Please help need. Need help answering questions on these two assignements

Instructions: Using the company information provided below, complete the short-term cash flow forecast in following tab in this MS Excel Workbook: The background paper, Working Capital Management, provides useful guidance for completing this assignment. Company information: Arrow & Samuelson Company is a U.S.-based manufacturing company that produces a single product. Its fiscal year ends on December 31 Managers require a cash flow forecast for the three months July through September. The company's terms of sale are \"net 30.\" However, on average, customers' payments follow the pattern below: Month following month of sale Percent of sales collected in: Second Third month month following following Uncollecti month of month of ble (bad sale sale debts) 80 percent 15 percent 4 percent 1 percent Total 100 percent At June 30, the balance of the company's accounts receivable is $2,370,900. The company's VP-Sales and Marketing providing the following information about actual and forecast sales, in terms of units and revenues: April May June July August September - - - Units Actual 31,500 32,000 32,500 - - - Actual ### ### ### - - - Forecast - - - ### ### ### Forecast 38,000 39,000 40,000 Revenues Managers determined that the variable costs per unit of its product, set forth in the company's original operating budget for the fiscal year, are an appropriate basis for forecasting total variable product cost cash outflows. Variable costs Direct materials (DM) Unit cost Pattern of Payment $ 12.00 Paid in month of production (DM ordered and received in month prior to use in production) Direct labor (DL) 9.00 Paid in month following month of production Manufacturing overhead (MOH) 6.00 Paid in month following month of production Selling and administrative (S&A) 3.00 Paid in month following month of production Total $ 30.00 Managers also concluded that total fixed costs contained in the company's original operating budget for the year are an appropriate basis for forecasting fixed cost cash outflows for the July - September period. Fixed costs include fixed MOH, S&A, and research and developmen (R&D) costs and total $710,000 per month, excluding depreciation and amortization expense. Pursuant to its previously approved capital budget for the current year, the company will acquire replacement production equipment in September, costing $500,000 (the amount of the initial investment cash outflow). The company's controller provided the amount and dates of required estimated U.S. Federal and state income tax payments, based on an estimate of the company's taxable income for the current year. \"Estimated tax\" payments of $145,000 are due in September and December. At June 30, the balance of the company's total outstanding debt is $8,800,000, according to the company's general ledger. The forecast assumes that any incremental borrowing or debt repayments occur at the end of affected months. The weighted average annual interest rate on the company's total debt as of that date is 0.080 (i.e., 8.0 percent). At June 30, the balance of the company's cash and short-term investments is $580,100, according to the company's general ledger. Managers desire a balance of cash and highly liquid, short-term investments of $750,000, based on their historical experience with daily volatility of, and imbalances between, cash inflows and cash outflows. The facilitator will grade this assignment, assigning up to 100 points for it as follows Maximum Earned Accuracy, completeness, and clear presentation of short-term cash flow forecast, including related information input and computations Total points 100 100 points - Arrow & Samuelson Company Monthly Cash Forecast For the three-month period July - September 20X2 Sales: Units Actual (A) Current forecast (B) Revenue ($US) Actual Current forecast Apr May NA NA NA NA Jun Jul Aug Sep Total NA NA NA NA NA NA NA NA NA NA (C) Accounts receivable (AR) at June 30 Cash inflows Forecast collection of sales for month of: April (actual sales) May (actual sales) June (actual sales) July (forecast sales) August (forecast sales) September (forecast sales) (D) Total collections on sales $ - $ - $ - Cash outflows Variable cost (VC): Per unit Direct materials (DM) Direct labor (DL) Manufacturing overhead (MOH) (E) Selling and administrative (S&A) Total variable costs (F) Total fixed costs (FC), excluding depreciation (G) Interest on bank notes outstanding Computed at (S), below (H) Estimated income tax payments (I) Initial investments (refer to capital budget) (J) Net cash inflows (outflows) (K) (L) (M) (N) (O) (P) Cash and liquid, short-term investments Balance at beginning of month Balance at end of month before financing activities Desired balance Excess (deficiency) Applied to reduce outstanding short-term debt Incremental short-term borrowing required Total debt outstanding (Q) Beg.-of-month balance (R) Weighted-average annual interest rate on debt at June 30 (S) Forecast interest on debt (cash outflow) [Note 1] Note 1 - For greater ease of preparation, round computed interest amounts in each forecast interval to the nearest thou Instructions: Complete the financial ratio analysis in the next tab of this workbook using the information contained in it and the remaining five tabs. To complete the financial ratio analysis, use the background information and consolidated financial statements of FirstRate for its FYs 20X0 - 20X4 (contained in the remaining tabs in this workbook) and the FY 20X5 balance sheet and income statements of the company that you completed in Topic 3 of the course. In each shaded row of cells, provide the information indicated for use in computing each ratio or the correct formula to compute the ratio, as appropriate. For each ratio, comment briefly on the meaning of the observed trend, such as its likely implications for FirstRate's business and finances, and relationship of the trends in each ratio to trends in other ratios. The background paper, Financial Ratio Analysis, provides useful guidance for completing this assignment. The facilitator will grade this assignment, assigning up to 100 points for it as follows: Maximum - Accuracy of information (financial data input) used to compute ratios 20 - Accuracy and formatting of computed ratios (formula results) 30 Earned 20 points 30 - Quality and clarity of analysis of trends in computed ratios, including implications for business and financial outlook, and relationship of different ratios' trends to each other Total points 50 100 50 100 FirstRate Company and subsidiaries Financial Ratio Analysis 20X0 - 20X5 (U.S. dollars in thousands, except per-share amounts) Fiscal year ended December 31, 20X0 20X1 20X2 20X3 20X5 Analysis of trend, relationship to other ratios' trends 20X4 LIQUIDITY Current (working capital) ratio 1.4 Total current assets 163,400 Total current liabilities 116,700 Acid-test (quick) ratio Cash and cash equivalents For each ratio, comment briefly here on the meaning of the observed trend, such as its likely implications for FirstRate's business and finances, and relationship of the trends in this ratio to trends in other ratios. Your comments must fit within the space provided, without widening columns, increasing row heights, or other format changes. 0.7 14,300 Investment securities available for sale (market value) Accounts receivable, net of allowance Total cash, cash equivalents, invest. sec. and AR Total current liabilities Average collection period (days) (see also turnover ratio) 14,300 - 116,700 NA 29 NA #DIV/0! Accounts receivable, net of allowance Average accounts receivable, net of allowance Sales revenue, net of returns and allowances Average daily sales (assume 360-day year) Average days to sell inventory (see also turnover ratio) NA 88 NA #DIV/0! Inventory, at lower of cost or market (LOCOM) Average inventory, at LOCOM Total cost of goods sold (COGS) Average daily COGS (assume 360-day year) - - - - - To an in fin F 20 re w ba st th of ro in in co th N an pr co an FirstRate Company and subsidiaries Financial Ratio Analysis 20X0 - 20X5 (U.S. dollars in thousands, except per-share amounts) Fiscal year ended December 31, 20X0 20X1 20X2 20X3 20X5 Analysis of trend, relationship to other ratios' trends 20X4 CAPITAL STRUCTURE AND SOLVENCY Total debt-to-equity (total debt) ratio 1.1 Total (current and noncurrent) liabilities Total stockholders' equity Times interest earned (interest coverage) ratio 9.1 Income before income taxes Interest expense Income before income taxes and interest expense (EBIT) - - RETURN ON INVESTMENT Return on assets (ROA) Ratio NA 10.1% Net income Interest expense Income tax provision Effective income tax rate #DIV/0! Total assets Average total assets NA #DIV/0! Return on total common stockholders' equity (ROCE) rati NA 20.1% NA #DIV/0! Net income Dividends on preferred stock Total common stockholders' equity Average total common stockholders' equity - - - - FirstRate Company and subsidiaries Financial Ratio Analysis 20X0 - 20X5 (U.S. dollars in thousands, except per-share amounts) Fiscal year ended December 31, 20X0 OPERATING PERFORMANCE Gross margin 30.0% Sales revenue, net of returns and allowances Total cost of goods sold (COGS) Selling and administrative expense-to-sales ratio 15.0% Selling and administrative expenses Sales revenue, net of returns and allowances R&D expense-to-sales ratio 5.0% R&D expenses Sales revenue, net of returns and allowances Other operating expense-to-sales ratio 1.0% Other operating expenses Sales revenue, net of returns and allowances Operating margin 9.0% Operating income Sales revenue, net of returns and allowances Pre-tax operating margin 8.0% Income before income taxes Sales revenue, net of returns and allowances Net margin Net income Sales revenue, net of returns and allowances 5.3% 20X1 20X2 20X3 20X4 20X5 Analysis of trend, relationship to other ratios' trends FirstRate Company and subsidiaries Financial Ratio Analysis 20X0 - 20X5 (U.S. dollars in thousands, except per-share amounts) Fiscal year ended December 31, 20X0 20X1 20X2 20X3 20X5 Analysis of trend, relationship to other ratios' trends 20X4 ASSET UTILIZATION Accounts receivable turnover NA 12.3 Average accounts receivable, net NA #DIV/0! Inventory turnover NA 4.1 NA #DIV/0! Sales revenue, net of returns and allowances Accounts receivable, net of allowance Total cost of goods sold (COGS) Inventory, at lower of cost or market (LOCOM) Average inventory, at LOCOM STOCK PERFORMANCE Price-earnings (P-E) ratio Market price per share 14.8 $ 8.75 $ 8.00 $ 7.50 $ 6.50 $ 5.00 $ 3.50 Net income Dividends declared on preferred stock - current year Net income available to common stock - Common stock, at $1 par value Average common stock at par $1 share 42,500 #DIV/0! ### ### Average number of shares of common stock outst Earnings per share $ Price-book (P-B) ratio Market price per share of common stock ### ### ### ### 3.4 $ 8.75 $ 8.00 $ 7.50 $ 6.50 $ 5.00 $ 3.50 Total common stockholders' equity Number of shares of common stock outstanding a Book value per common share of stock ### $ - ### ### ### ### ### FirstRate Company and subsidiaries Consolidated Balance Sheet Fiscal years ended December 31, 20X0 - 20X4 (U.S. dollars in thousands) 20X0 20X1 20X2 20X3 20X4 Assets: Current assets: Cash and cash equivalents $ 14,300 $ 9,900 $ 11,600 $ 8,500 $ 2,100 Investment securities available for sale, at market 21,200 20,200 20,200 20,200 20,200 Accounts receivable, net of allowance 41,300 43,300 51,300 62,300 75,300 Inventory, at lower of cost or market 86,600 91,000 105,000 119,900 137,600 Total current assets 163,400 164,400 188,100 210,900 235,200 Property, plant, and equipment, at cost 206,000 209,600 229,600 260,900 292,500 Less: Accumulated depreciation 105,300 94,800 106,000 117,700 129,700 Property, plant, and equipment, net 100,700 114,800 123,600 143,200 162,800 $ 264,100 $ 279,200 $ 311,700 $ 354,100 $ 398,000 $ $ $ $ $ Total assets Liabilities: Current liabilities: Accounts payable Accrued income taxes payable 42,800 45,000 56,100 66,200 81,600 3,300 3,000 3,100 2,700 2,300 Dividends payable on common stock 13,200 12,000 12,500 17,100 19,800 Bank note payable - current portion 56,200 60,500 71,500 80,800 89,800 1,200 1,300 1,500 1,900 2,500 116,700 121,800 144,700 168,700 196,000 18,700 20,100 18,500 33,200 52,700 135,400 141,900 163,200 201,900 248,700 Preferred stock, par value $100 per share 20,000 20,000 20,000 20,000 20,000 Common stock, par value $1 per share 42,700 42,700 42,700 42,700 42,700 8,300 8,300 8,300 8,300 8,300 - (1,100) (1,100) (1,100) (1,100) 800 (200) (200) (200) (200) 56,900 67,600 78,800 82,500 79,600 128,700 137,300 148,500 152,200 149,300 $ 264,100 $ 279,200 $ 311,700 $ 354,100 $ 398,000 Accrued interest payable Total current liabilities Bank note payable - noncurrent portion Total liabilities Stockholders' equity: Additional paid-in capital (APIC) Treasury stock, at cost Accumulated other comprehensive income (AOCI) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity FirstRate Company and subsidiaries Consolidated Income Statement Fiscal years ended December 31, 20X0 - 20X4 (U.S. dollars in thousands, except per share amounts) 20X0 20X1 20X2 20X3 20X4 $ 495,000 $ 519,700 $ 559,600 $ 606,400 $ 661,400 Cost of goods (or services) sold (COGS) 346,500 363,800 397,900 436,000 480,800 Gross profit 148,500 155,900 161,700 170,400 180,600 Selling and administrative expenses 74,300 78,000 88,400 98,200 109,800 Research and development (R&D) expenses 24,800 26,000 23,500 23,600 23,800 5,000 5,200 6,200 7,900 9,900 104,100 109,200 118,100 129,700 143,500 44,400 46,700 43,600 40,700 37,100 - - - - - - 900 - - - 4,900 5,400 6,200 7,700 9,900 Income from continuing operations before income taxes 39,500 40,400 37,400 33,000 27,200 Taxes on income from continuing operations 13,200 13,500 12,500 11,000 9,100 Income from continuing operations 26,300 26,900 24,900 22,000 18,100 - (2,000) - - - 26,300 24,900 24,900 22,000 18,100 - (1,000) - - - Sales revenue (net of returns and allowances) Operating expenses: Other operating expenses Total operating expenses Operating income Non-operating items: Non-operating revenues and gains Gain on disposal of equipment Non-operating expense and losses: Loss on disposal of equipment Interest on bank note Income (loss) from discont. oper., net income taxes of $1,000, in 20X1 Income before extraordinary items Extraordinary gain (loss), net of related income taxes of $500, in 20X1 Net income $ 26,300 Earnings per share: Income from continuing operations - $ Income (or loss) from discontinued operations, net of tax benefit Income before extraordinary items Extraordinary gain (or loss), net of tax of tax benefit Net income Weighted average number of common shares outstandi $ $ 0.62 23,900 $ 24,900 - $ 0.63 $ 22,000 - $ 0.59 $ 18,100 - $ 0.52 - $ 0.43 - (0.04) - - - 0.62 0.59 0.59 0.52 0.43 - (0.03) - - - 0.62 ### $ 0.56 ### $ 0.59 ### $ 0.52 ### $ 0.43 ### FirstRate Company and subsidiaries Trial Balances Fiscal Years 20X0 - 20X4 (U.S. dollars in thousands) FYE Dec. 31, 20X0 Cash and cash equivalents FYE Dec. 31, 20X1 FYE Dec. 31, 20X2 FYE Dec. 31, 20X3 FYE Dec. 31, 20X4 Debit 14,300 9,900 11,600 8,500 2,100 Investment securities available for sale (market value Debit 21,200 20,200 20,200 20,200 20,200 42,100 44,200 52,600 64,200 78,000 (800) (900) (1,300) (1,900) (2,700) 137,600 Accounts receivable, gross Debit Allowance for uncollectible accounts receivable Credit Inventory, at lower of cost or market Debit 86,600 91,000 105,000 119,900 Property, plant, and equipment, at cost Debit 206,000 209,600 229,600 260,900 292,500 Accumulated depreciation on PP&E Credit (105,300) (94,800) (106,000) (117,700) (129,700) Accounts payable Credit (42,800) (45,000) (56,100) (66,200) (81,600) Accrued income taxes payable Credit (3,300) (3,000) (3,100) (2,700) (2,300) Dividends payable on common stock Credit (13,200) (12,000) (12,500) (17,100) (19,800) Bank note payable - current portion Credit (56,200) (60,500) (71,500) (80,800) (89,800) Bank note payable - noncurrent portion Credit (18,700) (20,100) (18,500) (33,200) (52,700) Accrued interest payable Credit (1,200) (1,300) (1,500) (1,900) (2,500) 6% Preferred stock, at par value Credit (20,000) (20,000) (20,000) (20,000) (20,000) Common stock, at par value Credit (42,700) (42,700) (42,700) (42,700) (42,700) Additional paid-in capital (APIC) Credit (8,300) (8,300) (8,300) (8,300) (8,300) Treasury stock Debit - 1,100 1,100 1,100 1,100 Accum. other comprehensive income (loss) Dr (Cr) (800) 200 200 200 200 Retained earnings - beginning of year Credit (45,000) (56,900) (67,600) (78,800) (82,500) Dividends declared on preferred stock - current year Debit 1,200 1,200 1,200 1,200 1,200 Dividends declared on common stock - current year Debit 13,200 12,000 12,500 17,100 19,800 Sales revenue (gross) Credit (500,000) (525,000) (567,000) (616,300) (674,200) Sales returns and allowances Debit 5,000 5,300 7,400 9,900 12,800 Cost of goods sold (COGS) - depreciation Debit 9,800 10,000 10,600 11,100 11,400 Cost of goods sold (COGS) - other Debit 336,700 353,800 387,300 424,900 469,400 Selling and administrative expenses - depreciation Debit 500 500 600 600 600 Selling and administrative expenses - other Debit 73,800 77,500 87,800 97,600 109,200 Research and development (R&D) expenses Debit 24,800 26,000 23,500 23,600 23,800 Other operating expenses Debit 5,000 5,200 6,200 7,900 9,900 Gain on disposal of PP&E Credit - - - - - Loss on disposal of PP&E Debit - 900 - - - Interest on bank note Debit 4,900 5,400 6,200 7,700 9,900 Income tax provision Debit 13,200 12,000 12,500 11,000 9,100 Loss from discontinued oper., (before tax effect) Debit - 3,000 - - - Extraordinary loss (before tax effect) Debit - 1,500 - - - - - - - - (26,300) (23,900) (24,900) (22,000) (18,100) Total debits (credits) Net balance of nominal (temporary) accounts FirstRate Company and subsidiaries Consolidated Statement of Cash Flows Fiscal years ended December 31, 20X1 - 20X4 (U.S. dollars in thousands) 20X1 Net income $ 20X2 23,900 $ 20X3 24,900 $ 20X4 22,000 $ 18,100 Adjustments to reconcile net income to cash flows provided by operating activities: Depreciation of property, plant, and equipment 10,500 11,200 11,700 12,000 900 - - - Decrease (increase) in accounts receivable, net (2,000) (8,000) (11,000) (13,000) Decrease (increase) in inventory (4,400) (14,000) (14,900) (17,700) 2,200 11,100 10,100 15,400 (300) 100 (400) (400) Increase (decrease) in accrued interest payable 100 200 400 600 Net cash provided by (used in) operating activities 30,900 25,500 17,900 15,000 2,100 - - - Acquisitions of property, plant, and equipment (27,600) (20,000) (31,300) (31,600) Net cash provided by (used in) investing activities (25,500) (20,000) (31,300) (31,600) Repurchases of common stock (1,100) - - - Payment of dividends on preferred stock (1,200) (1,200) (1,200) (1,200) Payment of dividends on common stock (13,200) (12,000) (12,500) (17,100) 5,700 9,400 24,000 28,500 Net cash provided by (used in) financing activities (9,800) (3,800) 10,300 10,200 Net increase (decrease) in cash and cash equivalents (4,400) 1,700 (3,100) (6,400) Cash and cash equivalents, beginning of fiscal year 14,300 9,900 11,600 8,500 Loss on sale of equipment Changes in working capital accounts: Increase (decrease) in accounts payable Increase (decrease) in accrued income taxes payable Cash flows from investing activities: Proceeds on sale of equipment Cash flows from financing activities: Proceeds from borrowings under bank note agreement Cash and cash equivalents, end of fiscal year $ Supplemental disclosures: Cash paid for interest during fiscal year Cash paid for income taxes during fiscal year 9,900 $ - $ 5,300 12,300 11,600 $ - $ 6,000 12,400 8,500 $ - $ 7,300 11,400 2,100 - $ 9,300 9,500