Balance Sheet and Income Statement
ASSETS	2015	2014
CASH AND MARKETABLE SECURITIES	29,000	25,000
ACCOUNTS RECEIVABLE	116,000	100,000
INVENTORIES	145,000	125,000
CURRENT ASSETS	290,000	250,000
GROSS PLANT AND EQUIPMENT	362,000	350,000
LESS: ACCUMULATED DEPRECIATION	130,000	100,000
NET FIXED ASSETS	232,000	250,000
TOTAL ASSETS	522,000	500,000
LIABILITIES AND EQUITY
ACCOUNTS PAYABLE	90,480	78,000
ACCRURALS	34,800	30,000
NOTES PAYABLE	25,420	34,000
CURRENT LAIBILITIES	150,700	142,000
LONG TERM DEBT	145,000	140,000
TOTAL LIABILITIES	295,700	282,000
COMMON STOCK ($1.00 par)	150,000	150,000
RETAINED EARNINGS	76,300	68,000
TOTAL OWNERS EQUITY	226,300	218,000
TOTAL LIABILITIES AND EQUITY	522,000	500,000
INCOME STATEMENT	2015	2014
NET REVENUES & SALES (100,000 UNITS)	812,000	700,000
COST OF GOODS SOLD	522,000	450,000
GROSS PROFIT	290,000	250,000
FIXED OPERATING EXPENSES (pre depreciation)	174,200	151,000
EBITDA Earnings Before Interest, Taxes, Depreciation & Amortization	115,800	99,000
DEPRECIATION EXPENSE	30,000	25,000
OPERATING INCOME (EBIT)	85,800	74,000
INTEREST	14,500	14,000
INCOME BEFORE TAXES (EBT)	71,300	60,000
INCOME TAXES (40%)	28,520	24,000
NET INCOME	42,780	36,000
Dividends	34,480	28,500
Retained Earnings	8,300	7,500
NUMBER OF SHARES OUTSTANDING	50,000	50,000
Dividends per share	0.6896	0.57

Industry Ratios
Current	1.8 x		Fixed Asset Turnover	4.0x		Net Profit Margin	8.7%
Quick	1 x		Total Asset Turnover	1.3x		ROA	12.6%
Inventory Turnover	3.4x		Debt Ratio	45.0%		ROE	17.2%
DSO	42.1 days		TIE	6.5x		Price/Earnings	13.0x
ROIC	14.5%					Market/Book	2.0x

If sales increased by 10% and the company operated at only 90% capacity what would be its new level of Total Assets?A $508,321 B $542,326 C $545,245 D $551,000

If sales increased by 10% and the company operated at only 90% capacity what would be its new Net Income?

A $46.560

B

$68,188

C

$60,180

D

$71,254

B

$68,188

C

$60,180

D

$71,254

If the firm operates at 90% capacity, at what level of sales would its fixed assets first became spontaneous? What would sales be at 100% capacity?

$978,334

$ 902,222

$877,426

$835,229

Assume the company is operating at full capacity. Based on a 10% increase in sales and a declared dividend of $0.50 per share, compute the Additional Financing Needs for next year.

$19,914

$12,522

$3,172

$16,744

Assume the company is operating at full capacity. If we expect sales to increase by 10% next year what should be the new level of net income?

BSIS CH 3&4-1.docx

$51,352

$44,623

$47,928

49,562

Referring to the balance sheet and income statement what is the companys cash conversion cycle for 2015?

7 days

68 days

154.5 days

90.3 days