3. Calculate financial ratios (from the industry averages page) for J Corp for the forecasted year using the Proformas (use second pass numbers). 
ASSETS Cash & Equiv Acct Receiv Inventories Curr Assets Plant & Equip Accum Depr Net Plant & Equip TOTAL ASSETS Notes Payable Accruals Curr Liab Long Term Debt EQUITY Common Stock Retained Earnings TOTAL EQUITY J Corporation FINANCIAL STATEMENTS Balance Sheet ($ millions) BOOK VALUE Actual 0 LIABILITIES Accounts Payable $ 5,675 $ 1,010 8,002 $ 27,000 $ 45,005 12,600 84,605 88,965 59,267 Year Ago 14,687 29,698 34,338 $ 114,303 $ 114,675 19,683 25,501 42,170 12.666 80,337 89,650 55,312 7,920 1,244 7,440 16,604 20,000 20,254 35,871 59,679 42,200 79,933 78,071 TOTAL LIAB & EQ $ 114,303 $ 114,675 BOOK VALUE Sales CGS Gross Profit SGA Depr EBIT Interest EBT Taxes Net Income Dividends Add to RE 25% Outstanding Shares Price Per Share Income Statement ($ million) Inv Turn DSO Asset Turn Debt Ratio Year Ago $ 145,000 $ 138,284 74.800 69,450 Actual $ $ 69 Curr Ratio Quick Ratio TIE Profit Margin ROA ROE P/E MV/BV EM 70,200 40,200 3.955 26,045 2,010 24,035 6.009 18,026 547 17,479 $ 547 555 $ 68,834 40,500 8.250 20,084 1,247 18,837 4.709 14,128 547 13,581 547 402 Peer Group Financial Ratios Actual 0 5.3 x 10.5 x 105 Days 1.23 x 51.6% 6.3% 7.88% 16.31% 34 17 x 3.1 x 2.0 x 3.3 2.4 Sales CGS Gross Profit SGA Depr EBIT Interest EBT Taxes Net Income Dividends Add to RE ASSETS Cash & Equiv Acct Receiv Inventories Curr Assets Plant & Equip Accum Depr Net Plant & Equip TOTAL ASSETS LIABILITIES 25% Curr Liab Long Term Debt Actual $ 145,000 74.800 $ 70,200 40,200 3.955 $ 26,045 2,010 24,035 6.009 18,026 547 17,479 Actual 0 27,000 45,005 12,600 84,605 88,965 59.267 29,698 Accounts Payable $ 5,675 Notes Payable 1,010 Accruals 8,002 $ 114,303 14,687 19,683 Pro Forma 1.3 1.3 ww 1.3 Forecast 1st Pass 2.010 Forecast 1st Pass 1,010 2nd Pass 2nd Pass 1,010 ASSETS Cash & Equiv Acct Receiv Inventories Curr Assets Plant & Equip Accum Depr Net Plant & Equip TOTAL ASSETS LIABILITIES Accounts Payable Notes Payable Accruals Curr Liab Long Term Debt EQUITY Common Stock Retained Earnings TOTAL EQUITY TOTAL LIAB & EQ Actual 0 $ 27,000 45,005 12,600 84,605 AFN 88,965 59,267 29,698 $ 114,303 5,675 1,010 8,002 14,687 19,683 20,254 59,679 79,933 $ 114,303 Forecast 1st Pass 1,010 2nd Pass 1,010 ASSETS Cash & Equiv Acct Receiv Inventories Curr Assets Plant & Equip Accum Depr Net Plant & Equip TOTAL ASSETS Notes Payable Accruals Curr Liab Long Term Debt EQUITY Common Stock Retained Earnings TOTAL EQUITY J Corporation FINANCIAL STATEMENTS Balance Sheet ($ millions) BOOK VALUE Actual 0 LIABILITIES Accounts Payable $ 5,675 $ 1,010 8,002 $ 27,000 $ 45,005 12,600 84,605 88,965 59,267 Year Ago 14,687 29,698 34,338 $ 114,303 $ 114,675 19,683 25,501 42,170 12.666 80,337 89,650 55,312 7,920 1,244 7,440 16,604 20,000 20,254 35,871 59,679 42,200 79,933 78,071 TOTAL LIAB & EQ $ 114,303 $ 114,675 BOOK VALUE Sales CGS Gross Profit SGA Depr EBIT Interest EBT Taxes Net Income Dividends Add to RE 25% Outstanding Shares Price Per Share Income Statement ($ million) Inv Turn DSO Asset Turn Debt Ratio Year Ago $ 145,000 $ 138,284 74.800 69,450 Actual $ $ 69 Curr Ratio Quick Ratio TIE Profit Margin ROA ROE P/E MV/BV EM 70,200 40,200 3.955 26,045 2,010 24,035 6.009 18,026 547 17,479 $ 547 555 $ 68,834 40,500 8.250 20,084 1,247 18,837 4.709 14,128 547 13,581 547 402 Peer Group Financial Ratios Actual 0 5.3 x 10.5 x 105 Days 1.23 x 51.6% 6.3% 7.88% 16.31% 34 17 x 3.1 x 2.0 x 3.3 2.4 Sales CGS Gross Profit SGA Depr EBIT Interest EBT Taxes Net Income Dividends Add to RE ASSETS Cash & Equiv Acct Receiv Inventories Curr Assets Plant & Equip Accum Depr Net Plant & Equip TOTAL ASSETS LIABILITIES 25% Curr Liab Long Term Debt Actual $ 145,000 74.800 $ 70,200 40,200 3.955 $ 26,045 2,010 24,035 6.009 18,026 547 17,479 Actual 0 27,000 45,005 12,600 84,605 88,965 59.267 29,698 Accounts Payable $ 5,675 Notes Payable 1,010 Accruals 8,002 $ 114,303 14,687 19,683 Pro Forma 1.3 1.3 ww 1.3 Forecast 1st Pass 2.010 Forecast 1st Pass 1,010 2nd Pass 2nd Pass 1,010 ASSETS Cash & Equiv Acct Receiv Inventories Curr Assets Plant & Equip Accum Depr Net Plant & Equip TOTAL ASSETS LIABILITIES Accounts Payable Notes Payable Accruals Curr Liab Long Term Debt EQUITY Common Stock Retained Earnings TOTAL EQUITY TOTAL LIAB & EQ Actual 0 $ 27,000 45,005 12,600 84,605 AFN 88,965 59,267 29,698 $ 114,303 5,675 1,010 8,002 14,687 19,683 20,254 59,679 79,933 $ 114,303 Forecast 1st Pass 1,010 2nd Pass 1,010
