2015 $13,193 $4,060 $4,049 2016 $11,874 $3,654 $4,049 2017 $10,686 $3,289 $4,049 (as of year-end 12/31/xx) Sales Cost of Goods Solds General & Admin = EBITDA - Depreciation = EBIT - interest = Taxable income Taxes (@35%) = Net Income $2,518 $2,518 $2,518 $685 $685 $685 cash coverage=(EBIT+deprec)/interest ebit/interst ASSETS (as of year-end 12/31/xx) Cash and securities Receivables Inventories Other Current Assets Total Current Assets Net Property Plant & Equip Other long-term assets Total Assets 2015 $89 $2,382 $187 $867 $3,525 $19,973 $4,216 $27,714 2016 $158 $2,490 $238 $932 $3,818 $19,915 $3,770 $27,503 2017 $158 $2,490 $238 $932 $3,818 $19,915 $3,770 $27,503 Liabilities and Shareholders Equity Accounts Payable short-term debt other current liabilities Total current liabilities Long-term debt & leases Other long-term liabilities Shareholder's equity Total liabilities & shareholders' equity $2,564 $1,419 $811 $4,794 $7,018 $6,178 $9,724 $27,714 $3,040 $1,573 $787 $5,400 $6,833 $6,149 $9,121 $27,503 $3,040 $1,573 $787 $5,400 $6,833 $6,149 $9,121 $27,503 current ratio (current assets/current liabilities) avg collection period in days (start of year rec'v/average daily sales) QUESTION 4 Use the income statement and balance sheet worksheet to answer the following questions: Vanderaly's ability to service its debt is O A. Improving O B. Deteriorating O C. Remains the same O D. Cannot be determined from the information given. QUESTION 5 Use the income statement and balance sheet worksheet to answer the following questions: which of the following statements is most accurate: O A. Net income is increasing because sales are rising O B. Net income is decreasing because sales are falling O C. Net income is increasing because variable expenses are decreasing O D. Cannot be determined from the information given QUESTION 6 Use the income statement and balance sheet worksheet to answer the following questions: Which of the following statements is most accurate regarding liquidity O A. Liquidity is deteriorating O B. Liquidity is improving O C. Liquidity remains the same O D. Cannot be determined from the information given QUESTION 7 Use the income statement and balance sheet worksheet to answer the following questions: Which of the following statements regarding the collection period (in days) is most accurate: O A. The collection period is decreasing O B. The collection period is increasing OC. The collection period remains the same O D. Cannot be determined from the information given 2015 $13,193 $4,060 $4,049 2016 $11,874 $3,654 $4,049 2017 $10,686 $3,289 $4,049 (as of year-end 12/31/xx) Sales Cost of Goods Solds General & Admin = EBITDA - Depreciation = EBIT - interest = Taxable income Taxes (@35%) = Net Income $2,518 $2,518 $2,518 $685 $685 $685 cash coverage=(EBIT+deprec)/interest ebit/interst ASSETS (as of year-end 12/31/xx) Cash and securities Receivables Inventories Other Current Assets Total Current Assets Net Property Plant & Equip Other long-term assets Total Assets 2015 $89 $2,382 $187 $867 $3,525 $19,973 $4,216 $27,714 2016 $158 $2,490 $238 $932 $3,818 $19,915 $3,770 $27,503 2017 $158 $2,490 $238 $932 $3,818 $19,915 $3,770 $27,503 Liabilities and Shareholders Equity Accounts Payable short-term debt other current liabilities Total current liabilities Long-term debt & leases Other long-term liabilities Shareholder's equity Total liabilities & shareholders' equity $2,564 $1,419 $811 $4,794 $7,018 $6,178 $9,724 $27,714 $3,040 $1,573 $787 $5,400 $6,833 $6,149 $9,121 $27,503 $3,040 $1,573 $787 $5,400 $6,833 $6,149 $9,121 $27,503 current ratio (current assets/current liabilities) avg collection period in days (start of year rec'v/average daily sales) QUESTION 4 Use the income statement and balance sheet worksheet to answer the following questions: Vanderaly's ability to service its debt is O A. Improving O B. Deteriorating O C. Remains the same O D. Cannot be determined from the information given. QUESTION 5 Use the income statement and balance sheet worksheet to answer the following questions: which of the following statements is most accurate: O A. Net income is increasing because sales are rising O B. Net income is decreasing because sales are falling O C. Net income is increasing because variable expenses are decreasing O D. Cannot be determined from the information given QUESTION 6 Use the income statement and balance sheet worksheet to answer the following questions: Which of the following statements is most accurate regarding liquidity O A. Liquidity is deteriorating O B. Liquidity is improving O C. Liquidity remains the same O D. Cannot be determined from the information given QUESTION 7 Use the income statement and balance sheet worksheet to answer the following questions: Which of the following statements regarding the collection period (in days) is most accurate: O A. The collection period is decreasing O B. The collection period is increasing OC. The collection period remains the same O D. Cannot be determined from the information given