Please see the attachment. Involves creating balance sheets and income statements along with various calculations. Thanks!

Midterm Exam 1. A corporation has the following information Revenue for the year $15,000 Total expenses and tax for the year $10,000 Current assets at year end $ 9,200 Non-current assets at year end $12,750 Investment in fixed assets $ 350 Common stock at the beginning of the year $ 2,000 Retained earnings at the beginning of the year $ 8,850 Total liabilities at year end $ 9,400 What is the amount of dividend declared during the year? (Please show your calculation) (10 points) 2. The company also has the following annual financial information Beginning interest payable $100,000 Cash paid for interest $120,000 Ending interest payable $110,000 What is the company's interest expense during the year? (Please show your calculation) (10 points) 3. Textcon Inc. has the following financial information for 2013 and 2014 2013 2014 Revenue 4000 4100 Cost of Good Sold 1600 1700 Depreciation 500 520 Inventories 300 350 Administrative Expenses 500 550 Interest Expenses 150 150 Taxes 400 420 Accounts Payable 300 350 Accounts Receivable 400 450 Net Fixed Assets 5000 5800 Long-term Debt 2000 2400 Notes Payable 1000 600 Dividend Paid 410 410 Cash and Equivalent 800 310 a) Please construct a balancesheet for Textcon Inc for 2013 and 2014. What is shareholders' equity? (10 points) b) Please construct an income statement for Textcon Inc for 2013 and 2014. What were reinvested earnings for 2014? (10 points) 4. The following are the financial highlights for Loby Hoby Inc (LLI) 2014 2013 2012 2011 2010 2009 Revenue EBIT Interest Taxes Net Profit Current Assets Net Fixed Assets Current Liabilities Long-term Debt Shareholders ' Equity Number of Stores Employees 3350 -8 36 -17.6 -26.4 668 3313 311 62 59 188 468 2844 255 64 45 144 490 2795 242 57 42 141 434 2492 211 47 39 124 391 2159 155 45 34 75 422 922 779 752 679 609 535 679 364 347 301 275 319 235 158 296 310 318 314 697.6 724 598 501 406 323 239 220 211 184 170 156 13,089 11,535 9,834 9730 9034 7345 Its 2014 income statement is the following: Revenue Selling, General and Administrative Depreciation EBIT Interest Expenses Taxable Income Income taxes Net Income Dividend 3350 1898 1460 -8 36 -44 -17.6 -26.4 0 a) What appear to be the problems of this company? Please use financial ratio analysis to justify your answers. (10 points) b) What would you suggest to fix the problems? (10 points) 5. A new furnace will cost $27,000 to install and will require maintenance of $1,500 a year. But it is more efficient than your old furnace and will reduce your heating oil consumption by 2400 gallons per year. Heating oil this year will cost $2 per gallon; the price per gallon is expected to increase by $.5 per year for the next 3 years and then to stabilize for the foreseeable future. The furnace will last for 20 years, at which point it will need to be replaced and will have no salvage value. The discount rate is 8%. a) What is the NPV of the investment in the furnace (10 points) b) What is the IRR (10 points) c) What is the payback period and discounted payback period? (10 points) d) What is the constant annual-equivalent cash flow? (10 points)