Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Dear professor, the questions are attached. If you can not do all. please prioritize the last three. I am working on as well. The point
Dear professor, the questions are attached. If you can not do all. please prioritize the last three. I am working on as well. The point is, i need to get done by today. that is why i as for help. I already have some of them done but i need to make sure the results are right. I appreciate deeply.
The 2015 income statement for Duffy's Pest Control shows that depreciation expense was $202 million, EBIT was $514 million, and the tax rate was 30 percent. At the beginning of the year, the balance of gross fixed assets was $1,584 million and net operating working capital was $422 million. At the end of the year, gross fixed assets was $1,836 million. Duffy's free cash flow for the year was $427 million. Calculate the end-of-year balance for net operating working capital. (Enter your answer in millions of dollars rounded to 1 decimal place.) $m Net operating working capital The 2015 income statement for Duffy's Pest Control shows that depreciation expense was $202 million, EBIT was $514 million, and the tax rate was 30 percent. At the beginning of the year, the balance of gross fixed assets was $1,584 million and net operating working capital was $422 million. At the end of the year, gross fixed assets was $1,836 million. Duffy's free cash flow for the year was $427 million. Calculate the end-of-year balance for net operating working capital. (Enter your answer in millions of dollars rounded to 1 decimal place.) $m Net operating working capital You are considering investing in Dakota's Security Services. You have been able to locate the following information on the firm: Total assets are $32.2 million, accounts receivable are $4.42 million, ACP is 25 days, net income is $4.00 million, and debt-to-equity is 1.2 times. All sales are on credit. Dakota's is considering loosening its credit policy such that ACP will increase to 30 days. The change is expected to increase credit sales by 6 percent. Any change in accounts receivable will be offset with a change in debt. No other balance sheet changes are expected. Dakota's profit margin will remain unchanged. How will this change in accounts receivable policy affect Dakota's net income, total asset turnover, equity multiplier, ROA, and ROE? (Do not round intermediate calculations. Enter your answer in millions of dollars rounded to 2 decimal places and other answers to 2 decimal places. Use 365 days a year.) $ Net income m Total asset turnover times Equity multiplier times ROA % ROE % Use the following financial statements for Lake of Egypt Marina, Inc. 2015 Assets Curren t assets: Cash and marketa ble securiti es Acc ounts receiva ble Inve ntory Tot al Fixed assets: $ LAKE OF EGYPT MARINA, INC. Balance Sheet as of December 31, 2015 and 2014 (in millions of dollars) 2014 2015 Liabilit ies and Equity Current liabilities : 45 $ Accru 33 ed wages and taxes $ 2014 40 $ 27 Accou 40 30 nts payable 204 $ 289 90 $ 153 Notes payable Tota l Long term debt: 35 24 30 21 $ 105 $ 72 $ 163 $ 132 Gros s plant and equipm ent $ 255 Stockho 165 lders' equity: $ Prefer red stock 36 (3 million shares) Com mon stock and paid-in surplus (15 million shares) Less : Depreci ation Net plant and equipm ent Othe r longterm assets Tot al Total assets 69 $ 186 Retain 129 ed earnings $ 25 $ $ $ 3 $ 3 15 15 214 78 18 211 500 Tota $ 147 $ Total liabilities 300 and equity l $ 232 $ 96 $ 500 $ 300 LAKE OF EGYPT MARINA, INC. Income Statement for Years Ending December 31, 2015 and 2014 (in millions of dollars) 2015 2014 Net sales (all credit) Less: Cost of goods sold Gross profits Less: Other operating $ 550 $ 220 $ 330 44 350 133 $ 217 28 expenses Earnings before interest, taxes, depreciation, and amortization (EBITDA) Less: Depreciation Earnings before interest and taxes (EBIT) Less: Interest Earnings before taxes (EBT) Less: Taxes Net income Less: Preferred stock dividends Net income available to common stockholders Less: Common stock dividends Addition to retained earnings Per (common) share data: Earnings per share (EPS) $ 286 $ 33 $ 253 21 $ 33 $ 220 189 168 28 $ 66 140 42 $ 154 $ 98 $ 3 $ 3 $ 151 $ 95 15 15 $ 136 $ 80 $ 10.070 $ 6.330 Dividends per share (DPS) Book value per share (BVPS) Market value (price) per share (MVPS) $ 1.000 $ 1.000 $ 15.270 $ 6.200 $ 15.650 $ 13.450 Construct the DuPont ROA and ROE breakdowns for Lake of Egypt Marina, Inc. (Do not round intermediate calculations. Round your answers to 2 decimal places.) DuPont Analysis % ROA % ROE Last year, K9 WebbWear, Inc., reported an ROE of 20 percent. The firm's debt ratio was 55 percent, sales were $16 million, and the capital intensity was 1.25 times. This year, K9 WebbWear plans to increase its debt ratio to 60 percent. The change will not affect sales or total assets, however, it will reduce the firm's profit margin to 11 percent. Calculate the net income and profit margin for K9 WebbWear last year. (Enter your answer in millions of dollars rounded to 2 decimal places. Round your percentage answer to 2 decimal places.) $ million Net income (Last year) % Profit margin (Last year)Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started