) 1,795 25 1,491 (102) (505) (116) 35 (688) (222) (1,721) (8) 95 (1,924) (180) (1,134) 287 0 (157) (328) (9) (274) (1,571) 8 131 (1,706) 0 (185) 1680 1,495 0 (343) (194) (16) (553) 0 (130) (2) 0 (89) (368) (15) (472) 0 115 318 (1,024) (487) 0 0 09 0 255 (34) (23) (134) 328 194 73 107 97 1583 1680 301 1282 1583 433 341 328 73 303 433 318