Balance Sheet
				Liabilities and
Assets	2016	2015		Shareholders Equity	2016	2015
Cash & marketable securities	$300	$800		Accounts payable	$350	$300
Inventories	350	300		Notes payable	600	1,000
Accounts receivable	450	400		Long-term debt	2,400	2,000
Net fixed assets	5,800	5,000		Total liabilities
Total assets				Shareholders equity
				Total liabilities plus
				shareholders equity

Income Statement
	2016	2015
Revenue	$4,100	$4,000
Cost of goods sold	1,700	1,600
Administrative expenses	550	500
Depreciation expense	520	500
Earning Before Interest & Taxes
Interest expense	150	150
Taxable income	1,180	1,250
Federal & state income taxes	420	400
Net income

Complete the above balance sheet for 2016 & 2015.1

Complete the above Income Statement for 2016 & 2015?

What was the Average Tax Rate for 2016 & 2015? (show calculation)

What was the Return on Equity for 2016 ? If ROE was 22% in 2015 did ROE improve in 2016?)

Balance Sheet: Bob's Bowling Balls, Inc.(in millions of dollars)
		2016	2015
Cash and equivalents		$ 110	$ 80
Accounts receivable		375	315
Inventories		615	415
Total current assets		$ 1,100	$ 810
Gross Fixed Assets		2,000	1,870
Less: Accumulated Depreciation		1,100	1,000
Net Fixed Assets		900	870
Total assets		$ 2,000	$ 1,680
Liabilities and Equity
Accounts payable		$ 60	$ 30
Accruals		140	130
Notes payable		110	60
Total current liabilities		$ 310	$ 220
Long-term debt		750	580
Total debt		$ 1,060	$ 800
Common stock (50,000,000 shares)		130	130
Retained earnings		810	750
Total common equity		$ 940	$ 880
Total liabilities and equity		$ 2,000	$ 1,680
INCOME STATEMENT - Bob's Bowling Balls, Inc.
(in millions of dollars)		2016	2015
Net sales		$ 3,000.0	$ 2,850.0
Operating costs except depreciation and amortization		2,616.2	2,497.0
Depreciation and amortization		100.0	90.0
Earnings before interest and taxes (EBIT)		$ 283.8	$ 263.0
Less interest		88.0	60.0
Earnings before taxes (EBT)		$ 195.8	$ 203.0
Taxes		78.3	81.2
Net income		$ 117.5	$ 121.8

Using the Balance Sheet & Income Statement Data complete a Statement of Cash
Flow for Bob's Bowling Balls, Inc.
STATEMENT OF CASH FLOWS
Parentheses indicate net cash outflows, no parentheses indicates net cash inflows.
I. Operating Activities
Net income
Depreciation and amortization
Decrease or (increase) in inventories
Decrease or (increase) in accounts receivable
Increase or (decrease) in accounts payable
Increase or (decrease) in accruals
Net cash provided by (used in) operating activities									0
II. Long-Term Investing Activities
Cash used for (additions) to property, plant & equip.
Net cash used in investing activities									0
III. Financing Activities
Increase (or decrease) in notes payable
Increase (or decrease) in long term debt
Payment of dividends to stockholders									-57.5
Net cash provided by financing activities									-57.5
IV. Summary
Net decrease in cash and equivalents: (Net sum of I, II, III)									-57.5
Cash at beginning of the year
Cash at end of the year									-57.5
Using the Balance Sheet & Income Statement data calculate the Economic Value Added in 2016 for
for Bob's Bowling Balls, Inc. Assume a tax rate of 40% and a Cost of Capital of 8%. (show your work)
Log on to finance.yahoo.com, calculate the following ratios for Home
Depot (HD) for year ending 1/31/17. (show your work)
Return on Capital (assume a 35% tax rate), use Total Capitalization
Return on Assets, use Total Assets
.
You own a bond maturing in 8 years, currently paying a 3% semi-annual coupon.
The current market rate of interest (or required rate of return) for this bond is 2.26%, what is the current market value of this bond?
You purchase a bond with 6 years remaining until maturity at a price of $980.
It is paying a 4% semi-annual coupon. What is the yield to maturity of this bond?
.