Main Assumptions

6- Consider the following financial statements (in millions of TL). In 2016, the company did not pay any dividends. If this is the case, what was the retained earnings at the end of year 2015? Income Statement (2017) Credit Sales 1500 Cost of Goods Sold Taxable income Tax (349 Not Income Balance Sheet 2017 Cash 2 Accounts Payable 7 Accounts Recevable Short Term Debit 125 Inventory Long Term Debt 845 Faed Assets 2012 Common Stock 845 Retained Eags1 132 Total Total ? Dividend (3333) Retained Eaming Moin assumptions Salet has increased by 28% - 2017 Cost of pood or 80% of sales in the income statement at all times. Al other terme independent of sale Each current asset and accounts payable are tractions of water in the balance sheet Al other to are independent of sales Current rate 3 accounts receivable tumover 2. Inventory tumower 4, acounts payable tumover in all times. Tumovers are calculated with respect to the current period balances without averaging with past year balances Throughout the year 2017 o the company raised funds through short-term det fint, 6 The company rated the remaining funds through so long form debt and 50% equly offering common stock) 1.000 TL 842 TL 868 TL 974 TL Dier 7- Refer to Question 6. What is the cash conversion cycle in year 2017? (1 year = 360 days) 342 days 162 days 198 days 18 days Income Statement (2017) Credit Sales 1.500 Cost of Goods Sold 2 Taxable income ? Taxes (34%) ? Net Income ? Balance Sheet (2017) Cash 2 Accounts Payable Accounts Receivable ? Short-Term Debt Inventory ? Long-Term Debt Fixed Assets 2.092 Common Stock Retained Earnings Total ? Total 125 845 845 1.132 ? Dividend (33.33%) Retained Earnings 2 ? Main assumptions: Sales has increased by 28% in 2017 "Cost of goods sold" is 80% of sales in the income statement at all times. All other items are independent of sales. Each current asset and accounts payable are fractions of sales in the balance sheet. All other items are independent of sales. Current ratio is 3. accounts receivable turnover is 2 inventory turnover is 4, accounts payable tumover is 5 at all times, Turnovers are calculated with respect to the current period balances without averaging with past year balances. Throughout the year 2017 o the company raised funds through short-term debt first. o the company raised the remaining funds through 50% long-term debt and 50% equity offering (common stock)