Question
EXERCISE ON FINANCIAL ANALYSIS JERRY SOTO IS THE COUNTER AND MANAGER OF APACHE COMPANIES. GO TO YOU AS FINANCIAL ANALYST FOR ADVICE AS TO THE
EXERCISE ON FINANCIAL ANALYSIS
JERRY SOTO IS THE COUNTER AND MANAGER OF APACHE COMPANIES.
GO TO YOU AS FINANCIAL ANALYST FOR ADVICE
AS TO THE PROPOSAL FOR A LOAN. REQUESTING A
LOAN WITH FIVE-YEAR TERM WITH YOUR BANK. THE PURPOSE IS
CANCEL PAGARE (NOTES PAYABLE) OF 2012, AND TO FUND CURRENT ASSETS INVENTORY OF MERCHANDISE especially attentive. BELOW THE FINANCIAL STATEMENTS PRESENTED.
INCOME STATEMENTS: 20X12 20X11
SALES $1,600,000 $1,250,000
COST OF GOODS SOLD 960,000
EXERCISE ON FINANCIAL ANALYSIS
JERRY SOTO IS THE COUNTER AND MANAGER OF APACHE COMPANIES.
GO TO YOU AS FINANCIAL ANALYST FOR ADVICE
AS TO THE PROPOSAL FOR A LOAN. REQUESTING A
LOAN WITH FIVE-YEAR TERM WITH YOUR BANK. THE PURPOSE IS
CANCEL PAGARE (NOTES PAYABLE) OF 2012, AND TO FUND CURRENT ASSETS INVENTORY OF MERCHANDISE especially attentive. BELOW THE FINANCIAL STATEMENTS PRESENTED.
INCOME STATEMENTS: 20X12 20X11
SALES $1,600,000 $1,250,000
COST OF GOODS SOLD 960,000 750,000
GROSS PROFIT $ 640,000 $ 500,000
OPERATING EXPENSES:
FIXED CASH OPERATING EXPENSES $ 210,000 $ 210,000
VARIABLE OPERATING EXPENSES 160,000 125,000
DEPRECIATION 100,000 45,000
TOTAL OPERATING EXPENSES $ 470,000 $ 380,000
EARNINGS BEFORE INTEREST & TAXES $170,000 $ 120,000
INTEREST 65,000 30,000
EARNINGS BEFORE TAXES $ 105,000 $ 90,000
TAXES 42,000 36,000
NET INCOME $ 63,000 $ 54,000
======== ========
EXERCISE ON FINANCIAL ANALYSIS
JERRY SOTO IS THE COUNTER AND MANAGER OF APACHE COMPANIES.
GO TO YOU AS FINANCIAL ANALYST FOR ADVICE
AS TO THE PROPOSAL FOR A LOAN. REQUESTING A
LOAN WITH FIVE-YEAR TERM WITH YOUR BANK. THE PURPOSE IS
CANCEL PAGARE (NOTES PAYABLE) OF 2012, AND TO FUND CURRENT ASSETS INVENTORY OF MERCHANDISE especially attentive. BELOW THE FINANCIAL STATEMENTS PRESENTED.
INCOME STATEMENTS: 20X12 20X11
SALES $1,600,000 $1,250,000
COST OF GOODS SOLD 960,000 750,000
GROSS PROFIT $ 640,000 $ 500,000
OPERATING EXPENSES:
FIXED CASH OPERATING EXPENSES $ 210,000 $ 210,000
VARIABLE OPERATING EXPENSES 160,000 125,000
DEPRECIATION 100,000 45,000
TOTAL OPERATING EXPENSES $ 470,000 $ 380,000
EARNINGS BEFORE INTEREST & TAXES $170,000 $ 120,000
INTEREST 65,000 30,000
EARNINGS BEFORE TAXES $ 105,000 $ 90,000
TAXES 42,000 36,000
NET INCOME $ 63,000 $ 54,000
GROSS PROFIT $ 640,000 $ 500,000
OPERATING EXPENSES:
FIXED CASH OPERATING EXPENSES $ 210,000 $ 210,000
VARIABLE OPERATING EXPENSES 160,000 125,000
DEPRECIATION 100,000 45,000
TOTAL OPERATING EXPENSES $ 470,000 $ 380,000
EARNINGS BEFORE INTEREST & TAXES $170,000 $ 120,000
INTEREST 65,000 30,000
EARNINGS BEFORE TAXES $ 105,000 $ 90,000
TAXES 42,000 36,000
NET INCOME $ 63,000 $ 54,000
======== ========EXERCISE ON FINANCIAL ANALYSIS JERRY SOTO IS THE COUNTER AND MANAGER OF APACHE COMPANIES. GO TO YOU AS FINANCIAL ANALYST FOR ADVICE AS TO THE PROPOSAL FOR A LOAN. REQUESTING A LOAN WITH FIVE-YEAR TERM WITH YOUR BANK. THE PURPOSE IS CANCEL PAGARE (NOTES PAYABLE) OF 2012, AND TO FUND CURRENT ASSETS INVENTORY OF MERCHANDISE especially attentive. BELOW THE FINANCIAL STATEMENTS PRESENTED. INCOME STATEMENTS: 20X12 20X11 SALES $1,600,000 $1,250,000 COST OF GOODS SOLD 960,000 750,000 GROSS PROFIT $ 640,000 $ 500,000 OPERATING EXPENSES: FIXED CASH OPERATING EXPENSES $ 210,000 $ 210,000 VARIABLE OPERATING EXPENSES 160,000 125,000 DEPRECIATION 100,000 45,000 TOTAL OPERATING EXPENSES $ 470,000 $ 380,000 EARNINGS BEFORE INTEREST & TAXES $170,000 $ 120,000 INTEREST 65,000 30,000 EARNINGS BEFORE TAXES $ 105,000 $ 90,000 TAXES 42,000 36,000 NET INCOME $ 63,000 $ 54,000 ======== ========
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Research In Finance
Authors: John W. Kensinger
1st Edition
0857245414, 978-0857245410
