Question
4. Use the balance sheet and income statement below to construct a statement of cash flows for 2016 for Mamun Constructions. Balance Sheet of Mamun
4. Use the balance sheet and income statement below to construct a statement of cash flows for 2016 for Mamun Constructions.
Balance Sheet of Mamun Constructions (millions of dollars) | |||||
| 2015 | 2016 |
| 2015 | 2016 |
Assets |
|
| Liabilities |
|
|
Current Assets |
| Current Liabilities |
| ||
Cash | $65 | $75 | Accrued Wages and Taxes | $43 | $40 |
Accounts Receivable | $110 | $115 | Accounts Payable | $80 | $90 |
Inventory | $190 | $200 | Notes Payable | $70 | $80 |
Total Current Assets | $365 | $390 | Total Current Liabilities | $193 | $210 |
Fixed Assets |
|
| Long-term Debt | $280 | $300 |
Gross Plant and Equipment | $471 | $580 | Equity: Stockholders equity |
|
|
Less Depreciation | $100 | $110 | Preferred Stock (2 million shares) | $5 | $5 |
Net: Plant and Equipment | $371 | $470 | Common Stock ( 5 million shares) | $65 | $65 |
Other Long-term Assets | $49 | $50 | Retained Earnings | $242 | $330 |
Total | $420 | $520 | Total | $312 | $400 |
Total Assets | $785 | $910 | Total Liabilities and Equity | $785 | $910 |
Income Statement of Mamun Construction
(Missions of dollars)
| 2015 | 2016 |
Net Sales (All Credits) | $432 | $515 |
Less: Cost of Goods sold | $200 | $260 |
Gross Profits | $232 | $255 |
Less: Depreciation | $20 | $22 |
Earnings Before interest and taxes (EBIT) | $212 | $233 |
Less: Interest | $30 | $33 |
Earnings before taxes | $182 | $200 |
Less: taxes | $55 | $57 |
Net Income | $127 | $143 |
Less: Preferred Stock Dividends | $5 | $5 |
Net Income Available to common stock holders | $122 | $138 |
Less: Common Stock Dividend | $65 | $65 |
Addition to retained earnings | $57 | $73 |
Calculate the following ratios:
a. Current ratio
b. Quick ratio
c. Days sales in receivables
d. Days sales in inventory
e. Sales to fixed assets
f. Total assets turnover
g. Debt to assets
h. Times interest earned
i. Cash flow to debt
j. Gross margin
k. Profit margin
l. ROA
m. ROE
n. Dividend payout ratio
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