Insert Draw Page Layout 3 FINA 6305-HOMEWORK 1 - LETICIA Formulas Data Review View Arial Tell me 12 A Paste B I UV aD Wrap Text y General F128 Merge & Center v fx $ ~ % " A B C D FINA 6305 HW#1 G Input area: 2010 Cost of goods sold 2011 Cash 196,619 248 263 28 372 Depreciation 12,865 55.506 10 Interest expense 62, 738 12,067 Selling & Administrative 13,831 38, 668 Accounts payable 50,469 20,143 34.091 Net fixed assets 244, 681 298,350 Sales 3-85 724 470,172 Accounts receivable 20, 104 26,078 Notes payable 22 856 24,955 Long-term debt 123,607 140,800 Inventory 38 706 52 057 New equity 15.000 Tax rate Dividend percentage 35% Questions: 7 1. Complete Income Statement of 2010 & 2011 B 2. Complete Balance Sheet of 2010 & 2012 29 30 Output area: 2011 Income Statement 2010 Income Statement Sales 470,172 385, 724 Cost of goods sold 248,263 Sales 196,619 Selling & Administrative 50,469 Cost of goods sold 38,668 62,738 Selling & Administrative Depreciation 65,506 108, 702 Depreciation EBIT 94,931 13,831 EBIT Interest 12,067 14.871 EBT Interest 8,461 EBT S 82,864 Taxes 24,859 56,410 Net income Taxes 26.564 58,005 Dividends 39.84 Net income 23,202 Addition to retained ear Dividends 34,803 Addition to retained earnings Sheet3 Sheet1 Sheet2 Ready Accessibility: Investigate MacBook AirMerge & Center v % 9 C D E F Statement of Cash Flows - Financing Change in Notes Payable Change in LTD 2,100 New Equity Issuance 16,393 Payment of Cash Dividends 15,000 Net Cash provided by Financing Activties (23,243 10.250 w would you describe the company" cash flows for 20117 Write a brief discussion. The company" cash flows for 2011 indicates a healthy business. The company has positive cash flow from operations which is significantly important. Cas s negative means that the company is investing in its future growth. Finally, the positive cash flow shos that cash has come into the company, which boo figure indicates when the company has paid out capital, such as retiring or paying off long-term debt or making a dividend payment to shareholders. light of your discussion in th sprevious queslotn, do you think it is a good time for the company to expand business (Le., buy more equipments/machin I think that the expansion plan is risky as it will require significant cash flow from investing activities. Since the company already have a negative cash flow better to avoid large investments such as buying equipment, or machines. Please calculate the following Financial Ratios of the company, in year 2010 and 2011 respectively. Please briefly explain the trend of the company's finan Ratio Category Ratios 2010 2011 Liquidity Ratio: Current Ratio Quick Ratio Inventory Turnover DSO Asset Management Ratio: Fixed Asset Turnover Total Asset Tumover Debt Ratio Debt Management Ratio: TIE Net Profit Margin Operating Profit Margin Profitabiltly Ratio: Basic Eaming Power ROA ROE 15 Sheet2 Sheet3 + Sheet 1 Ready "Accessibility: Investigate MacBook Air F6 20 F5 F4 F3 F2 esc F1 &