Financial Concepts Assignment 6 Financial Statement Analysis PS: some guidance located at bottom of this document. Name: ___________________________ Instructions a) Calculate the value or the ratio of items in the boxes b) Show your work by specifiying the formula you used for each of these calculations. c) For $ values, no need to leave any decimals, e.g Gross Profit = $34,000. d) Leave ratios and percentages in 2 decimal place, e.g. TIE = 2.81; ROA = 4.83%; etc. Suggestion:calculate the yellow subtotals before going on to answer individual questions(e.g. the current assets, etc.). These are intermediate numbers used in various ratios. [1] [2] Commonsize Balance Sheet & 2015 2016 Income Stmt monkey2 Big Apple Enterprises Yr 2015 Yr 2016 Yr 2015 Yr 2016 ASSETS Cash 4,500 6,000 Accounts Receivable 21,000 21,000 Inventory 7,500 8,000 Current Assets Other Non-current Assets 10,500 9,000 Net Fixed Assets 18,500 26,000 TOTAL ASSETS 62,000 70,000 100.00% 100.00% LIABILITIES Current Liabilities 20,000 11,000 Debt 22,000 29,000 Equity 20,000 30,000 TOTAL LIABILITIES & EQUITY 100.00% 100.00% INCOME STATEMENT Revenue 125,000 145,000 100.00% 100.00% Cost of Goods Sold (COGS) 85,000 110,000 Gross Profit SG&A 20,000 27,000 Operating Profit (EBIT) Interest Expense 2,800 3,450 Earnings Before Taxes (EBT) Taxes Net Income After Tax (NIAT) Other Information Yr 2015 Yr 2016 Tax Rate 30% 30% Common Shares Outstanding 10,000 12,000 Common Dividends paid 3,000 3,600 Preferred Dividends paid 1,000 1,000 Share Price $8.00 $8.00 2016 Spring2 For each of the calculations or ratios below, show work by specifying the formula you used to get its numeric answer: Yr 2016 [3] What was the company's Gross Profit in 2016? e.g. Gross Profit = Rev - COGS [4] What was the company's Gross Margin ratio in 2016? Gross Margin = ? specify your formula used [5] What was the company's Operating Profit (EBIT) in 2016? EBIT = ? specify your formula used [6] What was the company's Pretax Income (EBT) in 2016? EBT = ? specify your formula used [7] How much Income Tax did they pay in 2016? Income Tax = ? specify your formula used [8] What was the company's Net Income After Tax (NIAT) in 2016? NIAT = ? specify your formula used [9] What was the company's Net Operating Profit After Tax (NOPAT) in 2016? NOPAT = ? specify your formula used [10] What was the company's Times Interest Earned (TIE) in 2016? TIE = ? specify your formula used [11] What was the company's Profit Margin ratio in 2016? Profit Margin = ? specify your formula used [12] What was the company's Return on Assets (ROA) in 2016? ROA = ? specify your formula used [13] What was the company's Return on Equity (ROE) in 2016? ROE = ? specify your formula used [14] What is the company's Current ratio in 2016? Current Ratio = ? specify your formula used [15] What was the company's Quick Ratio in 2016? Quick Ratio = ? specify your formula used [16] What was the company's Total Asset Turnover ratio in 2016? Total Asset Turnover = ? specify your formula used [17] What was the company's Inventory Turnover ratio in 2016? Inventory Turnover = ? specify your formula used [18] What was the company's Day's Sales Outstanding (DSO)in 2016?Assume a day-count of 365 days per year. DSO = ? specify your formula used [19] What was the rate of the company's asset growth between 2015 and 2016? Asset Growth = ? specify your formula used [20] What was the rate ofthe company's sales' growth between 2015 and 2016? Sales Growth = ? specify your formula used [21] What were the company's Net Operating Working Capital in 2016? NOWC = ? specify your formula used [22] What was the company's Operating Capital in 2016? Operating Capital = ? specify your formula used [23] What was the company's Debt-to-Equity ratio in 2016? Debt-to-Equity Ratio = ? specify your formula used Should Current Liabilities be included in this ratio if for example it has Accounts Payable in it? i.e. non Short-term Debt stuff? [24] What was the company's Equity Multiplier in 2016? Equity Multiplier = ? specify your formula used [25] What was the company's Return on Invested Capital (ROIC) in 2016? ROIC = ? specify your formula used [26] What was the company's Earnings Per Share (EPS) in 2016? EPS = ? specify your formula used [27] What was the company's Price-Earnings (P/E) ratio in 2016? P/E Ratio = ? specify your formula used [28] What was the company's Dividend Payout ratio (DPR) in 2016? DPR = ? specify your formula used [29] What were the Dividends Per Share paid in 2016? Dividend Per Share = ? specify your formula used [30] What was the Dividend Yield in 2016? Dividend Yield = ? specify your formula used HELPFUL NOTES:

00+0002016 Spring2 Financial Concepts Assignment 6 Financial Statement Analysis PS: some guidance located at bottom of this document. Name: ___________________________ Instructions a) Calculate the value or the ratio of items in the boxes b) Show your work by specifiying the formula you used for each of these calculations. c) For $ values, no need to leave any decimals, e.g Gross Profit = $34,000. d) Leave ratios and percentages in 2 decimal place, e.g. TIE = 2.81; ROA = 4.83%; etc. Suggestion: calculate the yellow subtotals before going on to answer individual questions (e.g. the current assets, etc.). These are intermediate numbers used in various ratios. 2015 Yr 2015 2016 Yr 2016 4,500 21,000 7,500 6,000 21,000 8,000 Other Non-current Assets Net Fixed Assets TOTAL ASSETS 10,500 18,500 62,000 9,000 26,000 70,000 LIABILITIES Current Liabilities Debt Equity TOTAL LIABILITIES & EQUITY 20,000 22,000 20,000 11,000 29,000 30,000 Big Apple Enterprises ASSETS Cash Accounts Receivable Inventory Current Assets INCOME STATEMENT Revenue Cost of Goods Sold (COGS) Gross Profit SG&A Operating Profit (EBIT) Interest Expense Earnings Before Taxes (EBT) Taxes Net Income After Tax (NIAT) Other Information Tax Rate Common Shares Outstanding BU MET AD-632OL 125,000 85,000 145,000 110,000 20,000 27,000 2,800 3,450 Yr 2015 30% 10,000 Yr 2016 30% 12,000 =1= [1] [2] Commonsize Balance Sheet & Income Stmt Yr 2015 Yr 2016 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 01+000Wk3 Ex5 00+0002016 Spring2 [3] Common Dividends paid 3,000 3,600 Preferred Dividends paid 1,000 1,000 Share Price $8.00 $8.00 2016 Spring2 For each of the calculations or ratios below, show work by specifying the formula you used to get its numeric answer: Yr 2016 What was the company's Gross Profit in 2016? e.g. Gross Profit = Rev - COGS [4] What was the company's Gross Margin ratio in 2016? Gross Margin = ... specify your formula used [5] What was the company's Operating Profit (EBIT) in 2016? EBIT = ... specify your formula used [6] What was the company's Pretax Income (EBT) in 2016? EBT = ... specify your formula used [7] How much Income Tax did they pay in 2016? Income Tax = ... specify your formula used [8] What was the company's Net Income After Tax (NIAT) in 2016? NIAT = ... specify your formula used [9] What was the company's Net Operating Profit After Tax (NOPAT) in 2016? NOPAT = ... specify your formula used [10] What was the company's Times Interest Earned (TIE) in 2016? TIE = ... specify your formula used [11] What was the company's Profit Margin ratio in 2016? Profit Margin = ... specify your formula used [12] What was the company's Return on Assets (ROA) in 2016? ROA = ... specify your formula used [13] What was the company's Return on Equity (ROE) in 2016? ROE = ... specify your formula used [14] What is the company's Current ratio in 2016? Current Ratio = ... specify your formula used [15] What was the company's Quick Ratio in 2016? Quick Ratio = ... specify your formula used [16] What was the company's Total Asset Turnover ratio in 2016? Total Asset Turnover = ... specify your formula used BU MET AD-632OL =2= 01+000Wk3 Ex5 00+0002016 Spring2 [17] [18] What was the company's Inventory Turnover ratio in 2016? Inventory Turnover = ... specify your formula used What was the company's Day's Sales Outstanding (DSO) in 2016? day-count of 365 days per year. DSO = ... specify your formula used Assume a [19] What was the rate of the company's asset growth between 2015 and 2016? Asset Growth = ... specify your formula used [20] What was the rate of the company's sales' growth between 2015 and 2016? Sales Growth = ... specify your formula used [21] What were the company's Net Operating Working Capital in 2016? NOWC = ... specify your formula used [22] What was the company's Operating Capital in 2016? Operating Capital = ... specify your formula used [23] What was the company's Debt-to-Equity ratio in 2016? Debt-to-Equity Ratio = ... specify your formula used Should Current Liabilities be included in this ratio if for example it has Accounts Payable in it? i.e. non Short-term Debt stuff? [24] What was the company's Equity Multiplier in 2016? Equity Multiplier = ... specify your formula used [25] What was the company's Return on Invested Capital (ROIC) in 2016? ROIC = ... specify your formula used [26] What was the company's Earnings Per Share (EPS) in 2016? EPS = ... specify your formula used [27] What was the company's Price-Earnings (P/E) ratio in 2016? P/E Ratio = ... specify your formula used [28] What was the company's Dividend Payout ratio (DPR) in 2016? DPR = ... specify your formula used [29] What were the Dividends Per Share paid in 2016? Dividend Per Share = ... specify your formula used [30] What was the Dividend Yield in 2016? Dividend Yield = ... specify your formula used BU MET AD-632OL =3= 01+000Wk3 Ex5 00+0002016 Spring2 HELPFUL NOTES: monkey2 Guidance Items highlighted in yellow are intermediate calculations that could help you in calculating (0) Before you start Googling for any of the required financial ratios to calculate the abo (i) ... but for consistency in grading this Exercises as well as the Exam, we will adopt the of (ii) For ratios that are not listed on above summary page, please check the textbook's Indexe (iii) Also check Week3 online content, e.g. DSO, NOWC, ROIC are defined there. (iv) If you still have questions regarding specific ratios, make an effort to attend the Live Class If you are unable to attend, the session will be recorded for subsequent playback. Net Income is really Net Income After Tax (NIAT); also called Earnings. Quick Ratio is als Q&As Dividends declared and paid by corporation will be reported as a use of cash flow in the Financing Common Dividends are not reported in the Income Statement since they are not expenses. Preferred Dividends are not expenses either, but will be deducted from Net Income in order to In any of the financial ratios which involve using "averages", for example "Average Inventory", you BU MET AD-632OL =4= 01+000Wk3 Ex5 00+0002016 Spring2 monkey2 Sales are also called Revenues. In the text, page 603), some ratios use the term \"Net Sales\". This is equivalent to t Sales are commonly used in retailing businesses, i.e. the company sells stuff (tangible goods). The dollar value sold Revenues are commonly used in service businesses, i.e. the company earns revenue by providing a service (intangi BU MET AD-632OL BU MET AD-632OL =5= 01+000Wk3 Ex5 00+0002016 Spring2 monkey2 BU MET AD-632OL =6= 01+000Wk3 Ex5 00+0002016 Spring2 BU MET AD-632OL =7= 01+000Wk3 Ex5 00+0002016 Spring2 BU MET AD-632OL =8= 01+000Wk3 Ex5 00+0002016 Spring2 ou in calculating some of the ratios. alculate the above, please be aware that some financial ratios have more than one variation. For example, use of current a will adopt the official ratios as is summarized in the Wild textbook, pg 603.. xtbook's Indexes at the back of the text and inside the back cover of the text. the Live Classroom. It is bound to be asked by one of the students. ck. uick Ratio is also known as Acid-test ratio. n the Financing section of the Statement of Cash Flows. xpenses. ncome in order to report the (Basic) Earnings available to Common Shares on the Income Statement. e Inventory", you can take its average if financial data for two consecutive years are given and that these two "columns" of data refer to "yea BU MET AD-632OL =9= 01+000Wk3 Ex5 00+0002016 Spring2 is equivalent to the term \"Revenue\" in the Income Statement; it depends on the type of business/operation of the company: dollar value sold during the accounting period is reported as Sales. The word \"Net\" precedes it if there are any refunds, returns, and/or disc a service (intangible services), e.g. consulting services, advertising services, legal services, etc. as a form of revenue. BU MET AD-632OL =10= 01+000Wk3 Ex5 00+0002016 Spring2 BU MET AD-632OL =11= 01+000Wk3 Ex5 00+0002016 Spring2 BU MET AD-632OL =12= 01+000Wk3 Ex5 00+0002016 Spring2 BU MET AD-632OL =13= 01+000Wk3 Ex5 00+0002016 Spring2 e, use of current accounting period's Total Assets vs. the Average of Total Assets of the Beginning and the Ending Total Asset o of data refer to "year-ending numbers". BU MET AD-632OL =14= 01+000Wk3 Ex5 00+0002016 Spring2 pany: returns, and/or discounts that were applied to the total sales. BU MET AD-632OL =15= 01+000Wk3 Ex5 00+0002016 Spring2 BU MET AD-632OL =16= 01+000Wk3 Ex5 00+0002016 Spring2 BU MET AD-632OL =17= 01+000Wk3 Ex5 00+0002016 Spring2 BU MET AD-632OL =18= 01+000Wk3 Ex5 00+0002016 Spring2 e Ending Total Asset of the accounting period. These variations have valid rationale behind its use ... BU MET AD-632OL =19= 01+000Wk3 Ex5 00+0002016 Spring2 BU MET AD-632OL =20= 01+000Wk3 Ex5