Assets Cash Current Assets Espresso Patronum Coffee Company Balance Sheet (millions) 2018 2017 Liabilities & Equity 2018 2017 $ 55 $ 50 Current Liabilities Accrued Wages & Taxes $ 12 $ 10 $ 10 $ 20 Accounts Payable $ 10 $ 5 $ 120 $ 100 Notes Payable $ 5 $ 10 $ 185 $ 170 Total $ 27 '$ 25 Accounts Receivable Inventory Total Fixed Assets 135 $ $ 185 $ 212 $ 160 Plant & Equipment Less: Depreciation Net Plant & Equip Other Fixed Assets $ $ $ $ 125 $ 65 Long-Term Debt (35) $ (20) Total Debt 90 $ 45 25 $ 25 Stockholder's Equity Common Stock* Retained Earnings Total Equity 300 $ 240 Total Liabilities & Equity * 6 million common shares are outstanding $ $ $ 25 55 25 $ 63 $ 88 $ 300 $ 80 240 Total Assets $ $ Espresso Patronum Coffee Company Income Statement (millions) Income Statement 2018 Sales $ 100 Less: Cost of Goods Sold $ (27) Gross Profit $ 73 Less: Other Operating Expenses $ (15) EBITDA (Earnings Before Interest, Taxes, Depreciation & Amz) $ 58 Less: Depreciation & Amortization $ (15) EBIT (Earnings Before Interest & Taxes) $ 43 Less: Interest $ (25) EBT(Earnings Before Taxes & Taxable Income) $ 18 Less: Taxes $ (5) Net Income $ 13 Less: Common Stock Dividends $ (5) Addition to Retained Earnings $ 8 APPENDIX: TAX TABLE & FINANCIAL STATEMENTS Pay This Amount on Base Income Plus This Percentage on Anything Over the Base Taxable income $0-50,000 $0 15% $50,001-75,000 $7,500 25% $75,001-$100,000 $13,750 34% $100,001-335,000 $22,250 39% $335,001-10,000,000 $113,900 34% $10,000,001-15,000,000 $3,400,000 35% $15,000,001-18,333,333 $5,150,000 38% Over $18,333,333 $6,416,667 35% The financial statements are in the Appendix and figures are all in millions. Any of your answers that are to be in millions, such as FCF Statements, means that $1,250,000 is input 1.25 and not 1,250,000. Any answers that are '%'s, compute to two decimal places, should be input as a whole number (i.e. 10.15% is input as 10.15, not 0.1015). Any answers that are negative, then make sure to include the negative sign to the answer (i.e. -5 is input in Canvas as -5). are a financial analyst reviewing a small chain of coffee shops, Espresso Patronum. Assume Espresso Patronum earned EBT of $23 mil, then using the Tax Tables, what would be their Tax Liability (in millions, to two decimal places)? Assume Espresso Patronum earned EBT of $23 mil, then using the Tax Tables, what would be their Effective Tax Rate (in %, to two decimal places)? Assume Espresso Patronum earned EBT of $23 mil, then using the Tax Tables, what would be their Marginal Tax Rate (in %, to two decimal places)? Calculate Net Working Capital for 2017 (in millions, no decimals). Calculate EPS for 2018 (in dollars, to two decimal places). Calculate Debt-to-Equity Ratio for 2017 (to two decimal places Calculate Debt-to-Equity Ratio for 2018 (to two decimal places) From a capital structure perspective, has Espresso Patronum become MORE or LESS risky? If Patronum shares are trading at $23.87 per share, then what is the 2018 P/E Ratio (to two decimal places)? What is 2018 ROE (% to two decimal places)
