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please help me with fixing what i got wrong and D) end E) thank you so much!! Problem 3-26 The Protek Company is a large

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please help me with fixing what i got wrong and D) end E)
thank you so much!!
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Problem 3-26 The Protek Company is a large manufacturer and distributor of electronic components. Because of some successful new products marketed to manufacturers of computers and mobile electronic devises, the firm has recently undergone a period of explosive growth, more than doubling its revenues during the last two years. However, the growth has been accompanied by a marked decline in profitability and a precipitous drop in the company's stock price. You are a financial consultant who has been retained to analyze the company's performance and find out what's going wrong. Your investigative plan involves conducting a series of in-depth interviews with management and doing some independent research on the industry. However, before starting, you want to focus your thinking to be sure you can ask the right questions. You'll begin by analyzing the firm's financial statements over the last three years, which are shown below. The following additional information is provided with the financial statements. Depreciation for 20x1, 20x2, and 20x3 was $200, $250, and $275 million respectively. No stock was sold or repurchased, and like many fast-growing companies, Protek paid no dividends. Assume the tax rate is a flat 34% and the firm pays 10% interest on its debt. Protek Company Income Statements For the periods ended 12/31 ($000,000) 20x1 20x2 $1524 $ 2090 20x3 $ 3231 Sales COGS Gross margin 906 502 $ 1184 $ 1729 Expenses Marketing 316 $ 495 $ 882 Check My Work Protek Company Income Statements For the periods ended 12/31 ($000,000) 20X1 20x2 $ 1524 $ 2090 631 906 $ 893 $ 1184 20x3 $3231 1502 $ 1729 Sales COGS Gross margin Expenses Marketing R&D $ 316 158 126 $ 600 $ 495 211 179 $ 882 327 294 $ 1503 Administration Total expenses $ 885 EBIT $ 293 $ 226 Interest 143 EBT $ 230 $ 299 95 $ 204 69 $ 135 83 78 Tax EAT $ 152 $ 55 Check My Work eBook Calculator OPERATING ACTIVITIES: Net Income 20x2 135.00 250 $ $ 20x3 55 275 Depreciation $ Net changes in current accounts $ -207 $ -325 Cash from Operating Activities $ 178 $ 5 INVESTING ACTIVITIES: Increase in Fixed Assets -798 $ -323 Cash from Investing Activities -798 $ -323 FINANCING ACTIVITIES: 630 $ 340 Increase in Debt Cash from Financing Activities 630 $ 340 Accounting numeric field Check My Work NET CASH FLOW RECONCILIATION Beginning Cash 30 10 $ $ 40 22 Net Cash Flow $ Ending Cash $ 40 62 20x2 20x3 c. Calculate the indicated ratios for all three years. Round ACP up to the nearest whole day. Round the other answers to 1 decimal place. PROTEK COMPANY Ratio Analysis Industry 20x1 Average Current Ratio 4.5 4.2 5.4 5.8 Quick Ratio 3.9 4.0 ACP 42 42 days 61 days 6 6 days Inventory Turnover (COGS) 7.5X v 5 x Fixed Asset Turnover 1.6% 1.6 X 2.1 x Total Asset Turnover 1.2x 1 X 1.3 X Debt Ratio 53% 87 70 X % 3.2 X2 Check My Work Email Instructor Save and Exit eBook Calculator Evegge Current Ratio 4.5 4.2 Quick Ratio 3.2 2.9 C ACP Inventory Turnover (COGS) 7.5X Fixed Asset Turnover 1.6% 1.8 Total Asset Turnover Debt Ratio 53% 3.9 61 days 6 x. 1.4 X x 87 % % 1.8 :1 3.15 x x 6.46 % % 6.52 X % 19.04 X % 2.92 x 4.0 66 days 5 x 2.1 X 1.3 X 70 X % 2.1 : 1.58 x x 1.70 % 2.18 X % 7.20 % 3.31 X 42 days ( 7 XT - 1. 6 x T 1.2 X 55 % T 1.1 :1 4.65 x x 9.97 X % 11.92 X % 26.48 X % 2.22 $ Debt Equity 1:1 TIE 4.5X ROS 9.0% ROA ROE 10.8% 22.8% 2.1 Equity Multiplier d. Construct both Du Pont equations for Protek and the industry. Round your answers to 1 decimal place. The Du Pont Equation ROA ROS x Total Asset Turnover Industry % % Check My Work eBook Calculator d. Construct both Du Pont equations for Protek and the industry. Round your answers to 1 decimal place. The Du Pont Equation ROA - ROS x Total Asset Turnover Industry % Protek The Extended Du Pont Equation ROE Equity Multiplier Industry Protek e. One hundred million shares of stock have been outstanding for the entire period. The price of Protek stock in 20x1, 20X2, and 20X3 was $33.44 $22.95, and $9.35 respectively. Calculate the firm's Earnings Per Share (EPS) and its Price Earnings Ratio (P/E), Round your answers to 2 decimal places. 20x1 20X2 20x3 # of Shares 100 mil 100 mil 100 mil Earnings (SM) 152 135 Stock Price $33.44 $22.95 $9.35 EPS PIE Market to BV Check My Work Calculator Protek Company Balance Sheets For the periods ended 12/31 ($000,000) 20x1 20x2 20x3 ASSETS Cash 30 Accounts receivable 351 151 590 300 952 $ 295 542 Inventory Current assets Fixed assets Gross Accumulated depreciation Net Total assets 1590 2711 2388 (860) (610) (1135) 1576 $ 980 1528 1275 2070 2528 Protek Company Balance Sheets For the periods ended 12/31 (5000,000) 20x120x2 LIABILITIES Check My Work Email Instructor Save Protek Company Balance Sheets For the periods ended 12/31 ($000,000) 20X1 20x2 20X3 20 30 LIABILITIES Accounts payable $ 56 $ 81 $ 134 Accruals 15 Current liabilities $ 71 $ 101 $ 164 Capital Long-term debt $ 630 $ 1260 $ 1600 Equity 709 764 Total liabilities & equity $1275 $ 2070 $ 2528 a. Construct common size income statements for 20X1, 20X2, and 20X3. Round your answers to 2 20x2 20x3 ? 574 20X1 Sales $ 1524 COGS 100 41.4 58.6 631 $ 893 $ 2090 906 $ 1184 100 43.35 5 6.65 $ 3231 1,502 $ 1729 46 Gross Margin ( 1 53 Expenses Marketing $ 316 158 20.7 x 10,4 x $ 495 211 23.68 10.10 $ 882 327 27. 10.1 RAD Check My Work Email Instructor

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