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P& Manufacturing Income Statement For Year Ended December 31 (dollars in millions) Beginning Balance P&D Manufacturing Comparative Balance Sheet (dollars in millions) Ending Balance Assets Current assets Cash and cash equivalents 65 Accounts Receivable 530 Inventory Total current assets 1,195 Property, plant and equipment 1,719 less accumulated depreciation 640 Net property, plant and equipment 1,079 Total assets 2,274 4,450 3.550 600 900 320 91 572 550 1,243 1,656 480 1,176 2,419 Sales cost of roods sold Gross Margin Selling and administrative expenses Net operating income Nonoperating items: Gain on sale of equipment income before taxes Income taxes Net Income 80 4 84 29 55 180 94 72 346 Labilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Income taxes payable Total current liabilities Bonds payable Total liabilities Stockholders' equity Common stock Retained earings Total stockholders' equity Total liabilities and stockholders' equity 180 105 88 373 310 683 180 526 P&B Manufacturing also provided the following information: 1 The company sold equipment that had an original cost of $15 million and accumulated depreciation of $9 million. The cash proceeds from the sale were $11 million. The gain on the sale was $4 million 2 The company did not issue any new bonds during the year 3 The company paid a cash dividend during the year 4 The company did not complete any common stock transactions during 800 14B 1,748 2,274 300 936 1.736 2,419 the year Required: 1. Using the indirect method, prepare a Statement of Cash Flows for the year 2. To help P & 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 (assuring all sales are on account) b. Average sale period 4. To help P & B Manufacturing assess its debt management calculate the following: a. Debt-to-equity 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 & 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 Dark gray boxes have drop down menu's to choose from P&B Manufacturing Statement of Cash Flows (indirect method) For the Year Ended December 31 leging aan Operating Activities: Net Income Adjustments to convert net income to cash basis PA Manufacturing Comparative Balance Sheet (dollars in millions) Indy Balance Assets Current assets Cash and cash equivalents Accounts Receivable 530 Inventory 600 Total current assets 1.195 Property, plant and equipment 1,719 Less accumulated depreciation 600 Net property, plant and equipment 1,070 Total assets 2274 91 572 580 1,243 1656 40 110 2.419 180 105 Subtotal of Adjustments Net cash provided by operating activities Uabilities and Stockholders' Equity current liabilities: Accounts payable 150 Acorved liabilities Income taxes payable 72 Total current abilities Bonds payable Total abilities 526 stockholdersuit Common stock 100 Retained emines 940 Total stockholders' equity 1.74 Total liabilities and stockholders wity 2,214 373 310 180 Investing Activities 300 1735 Net cash used in investing activities Financing Activities P& Manufacturing Income Statement For Year Ended December 31 (dollars in millions) Netcah used in financing activities 40 3,150 500 20 Beginning cash and cash equivalents Ending Cath and cash equivalents Sales cost of doll cross Marcin Selling and administratives Netoperating income Nonocer main one of equipment income before anes Meme Netcome 4 04 SS To assess the liquidity at the end of the year calculate current Ratio and Acid-test (quick). Round your answers to 2 decimal places for example 5.67 Requirement #20 Calculate the Current Ratio But your final answer in this box Requirement #2b Calculate the Acid-text (quick) ratio But your final answer in this box To assess asset management calculate Average collection period and Average sale period. Round your answers to 2 decimal places - for example 5.67 Requirement #3a Calculate Average collection period - assume all sales are on account But your final answer in this box Requirement #3b Calculate Average sale period - use 365 days in a year. Round intermediate calculations and final answers to 2 decimal places But your final answer in this box To assess debt management calculate Debt-to-Equity ratio at the end of the year and Equity Multiplier. Round your calculations & answers to 2 decimal places for example 15.67 / 16.78.93 Requirement de Calculate Debt-to-Equity ratio But your final answer in this box Requirement ab Calculate Equity multiplier But your final answer in this box To assess profitability calculate Net Profit Margin Percentage and Return on Equity. Round your calculations & answers to 2 decimal places - for example 5.67 /6.78 - 83 Requirement #Sa Calculate Net profit margin percentag. Both 50 and 5b are to be expressed as a percent. Research if you are unsure how to express a number as a percent. But your final answer in this box Requirement a5b Calculate Return on equity percentage But your final answer in this box 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 shareRound your calculations & answers to 2 decimal places - for example 5.67 / 6.78-83 Requirement #6a Calculate Earnings per share. Express in dollars and cents But your final answer in this box Requirement #6b Calculate Dividend payout ratio - express in a percent. Assume the par value of the company's common stock is $10 per share But your final answer in this box