I could use help on any of these questions thank you.

Part 2 Fundamental Concepts in Financial Management TABLE IC 4.3 Ratio Analysis Industry Average 2013 2.3x 0.8x 4.8 2015E 2014 1.2x 0.4x 4.7 2,7 1.0 6.1x Current Quick Inventory turnover Days sales outstanding (DSO Fixed assets turnover Total assets turnover Debt-to-capital ratio TIE Operating margin Profit margin Basic earning power 38.2 37.4 32.0 7.0 2.6x 400% 6.2 7.3% 3.5% 19.1% 9.1% 18.2% 14.5% 14.2x 2.4x n.a. 6.4x 2.1% 73.4% 10.0x 2.3 44.1% 4.3x 5.5% 2.6% 13.0% 6,0% 13.3% 9.6% 9.7x 1.3x 6.64 -2.2% -27% -4.6% -5.6% -32.5% -4.2% n ROA ROE ROIC Price/earnings Market/book 0.5x $4.93 Book value per share Note: E indicates estimated. The 2015 data are forecasts. Calculation is based on a 365-day year. THOMSON REUTERS Part 2 Fundamental Concepts in Hl had data. Also, it Jamison examined monthly data for 2014 (not given in the case), and she detected program to get the message out, for the to operate efficiently. In other wo offices to the year. Monthly sales were rising costs were falling, and large losses in the earlyPattem small profit by December. Thus, the annual data look somewhat worse than final a tud appears to be generate sales, and for the new spending money and deriving benefits were longer than D'Leon's managers had anticipat longer for the ad in the short health, and what actions should be taken. Your assignment is to help her answer the fwine Provide clear explanations, not yes or no answers a. Why are ratios useful? What are the five major categories of ratios? Jamison and Campo see hope for the fabowng questions data. What can you say about the company's liquidity positions in 2013, in 2014, and as projected for We often think of ratios as being useful (1) to managers to help run the business, (2) to bankers for analysis, and (3) to stockholders for stock valuation. Would these different types of analysts interest in the company's liquidity ratios? Explain your answer b Calculate D'Leon's 2015 current and quick ratios based on the projected balance sheet and income s have an 2015 inventory tumover, days sales outstanding (DSO), ixed assets tumover, and total aseh d. Cakculate the 2015 debt-to-capital and times-interest-earned ratios. How does D'Leon compare with the e Cakulate the 2015 operating margin, profit margin, basic earning power (BEP), retum on assets (ROA) f. Calculate the 2015 price/earnings ratio and market/book ratio. Do these ratios indicate that investors are & Use the DuPont equation to provide a summary and overview of D'Leon's financial condition as projected h Use the following simplified 2015 balance sheet to show, in general terms, how an improvement in the DSO tumover. How does D'Leon's utilization of assets stack up against other firms in the industry? industry with respect to financial leverage? What can you conclude from these ratios? return on equity (ROE), and return on invested capital (ROIC). What can you say about these ratios? expected to have a high or low opinion of the company? for 2015. What are the firm's major strengths and weaknesses? would tend to affect the stock price For example, if the company could improve its collection procedures and thereby lower its DSO from 45.6 days to the 32-day industry average without affecting sales, how would that change "ripple through" the financial statements (shown in thousands below) and influence the stock price? Accounts receivable Other current assets Net fixed assets Total assets Current liabilities Debt Equity Liabilities plus equity 845 700 1.952 53 497 1,802 3,497 L Does it appear that inventories could be adjusted? If so, how should that adjustment affect D'Leons profitability and stock price? In 2014, the company paid its suppliers much later than the due dates; also, it was not maintaining bank could refuse to renew the loan when it comes due in 90 days. On the basis of data provided ratios at levels called for in its bank loan agreements. Therefore, suppliers could cut the company as a credit manager, continue to sell to D'Leon on credit? (You could demand cash on deliv sell on terms of COD-but that might cause D'Leon to stop buying from your company.) Si were the bank loan officer, would you recommend renewing the loan or demanding its repayment i that p your actions be influenced if, in early 2015, D'Leon showed you its 2015 projections along witn was going to raise more than $1.2 million of new equity? off, and is ? Would k. In hindsight, what should D'Lcon have done in 2013? 1. What are some potential problems and limitations of financial ratio analysis? m. What are some qualitative factors that analysts should consider when evaluating a company's likely future Balance Sheets TABLE IC4.1 2015E 2014 2013 Assets S 85633 878000 1,716480 $2,680,112 1,197,160 120 $ 7,282 632,160 1287.360 $1,926,802 1.202,950 5 57800 351,200 Accounts receivable Inventories Total current assets Gross fixed assets Less accumulated depreciation 51,124,000 491,000 146.200 S 344800 Net fixed assets Total assets 3.497,152 Liabilities and Equity Accounts payable Accruals Notes payable s 145,600 136,000 5 436,800 s 524,160 489,600 Total current liabilities 51.650,568 723,432 460,000 32.592 5 492,592 481,600 323,432 460,000 203,768 663,768 $1,144.800 Long-term debt Common stock Retained earnings 1,721,176 231,176 Total equity Total liabilities and equity 4971 Note: E indicates estimated. The 2015 data are forecasts Income Statements TABLE IC 4.2 2014 56,034,000 519,988 2015E 2013 57035,600 5,875,992 53,432000 Sales Cost of goods sold Other expenses Total operating costs excluding depreciation and 6047988 (5 13,988) 116,960 S 130,948) 425,992 609,608 492.648 422,640 $ 209,328 18,900 s 190,428 EBITDA EBIT Interest expense IS 266,960) 5 146,600 EBT 106,784 Taxes (40%) Net income 87,960 EPS DPS Book value per share Stock price Shares outstanding Tax rate Lease payments $ 1.014 $0220 7809 $ 12.17 250,000 S 1.602) 0.110 s 4.926 5 225 100.000 40.00% $ 0.880 0.220 S 6.638 $ 8.50 100,000 4000% o Sinking fund payments Note: E indicates estimated. The 2015 data are forecasts The firm had sufficient taxable income in 2012 and 2013 to obtain its full tax refund in 2014