I Requirement for Project 2: 1) Calculate ratios for year 2014 using financial statement information provided on worksheet FSs. Enter the ratios in highlighted areas on worksheet Ratios".(4 points) 2) Provide projected figures for year 2015 based on 2014 information, ratios calculated in 1), as well as assumptions provided on worksheet "projected FSS". (4 points) D A CAPTAIN BETING COME STATEMENT FOR THE YEAR INDED DECEMBER 11, 2014 & Sales Revenue 3 Saltum Ne Sales cast of God se Pole 15:43 CAPTAIN HET INC RALANCE SHEET 31 Dec 14 CAPTAIN IET INC INCOME STATEMENT FOR THE YEAR INDED DECEMBER 31, 2014 (50) Current Ausets 4723 ca 10,665 10,000 7,00 5052 1.519 10 yarul Expenses 11 pente Deprecation Retained Earnings Begle 19,011 Not income/con 333 Dividends Payment ho Retained varnings End 19,264 23, 107 15 dan penes Accounts Receivable Invertories Prepaid insurance Prepaid Rent Total Current Assets Non Current Assets Long term investments Investments in equity Securities Landheld for future development Property, plant, and coment Building Accumulated Depreciation Intangible Act 0 0,175 Langelinimenes 10,300 364 46.875 0 Pro N L M 31-Dec-13 14 10,600 7,088 5,052 68 5,150 6,850 5,000 68 500 63 CAPTAIN JET INC. BALANCE SHEET 31-Dec-14 Current Assets Cash Accounts Receivable Inventories Prepaid Insurance Prepaid Rent Total Current Assets Non-Current Assets Long-term Investments Investments in equity securities Land held for future development Property, plant, and Equipment Buildings Less: Accumulated Depreciation Intangible Assets Capitalized Development Costs Goodwill thentifikimitaneihin Art 17, 130 0 0 6,375 5,688 23,307 0 0 6,375 5,688 0 48,875 125,219) 0 1.000 9,500 6 na 0 47.000 (23,438) 0 1,000 9,500 X N PW L M N Other identifiable Intangible Assets Total Non-Current Assets K 6,000 52,219 75,526 0 0 6,688 6,000 52,125 69,255 Total Assets 0 0 4,188 188 0 225 1,500 1,086 825 188 1,500 1,055 825 156 Current Liabilities Accounts payable Salary and Wages Payable Interest Payable Unearned Revenue Income Tax payable Property taxes payable Utilities payable Total Current Liabilities Non-Current liabilities Notes payable Provisions Related to Pensions Bonds Payable Total Non-Current Liabilities Total Liabilities Stockholders' Equity Common Stock IS10 par 11.000 and 10.000 shares 0 7.755 10,668 0 15,000 0 0 15,000 25,668 0 0 13,750 0 0 13,750 21 505 0 12.500 13.750 X N w N M 1,055 825 0 7,755 O 13,750 0 0 Income Tax payable Property taxes payable Utilities payable Total Current Liabilities Non-Current liabilities Notes payable Provisions Related to Pensions Bonds Payable Total Non-Current Liabilities Total liabilities Stockholders' Equity Common Stock ($10 par, 11,000 and 10,000 shares) Preferred Stock (5% dividend, $100 par values, 1050 ar Paid-in-capital - Common Stock Paid-in-capital Preferred Stock Retained Earnings Accumulated Other Comprehensive Income Less: Treasury Stock Total Stockholders' Equity Total Liabilities and Stockholders' Equity 1,086 825 156 10,668 0 15,000 0 0 15,000 25,668 0 13,750 13,125 3,438 1,250 19,264 625 (1,594) 49,858 13,750 21,505 O 12,500 12,500 3,438 1,250 19,031 625 (1,594) 472750 69,255 75,526 BE E 3 D25 > B D E F H Calculate the following ratios for year 2014 (round all ratios to two places behind the decimal): 1 Working capital 12,639 4 2.18 2 Current ratio 5 6 7 3 Acid test ratio 17687 8 2.21 4 Accounts receivable turnover fuse net sales as numerator 9 TO 11 12 13 163 5 Collection period of receivables = (use 360 days in each year) 15 6 Accounts payable turnover ratic = 0.88 10 7 Inventory turnover ratio 0.94 18 8 Days to sell inventory 390 20 0.198 9 Debt-to-Equity ratio FS Ratios Projected FS X N w (use net sales as numerator 163 5 Collection period of receivables= (use 360 days in each year) 6 Accounts payable turnover ratio= 0.88 7 Inventory tumover ratio 0.94 8 Days to sell inventory = 390 9 Debt-to-Equity ratio 11 0.198 10 Times interest earned = 1.46 11 RNOA (assume 12% tax rate) 12 ROCE 11 0.076 FSS Ratios Projected FS 2x A B D E G H 1 Provide projected Income Statement, Retained Earnings statement and Projected Balance Sheet on the right 2 using the following assumptions: 4 5 O 7 8 10 11 12 13 1 sales growth is 10%; sales return, as a percentage of sales revenue, does not change 2 Gross profit margin is the same as 2014 profit margin 3 Depreciation expense/Prior PPE (gross) = 4% 4 Interest expense/Prior year long-term debt = 6% 5 All other expenses (insurance, supplies, utilities, bad debt and rent) grow at the same rate as sales growth. 6 Income tax expense/ pre-tax income = 12% 7 A/R turnover is the same as that calculated for year 2014 8 A/P turnover is the same as that calculated for year 2014 9 Inventory turnover is the same as that calculated for year 2014 10 There is no change in current assets other than Cash, A/R and inventory 11 Capital expenditure/Sales =7% 12 Assume no change in long-term assets except for PP&E. 13 Assume no change in all liabilities, excpet for A/P 14 Assume no change in shareholders' Equity except for Retained Earnings 15 No dividend is paid on common stock and 5% dividend is paid on preferred stock 15 16 17 18 19 2 Fatos Projected FS LA w sth. CAPTAIN JET INC. INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2015 Sales Revenue 15438.80 Less: Sales Return 50.00 Net Sales 0.69 Cost of Goods Sold 1069.90 Gross Profit Utilities Expenses Salary and Wages Expenses Rent Expenses Depreciation Expenses Interest Expenses Supplies Expenses Bad Debt Expenses Total operating Expenses Earnings before income Taxes Income Tax Expenses Earnings after Income Taxes @ CAPTAIN JET INC. INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2015 Retained Earnings, Beginning of the year Net Income/Loss Dividends Payment Retained Earnings, End of the year CAPTAIN JET INC. Balance Sheet FOR THE YEAR ENDED DECEMBER 31, 2015 Current Assets Cash Accounts Receivable Inventories Prepaid Insurance Prepaid Rent Total Current Assets Non-Current Assets Row: 21 M N Total Current Assets Non-Current Assets Long-term Investments Investments in equity securities Land held for future development Property, Plant, and Equipment Buildings Less: Accumulated Depreciation Intangible Assets Capitalized Development Costs Goodwill Other Identifiable intangible Assets Total Non-Current Assets Total Assets Current Liabilities Accounts payable Salary and Wages Payable Interest Payable Unearned Revenue Income Tax Davable Current Liabilities Accounts payable Salary and Wages Payable Interest Payable Unearned Revenue Income Tax payable Property taxes payable Utilities payable Total Current Liabilities Non-Current Liabilities Notes payable Provisions Related to Pensions Bonds Payable Total Non-Current Liabilities Total Liabilities Stockholders' Equity Common Stock Preferred Stock (5% dividend) Paid-in-capital. Common Stock Paid-in-capital - Preferred Stock Row: 54 Income Tax payable Property taxes payable Utilities payable Total Current Liabilities Non-Current Liabilities Notes payable Provisions Related to Pensions Bonds Payable Total Non-Current Liabilities Total Liabilities Stockholders' Equity Common Stock Preferred Stock (5% dividend) Paid-in-capital - Common Stock Paid-in-capital - Preferred Stock Retained Earnings Accumulated Other Comprehensive Income Less: Treasury Stock Total Stockholders' Equity Total Liabilities and Stockholders' Equity I Requirement for Project 2: 1) Calculate ratios for year 2014 using financial statement information provided on worksheet FSs. Enter the ratios in highlighted areas on worksheet Ratios".(4 points) 2) Provide projected figures for year 2015 based on 2014 information, ratios calculated in 1), as well as assumptions provided on worksheet "projected FSS". (4 points) D A CAPTAIN BETING COME STATEMENT FOR THE YEAR INDED DECEMBER 11, 2014 & Sales Revenue 3 Saltum Ne Sales cast of God se Pole 15:43 CAPTAIN HET INC RALANCE SHEET 31 Dec 14 CAPTAIN IET INC INCOME STATEMENT FOR THE YEAR INDED DECEMBER 31, 2014 (50) Current Ausets 4723 ca 10,665 10,000 7,00 5052 1.519 10 yarul Expenses 11 pente Deprecation Retained Earnings Begle 19,011 Not income/con 333 Dividends Payment ho Retained varnings End 19,264 23, 107 15 dan penes Accounts Receivable Invertories Prepaid insurance Prepaid Rent Total Current Assets Non Current Assets Long term investments Investments in equity Securities Landheld for future development Property, plant, and coment Building Accumulated Depreciation Intangible Act 0 0,175 Langelinimenes 10,300 364 46.875 0 Pro N L M 31-Dec-13 14 10,600 7,088 5,052 68 5,150 6,850 5,000 68 500 63 CAPTAIN JET INC. BALANCE SHEET 31-Dec-14 Current Assets Cash Accounts Receivable Inventories Prepaid Insurance Prepaid Rent Total Current Assets Non-Current Assets Long-term Investments Investments in equity securities Land held for future development Property, plant, and Equipment Buildings Less: Accumulated Depreciation Intangible Assets Capitalized Development Costs Goodwill thentifikimitaneihin Art 17, 130 0 0 6,375 5,688 23,307 0 0 6,375 5,688 0 48,875 125,219) 0 1.000 9,500 6 na 0 47.000 (23,438) 0 1,000 9,500 X N PW L M N Other identifiable Intangible Assets Total Non-Current Assets K 6,000 52,219 75,526 0 0 6,688 6,000 52,125 69,255 Total Assets 0 0 4,188 188 0 225 1,500 1,086 825 188 1,500 1,055 825 156 Current Liabilities Accounts payable Salary and Wages Payable Interest Payable Unearned Revenue Income Tax payable Property taxes payable Utilities payable Total Current Liabilities Non-Current liabilities Notes payable Provisions Related to Pensions Bonds Payable Total Non-Current Liabilities Total Liabilities Stockholders' Equity Common Stock IS10 par 11.000 and 10.000 shares 0 7.755 10,668 0 15,000 0 0 15,000 25,668 0 0 13,750 0 0 13,750 21 505 0 12.500 13.750 X N w N M 1,055 825 0 7,755 O 13,750 0 0 Income Tax payable Property taxes payable Utilities payable Total Current Liabilities Non-Current liabilities Notes payable Provisions Related to Pensions Bonds Payable Total Non-Current Liabilities Total liabilities Stockholders' Equity Common Stock ($10 par, 11,000 and 10,000 shares) Preferred Stock (5% dividend, $100 par values, 1050 ar Paid-in-capital - Common Stock Paid-in-capital Preferred Stock Retained Earnings Accumulated Other Comprehensive Income Less: Treasury Stock Total Stockholders' Equity Total Liabilities and Stockholders' Equity 1,086 825 156 10,668 0 15,000 0 0 15,000 25,668 0 13,750 13,125 3,438 1,250 19,264 625 (1,594) 49,858 13,750 21,505 O 12,500 12,500 3,438 1,250 19,031 625 (1,594) 472750 69,255 75,526 BE E 3 D25 > B D E F H Calculate the following ratios for year 2014 (round all ratios to two places behind the decimal): 1 Working capital 12,639 4 2.18 2 Current ratio 5 6 7 3 Acid test ratio 17687 8 2.21 4 Accounts receivable turnover fuse net sales as numerator 9 TO 11 12 13 163 5 Collection period of receivables = (use 360 days in each year) 15 6 Accounts payable turnover ratic = 0.88 10 7 Inventory turnover ratio 0.94 18 8 Days to sell inventory 390 20 0.198 9 Debt-to-Equity ratio FS Ratios Projected FS X N w (use net sales as numerator 163 5 Collection period of receivables= (use 360 days in each year) 6 Accounts payable turnover ratio= 0.88 7 Inventory tumover ratio 0.94 8 Days to sell inventory = 390 9 Debt-to-Equity ratio 11 0.198 10 Times interest earned = 1.46 11 RNOA (assume 12% tax rate) 12 ROCE 11 0.076 FSS Ratios Projected FS 2x A B D E G H 1 Provide projected Income Statement, Retained Earnings statement and Projected Balance Sheet on the right 2 using the following assumptions: 4 5 O 7 8 10 11 12 13 1 sales growth is 10%; sales return, as a percentage of sales revenue, does not change 2 Gross profit margin is the same as 2014 profit margin 3 Depreciation expense/Prior PPE (gross) = 4% 4 Interest expense/Prior year long-term debt = 6% 5 All other expenses (insurance, supplies, utilities, bad debt and rent) grow at the same rate as sales growth. 6 Income tax expense/ pre-tax income = 12% 7 A/R turnover is the same as that calculated for year 2014 8 A/P turnover is the same as that calculated for year 2014 9 Inventory turnover is the same as that calculated for year 2014 10 There is no change in current assets other than Cash, A/R and inventory 11 Capital expenditure/Sales =7% 12 Assume no change in long-term assets except for PP&E. 13 Assume no change in all liabilities, excpet for A/P 14 Assume no change in shareholders' Equity except for Retained Earnings 15 No dividend is paid on common stock and 5% dividend is paid on preferred stock 15 16 17 18 19 2 Fatos Projected FS LA w sth. CAPTAIN JET INC. INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2015 Sales Revenue 15438.80 Less: Sales Return 50.00 Net Sales 0.69 Cost of Goods Sold 1069.90 Gross Profit Utilities Expenses Salary and Wages Expenses Rent Expenses Depreciation Expenses Interest Expenses Supplies Expenses Bad Debt Expenses Total operating Expenses Earnings before income Taxes Income Tax Expenses Earnings after Income Taxes @ CAPTAIN JET INC. INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2015 Retained Earnings, Beginning of the year Net Income/Loss Dividends Payment Retained Earnings, End of the year CAPTAIN JET INC. Balance Sheet FOR THE YEAR ENDED DECEMBER 31, 2015 Current Assets Cash Accounts Receivable Inventories Prepaid Insurance Prepaid Rent Total Current Assets Non-Current Assets Row: 21 M N Total Current Assets Non-Current Assets Long-term Investments Investments in equity securities Land held for future development Property, Plant, and Equipment Buildings Less: Accumulated Depreciation Intangible Assets Capitalized Development Costs Goodwill Other Identifiable intangible Assets Total Non-Current Assets Total Assets Current Liabilities Accounts payable Salary and Wages Payable Interest Payable Unearned Revenue Income Tax Davable Current Liabilities Accounts payable Salary and Wages Payable Interest Payable Unearned Revenue Income Tax payable Property taxes payable Utilities payable Total Current Liabilities Non-Current Liabilities Notes payable Provisions Related to Pensions Bonds Payable Total Non-Current Liabilities Total Liabilities Stockholders' Equity Common Stock Preferred Stock (5% dividend) Paid-in-capital. Common Stock Paid-in-capital - Preferred Stock Row: 54 Income Tax payable Property taxes payable Utilities payable Total Current Liabilities Non-Current Liabilities Notes payable Provisions Related to Pensions Bonds Payable Total Non-Current Liabilities Total Liabilities Stockholders' Equity Common Stock Preferred Stock (5% dividend) Paid-in-capital - Common Stock Paid-in-capital - Preferred Stock Retained Earnings Accumulated Other Comprehensive Income Less: Treasury Stock Total Stockholders' Equity Total Liabilities and Stockholders' Equity
