MG 770-151 YOUR NAME Show your work whenever appropriate Use the following information about XYZ Plumbing (F Y=12/31), a public company with the most recent closing stock price of $6.00 (used for Diluted Shares calculations), to answer the following three problems: Do not q'pe in are Bine Problem 1 Blue or Brown boxes PROBLEM SOLVING Problem 2 or Brown boxes below Analysis Admin Statement of Cash Flows 2021 Admin 2021 Key Pts Key Pts Current Ratio 0.000X Net Income Quick Ratio 0.000X Gross Margin 0.0 % Adjustments Operating Margin 0.00 % Depreciation and amortization Accounts Receivable turnover 0.00 times Cash Provided by Operating Assets and Liabilities Inventory turnover 0.00 times Accounts Receivable Total asset turnover 0.000 times Inventories Debt to Equity 0.0000 times Pre-paid expenses Return on Equity 0.00 % Accounts payable Accrued liabilities Problem 3 Projections Ad min Net Cash provided (used) by operating activities 2022E Key Pts Revenue (Increase of 25% from 2021) Cash Provided from Investing Activities CGS Additions to property, plant and equipment Gross Profit ( Gross Margin increases by 1. 09% from 2021) Net Cash provided (used) by investing activities SG&A (Improves by 1.0% from 2021) Cash Provided from Financing Activities R&D (Increases by 109% in total dollars from 2021) Additions to long term borrowing Deprec & Amort (no change from 2021) Addition to short term borrowing Total Op. Expense Net Cash provided (used) by financing activities Operating Profit Net Cash Flow Interest cost (given) 8,75,000 Interest income (given) 62,000 Total Pre-Tax Instructions: Tax (21% rate) Net Income 1. All answers go in the YELLOW shaded boxes EPS - Basic EPS - Diluted (See Information sheet for Equity Structure) 2. Make sure your name is written in the first YELLOW shaded box in the "2" row 3. Do not resize, reshape or change any of the boxes on this page. Total 4. Save this file by adding your name to the end ie., GRAND TOTAL "Final Exam Answer Sheet-Spring 2022 - Mint"Show your work whenever appropriate Common Common Size Size XYZ Plumbing - Income Statement 2020 2021 Revenue 1,00,00,000 100.09% 1,20,00,000 CGS 45,00,000 45.09% 53,40,000 Gross Profit $ 55,00,000 55.0% $ 66,60,000 SG&A 20,00,000 20.09% 22,80,000 R&D 10,00,000 10.0% 11,00,000 Deprec & Amort 5,00,000 5.09% 5,00,000 Total Op. Expense 35,00,000 35.09% 38,80,000 Operating Profit $ 20,00,00 0 20.0% $ 27,80,000 Interest cost 8,05,000 8. 19% 8,75,000 Interest income 45,000 0.59% 60,000 Pre-Tax 12,40,000 12.4% 19,65,000 Tax (21%) 2,60,400 21.09% 4,12,650 Net Income 9,79,600 9.8% 15,52,350 EPS - Basic 0.10 $ 0.16 EPS - Diluted Average Shares Outstanding 1,00,00,000 1,00,00,000Statement of Cash Flows 2021 2021 Current Ratio Net Income Quick Ratio Gross Margin Adjustments Operating Margin Depreciation and amortization Accounts Receivable turnover Cash Provided by Operating Assets and Liabilities Inventory turnover Accounts Receivable Total asset turnover Inventories Debt to Equity Pre-paid expenses Return on Equity Accounts payable Accrued liabilities Net Cash provided (used) by operating activities Cash Provided from Investing Activities Additions to property, plant and equipment Net Cash provided (used) by investing activities Cash Provided from Financing Activities Additions to long term borrowing Addition to short term borrowing Net Cash provided (used) by financing activities Net Cash FlowXYZ Plumbing - Balance Sheet 2020 2021 2020 2021 ASSETS LIABILITIES Cash 15,00,000 46, 72,350 Accounts Payable 18,00,000 20,00,000 AR 10,00,000 15,00,000 Notes Payable 15,00,000 15,00,000 Inventory 20,00,000 23,00,000 Current portion of LTD 10,00,000 10,00,000 Pre-paid ex penses 5,00,000 6.00.000 Accrued Liabilities 7,00,000 15,20,000 Total Current Assets 50,00,000 90, 72,350 Total Current Liabilities 50,00,000 60,20,000 Building and Improvements 1,50,00,000 1,50,00,000 Long-Term Debt 90,00,000 1,00,00,000 Equipment 50,00,000 50.00.000 2,00,00,000 2,00,00,000 Stockholder's Equity Common Stock at Par 1.00,000 1,00,000 Depreciation 5,00,000 10.00,000 Paid in Capital 99,00,000 99,00,000 Net PP&E 1,95,00,000 1,90,00,000 Retained Earnings 5,00,000 20,52,350 Total Stockholder's Equity 1,05,00,000 1,20,52,350 Total Assets 2,45,00,000 2,80,72,350 Total Liabilities + Equity 2,45,00,000 2,80,72,350 61,724Assumptions 2021 - 2022 202 2E Revenue increases by 25% ($ basis) Gross MARGIN increases by 1.0% SG&A improves by 1.0% (9% basis) R&D increases by 10% ($ basis) No change in Deprec & Amort cost Interest costs are given 8,75,000 Interest income is given 62,000 See D22 1,00,00,000Diluted Shares Information Officers and Directors Options 20,00,000 Exercise Price $ 1.00 Publice Warrants 30,00,000 Exercise Price $ 2.50 Stock Price used for calculating Diluted Shares $ 6.00 Diluted Shares Calculation Table Basic Shares 1,00.00.000 O&D warrants Public Total 1,00,00,000 Proceeds Officers and Directors Public Shareholders Total Proceeds Buyback Price $ 6.00 Total Shares repurchased Diluted Shares