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can you solve this questions ? Pinewood Company PROBLEMS 5-6 THROUGH 5-10 Given: Problems: Income Statement (in $ 000's) 5-6: Pinewood Industry 2006 a. Gross

can you solve this questions ? Pinewood Company PROBLEMS 5-6 THROUGH 5-10 Given: Problems: Income Statement (in $ 000's) 5-6: Pinewood Industry 2006 a. Gross Profit Margin b. Operating Profit Margin Net Sales $94,001 c. Net Profit Margin 5.0% Cost of Goods Sold 46,623 d. Return on Assets 14.0% Gross Profit 47,378 e. Return on Equity Selling and Admin Expenses 28,685 Depreciation and R&D 5,752 Operating Income 12,941 Interest Expense 48 Interest Income 427 Before-Tax Income 13,320 5-7: Income Taxes 4,700 a. Current Ratio Net Income $8,620 b. Quick Ratio EPS $1.72 Balance Sheet (in $ 000's) As of Dec 31 5-8: 2006 a. Debt to Assets Assets b. Times Interest Earned Current Assets: Cash & Marketable Securities $6,486 Accounts Receivable 14,745 Inventory 10,733 Prepaid Expenses 3,234 Total Current Assets 35,198 5-9: Property, Plant & Equipment, Gross 57,340 a. ACP Less Accumulated Depreciation (29,080) b. Inventory Turnover Property, Plant & Equipment, Net 28,260 c. Total Asset turnover Land 1,010 Long-Term Investments 2,503 Total Assets $66,971 Liabilities & Equity Current Liabilities: Accounts Payable $3,253 5-10: Notes Payable 0 Modified Du Pont: Accrued expenses 6,821 Net Profit Margin Total Current Liabilities 10,074 Asset Turnover Long-Term Debt 2,389 Equity Multiplier Total Liabilities 12,463 ROE 0.0% Common Stock 8,549 Retained Earnings 45,959 Total Stockholders' Equity 54,508 Total Liabilities & Equity $66,971 Comment: Comment: Comment: Comment: Comment: Student instructions: This tab is for problems 5-6 through 5-11. The financial statements for Pinewood Company are presented below in columns A and B. The financial ratios called for in problems 5-6 through 5-10 are in column D. Enter the formulas in column E to calculate each ratio. Double-click on the text boxes to enter your comments for each ratio group. The next tab contains the EVA and MVA calculations for problem 5-11. Pinewood Company PROBLEM 5-11 EVA & MVA Calculation: Income tax rate 35% Cost of Capital 10% Stock Price $15.00 Number of shares outstanding (000s) 5,000 Market Value of Common Equity ($000s) $75,000 Book Value of Common Equity ($000s) $54,508 Debt Capital ($000s) $2,389 Total Invested Capital ($000s) $77,389 a. EVA ($000s) c. MVA ($000s) Student instructions: This tab is for problem 5-11. Begin on the previous tab with problems 5-6 - 5-10. This tab contains the EVA and MVA calculations for problem 5-11. Given information has been inserted in the cells below for you. Enter formulas in the blank cells and comments in the text boxes to complete the EVA/MVA analysis. b. Comment on EVA: d. Comment on MVA: PROBLEM 5-13 (EVA, MVA) T & J CORPORATION FINANCIAL STATEMENTS, 2006 INCOME STATEMENT BALANCE SHEET For the Year Ended December 31, 2006 For the Year Ended December 31, 2006 Net Sales $10,000 Assets: Cost of goods sold 3,000 Cash $350 ROE 25.3% Gross profit 7,000 Accounts receivable 400 ROA 16.8% Depreciation 200 Inventory 680 S&A Expenses 300 Marketable Securities 300 DT/Assets 34% Operating Income (EBIT) 6,500 Prepaid Expenses 200 Interest expense 584 Total current assets 1,930 CR 1.12 Income before taxes 5,916 Fixed Assets, Gross 63,000 Income taxes (35%) 2,071 less Accumulated Depr. (42,000) Net Profit Margin 38% Net income $3,845 Fixed Assets, Net 21,000 Total assets $22,930 Assumed interest rates: Earnings per Share (3,000 shares) $1.28 Liabilities & Equity: Interest rate on short-term notes: 7% Accounts Payable $740 Notes payable 630 Interest rate on long-term debt: 9% Accrued Expenses 350 Total current liabilities 1,720 Long-term debt 6,000 Total liabilities 7,720 Common stock 3,000 Capital in Excess of Par 6,610 Retained earnings 5,600 Total common equity 15,210 Total liabilities and equity $22,930 Student instructions: This tab is for problem 5-13. The financial statements for T & J Corporation are presented below. Proceed to the next tab and, based on the information given there and on these financial statements, calculate the firm's EVA and MVA .

image text in transcribed Student instructions: This tab is for problems 5-6 through 5-11. The financial statements for Pinewood Company are presented below in columns A and B. The financial ratios called for in problems 5-6 through 5-10 are in column D. Enter the formulas in column E, the highlighted cells (either use Excel formulas or work with a calculator and type them in) to calculate each ratio. Double-click on the text boxes to enter your comments for each ratio group and use these for your online discussion this week. Share your worksheets in the discussion, copy and paste or as attachments. The next ("5-11" below) tab contains the EVA and MVA calculations for problem 5-11. Pinewood Company PROBLEMS 5-6 THROUGH 5-10 Given: Problems: Income Statement (in $ 000's) 2009 Net Sales Cost of Goods Sold Gross Profit Selling and Admin Expenses Depreciation and R&D Operating Income Interest Expense Interest Income Before-Tax Income Income Taxes Net Income EPS $94,001 46,623 47,378 28,685 5,752 12,941 48 427 13,320 4,700 $8,620 $1.72 5-6: a. Gross Profit Margin b. Operating Profit Margin c. Net Profit Margin d. Return on Assets e. Return on Equity Comment: 5-7: a. Current Ratio b. Quick Ratio Comment: Balance Sheet (in $ 000's) As of Dec 31 2009 Assets Current Assets: Cash & Marketable Securities Accounts Receivable Inventory Prepaid Expenses Total Current Assets Property, Plant & Equipment, Gross Less Accumulated Depreciation Property, Plant & Equipment, Net Land Long-Term Investments Total Assets Liabilities & Equity Current Liabilities: Accounts Payable Notes Payable Accrued expenses Total Current Liabilities Long-Term Debt Total Liabilities Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities & Equity $6,486 14,745 10,733 3,234 35,198 57,340 (29,080) 28,260 1,010 2,503 $66,971 $3,253 0 6,821 10,074 2,389 12,463 8,549 45,959 54,508 $66,971 5-8: a. Debt to Assets b. Times Interest Earned Comment: 5-9: a. ACP b. Inventory Turnover c. Total Asset turnover Comment: 5-10: Modified Du Pont: Net Profit Margin Asset Turnover Equity Multiplier ROE Comment: Pinewood Industry 5.0% 14.0% Student instructions: This tab is for problem 5-11. Begin on the previous tab with problems 5-6 - 5-10. This tab contains the EVA and MVA calculations for problem 5-11. Given information has been inserted in the cells below for you. Enter formulas in the highlighted cells and comments in the text boxes to complete the EVA/MVA analysis. Share in your discussion this week. Pinewood Company PROBLEM 5-11 EVA & MVA Calculation: Income tax rate Cost of Capital Stock Price Number of shares outstanding (000s) Market Value of Common Equity ($000s) Book Value of Common Equity ($000s) Debt Capital ($000s) Total Invested Capital ($000s) 35% 10% $15.00 5,000 a. EVA ($000s) b. Comment on EVA: This year Pinewood earned enough to exceed the return expected by the contributors of the firm's capital by $673,000. c. MVA ($000s) d. Comment on MVA: Since the business has been in operation, $20,492,000 has been added to the value of the capital invested in the firm

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