I need help with the first 3 questions only

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Assignment 1 Financial Management I (ACC 2364) This assignment is worth 20 percent of the Final Grade. It consists of 4 questions that are each worth 5 percent each. These questions will involve doing calculations, and will require written explanations of the answer derived from these calculations. You must show your calculations and how you came up with your answers in order to receive marks. Question 1. A firm has the following financial statements and paid a $1,000 dividend during the year. ASSETS Cash Accounts receivable Inventory Current Assets Gross Capital assets Accumulated amortization Net capital assets Total assets LIABILITIES Accounts payable Accruals Current Liabilities Long term Debt Equity Total liabilities & equity a. b. c. d. Balance Sheets Ending Beginning $ 2,000 $ 1,600 12,000 5,200 14,000 15,600 $28,000 $22,400 $27,000 $20,000 (16,000) (14,400) 11,000 5,600 $39,000 $28,000 $ 3,000 1,000 $ 4,000 10,000 25,000 $39,000 $ 2,500 1,500 $ 4,000 5,000 19,000 $28,000 Income Statement Sales $100,000 COGS 80,000 Gross Margin $ 20,000 Cash Expenses $ 8,000 Amortization 1,600 EBIT $ 10,400 Interest 800 EBT $ 9,600 Tax 2,600 Net Income $ 7,000 Calculate cash from operating activities showing the current account changes separately. Calculate cash from financing activities. Calculate cash from investing activities. Develop a statement of cash flows including a reconciliation with the cash account. Question 2. Emperor Corporation's financial statements for the last year are shown below. All figures are in thousands ($000). The firm paid a $1,000 dividend to its shareholders during the year. Two million common shares are outstanding. The shares are currently trading at a price of $50. There were no sales of new common shares. Lease payments totalling $400 are included in cost and expense. BALANCE SHEET ASSETS Cash Accounts receivable Inventory Current Assets Gross Capital assets Accumulated amortization Net capital assets $ 2,000 12,000 14,000 $28,000 $27,000 (16,000) 11,000 INCOME STATEMENT Sales $100,000 COGS 80,000 Gross Margin $ 20,000 Cash Expenses $ 8,000 Amortization 1,600 EBIT $ 10,400 Interest 800 Total assets LIABILITIES Accounts payable Accruals Current Liabilities Long term Debt Equity Total liabilities & equity $39,000 $ 3,000 1,000 $ 4,000 10,000 25,000 $39,000 EBT Tax Net Income $ 9,600 2,600 $ 7,000 Develop Emperor's: Current Ratio Quick Ratio Average Collection Period (ACP) Inventory Turnover Capital Asset Turnover Total Asset Turnover Debt Ratio Debt to Equity ratio Times Interest Earned (TIE) Cash Coverage Fixed Charge Coverage Return on Sales (ROS) Return on Assets (ROA) Return on Equity (ROE) Price Earnings Ratio (P/E) Market to Book Value Ratio Question 3. Baxter Inc. is in a fast growing industry, but doesn't seem to be able to match its competitors' growth rates. Selected financial information for Baxter is as follows ($000): Sales NI Total Assets Equity Annual dividend $20,000 $1,000 $10,000 $8,000 $700 Research has revealed that the average firm in Baxter's industry pays out 10% of its earnings in dividends, earns 4 cents after tax on every sales dollar, has an equity multiplier of 3.0, and a total asset turnover of 1.9. a. Use a sustainable growth rate analysis in the following table to determine the source(s) of Baxter's growth problems. gs = Retention Ratio Return on Sales Total Asset Turnover Equity Multiplier Industry Baxter b. What negatives might be associated with fixing the problems revealed by the analysis? Question 4. The Winthrop Company expects to finish the current year with the financial results indicated on the worksheet on the next page. Develop next year's income statement and ending balance sheet using that information and the following planning assumptions and facts. Work to the nearest thousand dollars. PLANNING ASSUMPTIONS and FACTS Income Statement Items 1. Revenue will grow by 20%. 2. The cost ratio will improve by 2%. 3. Spending in the Marketing Department will be held to 20% of revenue. 4. Finance and Engineering expenses will each increase by 10%. 5. The combined income tax rate will be 40%. 6. Interest on all long term borrowing will be 10%. Balance Sheet Items 7. Cash balances will remain constant. 8. The ACP will be 35 days. (Use ending balances.) 9. The Inventory Turnover Ratio based on COGS will be 4.5X. (Use ending balances.) 10. Capital spending is expected to be $5M. The average amortization life of the assets to be acquired is 5 years and straight-line amortization is used. Amortization expense for old assets will be $1.5M. 11. Accounts payable is expected to be 30% of inventory. 12. Accruals will not change. 13. No dividends will be paid and no new shares will be sold. Revenue COGS Gross Margin WINTHROP COMPANY INCOME STATEMENT ($000) THIS YEAR $ % $73,820 100.0 31,743 43.0 $42,077 57.0 Expenses: Marketing Engineering Fin & Admin Total Exp $17,422 7,087 7,603 $32,112 23.6 9.6 10.3 43.5 EBIT Interest EBT Income Tax NI $ 9,965 2,805 $ 7,160 $ 3,007 $ 4,153 13.5 3.8 9.7 4.1 5.6 NEXT YEAR $ % 100.0 ASSETS Cash Accts Rec Inventory Curr Assets Capital Assets Gross Accum Amort Net Tot Assets WINTHROP COMPANY BALANCE SHEET ($000) LIABILITIES & EQUITY THIS NEXT THIS $ 8,940 Accts Pay $1,984 12,303 Accruals 860 7,054 Curr $2,844 Liabilities $28,297 L/T Debt $22,630 $65,223 Equity 44,059 ($23,987) Tot Cap $66,689 $41,236 $69,533 Tot L&E 69,533 NEXT