Jillian's Outdoor Ventures, Inc. Jillian's Outdoor Ventures, Inc. Balance sheets as of December 31 2020, and 2019 2020 Income Statement 2019 2020 Net sales $4,000 Cash $520 $509 Cost of goods sold $3,452 Accounts rec. $235 $224 Depreciation $113 Inventory $964 $953 EBIT $435 Current assets $1,719 $1,686 Interest paid $27 Net fixed assets $890 $879 Taxable income $408 Total assets $2,609 $2,565 Taxes $139 Net income $269 2019 2020 Dividends paid $65 Accounts payable $621 $704 Addition to RE $204 Notes payable $333 $272 Current liabilities $954 $976 Long-term debt $350 $60 Common stock $800 $820 Retained earnings $505 $709 Total L&E $2,609 $2,565 2. Use the balance sheet and income statement above, to complete the following: A. What is the change in net working capital for 2020? B. What is the net capital spending for 2020? C. What is the OCF for 2020? D. What is the cash flow from assets for 2020? E. What is the ending net working capital for 2020? F. What is the net new equity for 2020? G. What is the cash flow to stockholders for 2020? H. What is the cash flow to creditors for 2020?3. Your company's CFO and CEO are debating the usefulness of book values and market values, with regard to the statement of financial position. Explain to them whether book value or market value is more relevant to a financial manager. Why? 4. The Hatco Hat Company paid $520 in dividends and $426 in interest expense. The addition to retained earnings is $350 and net new equity is $380. The tax rate is 32 percent. Sales are $7,125 and depreciation is $968. What are the earnings before interest and taxes? 5.A. Six years ago, the Allegro company purchased a long-term asset for $2,875,500. The asset has a 25% CCA rate. Recently, at the end of year six, Zircon sold the asset for 600,000. Given this information, determine the value of the terminal loss or recapture at the end of year six.5.B. Allegro's effective tax rate is 21%. Calculate the value of the CCA tax shield for year four. 6. If total assets = $525, fixed assets = $375, current liabilities = $115, equity = $265, long-term debt =$145, and current assets is the only remaining item on the statement of financial position, what is the value of net working capital?7. Rona's personal tax rates are shown below. Her income last year was $325,000 and the first $18,000 earned was tax-exempt, A. How much income tax will Rona pay? B. Calculate the marginal tax rate. C. Calculate the average tax rate. Income Tax rate First $45,225 25.00% over $45,225 up to $47,630 27.00% over $47,630 up to $95,259 32.00% over $95,259 up to $129,214 38.00% over 129,214 up to $147,667 10.00% over $147,667 up to $210,371 43.00% over $210,371 47.00% 8. Your friend is currently excited about Walmart's stock, believing that given current conditions, Walmart will continue to outperform. Your friend has looked at the P/E ratio, the change in Walmart's market capitalization over the last two years, and has calculated the debt to equity ratio. With the results of these three calculations, your friend is confident that Walmart stock is a strong buy. Is this simple ratio analysis adequate to support this decision? Should your friend consider anything else
