Design Layout References Mailings Review View Help Search Be careful liles from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View Enable Editing D Most of the features of Word have been disabled, Reactivate ATION If you need to make a quick edit before renewing your subscription, learn more about the Office Web Apps. Learn More Requirement for Project 2: 1) Calculate ratios for year 2014 using financial statement information provided on worksheet FSs. Enter the ratios in highlighted areas on worksheet "Ratios".(4 points) 2) Provide projected figures for year 2015 based on 2014 information, ratios calculated in 1), as well as assumptions provided on worksheet "projected FSs". (4 points) I re to search H12 f D E F G H 15,438 (50) CAPTAIN JET INC. INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2014 15,388 4,723 10,665 Retained Earnings, Begit 19,031 Net Income/Loss 333 Dividends Payment (100) Retained Earnings, Endc 19,264 B 3 FOR THE YEAR ENDED DECEMBER 31, 2014 4 Sales Revenue 5 Less: Sales Return 6. Net Sales 7 Cost of Goods Sold 8 Gross Profit 29 Utilities Expenses 10 Salary and Wages Expenses 11 Rent Expenses 12. Depreciation Expenses 13. Interest Expenses 14 Supplies Expenses 15. Bad Debt Expenses 16 Total Operating Expenses 17 Earnings before Income Taxes 18 Income Tax Expenses 19 Earnings after Income Taxes -20 21 1,519 5,688 313 1,781 788 50 163 10,300 364 31 333 23 224 25 FS's Ratios Projected FS Ready Type here to search M N Total Assets 69,255 0 0 4,188 0 188 Current Liabilities Accounts payable Salary and Wages Payable Interest Payable Unearned Revenue Income Tax payable Property taxes payable Utilities payable Total Current Liabilities Non-Current Liabilities Notes payable Provisions Related to Pensions Bonds Payable Total Non-Current Liabilities Total Liabilities Stockholders' Equity Common Stock ($10 par, 11,000 and 10,000 shares) Preferred Stock (5% dividend, $100 par values, 1050 an Paid-in-capital - Common Stock Paid-in-capital - Preferred Stock Retained Earnings 75,526 0 0 6,688 188 225 1,500 1,086 825 156 10,668 0 15,000 0 0 1,500 1,055 825 0 7,755 0 13,750 0 0 13,750 21,505 0 12,500 12,500 3,438 1,250 19,031 15,000 25,668 0 13,750 13,125 3,438 1,250 19,264 been disabled Reactivate elore renewing your subscription learn more about the Olice Web Apps Learn More K M N 1,500 1,086 825 156 10,668 0 15,000 1,500 1,055 825 0 : Unearned Revenue Income Tax payable Property taxes payable Utilities payable Total Current Liabilities Non-Current Liabilities Notes payable Provisions Related to Pensions Bonds Payable Total Non-Current Liabilities Total liabilities Stockholders' Equity Common Stock (S10 par, 11,000 and 10,000 shares) Preferred Stock (5% dividend, $100 par values, 1050 an Paid-in-capital - Common Stock Paid-in-capital - Preferred Stock Retained Earnings Accumulated Other Comprehensive Income Less: Treasury Stock Total Stockholders' Equity Total Liabilities and Stockholders' Equity 0 15,000 25,668 0 13,750 13,125 3,438 1,250 19,264 625 (1.594) 49,858 75,526 7,755 0 13,750 0 0 13,750 21,505 0. 12,500 12,500 3,438 1,250 19,031 625 (1,594) 47,750 69,255 D A G H Calculate the following ratios for year 2014 (round all ratios to two places behind the decimal): 1 Working capital 2 Current ratio 3 Acid test ratio 4 Accounts receivable turnover fuse net sales as numerator) 5 Collection period of receivables = {use 360 days in each year) 6 Accounts payable turnover ratic- 7 Inventory turnover ratio 8 Days to sell inventory 9 Debt-to-Equity ratio 10 Times interest earned FS'S Ratios Projected FS ady Type here to search D . 0 B (use net sales as numerator) 1 2 3 5 Collection period of receivables = (use 360 days in each year) 5 6 Accounts payable turnover ratic = 5 7 7 Inventory turnover ratio 3 8 Days to sell inventory 1 9 Debt-to-Equity ratio 3 10 Times interest earned 5 11 RNOA (assume 12% tax rate) 7 12 ROCE 3 FS'S Ratios Projected FS eady * Type here to search 0 K34 fx Current Assets A B D G H C 1 Provide projected Income Statement, Retained Earnings statement and Projected Balance Sheet on the right 2 using the following assumptions: 3 FOI 4 5 6 8 9 10 1 sales growth is 10%; sales return, as a percentage of sales revenue, does not change 2 Gross profit margin is the same as 2014 profit margin 3 Depreciation expense/Prior PPE (gross) = 4% 4. Interest expense/Prior year long-term debt = 6% 5 All other expenses (insurance, supplies, utilities, bad debt and rent) grow at the same rate as sales growth. 6 Income tax expense/pre-tax income = 12% 7 A/R turnover is the same as that calculated for year 2014 8 A/P turnover is the same as that calculated for year 2014 9 Inventory turnover is the same as that calculated for year 2014 10 There is no change in current assets other than Cash, A/R and inventory 11 Capital expenditure/sales -7% 12 Assume no change in long-term assets except for PP&E. 13 Assume no change in all liabilities, excpet for N/P 14 Assume no change in shareholders' Equity except for Retained Earnings 15 No dividend is paid on common stock and 5% dividend is paid on preferred stock 12 13 15 16 17 18 19 20 21 22 23 FS'S Ratios Projected FS Ready Type here to search 0 (Unlicensed Product) A imran khan I Protected View Enable Editing Web Apps Learn More K L M N s growth. CAPTAIN JET INC. INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2015 Sales Revenue Less: Sales Return Net Sales Cost of Goods Sold Gross Profit Utilities Expenses Salary and Wages Expenses Rent Expenses Depreciation Expenses Interest Expenses Supplies Expenses Bad Debt Expenses Total operating Expenses Earnings before Income Taxes Income Tax Expenses Earnings after income Taxes CAPTAIN JET INC. INCOME STATEMENT SPM 11/10/20 hp M N. o CAPTAIN JET INC. INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2015 Retained Earnings, Beginning of the year Net Income/Loss Dividends Payment Retained Earnings, End of the year CAPTAIN JET INC. Balance Sheet FOR THE YEAR ENDED DECEMBER 31, 2015 Current Assets Cash Accounts Receivable Inventories Prepaid Insurance Prepaid Rent Total Current Assets Non-Current Assets Long-term investments Investments in equity securities CAPTAIN JET INC. Balance Sheet FOR THE YEAR ENDED DECEMBER 31, 2015 Current Assets Cash Accounts Receivable Inventories Prepaid Insurance Prepaid Rent Total Current Assets Non-Current Assets Long-term Investments Investments in equity securities Land held for future development Property, Plant, and Equipment Buildings Less: Accumulated Depreciation Intangible Assets Capitalized Development Costs Goodwill Other Identifiable intangible Assets Total Non-Current Assets Total Assets M N L Total Non-Current Assets Total Assets Current Liabilities Accounts payable Salary and Wages Payable Interest Payable Unearned Revenue Income Tax payable Property taxes payable Utilities payable Total Current Liabilities Non-Current Liabilities Notes payable Provisions Related to Pensions Bonds Payable Total Non-Current Liabilities Total Liabilities Stockholders' Equity Common Stock Preferred Stock (5% dividend Pald-in-capital - Common Stock Paid-in-capital - Preferred Stock *] 8:07 PM 11/10/2020 N O P M Salary and Wages Payable Interest Payable Unearned Revenue Income Tax payable Property taxes payable Utilities payable Total Current Liabilities Non-Current liabilities Notes payable Provisions Related to Pensions Bonds Payable Total Non-Current Liabilities Total Liabilities Stockholders' Equity Common Stock Preferred Stock (5% dividend) Paid-in-capital - Common Stock Paid-in-capital - Preferred Stock Retained Earnings Accumulated Other Comprehensive income Less: Treasury Stock Total Stockholders' Equity Total Liabilities and Stockholders' Equity