3 FIN 1016 Assignment-1 Worth 15% of overall Grade Due Date-June 19th 2022 4 Arora Industries December 31 Balance Sheets 5 (in thousands of dollars) 6 7 Assets 8 Cash and cash equivalents 9 Accounts Receivable 10 Inventories 11 Total current assets 12 Fixed assets 2002 2001 $102,850 $89,725 $103,365 $85,527 $38,444 $34,982 $244,659 $210,234 $67,165 $42,436 13 Total assets $311,824 $252,670 14 15 Liabilities and equity 16 Accounts payable $30,761 $23,109 17 Accruals $30,477 $22,656 18 Notes payable $16,717 $14,217 19 Total current liabilities $77,955 $59,982 20 Long-term debt $76,264 $63,914 21 Total liabilities $154,219 $123,896 22 Common stock $100,000 $90,000 23 Retained Earnings $57,605 $38,774 24 Total common equity $157,605 $128,774 25 Total liabilities and equity $311,824 $252,670 26 27 Year-end Stock Price $17.25 $14.75 28 # of shares (in thousands) 10,000 9,000 29 Lease payment 30 Tax rate $75,000 40% $75,000 40% 31 32 33 a. The company's sales for 2001 and 2002 were $364,120 and $455,150 respectively, and total expenses were $321,109 and $386,878 respecti 34 Furthermore, depreciation amounted to 11 percent of net fixed assets, interest charges were $7,829 and $8,575 for 2001 and 2022 respectively province-plus-federal corporate tax rate was 40 percent, and Arora pays 40 percent of its net income out in dividends. Given this information, construct Arora's 2001 and 2002 income statement. 35 then its 2002 statement of cash flows. (2 Marks) 36 37 b. Next, construct the firm's statement of retained earnings for the year ending December 31, 2002, and 38 (2 Marks) 39 c. Calculate free cash flow for 2002 (2 Marks) (5 Marks) 40 d. Calculate the following ratios 41 42 Ratio Analysis 43 Liquidity Ratios 44 Current Ratio 45 Asset Management Ratios 46 47 Inventory Turnover Days Sales Outstanding Sheet1 + 2002 2001