Hi, I have an Financial Management exam. These are examples of midterm questions. Please solving detaily, i need them. And I don't know much informations about this course.

Q1. MUNICASE () The Balance Sheets for December 31, 2015 and 2014 and the Income Statement for the year ended December 31, 2015, For Technica Inc, are given. Discuss the formal and informational content of each of these statements. - Prepare the Common-Size BS and IS and find the operating and net profit margin of this firm. \begin{tabular}{|l|r|r|r|} \hline Assets & 2015 & 2014 & Common Size BS \\ \hline Cash & 15.000 & 16.000 \\ \hline Marketable Securities & 7.200 & 8.000 \\ \hline Accounts Receivable & 34.100 & 42.200 \\ \hline Inventories & 82.000 & 50.000 \\ \hline Total current assets & 138.300 & 116.200 \\ \hline Land and buildings & 150.000 & 150.000 \\ \hline Machinery and equipment & 200.000 & 190.000 \\ \hline Furniture and fixtures & 54.000 & 50.000 \\ \hline Other & 11.000 & 10.000 \\ \hline Total gross fixed assets & 415.000 & 400.000 \\ \hline Less. Accumulated depreciation & 145.000 & 115.000 \\ \hline Net fixed assets & 270.000 & 285.000 \\ \hline Total assets & 408.300 & 401.200 \\ \hline & & \\ \hline Liabilities and Stockholder's Equity & & \\ \hline Accounts payable & 57.000 & 49.000 \\ \hline Notes payable & 13.000 & 16.000 \\ \hline Accruals & 5.000 & 6.000 \\ \hline Total current liabilities & 75.000 & 71.000 \\ \hline Long term debt & 150.000 & 160.000 \\ \hline Common stock equity (shares outstanding: & & \\ \hline 19,500 in 2015 and 20,000 in 2014) & 110.200 & 120.000 \\ \hline Retained earnings & 73.100 & 50.200 \\ \hline Total stockholder's equity & 183.300 & 170.200 \\ \hline Total liabilites and stockholder's equity & 408.300 & 401.200 \\ \hline \end{tabular} COMAMON SIZE IS Q2. RATIO ANALYSIS Complete the 2015 balance sheet for Brown Industries using the information that follows it. Brown Industries Balance Sheet December 31, 2015 The following financial data for 2015 are also available: 1. Sales totaled $1,800,000. 2. The gross profit margin was 25%. 3. Inventory turnover was 6.0. 4. The average collection period was 40 days. 6. The current ratio was 1.60 . 7. The total asset turnover ratio was 1.20 . 8. The debt ratio was 60%. Ms. Brown, a self-employed Certified Public Accountant (CPA), completed her first full year in business. During the year, she billed $360,000 for her accounting services on December 31, 2019. She had two employees, a bookkeeper and a clerical assistant. In addition to her monthly salary of $8,000, Ms. Brown paid annual salaries of $48,000 and $36,000 to the bookkeeper and the clerical assistant, respectively. Employment taxes and benefit costs for Ms.Brown and her employees totalled $34,600 for the year. Expenses for office supplies, including postage, totalled $10,400 for the year. In addition, Ms. Brown spent $17,000 during the year on tax-deductible travel and entertainment associated with client visits and new business development. Lease payments for the office space rented (a taxdeductible expense) were $2,700 per month. Depreciation expense on the office furniture and fixtures was $15,600 for the year. During the year, Ms. Brown paid interest of $15,000 on the $120,000 borrowed to start the business. She paid an average tax rate of 30\% during 2012. - Prepare an income statement for Ms. Brown, for the year ended December 31, 2019. Q4. COMPREMENSIVE RATIO ANALYSIS Given the following financial statements, historical ratios, and industry averages, calculate Sterling - Company's financial ratios for the most recent year. (Assume a 365-day year.) - Analyze its overall financial situation from both a cross-sectional and a time-series viewpoint. Break your analysis into evaluations of the firm's liquidity, activity, debt, profitability, and market b Annual credit purchases of $6,200,000 were made during the year. c The annual principal payment on the long-term debt is $100,000. d On December 31, 2012, the firm's common stock closed at $39.50 per share. \begin{tabular}{lccc} \multicolumn{4}{c}{ Historical and Industry Average Ratios for Sterling Company } \\ Ratio & Actual 2010 & Actual 2011 & \begin{tabular}{c} Industry average, \\ 2012 \end{tabular} \\ \hline Current ratio & 1.40 & 1.55 & 1.85 \\ Quick ratio & 1.00 & 0.92 & 1.05 \\ Inventory turnover & 9.52 & 9.21 & 8.60 \\ Average collection period & 45.6 days & 36.9 days & 35.5 days \\ Average payment period & 59.3 days & 61.6 days & 46.4 days \\ Total asset turnover & 0.74 & 0.80 & 0.74 \\ Debt ratio & 0.20 & 0.20 & 0.30 \\ Times interest earned ratio & 8.2 & 7.3 & 8.0 \\ Fixed-payment coverage ratio & 4.5 & 4.2 & 4.2 \\ Gross profit margin & 0.30 & 0.27 & 0.25 \\ Operating profit margin & 0.12 & 0.12 & 0.10 \\ Net profit margin & 0.062 & 0.062 & 0.053 \\ Return on total assets (ROA) & 0.045 & 0.050 & 0.040 \\ Return on common equity (ROE) & 0.061 & 0.067 & 0.066 \\ Earnings per share (EPS) & $1.75 & $2.20 & $1.50 \\ Price/earnings (P/E) ratio & 12.0 & 10.5 & 11.2 \\ Market/book (M/B) ratio & 1.20 & 1.05 & 1.10 \end{tabular}