Question
Income Statement Olympia Custom Bikes Income Statement ($000) For year ended December 31, 2012 Sales revenue $2,200 Less Cost of goods sold 1,420 Gross profit
Income Statement
Olympia Custom Bikes
Income Statement ($000)
For year ended December 31, 2012
Sales revenue $2,200
Less Cost of goods sold 1,420
Gross profit 780
Less operating expenses
Selling expense $300
G&A $ 270
Depreciation $30
Total operating expenses $600
Operating profits $ 180
Less interest expense $ 29
Net profit before tax $ 151
Less taxes (30%) $ 45
Net profit after tax (Earnings Available to Common Stockholders) $ 106
Statement of Retained Earnings
Retained Earnings balance (Jan 12012) $ 80
Plus: net profit after tax (for 2012) 106
Less cash dividends on common (76)
Retained Earnings balance (Dec 31, 2012) $110
Cline Custom Bikes
Balance Sheet
December 31
2012 2011
Assets 2012 2011
Current assets
Cash $30 $50
Marketable Securities 10 20
Accounts receivable 320 350
Inventory 460 320
Total Current Assets $820 740
Gross Fixed Assets 560 520
Less accumulated depreciation 180 150
Net fixed assets 380 370
Total Assets $1,200 $1,110
Liabilities & stockholders equity
Current liabilities
Accounts payable $390 $320
Notes payable 110 90
Accruals 20 20
Total current liabilities $520 $430
Long-term Debt $320 350
Total liabilities $ 840 780
Stockholders Equity
Common stock (500,000 shares, $0.20 par) 100 100
Paid-in capital in excess of par 150 150
Retained earnings $110 80
Total stockholders equity 360 330
Total liabilities & stockholders equity $1,200 1,110
Create a Common Sized Income statement.
If projected sales revenue for the next year is 2.75 million, create a pro Forma income Statement.
What was the depreciation expense for 2012
What are the current ratio for both 2011 and 2012
Was the current ratio for 2012 better or worse compared to 2011?
What was the inventory turnover ratio for 2012
What was the average collection period for accounts receivable?
What was their marginal tax rate?
How many shares of common stock did they issue in 2012?
What is their earnings per share?
How did they pay in preferred stock dividends in 2012?
What was the TIE ratio?
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Handbook Of Financial Risk Management
Authors: Thierry Roncalli
1st Edition
1138501875, 978-1138501874
