Complete tabs 3.5, 3.9, 3.14, 3.17, 3.25, and STP 3.4 in the attached Chapter 3 Excel spreadsheet. An EXAMPLE tab is provided in the spreadsheet for your guidance. You must use formulas in the spreadsheet to show your work. Upload the assignment to the proper assignment folder.

3.6. Working capital: The financial information for Laurel Electronics referred to in problem 3.5 is all book value. Suppose marking-to-market reveals that the market value of the firm's inventory is 20 percent below its book value and its receivables are 25 percent below its book value. The market value of its current liabilities is identical to the book value. What is the firm's net working capital using market values? What is the percentage change in net working capital? Cash and marketable securities (M/S) $ 1,235,455 Comment regarding market value of the balance sheet items Accounts payables $ 4,159,357 same as book value Inventory $ 7,121,599 20% below book value Accounts receivables $ 3,488,121 25% below book value Notes payable $ 1,151,663 Other current assets $ 121,455 same as book value Market values of Laurel Electronics' current assets and current liabilities Current assets Current Liabilities Cash and M/S $ 1,235,455 Accounts payables $ 4,159,357 Accounts receivables $ 2,616,091 Notes payable $ 1,151,663 Inventory $ 5,697,279 Other current assets $ 121,455 Total Current assets $ 9,670,280 Total Current liabilities $ 5,311,020 $ 4,359,260 Net working capital Percent change in Net Working Capital -34.50% 3.1. Balance sheet: Given the following information about Elkridge Sporting Goods, Inc., construct a balance sheet for June 30, 2014. On that date the firm had cash and marketable securities of $25,135, accounts receivable of $43,758, inventory of $167,112, net fixed assets of $325,422, and other assets of $13,125. It had accounts payables of $67,855, notes payables of $36,454, long-term debt of $223,125, and common stock of $150,000. How much retained earnings did the firm have? 3.5. Working capital: Laurel Electronics reported the following information at its annual meeting: The company had cash and marketable securities worth $1,235,455, accounts payables worth $4,159,357, inventory of $7,121,599, accounts receivables of $3,488,121, short-term notes payable worth $1,151,663, and other current assets of $121,455. What is the company's net working capital? 3.7. Income statement: The Oakland Mills Company has disclosed the following financial information in its annual reports for the period ending March 31, 2014: sales of $1.45 million, cost of goods sold of $812,500, depreciation expenses of $175,000, and interest expenses of $89,575. Assume that the firm has an average tax rate of 35 percent. What is the company's net income? Set up an income statement to answer the question. 3.9. Cash flows: During 2014 Towson Recording Company increased its investment in marketable securities by $36,845, funded fixed-assets acquisition by $109,455, and had marketable securities of $14,215 mature. What is the net cash used in investing activities? 3.10. Cash flows: Caustic Chemicals identified the following cash flows as significant in their year end meeting with analysts: During the year Caustic repaid existing debt of $312,080, and raised additional debt capital of $650,000. It also repurchased stock in the open markets for a total of $45,250. What is the net cash provided by financing activities? 3.12 Cash flows: Given the data for Oakland Mills Company in Problem 3.7, compute the cash flows to investors from operating activity. 3.13 Cash flows: Hillman Corporation reported current assets of $3,495,055 for the year ending December 31, 2014 and current assets of $3,103,839 for the year ending December 31, 2013. Current liabiliites for the firm were $2,867,225 and $2,760,124 at the end of 2014 and 2013, respectively. Compute the cash flow invested in net working capital at Hillman Corporation during 2014. 3.14 Cash flows: Del Bridger Construction had long-term assets before depreciation of $990,560 on December 31, 2013 and $1,211,105 on December 31, 2014. How much cash flow was invested in long-term assets by Del Bridge during 2014? 3.17. Tax: Manz Property Management Company announced that in the year ended June 30, 2014, its earnings before taxes amounted to $1,478,936. Calculate its taxes using Exhibit 3.6 in the text. Earnings before interest and taxes U.S. Federal Corporate Income Tax Rates for 2013 Taxable Income from Upto Rate 0 50,000 15% 50,001 75000 25% 75001 100,000 34% 100,001 335,000 39% 335,001 10,000,000 34% 10,000,001 15,000,000 35% 15,000,001 18,333,333 38% 18,333,334 0% 35% $1,478,936 3.18 Balance sheet: Tim Dye, the CFO of Blackwell Automotive, Inc., is putting together this year's financial statements. He has gathered the following information: The firm had a cash balance of $23,015, accounts payable of $163,257, common stock of $313,299, retained earnings of $512,159, inventory of $212,444, goodwill and other assets equal to $78,656, net plant and equipment of $711,256, and notes payable of $21,115. It also has accounts receivable of $141,258 and other current assets of $11,223. How much long-term debt does Blackwell Automotive have? 3.19 Working capital: Mukhopadhya Network Associates has a current ratio of 1.60, where the current ratio is defined as follows: Current ratio = Current assets/Current liabilities. The firm's current assets are equal to $1,233,265, its accounts payables are $419,357, and its notes payables are $351,663. Its inventory is currently at $721,599. The company plans to raise funds in the short-term debt market and invest the entire amount in additional inventory. How much can notes payable increase without the current ratio falling below 1.50? 3.20 Market value: Reservoir Bottling Co. reported the following information at the end of the year. Total current assets are worth $237,513 at book value and $219,344 at market value. In addition, plant and equipment with a market of $343,222, and a book value of $362,145. The company's total current liabilities are valued at market for $134,889 and has a book value of $129,175. Both the book value and the market value of its long-term debt is $144,000. If the company's total assets are equal to a market value of $562,566 and a book value of $599,658, what is the difference in the book value and market value of its stockholders' equity? 3.21 Income statement: Nimitz Rental Company provided the following information to its auditors. For the year ended March 31, 2014, the company had revenues of $878,412, general and administrative expenses of $352,666, depreciation expenses of $131,455, leasing expenses of $108,195, and interest expenses equal to $78,122. If the company's average tax rate is 34 percent, what is its net income after taxes? 3.22 Income statement: Sosa Corporation recently reported an EBITDA of $31.3 million and net income of $9.7 million. The company had $6.8 million in interest expense, and its average corporate tax rate was 35 percent. What was its depreciation and amortization expense? 3.23. Income statement: Fraser Corporation has announced that its net income for the year ended June 30, 2014, was $1,353,412. The company had EBITDA of $4,967,855, and its depreciation and amortization expense was equal to $1,112,685. The company's average tax rate is 34 percent. What was its interest expense? 3.24 Income statement: For its most recent fiscal year, Carmichael Hobby Shop recorded EBITDA of $512,725.20, EBIT of $362,450.20, zero interest expense, and cash flow to investors from operating activitiy of $348,461.25. Assuming there are no non-cash revenues recorded on the income statement, what is the firm's net income after taxes? 3.25 Retained earnings: Columbia Construction Company earned $451,888 during the year ended June 30, 2014. After paying out $225,794 in dividends, the balance went into retained earnings. If the firm's total retained earnings were $846,972, what was the retained earnings on its balance sheet on July 1, 2013? 3.26 Cash flows: Refer to the information given in problem 3.21. What is the cash flow for Nimitz Rental? 3.27 Tax: Mount Hebron Electrical Company's financial statements indicated that the company had earnings before interest and taxes of $718,323. The interest rate on its $850,000 debt was 8.95 percent. Calculate the taxes the company is likely to owe. What are the marginal and average tax rates for this company? 3.28 The Centennial Chemical Corp. announced that, for the period ending March 31, 2014, it had earned income after taxes worth $5,330,275 on revenues of $13,144,680. The company's costs (excluding depreciation and amortization) amounted to 61 percent of sales and it had interest expenses of $392,168. What is the firm's depreciation and amortization expense if its average tax rate is 34 percent? 3.29 Eau Claire Paper Mill, Inc., had, at the beginning of the fiscal year, April 1, 2013, retained earnings of $323,325. During the year ended March 31, 2014, the company produced net income after taxes of $713,445 and paid out 45 percent of its net income as dividends. Construct a statement of retained earnings and compute the year-end balance of retained earnings. ## Menomonie Casino Company earned $23,458,933 before interest and taxes for the fiscal year ending March 31, 2014. If the casino had interest expenses of $1,645,123, calculate its tax burden using Exhibit 3.6. What are the marginal and the average tax rates for this company? EBIT Interest expenses 23,458,933 1,645,123 Tax schedule U.S. Federal Corporate Income Tax Rates for 2013 Taxable Income from Upto 0 $ 50,000 50,001 $ 75,000 75001 $ 100,000 100,001 $ 335,000 335,001 $ 10,000,000 10,000,001 $ 15,000,000 15,000,001 $ 18,333,333 18,333,334 $ - Rate 15% 25% 34% 39% 34% 35% 38% 35% 3.31 Vanderheiden Hog Products Corp. provided the following financial information for the quarter ending June 30, 2014: Net income: $189,425 Depreciation and amortization: $63,114 Increase in receivables: $ 62,154 Increase in inventory: $57,338 Increase in accounts payable: $37,655 Decrease in marketable securities: $27,450 What is this firm's cash flow from operating activities during this quarter? 3.32 Cash flows: Analysts following the Tomkovick Golf Company were given the following information for the year ended June 30, 2014 and June 30, 2013. Assets Cash and marketable securities Accounts receivable Inventory Other current assets Total current assets Plant and equipment Less: Accumulated depreciation Net plant and equipment Goodwill and other assets 2014 2013 $ $ $ 33,411 260,205 423,819 $ $ $ 16,566 318,768 352,740 $ 41,251 $ 29,912 $ 758,686 $ 717,986 $ 1,931,719 $ 1,609,898 $ $ ($419,044) 1,512,675 382,145 $ $ ($206,678) 1,403,220 412,565 $ 2,653,506 $ 2,533,771 Total assets In addition, it was reported that the company had a net income of $3,155,848 and that depreciation expenses were equal to $212,366 during 2014. a.Construct a 2014 cash flow statement for this firm. b.Calculate the net cash provided by operating activities. c.What is the net cash used in investing activities? d.Compute the net cash provided by financing activities. Liabilities and Equity Accounts payable and accruals Notes payable Accrued income taxes 2014 2013 $ $ 378,236 14,487 $ $ 332,004 7,862 $ $ 21,125 413,848 $ $ 16,815 356,681 Long-term debt $ 679,981 $ 793,515 Total liabilities Preferred stock $ 1,093,829 $ 1,150,196 Common stock (10,000 shares) Additional paid-in capital Retained earnings Less: Treasury stock Total common equity Total liabilities and equity $ $ $ $ $ $ 10,000 975,465 587,546 (13,334) 1,559,677 2,653,506 Total current liabilities ### ### $ $ $ 398,110 1,383,575 2,533,771 3.33 Cash flows: Based on the financial statements for Tomkovick Golf Company, problem 3.32 above, compute the cash flow invested in net working capital and the cash flow invested in long-term assets that you would use in a calculation of the cash flows to investors for 2014. STP #3.2 Wolf Pack Enterprises has total current assets of $346,002 and fixed assets of $476,306. The company also has long-term debt of $276,400, $100,000 in its common stock account, and retained earnings of $187,567. What is the value of its total current liabilities? STP #3.4 ACME Corporation had revenues of $867,030 in 2014. It also had expenses (excluding depreciation) of $356,240, depreciation of $103,456, and interest expense of $52,423. What was the company's net income after taxes if its average tax rate was 40 percent? STP #3.5 The Blue Company increased its investments in marketable securities by $323,370 and paid $1,220,231 for new fixed asset during 2014. The company also repaid $779,200 of existing long-term debt while raising $913,455 of new debt capital. In addition, True Blue had a net cash inflow of $345,002 from the sale of fixed assets, and repurchased stock in the open markets for a total of $56,001. What is the net cash used in investing activities by True Blue? What is the net cash provided by the company's financing activities