Balance Sheet
Currency in JPY. All numbers in thousands
Period Ending	3/31/2017	3/31/2016	3/31/2015
Current Assets
Cash And Cash Equivalents	26,879,000	26,153,000	19,050,000
Short Term Investments	26,063,000	22,629,000	24,444,000
Net Receivables	78,520,000	83,027,000	81,530,000
Inventory	21,436,000	18,342,000	17,825,000
Other Current Assets	7,146,000	11,863,000	6,716,000
Total Current Assets	160,044,000	162,014,000	149,563,000
Long Term Investments	175,563,000	166,799,000	163,197,000
Property Plant and Equipment	91,511,000	86,662,000	77,513,000
Goodwill	-	-	-
Intangible Assets	-	-	-
Accumulated Amortization	-	-	-
Other Assets	10,378,000	6,497,000	7,725,000
Deferred Long Term Asset Charges	-	-	-
Total Assets	437,496,000	421,972,000	397,997,000
Current Liabilities
Accounts Payable	53,197,000	48,570,000	45,262,000
Short/Current Long Term Debt	91,368,000	85,069,000	82,356,000
Other Current Liabilities	10,860,000	9,824,000	9,397,000
Total Current Liabilities	155,425,000	143,462,000	137,015,000
Long Term Debt	88,949,000	86,944,000	83,505,000
Other Liabilities	12,805,000	12,427,000	11,158,000
Deferred Long Term Liability Charges	12,777,000	18,204,000	19,166,000
Minority Interest	5,997,000	7,665,000	7,164,000
Negative Goodwill	-	-	-
Total Liabilities	275,953,000	268,703,000	258,008,000
Stockholders' Equity
Misc. Stocks Options Warrants	4,360,000	4,269,000	-
Redeemable Preferred Stock	-	-	-
Preferred Stock	-	-	-
Common Stock	3,563,000	3,533,000	3,311,000
Retained Earnings	157,956,000	149,422,000	130,014,000
Treasury Stock	-14,433,000	-14,265,000	-10,219,000
Capital Surplus	4,344,000	4,877,000	4,562,000
Other Stockholder Equity	5,752,000	5,434,000	12,321,000
Total Stockholder Equity	157,182,000	149,001,000	139,989,000
Net Tangible Assets	157,182,000	149,001,000	139,989,000

Income Statement
Currency in JPY. All numbers in thousands
Revenue	3/31/2017	3/31/2016	3/31/2015
Total Revenue	247,664,000	252,708,000	227,096,000
Cost of Revenue	204,023,000	201,125,000	182,128,000
Gross Profit	43,640,000	51,583,000	44,968,000
Operating Expenses
Research Development	-	-	-
Selling General and Administrative	25,742,000	26,191,000	22,033,000
Non Recurring	-	-	-
Others	-	-	-
Total Operating Expenses	-	-	-
Operating Income or Loss	17,898,000	25,392,000	22,936,000
Income from Continuing Operations
Total Other Income/Expenses Net	2,054,000	1,466,000	1,377,000
Earnings Before Interest and Taxes	19,951,000	26,859,000	24,313,000
Interest Expense	263,000	315,000	191,000
Income Before Tax	19,688,000	26,544,000	24,122,000
Income Tax Expense	5,644,000	7,814,000	7,450,000
Minority Interest	5,997,000	7,665,000	7,164,000
Net Income From Continuing Ops	16,433,000	20,576,000	18,122,000
Non-recurring Events
Discontinued Operations	-	-	-
Extraordinary Items	-	-	-
Effect Of Accounting Changes	-	-	-
Other Items	-	-	-
Net Income
Net Income	16,433,000	20,576,000	18,122,000
Preferred Stock And Other Adjustments	-	-	-
Net Income Applicable To Common Shares	16,433,000	20,576,000	18,122,000

Cash Flow
Currency in JPY. All numbers in thousands
Period Ending	3/31/2017	3/31/2016	3/31/2015
Net Income	16,433,000	20,576,000	18,122,000
Operating Activities, Cash Flows Provided By or Used In
Depreciation	14,457,000	14,465,000	11,750,000
Adjustments To Net Income	-2,295,000	-760,000	-1,880,000
Changes In Accounts Receivables	-2,376,000	-224,000	-579,000
Changes In Liabilities	4,532,000	4,304,000	3,321,000
Changes In Inventories	-2,211,000	-613,000	-1,426,000
Changes In Other Operating Activities	1,240,000	860,000	303,000
Total Cash Flow From Operating Activities	30,640,000	39,689,000	30,734,000
Investing Activities, Cash Flows Provided By or Used In
Capital Expenditures	-10,983,000	-11,411,000	-9,559,000
Investments	-16,040,000	-17,279,000	-22,587,000
Other Cash flows from Investing Activities	370,000	375,000	346,000
Total Cash Flows From Investing Activities	-26,653,000	-28,316,000	-31,799,000
Financing Activities, Cash Flows Provided By or Used In
Dividends Paid	-6,301,000	-6,932,000	-5,205,000
Sale Purchase of Stock	-6,318,000	-2,698,000	-2,900,000
Net Borrowings	9,252,000	5,861,000	10,657,000
Other Cash Flows from Financing Activities	-	-	-
Total Cash Flows From Financing Activities	-3,367,000	-3,769,000	2,552,000
Effect Of Exchange Rate Changes	-121,000	-1,778,000	543,000
Change In Cash and Cash Equivalents	499,000	5,827,000	2,029,000

Task 1: Financial Planning and Growth
Suppose, you were hired by YOUR COMPANY, to assist the company with its financial planning and to evaluate the companys performance. Your supervisor (Yahoo Finance) provides you with the most recent three years of income statements and balance sheets of YOUR COMPANY. Assume that you company pays out one-third (1/3rd) of its net income as dividends. Ignore the change in retained earnings to reconcile this assumed dividend payment.
Questions:
1. Calculate the internal growth rate and sustainable growth rate for YOUR COMPANY?
2. Sales for 2018 are projected to grow by 15 percent. Interest expense and depreciation expense will remain constant; the tax rate and the dividend payout rate will also remain constant. Costs, other expenses, current assets, fixed assets, and accounts payable increase spontaneously with sales. If the firm is operating at full capacity (100%) and no new debt or equity is issued, what is the external financing needed (EFN) to support the 15 percent sales growth?
3. Suppose YOUR COMPANY was operating at only 90% capacity in 2017 (Hint: Construct a two-way data table).
a. What would be the EFN to achieve 20 percent growth?
b. What would be the EFN to achieve 30 percent growth?

Questions:
1. If you start saving today, how long will it be (in months and years, approximately) before you can buy a house?
2. Suppose you have a trust fund that will dispense $10,000 to you when you graduate in 2 years. If you keep saving (as planned in question 4, i.e. hold time constant), how much will your have to put down on your house? If this amount represents 10% of the cost of the house, what is the most you can spend on a house?
3. Suppose, alternatively, that YOUR COMPANY will match up to $3,600 per year for a retirement account every year as part of the company's profit-sharing plan. Instead of saving $500 per month to be able to buy a house, you maximize the matching retirement plan contribution. How much can you now save for a down payment each month, and how long will it be before you can afford to put $20,000 as a down payment, assuming the $10,000 trust distribution in 2 years?

Task 3: Bond Valuation
YOUR COMPANY, has three bonds outstanding in the market -- bonds X, Y and Z -- all of which pay semi-annually (twice per year). Bond X has a 7 percent coupon, Bond Y has a 9 percent coupon and Bond Z has an 11 percent coupon. Use the interest expense on the income statement and compare it to the total amount of Long Term Debt that YOUR COMPANY has outstanding to find the average interest rate. Bond X has 5 years to maturity, Bond Y has 10 years to maturity and Bond Z has a 20 year maturity.
Questions:
1. What is the average interest rate of YOUR COMPANY?
2. If each bond has a face value of $1 million, what is the current value of these three bonds? (5 points)
3. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of the three bonds?
4. If rates were to suddenly fall by 2 percent instead, what would be the percentage change in the price of the two bonds?
5. Illustrate your answers by graphing bond prices against YTM.