Corporate Finance

8. The following are the Balance sheet and income statements of Blockbuster Inc Blockbuster Inc. Balance Sheet for year-ended Dec 31 ($000s) ASSETS Year 1 Year 2 Cash 194,200 200,200 Accounts Receivables 185,800 150,000 Inventory 242,200 202.900 Other Current Assets 177,300 163.300 Total Current Assets 799.500 716,400 Fixed Assets Long Term Investments 214, 100 159,500 PP&E 1,079,400 909,000 Goodwill 6,455,900 5,967,500 Total Fixed Assets 7,749.400 7,036,000 Total Assets 8,548,900 7,752,400 LIABILITIES AND SHAREHOLDERS EQUITY Accounts Payable 1,090,400 1,087,400 Short-term Debt 32,800 181,400 Total Current Liabilities 1, 123,200 1,268,800 Long-term Debt 1,417,300 734,900 Total Liabilities 2,540,500 2,003,700 Shareholders' Equity Common Stock 6, 095,200 6, 075,800 Retained Earnings -86,800 -327,100 Total Stockholder Equity 6,008,400 5,748,700 Total Liabilities and Shareholders' Equity 8,548,900 7,752,400 Blockbuster Inc. Income Statement for year-ended Dec 31 ($000s) Year 1 Year 2 Sales 4,969, 100 5,157,600 COGS 2,036,000 2,420,700 SG&A 2,390,600 2,532,400 Depreciation 279,000 246,600 Amortization of Intangibles 180,100 176,100 Operating Income (Loss) 83,400 -218,200 Interest Expense 1 16,500 78,200 Income Before Tax 33,100 296,400 Income Tax Expense 45,400 -56,100 Net Income -78,500 -240,300 . Create a common size balance sheet and income statement b. Find the following: i. ROE ii. ROA iii. Gross profit margin iv. Operating Profit Margin V. Net Profit Margin vi. Current Ratio vii. Quick Ratio viii Inventory turnover ix. Accounts receivable Turnover X. Total Asset Turnover xi. Debt Ratio xii. Debt to Equity Ratio xiii. Times interest Earned