II) See the following set of Financial Statements and answer the following set of questions. (each correct answer is worth Ipt. total for section is 17 points) A) Perform a complete ratio analysis for 2015 (yes all 14 of them!) using the formulas contained in the Ratio sheet of the file in course documents called "Allied Financials" The ratios sheet is the first page of this document (You can omit the EBITDA Coverage ratio and the Price/Cash flow ratios) B) Determine Earnings Per Share (number of shares outstanding is 47.335) C) Determine P/E Multiplier (again there are 47,335 shares outstanding) D) Determine Market Book Ratio (market value of stock is $240 per share) Gateway Widget Company Income Statement Sales COGS Gross Profit Seling and Admin Expenses EBIT Interest Exp EBT Taxes Net Income FYE 2015 $ 2.569.164 $1.291,124 $ 1,578,040 $ 250.000 $ 1328.040 $ 150.000 $ 1,178,040 $ 42.000 5 1.136,040 FYE 2014 $ 2,275.000 $ 910,000 $ 1,365,000 $ 240.000 $ 1.125.000 $ 152.500 $ 972,500 $ 29,625 $942.875 $ $ $ Balance Sheet Assets Current Assets Cash Marketable Securities Accounts Receivable Inventory Total Current Assets Fixed Assets Piant and Equipment Net Total Fixed Assets FYE 2005 90.845 10,000 276.000 337.875 714.720 FYE 2004 $ 98.845 $ 10.000 $ 150.000 $147.500 $ 406,345 S $ $ s 6.665.695 6,665 695 $ $ 5.767655 5.767,655 $ 7.350.415 $ 6.174.000 Total Assets Liabilities Current Liabilities Accounts Payable $ 200,000.00 $ 104 625 $ 200,000.00 $ 104 6251 Total Current Liabilities $ 200,000.00 $ 104,625 Long Term Liabilities Long Term Notes Total Long Term Liabilities $ 1.500.000 $ 1.500.000 $ 1.525.000 $ 1,525,000 Total Liabilities $ 1,700,000 $ 1,629,625 Equity Paid in Capital Retained Earnings Current Earnings Total Equity $ 50,000 $ 4,494,375 $ 1.136.040 $ 5,680,415 $ 50,000 $ 3,551,500 $ 942.875 $4,544,375 $ Total Liabilities and Equity $ 7,380.415. 6.174.000 Quantitative Section: (not too tough, but show your work in case you me III) Fill in the blanks: (Please note 10 answers required each co ABC Corp Income Statement. TABLE 4-2 Allied Food Products: Summary of Financial Ratios (Millions of Dollars) Industry Average Ratio Formula Calculation Ratio Comment Liquidity Cument Current assets Current liablities $1,000 5310 -32 Poor Quick $385 $310 22 Current assets - Inventones Current liablites Poor Asset Management Inventory turnover Sales Inventones $3.000 5615 10.9% Poor Days sales outstanding OSOI Receivables Annual sales 365 5375 $8.2192 -46 days 36 days Poor $3.000 $1.000 Fixed assets turnove -3.0x OK Sales Net feed assets Sales Total assets Total assets turnover $3.000 52.000 -1.5 1 BX Somewhat low Debt Management Total debt to total assets - $3.0% 40.0% High risky Total de Total assets Earnings before nterest and the EBIT Interest charges EBITDA - Lease payments batents $1.060 $2.000 $2838 $88 Times-interest camned TIE -32% 60X Low risky 4118 ERITO Profitability Profit margin on sales Netcome Sales $1175 $3,000 -3.9% 5.0% Poor Return on total assets ROA) -5.9% 9.ON Poor Net income Total assets Earnings before interest and takes (EBIT) Total assets $1175 $2,000 52838 $2.000 Basic earning -1425 18.0% Poor power (DEP Return on common equity (ROE Net income Common equity $117.5 $940 - 12.5% 12.5% 150% Poor Price/amings PVE Price per Share Earings per share $23.00 52 35 113 Low Price per share $23.00 cashow Low Market/book MB Market price per share Book value per share $23.00 $18.80 1.7 Low
