P & B Manufacturing P & 8 Manufacturing Comparative Balance Sheet Income Statement (dollars in millionS) ForYear Ended December 31 Ending Balanm Beginning Balance (doIlars in millions) Assets Current assets: Sales Cash and cash equivalents 65 91 Cost of goods sold Accounts Receivable 530 572 Gross Margin anEmOVV 600 580 Selling and administrative expenses Total current assets 1,195 1:243 Net operating income Property, Plant and eqUIPment 1'719 L656 Nonoperating items: Gain on sale of equi pment Less accumulated depreciation 640 480 Income before taxes Net property, plant and equipment 1,079 1:175 Income taxes Total assets 2,274 2:419 Net Income Liabilities and Stockholders' Equity Current liabilities: Accounts'paya'b'Ie 180 180 P & B Manufacturing also provided the following information: Accrued liabilities 94 105 Income taxes payable 72 88 l The company sold equipment that had an original cost of $15 million Total current liabilities 346 373 and accumulated depreciation of $9 million. The cash proceeds from Bonds payable 180 310 the sale were $11 million. The gain on the sale was $4 million. Total liabilities 526 683 2 The company did not issue any new bonds during the year Stockholders eqUIty: 3 The company paid a cash dividend during the year Common stock 800 800 Retained earnings 948 936 4 The company did not complete any common stock transactions during Total stockholders' equity 1,748 1,736 the Year Total liabilities and stockholders'equity 2,274 2,419 2a 2b 3a 3b 4a 4b Sa 5b 6a 6b To assess the liquidity at the end of the year calculate Current Ratio andAcidrtest (quick). Round your answers to 2 decimal .laces , or examule 5.67 Calculate the Current Ratio Calculate the Aciditext (quick) ratio To assess asset management calculate Average collection period andAverage sale period. Round your answers to 2 decimal places Calculate Average collection period , assume all sales are on account Calculate Average sale period , use 355 days in a year. To assess debt management calculate DebtrtorEquity ratio at the end of the year and Equity Multiplier. Round your calculations & answers to 2 decimal places Calculate Debtrterquity ratia Calculate Equity multiplier To assess profitability calculate Net Prot Margin Percentage and Return on Equity. Round your calculations & answers to 2 decimal place Calculate Netprofit margin percentag. Both 5a and 5b are to be expressed as a percent. Research i ou are unsure how to EXIFESS a number as a :ercent. Calculate Return on equity percentage To assess market performance, calculate Earnings Per Share and Dividend Payout Ratio. Assume the par value of the company's common stock is $10 per share Round your calculations & answers to 2 decimal places Calculate Earnings per share. Express in dollars and cents Calculate Dividend payout ratio , express in a percent. Assume the par value of the company's common stock is $10 per share Required: 1. Using the indirect method, prepare a Statement of Cash Flows for the year 2. To help P 84 B Manufacturing assess its liquidity at the end of the year calculate the following: a. Current ratio b. Acid-test (quick) ratio 3. To help P & B Manufacturing assess its asset management calculate the following: a. Average collection period (assuming all sales are on account) b. Average sale period 4. To help P & B Manufacturing assess its debt management calculate the following: a. Debt-toequity ratio at the end of the year b. Equity multiplier 5. To help P & B Manufacturing assess its profitability calculate the following a. Net profit margin percentage b. Return on equity 6, To help P 8: B Manufacturing assess its market performance, calculate the following (assume the par value of the company's common stock is $10 per share) a. Earnings per share b. Dividend payout ratio Parts 1 thru 611 1 Green boxes have drop down menu's to choose from P & B Manufacturing Statement of Cash Flows (indirect method) For the Year Ended December 31 Operating Activities: Net Income (starting point) > Adjustments to convert net income to cash basis: Subtotal of Adjustments Net cash provided by operating activities Investing Activities: Net cash used in investing activities Financing Activities: Net cash used in financing activities Beginning cash and cash equivalents Ending cash and cash equivalents 0 F El B Manufacturlng Comparative Balance Sheet (dollars in millions) Ending Balance Beginning Balance Assets Cu rre nt assets: Cash and cash equivalents 55 91 Accounts Receivable 530 572 inventory Total cu rrent assets Property, plant and equipment Less accumulated depreciation Net property, plant and equipment Total assets 1,195 1,243 Llabllltles and Stockholders' Equity Current liabilities: Accounts payable 180 180 Accrued liabilities 94 105 Income taxes payable Total cu rre nt liabilities 346 373 Bonds payable Total liabilities 525 533 Stockholders' equity: Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity P a. 3 Manufacturing Income Statement ForVear Ended December 31 (dollars In millions) Sales 4,450 Cost of goods sold 3,550 Gross Margin 900 Selling and administrative expenses 820 Net operating income 80 Nonoperating items: Gain on sale of equipment 4 income before taxes 84 Income taxes 29 Netlncome 55 Additions to property, plant & equipment Beginning cash & cash equivalents Cash dividends Decrease in accounts receivable Decrease in accrued liabilities Decrease in income taxes payable Depreciation Ending cash & cash equivalents Gain on sales of equipment Increase in accounts payable Increase in inventory Proceeds from sale of equipment Retired bonds payable