HOMEWORKI 1. Pascal Co. recently reported the following income statement: Sales S 14.000.000 Cost of Goods Sold 6.000.000 Operating Expenses(-) 1.000.000 Depreciation and Amortization(-) 3.000.000 Operating Income (EBIT) 4.000.000 Interest Expense 1.500.000 Taxable Income (EBT) 2.500.000 Taxes (40%) 1.000.000 Net Income 1.500.000 *Pascal's cost of capital is 10%. a) What is Pascal's NOPAT for the year? b) What is Pascal's EBITDA for the year? c) If Current Assets of Pascal was $30Million, Accounts Payable SloMillion and Net Fixed Assets $5 Million, what is Pascal's EVA for the year? (45p) 2. Data for CemCan Computer Company and its industry averages as follows. Calculate the indicated ratios for CemCan. Outline CemCan's strenghts and weaknesses as revealed by your analysis. (55p) CemCan Computer Company: Balance Sheet as of December 31, 2019 (In Thousands) Cash $77,500 Accounts payable S129.000 Receivables 336,000 Notes payable 84,000 Inventories 241.500 Other current liabilities 117.000 Total current assets $655,000 Total current liabilities S330,000 Net fixed assets 292,500 Long-term debt 256,500 Common equity 361,000 Total assets $947.500 Total liabilities and equity $947.500 CemCan Computer Company Income Statement for Year Ended December 31, 2019 (In Thousands) Sales $1,607,500 Cost of goods sold 1.392.500 Gross profit $215,000 Selling expenses 115,000 General and administrative expenses 30,000 Earnings before interest and taxes (EBIT) $70,000 Interest expense 24.500 Earnings before taxes (EBT) S45,500 Income taxes (40%) 18,200 Net income $27.300 RATIO CemCan Industry Average Current ratio 2.0X Acid test ratio 1,10X Days sales outstanding 35 days Inventory turnover 6.7X Net profit margin 1.2% Return to Equity 9.0% Leverage Ratio 60.0% "Calculation is based on a 365-day year