Cash Flow Problem. W-Panic Enterprises, Inc. (WPEI) shows the following balance sheet and income statement information. Assume an average tax rate of 30% for WPEI.

Balance Sheet 2012 2013 Income Stmt. 2013

Assets Sales $18,000

Cash $1,120 $1,250 - Cost of Goods Sold -$9,800

Accts. Receivable $2,380 $2,900 - SG&A Expenses -$1,100

Inventory $800 $440 - Marketing Expenses -$1,000

Net Fixed Assets $5,500 $6,360 - Depreciation Exp. -$1,500

Liabilities Operating Income $4,600

Accounts Payable $1,600 $1,500 - Interest Exp. -$1,200

Taxes Payable $300 $850 Taxable Income $3,400

Long-term Notes $1,800 $1,250 - Tax Expense* -$850

Long-term Bonds $1,000 $1,450 Net Income $2,550

Owners Equity - Dividend Exp. -$2,750

Common Stock $4,000 $5,000

Retained Earnings $1,100 _ _ _ _

* the average tax rate is 25%

SET ONE: (a) Calculate Total Assets for 2013 (b) Calculate Total Liabs for 2013. (c) Calculate Retained Earnings on the balance sheet for 2013. (d) Calculate Cash Flow from Operations for 2013

Financial ratio problems:

Solve for the following using the above Balance Sheets and Income Statement from W-Panic and incorporating the following information: The market value for a share of WPEI stock on 12/31/13 was $20. There are 1000 shares outstanding at the end of the year.

SET TWO: Calculate the following for 2013: (a) Price/Earnings. (b) Market Value per share/Book Value per share. (d) ROE (e) ROA