Complete the following problem sets from the "Problems" section in Chapters 2-4 ofFinancial Management: Theory and Practice. Please use Excel and put each chapter in it's own separate tab.

1. Chapter 2: 2-3, 2-5, and 2-6
2. Chapter 3: 3-2, 3-4, 3-5, 3-8, 3-9, and 3-10
3. Chapter 4: 4-6, 4-10, 4-14, 4-25, and 4-26

{2-3} Income Statement {2-43 Income Statement {2-5} Net Cash Flow {2-5} Statement of Retained Earnings Molteni Motors Inc. recently reported $6 million of net income. Its EBIT was $13 million, and its tax rate was 4096. What was its interest expense? (Hint: Write out the headings for an income statement, and then ll in the known values. Then divide $6 million net income by 1 T = 0.6 to nd the pre-tax income. The difference between EBIT and taxable income must be the interest expense. Use this procedure to work some of the other problems.) Talbot Enterprises recently reported an EBITDA of $3 million and net income of $2.4 million. It had $2.0 million of interest expense, and its corporate tax rate was 40%. What was its charge for depreciation and amortization? Kendall Corners Inc. recently reported net income of $3.1 million and depreciation of $500,000. What was its net cash ow? Asstnne it had no amortization expense. In its most recent financial statements, Del-Castillo an. reported $70 million of net income and $900 million of retained earnings. The previous retained earnings were $355 million. How much in dividends did the rm pay to shareholders during the year? {3-21 Debt Ratio {3-31 Marketfook Ratio ss PricefEarnings Ratio {3-51 ROE Intermediate Prublems 510 {3-5} Du Pont Analysis sn tment and Quick Ratios {3-21 Prot Margin and Debt Ratio Vigo Vacations has $200 million in total assets, $5 million in notes payable, and $25 million in long-term debt. What is the debt ratio? Winston 1Washers's stock price is $75 per share. Winston has $10 billion in total assets. Its balance sheet shows $1 billion in current liabilities, $3 billion in long-term debt, and $6 billion in common equity. It has 300 million shares of common stock outstanding. What is Winston's marketfbook ratio? Reno Revolvers has an EPS of $1.50, a cash ow per share of $3.00, and a pricefeash ow ratio of 3.0. What is its PIE ratio? Needham Phannaceuticals has a prot margin of 3% and an equity multiplier of 2.0. Its sales are $100 million and it has total assets of $50 million. What is its ROE!I Gardial & Son has an ROA of 12%, a 5% prot margin, and a return on equity equal to 20%. What is the company" s total assets turnover? What is the rm's equity multiplier? Ace 1ndustries has current assets equal to $3 million. The company> s current ratio is 1.5, and its quick ratio is 1.0. What is the rm's level of current liabilities? What is the rm's level of inventories? Assume you are given the following relationships for the Haslam Corporation: Salesftotal assets 1.2 Return on assets (RDA) 4% Return on equity (ROE) 7% Calculate Haslam's prot margin and liabilities-to-assets ratio. Suppose half its liabilities are in the form of debt. Calculate the debt-toassets ratio. (3-9} The Nelson Company has $1,312,500 in current assets and $525,000 in current liabilities. tment and Quick Its initial inventory level is $376,000, and it will raise funds as additional notes payable Ratios and use them to increase inventory. How much can Nelson's short-term debt (notes payable) increase without pushing its current ratio below 2.0? What will be the rm's quick ratio after Nelson has raised the maximum amount of short-term funds? {3-10} The Morris Corporation has $600,000 of debt outstanding, and it pays an interest rate of Times-Interest B'i annually. Morris's annual sales are $3 million, its average tax rate is 40%, and its net Earned Ratio prot margin on sales is 3%. lfthe company does not maintain a TLE ratio of at least 5 to 1, then its bank will refuse to renew the loan and bankruptcy will result. What is Morris's TIE ratio?I {4-6} What is the futUIe value of .11 T36, 5-year ordinary annuityr that pays $300 each year? [fthis Future Value: were an annuity due, what wwld its futlue value he? Ordinary Annuity versus Annuity Due {4-10} Use both the TVM equations and a nancial calculator to nd the following values. Present and Future See the Hint fur Bublem 4-9. Values of Single Cash , , + Flows for Different a. A\" \"Dual $500 compounded for 10 years at 6% Interest Rates b. An initial $500 cumpmlnded fur 10 years at 12% c. The present value of $500 due in 10 years at a 6% discount rate d. The present value of $500 due in 10 years at a 12% discount rate {we Uneven Cash Flow Stream a. Find the present values of the following cash ow streams. The appropriate interest rate is 3%. (Hint: It is fairly easy to work this problem dealing with the individual cash ows. However, if you have a nancial calculator, read the section of the manual that describes how to enter cash ows such as the ones in this problem. This will take a little time, but the investment will pay huge dividends throughout the course. Note that, when working with the calculator's cash ow register, you must enter CFID = 0. Note also that it is quite easy to work the problem with Excel, using procedures described in the Chapter 4 Tool Kit.) Year Cash Stream A 1 $100 2 400 3 400 4 400 5 300 b. What is the value of each cash ow stream at a 0% interest rate!l Cash 51 ream B 3300 400 400 400 100 {4-25} Repaying a Loan {4-25} Re aching a Financial Goal While Mary Corens was a student at the University of Tennessee, she hon-wed $12,000 in student loans at an annual interest rate of 9%. HMary repays $1,500 per year, then how long (to the nearest year] will it take her to repay the loan? You need to acannulate $10,000. To do so, you plan to make deposits of $1,250 per year with the rst payment being made a year from todayinto a bank account that pays 12% annual interest Your last deposit will be less than $1,250 if less is needed to round out to $10,000. How many years will it take you to reach your $10,000 goal, and how large will the last deposit be?l