1A Youre the chief financial officer (CFO) of Worldwide Widget Manufacturing, Inc The company manufactures and sells widgets at factories in the United States and internationally Listed below are partial financial statements for Worldwide Widget Manufacturing, Inc Fill in the missing information in each of the following financial statements Answer spaces are given below Worldwide Widget Manufacturing, Inc Balance Sheet as of December 31, 2015 and 2014 (in millions of dollars) 2015 2016 2015 2016 Assets Current Assets Liabilities and Equity Current Liabilities Cash and markatable securities $347 $322 Accured wages and taxes $309 $257 Accounts Receivable a 259 Accounts payable 381 b Inventory 895 797 Notes Payable $492 $421 Total $1,542 $1,378 Total $1,182 $997 Fixed Assets Long term debt $1,934 c Gross plant and equipment d $2,817 Total 3,116 1,129 Less depreciation 287 254 Stockholder's equity Net plant and equipment $2,872 $2,563 Preferred stock ( 30 million shares) $30 $30 Other long term assets 521 487 Common stock and paid in surplus (250 million shares) 300 e Retained earnings 1,489 1,142 Total FA f $3,050 Total Equity $1,819 $1,472 Total Assets $4,935 $4,428 Total liabilities and equity $4,935 $4,428 a Accounts receivable for 2015 b Accounts payable for 2014 c Gross plant and equipment for 2015 d Long term debt for 2014 e Common stock and paid in surplus (250 million shares) for 2014 f Total FA for 2015 Worldwide Widget Manufacturing, Inc Income Statement for Years Ending December 31, 2015 and 2014 (in millions of dollars) 2015 2014 Net Sales g $2018 Less Cost of Goods Sold 987 h Gross Profits $1,396 $1,189 Less Other Operating Expense 189 167 Earnings before interest, taxes, depreciation, and amortization (EBITDA) $1,207 $1,022 Less Depreciation 121 114 Earning before interest and taxes (EBIT) $1,086 $908 Less Interest i 128 Earnings before Taxes (EBT) $949 $780 Less Taxes j 23 Net Income $644 $546 Less Preferred stock dividends 98 98 Net income available to common stock holders $566 $448 Less Common stock dividends 219 219 Addition to retained earnings Per common share data $347 $249 Earnings per share (EPS) k $1 79 Dividends per share (DPS) $0 88 l Book Value per share (BVPS) m $5 77 Market Value per share (MVPS) $23 97 $22 47 g Net sales for 2015 h Less Cost of goods sold for 2014 i Less Interest for 2015 j Less Taxes for 2015 k Earnings per share (EPS) for 2015 l Dividends per share (DPS) for 2014 m Book value per share (BVPS) for 2015 Worldwide Widget Manufacturing, Inc Statement of Cash Flows for Year Ending December 31, 2015 (in millions of dollars) Section A Cash Flows from operating activities Net Income n Additions (source of cash) Depreciation 287 Increase in accrued wages and taxes o Increase in accounts payable 62 Subtractions (use of cash) Increase in accounts receivable 41 Increase in inventory p Net Cash flow from operating activities q Section B Cash Flows from investing activities subtracionts Increase in fixed assets $343 Increase in other long term assests r Net Cash flow from investing activities s Section C Cash flows from financing activities Additions Increase in notes payable t Increase in long term debt 147 Increase in common and preferred stock 0 Subtractions Pay dividends u Net Cash flow from financing activities Section D Net Change in cash and marketable securities v $25 n Net income o Increase in accrued wages and taxes p Increase in inventory q Net cash flow from operating activities r Increase in other long term assets s Net cash flow from investing activities t Increase in notes payable u Pay dividends v Net cash flow from financing activities Worldwide Widget Manufacturing, Inc Statement of Retained Earnings as of December 31, 2015 (in millions of dollars) Balance of retained earnings, December 31,2014 $1,142 Plus Net income for 2015 w Less Cash dividends paid 0 0 Preferred stock x Common Stock 219 Total cash dividends paid 317 Balance of retained earnings, December 31,2015 $1,489 w Plus Net income for 2015 x Preferred stock 1B For each of the items listed below, indicate on which of the major statements they would be found (1, 2, 3 or 4) and the amount shown on the statements above 1 Balance sheet 3 Statement of cash flows 2 Income statement 4 Statement of retained earnings 1 Earnings before taxes for 2015 $ 2 Gross plant and equipment for 2015 $ 3 Increase in fixed assets, December 31, 2015 $ 4 Net sales for 2015 $ 5 Balance of retained earnings, December 31, 2015 $ 6 Common stock and paid in surplus for 2014 $ 7 Net cash flow from investing activities, December 31, 2015 $ 8 Increase in inventory, December 31, 2015 $ 9 Accrued wages and taxes for 2014 $ 10 Book value per share (BVPS) for 2015 $ 2 Youll need to compare your companys ratios with the industrys standards Worldwide Widget Manufacturing, Inc Company Industy Comparison Current Ratio 2 2 times Quick Ratio 1 1 times Cash Ratio 0 35 times Inventory turnover 2 times or 1 time Days' sales in inventory 135 days or 335 days Average payment period 110 days Sales to working capital 3 times Total asset turnover 0 6 times Debt to equity 1 1 times Profit margin 16 5 Gross profit margin 48 13 ROA 8 78 ROE 19 45 Divident payout 32 A Use the information found in Worldwide Widget Manufacturings financial statements to calculate all of the listed financial ratios in the above table for your company Then, for each ratio, provide a comparison of the companys result with the industry standards, indicating if your companys results are lower than, higher than, slower than, or faster than the industry standards B Calculate your companys internal and sustainable growth rates

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1A. Youre the chief financial officer (CFO) of Worldwide Widget Manufacturing, Inc. The company manufactures and sells widgets at factories in the United States and

1A. Youre the chief financial officer (CFO) of Worldwide Widget Manufacturing, Inc. The company manufactures and sells widgets at factories in the United States and internationally. Listed below are partial financial statements for Worldwide Widget Manufacturing, Inc. Fill in the missing information in each of the following financial statements. Answer spaces are given below.

Worldwide Widget Manufacturing, Inc. Balance Sheet as of December 31, 2015 and 2014 (in millions of dollars)

	2015	2016		2015	2016
Assets Current Assets:			Liabilities and Equity Current Liabilities:
Cash and markatable securities	$347	$322	Accured wages and taxes	$309	$257
Accounts Receivable	a.?	259	Accounts payable	381	b.?
Inventory	895	797	Notes Payable	$492	$421
Total	$1,542	$1,378	Total	$1,182	$997
Fixed Assets:			Long-term debt:	$1,934	c.?
Gross plant and equipment	d.?	$2,817	Total	3,116	1,129
Less:depreciation	287	254	Stockholder's equity:
Net plant and equipment	$2,872	$2,563	Preferred stock ( 30 million shares)	$30	$30
Other long term assets	521	487	Common stock and paid in surplus (250 million shares)	300	e.?
			Retained earnings	1,489	1,142
Total FA	f.?	$3,050	Total Equity	$1,819	$1,472
Total Assets	$4,935	$4,428	Total liabilities and equity	$4,935	$4,428

a. Accounts receivable for 2015_______ b. Accounts payable for 2014_______ c. Gross plant and equipment for 2015_______ d. Long-term debt for 2014_______ e. Common stock and paid-in surplus (250 million shares) for 2014_______ f. Total FA for 2015_______

Worldwide Widget Manufacturing, Inc. Income Statement for Years Ending December 31, 2015 and 2014 (in millions of dollars)

	2015	2014
Net Sales	g.	$2018
Less: Cost of Goods Sold	987	h.?
Gross Profits	$1,396	$1,189
Less: Other Operating Expense	189	167
Earnings before interest, taxes, depreciation, and amortization (EBITDA)	$1,207	$1,022
Less: Depreciation	121	114
Earning before interest and taxes (EBIT)	$1,086	$908
Less: Interest	i.?	128
Earnings:before Taxes (EBT)	$949	$780
Less:Taxes	j.?	23
Net Income	$644	$546
Less:Preferred stock dividends	98	98
Net income available to common stock holders	$566	$448
Less:Common stock dividends	219	219
Addition to retained earnings Per common share data:	$347	$249
Earnings per share (EPS)	k.?	$1.79
Dividends per share (DPS)	$0.88	l. ?
Book Value per share (BVPS)	m.?	$5.77
Market Value per share (MVPS)	$23.97	$22.47

g. Net sales for 2015_______ h. Less: Cost of goods sold for 2014_______ i. Less: Interest for 2015_______ j. Less: Taxes for 2015_______ k. Earnings per share (EPS) for 2015_______ l. Dividends per share (DPS) for 2014_______ m. Book value per share (BVPS) for 2015_______

Worldwide Widget Manufacturing, Inc. Statement of Cash Flows for Year Ending December 31, 2015 (in millions of dollars)

Section A: Cash Flows from operating activities
Net Income	n.?
Additions (source of cash): Depreciation	287
Increase in accrued wages and taxes	o.?
Increase in accounts payable	62
Subtractions (use of cash): Increase in accounts receivable	-41
Increase in inventory	p.?
Net Cash flow from operating activities	q.?
Section B: Cash Flows from investing activities subtracionts: Increase in fixed assets	-$343
Increase in other long-term assests	r.?
Net Cash flow from investing activities	s.?
Section C. Cash flows from financing activities Additions: Increase in notes payable	t.?
Increase in long term debt	147
Increase in common and preferred stock	0
Subtractions: Pay dividends	u.?
Net Cash flow from financing activities Section D. Net Change in cash and marketable securities	v.? $25

n. Net income_______ o. Increase in accrued wages and taxes_______ p. Increase in inventory_______ q. Net cash flow from operating activities_______ r. Increase in other long-term assets_______ s. Net cash flow from investing activities_______ t. Increase in notes payable_______ u. Pay dividends_______ v. Net cash flow from financing activities_______

Worldwide Widget Manufacturing, Inc. Statement of Retained Earnings as of December 31, 2015 (in millions of dollars)

Balance of retained earnings, December 31,2014		$1,142
Plus: Net income for 2015		w.?
Less: Cash dividends paid	0	0
Preferred stock	x.?
Common Stock	219
Total cash dividends paid		317
Balance of retained earnings, December 31,2015		$1,489

w. Plus: Net income for 2015 _______ x. Preferred stock _______

1B. For each of the items listed below, indicate on which of the major statements they would be found (1, 2, 3 or 4) and the amount shown on the statements above: 1. Balance sheet 3. Statement of cash flows 2. Income statement 4. Statement of retained earnings 1. Earnings before taxes for 2015_______; $_______ 2. Gross plant and equipment for 2015 _______; $_______ 3. Increase in fixed assets, December 31, 2015 _______; $_______ 4. Net sales for 2015 _______; $_______ 5. Balance of retained earnings, December 31, 2015 _______; $_______ 6. Common stock and paid-in surplus for 2014 _______; $_______ 7. Net cash flow from investing activities, December 31, 2015 _______; $_______ 8. Increase in inventory, December 31, 2015 _______; $_______ 9. Accrued wages and taxes for 2014 _______; $_______ 10. Book value per share (BVPS) for 2015 _______; $_______ 2. Youll need to compare your companys ratios with the industrys standards.

Worldwide Widget Manufacturing, Inc.

	Company	Industy	Comparison
Current Ratio		2.2 times
Quick Ratio		1.1 times
Cash Ratio		0.35 times
Inventory turnover		2 times or 1 time
Days' sales in inventory		135 days or 335 days
Average payment period		110 days
Sales to working capital		3 times
Total asset turnover		0.6 times
Debt-to equity		1.1 times
Profit margin		16.5%
Gross profit margin		48.13%
ROA		8.78%
ROE		19.45%
Divident payout		32%

A. Use the information found in Worldwide Widget Manufacturings financial statements to calculate all of the listed financial ratios in the above table for your company. Then, for each ratio, provide a comparison of the companys result with the industry standards, indicating if your companys results are lower than, higher than, slower than, or faster than the industry standards. B. Calculate your companys internal and sustainable growth rates.