CF identity to check out Us Q2. Using the following financial statements for Pamplin Inc.: (8 Points) BALANCE SHEET FOR YEAR 2012 and 2013 (*000 S) ASSETS Cash $ 200 Account Receivable 450 Inventory 550 Current Asset 1,200 Plant and Equipment 2,200 Less: Ascumulated Depreciation (1,000) Net Plant and Eauipment 1,200 Total Assets 2.400 $ 150 425 625 1,200 2,600 (1,200) 1,400 2,600 150 150 300 600 600 LIABILITIES AND OWNERS EQUITY Ascounts Payable 200 Notes Pavable current 9% 0 Scurrents liabilities 200 Bonds. (8 1/3% interest) Owners Equity Cocoon Stock I 300 Paid-in canital 600 Betained. samnings 700 Total gwnets squity 1.600 Total Liab. 38.98 squity 2,400 300 600 800 1,700 2,600 Locoms Statement fer Xsar 2012 and 2013 (*000 S) Sales (All susdit COGS 1,200 1,450 700 Scross Profit 850 500 600 DEPARTMENT 328 SECTION 1: 01: Use the following information for Taco Swell, Inc. for section (a), (b) and (c). Assume the tax rate is 34%. Taco Swell, Inc. 2006 2007 Sales 54,018 54,312 Depreciation 577 578 Cost of Good Sold 1.382 1.569 Selling and Administrative Expenses 274 Interest 269 309 Cash 2,107 2,155 Accounts receivables 2,789 3,142 S-T Notes Payable 407 382 Long-term debt 7,056 8.232 Dividends 490 539 Net fixed assets 17,669 18,091 Accounts Payable 2,213 Inventory 4,959 5,096 2.146 (a) Draw up an income statement and balance sheet for this company for 2006 and 2007. (4 Points) Saw II-3001 The Inventory 4,95 5,096 (a) Draw up an income statement and balance sheet company for 2006 and 2007. (4 Points) Thos Seller B/Sheet at of the 31. 2006-2007 20012005 2000 Tan Swellne 2006 2007 2006 2007 (b) For year 2007, prepare a Cash Flow Statement a up a brief discussion. Note: Use CF identity to ch results. (13 Points) Q 2. Using the following financial statements for Inc.: (8 Points) BALANCE SHEET FOR YEAR 2012 an (*000 $) ASSETS Cash $ 200 Account Real 450 (b) For year 2007, prepare a Cash Flow Statement and write up a brief discussion. Note: Use CF identity to check your results. (13 Points) 2 2. Using the following financial statements for Pamplin Inc.: (8 Points) BALANCE SHEET FOR YEAR 2012 and 2013 (*000 S) ASSETS Cash S 200 $ 150 Account Receivable 450 425 Inventory 550 625 Current Asset 1,200 1,200 Plant and Equipment 2,200 2,600 Less: Accumulated Depreciation (1.000) (1,200) Net Plant and Equipment 1,200 1,400 Total Assets 2,400 2,600 LIABILITIES AND OWNERS EQUITY Accounts Payable 200 150 Notes Payable-current 9% 0 Currents liabilities 200 300 Bonds (8.1/3% interest) 600 150 600 600 Owners Equity Common Stock 300 300 Paid-in capital Retained earnings 700 800 Total owners' equity 1.600 1.700 Total Liab, and owners' equity 2,400 2,600 Income Statement for Year 2012 and 2013 (*000 S) Sales (All credit) 1,200 1.450 COGS 850 Gross Profit 500 600 nortina Tyn 700 20 600 Owners Equity Common Stock 300 300 Paid-in capital 600 Retained earnings 700 800 Total owners' equity 1.600 1.700 Total Liab, and owners' equity 2,400 2,600 Income Statement for Year 2012 and 2013 (4000 S) Sales (All credit) 1,200 1.450 COGS 700 850 Gross Profit 500 600 Operating Expenses 30 40 Depreciation 220 200 Interest Expense 50 Net Income Before Tax 200 296 Taxes (40%) 80 118 Net Income 120 178 Industry Norm for 2012 and 2013 Current Ratio 5.00 Quick Ratio 3.00 Average Collection Period 90 Average Payable Period 30 Total Debt Ratio 0.33 Times interest Earned 7.00 Calculate and comment on the following ratios. (10 Points) a. Quick Ratio b. Receivable Turnover c. Total Debt Ratio d. Times interest Earned Section 2: Time Value of Money (6 Points) 3. You want to begin saving for you daughter's college education and you estimate that she will need $150,000 in 20 years. If you feel confident that you can earn 8% per year, how much do you need to invest today? 4. You want to purchase a new car and you are willing to pay $30,000. If you can invest at 9.5 % per year and you currently have $15,000 wonge before you have b. Receivable Turnover c. Total Debt Ratio d. Times interest Earned a. Section 2: Time Value of Money (6 Points) 3. You want to begin saving for you daughter's college education and you estimate that she will need S150,000 in 20 years. If you feel confident that you can earn 8% per year, how much do you need to invest today? 4. You want to purchase a new car and you are willing to pay $30,000. If you can invest at 9.5 % per year and you currently have $15,000, how long will it be before you have enough money to pay cash for the car? 5. You have just made your first $ 200,000 yen contribution to your retirement account. Assuming you earn a 10% rate of retum and make no additional contribution, what will your account be worth when you retire in 55 years. 6. You want to double your money in 4 years. You have $20,000 to invest, What is the implied rate of interest. Section 3: Multiple Choice (4 Points) 7. The mixture of debt and equity used by a firm to finance its operations is called: working capital management. b. financial depreciation c cost analysis. d. capital budgeting. capital structure. The management of a firm's short-term assets and liabilities is called: working capital management. b. debt management C. equity management d. capital budgeting capital structure. 9. The primary goal of financial management is to: maximize current dividends per share of the existing stock. b. maximize the current value per share of the existing stock avoid financial distress d. minimize operational costs and maximize firm efficiency. maintain steady growth in both sales and net earnings A conflict of interest between the stockholders e. 8. 10. years. If you feel confident that you can earn 8% per year, how much do you need to invest today? 4. You want to purchase a new car and you are willing to pay $30,000. If you can invest at 9.5 % per year and you currently have $15,000, how long will it be before you have enough money to pay cash for the car? 5. You have just made your first $ 200,000 yen contribution to your retirement account. Assuming you eam a 10% rate of return and make no additional contribution, what will your account be worth when you retire in 55 years. 6. You want to double your money in 4 years. You have $20,000 to invest. What is the implied rate of interest. e. Section 3: Multiple Choice (4 Points) 7. The mixture of debt and equity used by a firm to finance its operations is called: a. working capital management b. financial depreciation cost analysis. d capital budgeting. capital structure 8. The management of a firm's short-term assets and liabilities is called: a. working capital management. b. debt management c. equity management d. capital budgeting. capital structure The primary goal of financial management is to: maximize current dividends per share of the existing stock. b. maximize the current value per share of the existing stock. avoid financial distress d. minimize operational costs and maximize firm efficiency maintain steady growth in both sales and net earnings A conflict of interest between the stockholders and management of a firm is called: stockholders' liability b. corporate breakdown c. the agency problem. d. corporate activism legal liability 9. 10. e. CF identity to check out Us Q2. Using the following financial statements for Pamplin Inc.: (8 Points) BALANCE SHEET FOR YEAR 2012 and 2013 (*000 S) ASSETS Cash $ 200 Account Receivable 450 Inventory 550 Current Asset 1,200 Plant and Equipment 2,200 Less: Ascumulated Depreciation (1,000) Net Plant and Eauipment 1,200 Total Assets 2.400 $ 150 425 625 1,200 2,600 (1,200) 1,400 2,600 150 150 300 600 600 LIABILITIES AND OWNERS EQUITY Ascounts Payable 200 Notes Pavable current 9% 0 Scurrents liabilities 200 Bonds. (8 1/3% interest) Owners Equity Cocoon Stock I 300 Paid-in canital 600 Betained. samnings 700 Total gwnets squity 1.600 Total Liab. 38.98 squity 2,400 300 600 800 1,700 2,600 Locoms Statement fer Xsar 2012 and 2013 (*000 S) Sales (All susdit COGS 1,200 1,450 700 Scross Profit 850 500 600 DEPARTMENT 328 SECTION 1: 01: Use the following information for Taco Swell, Inc. for section (a), (b) and (c). Assume the tax rate is 34%. Taco Swell, Inc. 2006 2007 Sales 54,018 54,312 Depreciation 577 578 Cost of Good Sold 1.382 1.569 Selling and Administrative Expenses 274 Interest 269 309 Cash 2,107 2,155 Accounts receivables 2,789 3,142 S-T Notes Payable 407 382 Long-term debt 7,056 8.232 Dividends 490 539 Net fixed assets 17,669 18,091 Accounts Payable 2,213 Inventory 4,959 5,096 2.146 (a) Draw up an income statement and balance sheet for this company for 2006 and 2007. (4 Points) Saw II-3001 The Inventory 4,95 5,096 (a) Draw up an income statement and balance sheet company for 2006 and 2007. (4 Points) Thos Seller B/Sheet at of the 31. 2006-2007 20012005 2000 Tan Swellne 2006 2007 2006 2007 (b) For year 2007, prepare a Cash Flow Statement a up a brief discussion. Note: Use CF identity to ch results. (13 Points) Q 2. Using the following financial statements for Inc.: (8 Points) BALANCE SHEET FOR YEAR 2012 an (*000 $) ASSETS Cash $ 200 Account Real 450 (b) For year 2007, prepare a Cash Flow Statement and write up a brief discussion. Note: Use CF identity to check your results. (13 Points) 2 2. Using the following financial statements for Pamplin Inc.: (8 Points) BALANCE SHEET FOR YEAR 2012 and 2013 (*000 S) ASSETS Cash S 200 $ 150 Account Receivable 450 425 Inventory 550 625 Current Asset 1,200 1,200 Plant and Equipment 2,200 2,600 Less: Accumulated Depreciation (1.000) (1,200) Net Plant and Equipment 1,200 1,400 Total Assets 2,400 2,600 LIABILITIES AND OWNERS EQUITY Accounts Payable 200 150 Notes Payable-current 9% 0 Currents liabilities 200 300 Bonds (8.1/3% interest) 600 150 600 600 Owners Equity Common Stock 300 300 Paid-in capital Retained earnings 700 800 Total owners' equity 1.600 1.700 Total Liab, and owners' equity 2,400 2,600 Income Statement for Year 2012 and 2013 (*000 S) Sales (All credit) 1,200 1.450 COGS 850 Gross Profit 500 600 nortina Tyn 700 20 600 Owners Equity Common Stock 300 300 Paid-in capital 600 Retained earnings 700 800 Total owners' equity 1.600 1.700 Total Liab, and owners' equity 2,400 2,600 Income Statement for Year 2012 and 2013 (4000 S) Sales (All credit) 1,200 1.450 COGS 700 850 Gross Profit 500 600 Operating Expenses 30 40 Depreciation 220 200 Interest Expense 50 Net Income Before Tax 200 296 Taxes (40%) 80 118 Net Income 120 178 Industry Norm for 2012 and 2013 Current Ratio 5.00 Quick Ratio 3.00 Average Collection Period 90 Average Payable Period 30 Total Debt Ratio 0.33 Times interest Earned 7.00 Calculate and comment on the following ratios. (10 Points) a. Quick Ratio b. Receivable Turnover c. Total Debt Ratio d. Times interest Earned Section 2: Time Value of Money (6 Points) 3. You want to begin saving for you daughter's college education and you estimate that she will need $150,000 in 20 years. If you feel confident that you can earn 8% per year, how much do you need to invest today? 4. You want to purchase a new car and you are willing to pay $30,000. If you can invest at 9.5 % per year and you currently have $15,000 wonge before you have b. Receivable Turnover c. Total Debt Ratio d. Times interest Earned a. Section 2: Time Value of Money (6 Points) 3. You want to begin saving for you daughter's college education and you estimate that she will need S150,000 in 20 years. If you feel confident that you can earn 8% per year, how much do you need to invest today? 4. You want to purchase a new car and you are willing to pay $30,000. If you can invest at 9.5 % per year and you currently have $15,000, how long will it be before you have enough money to pay cash for the car? 5. You have just made your first $ 200,000 yen contribution to your retirement account. Assuming you earn a 10% rate of retum and make no additional contribution, what will your account be worth when you retire in 55 years. 6. You want to double your money in 4 years. You have $20,000 to invest, What is the implied rate of interest. Section 3: Multiple Choice (4 Points) 7. The mixture of debt and equity used by a firm to finance its operations is called: working capital management. b. financial depreciation c cost analysis. d. capital budgeting. capital structure. The management of a firm's short-term assets and liabilities is called: working capital management. b. debt management C. equity management d. capital budgeting capital structure. 9. The primary goal of financial management is to: maximize current dividends per share of the existing stock. b. maximize the current value per share of the existing stock avoid financial distress d. minimize operational costs and maximize firm efficiency. maintain steady growth in both sales and net earnings A conflict of interest between the stockholders e. 8. 10. years. If you feel confident that you can earn 8% per year, how much do you need to invest today? 4. You want to purchase a new car and you are willing to pay $30,000. If you can invest at 9.5 % per year and you currently have $15,000, how long will it be before you have enough money to pay cash for the car? 5. You have just made your first $ 200,000 yen contribution to your retirement account. Assuming you eam a 10% rate of return and make no additional contribution, what will your account be worth when you retire in 55 years. 6. You want to double your money in 4 years. You have $20,000 to invest. What is the implied rate of interest. e. Section 3: Multiple Choice (4 Points) 7. The mixture of debt and equity used by a firm to finance its operations is called: a. working capital management b. financial depreciation cost analysis. d capital budgeting. capital structure 8. The management of a firm's short-term assets and liabilities is called: a. working capital management. b. debt management c. equity management d. capital budgeting. capital structure The primary goal of financial management is to: maximize current dividends per share of the existing stock. b. maximize the current value per share of the existing stock. avoid financial distress d. minimize operational costs and maximize firm efficiency maintain steady growth in both sales and net earnings A conflict of interest between the stockholders and management of a firm is called: stockholders' liability b. corporate breakdown c. the agency problem. d. corporate activism legal liability 9. 10. e