Need help with assignments for Financial Statement Analysis. Looking to score 100% or absolutely no lower than 90% on this assignment. Serious tutors only, please.

Homework Assignment - Chapter 3 1.Cilca Corporation is a supplier to the pulp and paper industry. Selected financial information about Cilca is listed below: Purchased real estate for $440,000 in cash. The cash was borrowed from a bank. Sold investments for $400,000. Paid dividends of $480,000. Issued shares of common stock for $200,000. Purchased machinery and equipment for $100,000 cash. Paid $360,000 on a bank loan. Reduced accounts receivable by $80,000. Increased accounts payable $160,000. Use the above information to calculate Cilca's: a. cash used or provided by investing activities b. cash used or provided by financing activities 2. Oli22. Corporation manufactures food processing equipment. Use Olive Corporation's two most recent balance sheets and most recent income statement to prepare a statement of cash flows for 2010. The company paid dividends of $6,250 during 2010. Olive Corporation Balance Sheet As of December 31, Assets: Cash and cash equivalents Accounts Receivable Inventory Current Assets Equipment Less: Accumulated depreciation Land Total assets Liabilities Accounts Payable Accrued Salaries Payable Rent Expense Payable Income Tax Payable Current Liabilities Longterm note payable Total Liabilities Stockholders' Equity: Common stock Retained earnings Total liabilities and stockholders' equity Olive Corporation Income Statement For the year ended December 31, 2010 Revenues Cost of goods sold Gross Profit Operating Expenses Depreciation expense Salary expense Insurance Expense Rent Expense Interest Expense Total Operating Expenses Income from Operations Income Tax Expense Net income 3. J. Jill is a women's clothing retailer. The company started as a mail order company and has expanded into mall department stores. The company now receives approximately half of its revenues from mail order and half from retail outlets. Over the time period 2010 to 2012, sales increased approximately 25%. Discuss the relationship between net income, working capital from operations, and cash flow from operations, and between cash flows from operating, investing, and financing activities over the threeyear period. CASH FLOW STATEMENT (in thousands) Cash from operations Net income Depreciation & amortization Net increase (decrease) in assets & liab. Other adjustments, net Net cash provided by (used in) operations Cash from investments (Increase) decrease in property & plant Other cash inflow (outflow) Net cash provided by (used in) investing Cash from financing Issuances (purchases) of equity shares Increase (decrease) in borrowings Net cash provided by (used in) financing Net change cash & cash equivalents Cash and cash equivalents at start of year Cash and cash equivalents at year end 12/25/2012 8,706 18,663 6,696 1,396 35,461 12/27/2011 7,025 16,131 26,659 924 50,739 12/28/2010 18,434 12,672 10,623 3,996 45,725 -28,784 -35,434 -64,218 -34,265 -1,143 -35,408 -34,734 -2,454 -37,188 3,142 -1,706 1,436 -27,321 59,287 31,966 870 -1,648 -778 14,553 44,734 59,287 7,800 -1,755 6,045 14,582 30,152 44,734 Homework Assignment - Chapter 4 1. Below is financial information for two restaurant retailers. Popper's Company operates an innovative retail bakerycafe business and franchising business. At the end 2010, Popper's had 132 companyowned and 346 franchiseoperated bakerycafes. Popper's located most of their unique bakerycafe concept stores in suburban, strip mall, and regional mall locations. As a first mover in this concept, the company operates in 32 states. Simmer Corporation began operations five years earlier than Popper's and purchases and roasts whole bean coffees and sells them, along with numerous coffee drinks and related products at over 2,900 Companyoperated retail stores. Selected Data for Popper's Company and Simmer Corporation (amounts in millions) Sales Cost of Goods Sold Interest Expense Net Income Average Inventory Average Fixed Assets Average Total Assets Simmer $4,076 1,686 0 268 303 2,163 2,472 Popper's $278 97 0 22 4 130 166 Required: a. Compute the rate of return on assets for each firm. Disaggregate the rate of return on assets into profit margin and assets turnover components. The income tax rate is 35%. b. Describe the likely reasons for the differences in the profit margins and assets turnovers of the two companies. 2. Sensitron and Douglas Tools manufacture and market power tools and accessories. Sensitron targets customers in the professional contractor market, while Douglas Tools focuses on home users and professionals. Selected financial data for the companies appears below. Sensitron Sales Average Accounts Receivable Change in Sales from previous year Douglas Tools Sales Average Accounts Receivable Change in Sales from previous year Required: 2010 1. 2. Calculate the accounts receivable turnover ratio for each firm for 2008. Suggest reasons for the differences in the accounts receivable turn two firms. 3. Linda's Clothing is a retailer of contemporary women's clothing. Selected financial information for Linda's appears below: Net Income Total Assets at yearend Weighted Average number of shares Outstanding Total Liabilities at yearend Common Stockholders' Equity at yearend Interest Expense 2011 $ 56,759 $381,500 2010 $ 31,150 $246,250 2009 $ 15,375 $145,490 2008 $14,750 $71,268 84,215 205,967 $175,533 165 80,546 119,657 $126,593 195 77,965 60,522 $ 84,968 258 75,888 17,623 $53,645 368 Required: a. Compute the rate of return on assets for the years 20092011. Linda's has an effective tax rate of 35%. b. Compute the rate of return on common shareholders' equity for the years 20092011. c. Compute basic earnings per share for the years 20092011. d. Interpret the changes in ROA versus ROCE and EPS over the threeyear period. Homework Assignment - Chapter 5 1. When a financial analyst examines the credit risk of a company, it is common that he or she uses a set of factors that all begin with the letter "C." Each factor provides a consideration that enters into the lending decision. List and discuss how each of the factors affects a company's credit risk. ANS: 1. Circumstances leading to need for the loan The reasons that the company needs to borrow affect the riskiness of the loan and the likelihood of repayment. 2. Credit History Has the firm borrowed in the past and successfully repaid the loan. 3. Cash flows Is the lender generating sufficient cash flows to pay interest and repay the principal on a loan rather than having to rely on selling the collateral. 4. Collateral Is the collateral sufficient to repay the loan and does the lender have the right to take possession of the collateral. 5. Capacity for debt Has the company borrowed up to its capacity or is there a margin of safety remaining. 6. Contingencies Are there any events on the horizon that would harm the company if their outcome is negative. 7. Character of management An intangible factor, has the management team been successful in difficult times, are they honest and forthcoming. 8. Communication Developing relations with lenders requires effective communication both initially and on an ongoing basis. 9. Conditions What are the restrictions or covenants put in place to protect the lender. Each of these factors must be examined in the multivariate manner so that the total credit risk profile of the company can be determined. 2. Given the following information, calculate for Year 2 the number of days of working capital financing the firm will need to obtain from other sources? Accounts Receivable, net Accounts Payable Inventory Credit Sales Cost of Goods Sold Selling and Admin. Expense Year 1 $ 518 203 535 Year 2 $ 562 192 564 3,205 2,037 1,081 3,636 2,294 1,131 3. Refer to the financial statement data for Patriot Corp. for 2011 and 2010. Complete the table by computing the ratios. Patriot Corp. Balance Sheet As of December 31, Assets: Cash and Cash Equivalents Accounts Receivable Inventory Current Assets 2011 2010 $ 69,000 126,500 92,000 287,500 $ 55,250 80,750 63,750 199,750 Equipment Less: Accumulated depreciation EquipmentNet Land 194,063 38,813 155,250 132,250 148,750 29,750 119,000 106,250 Total assets: $575,000 $425,000 Liabilities: Accounts Payable Accrued Salaries Payable Rent Expense Payable Income Tax Payable Current Liabilities $ 69,000 51,750 35,750 4,788 161,288 $ 42,500 42,500 28,500 1,250 114,750 Longterm note payable Total Liabilities 172,500 333,788 102,000 216,750 Stockholders' Equity: Common stock Retained earnings 115,000 126,212 89,250 119,000 $575,000 $425,000 Total liabilities and stockholders' equity: Patriot Corp. Income Statement For the year ended December 31, 2011 Revenues Cost of goods sold Gross Profit Operating Expenses $ 373,750 (224,250) $149,500 Homework Assignment - Chapter 6 1. A. Listed below are 12 accounting liabilities. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Rental fees received in advance Interest Payable Unsettled lawsuits where no estimate of loss can be made Accounts payable Warranties payable Bonds payable Subscription fees received in advance Taxes payable Employment commitments Notes payable Purchase commitments Salaries payable Place the accounting liabilities in one of the following six categories: a. b. c. d. e. f. Obligations with fixed payment dates and amounts Obligations with fixed payment amounts but estimated payment dates Obligations for which the firm must estimate both timing and amount of payment Obligations arising from advances from customers on unexecuted contracts and agreements Obligations under mutually executed contracts Contingent obligations B. In addition, determine which of the liabilities would be recognized on the balance sheet as liabilities and which would not be recognized. Suggestion: format your answer as follows (this is not a correct sample answer): a. Obligations with fixed payment dates and amounts (not generally recognized): 1. Rental fees received in advance 2. In the chart below, assign the directional effect (I = increase, D = decrease, or NE = no effect) of each of the following six transactions on the components of the book value of common shareholders' equity. a. Issuance of $1 par value common stock at an amount greater than par value. b. Donation by a governmental unit to a corporation. c. Cash dividend declared. d. Previously declared cash dividend paid. e. Property dividend declared and paid. f. Large stock dividend declared and issued. Item a. b. c. d. e. f. Common Stock Additional Paid-In Capital Deferred Compensatio n Retained Earnings Treasury Stock at Cost Total Common Shareholders' Equity 3. Assume that a start-up manufacturing company raises capital through a series of equity issues. Required: a. Using the financial statement template below, summarize the financial statement effects of the following transactions. (1) Issues 80,000 shares of $1 par value common stock for $10 per share. (2) Receives land in exchange for 8,000 shares of $1 par common stock when the common stock is trading in the market at $20 per share. The land has no readily determinable market value. (3) (a) Receives subscriptions for the issue of 30,000 shares of $1 par value common. The share issue price is $20, of which 30 percent is received as a down payment. (3) (b) Subsequently, the remaining 70 percent is received from the transaction in 3(a). Shareholders' Equity Entry 1 2 3(a) 3(b) Assets = Liabilities + CC + AOCI + Journal entry (optional): b. In each case, how does the company measure the transaction? What measurement attribute is used? RE