PLEASE SOLVE YELLOW CELLS FOR BOTH SHEETS. IVE DONE WHAT I CAN. ITS DUE IN 24 HOURS.

Financial Statements Analysis - Final Exam Fall 2016 MG 770-144 YOUR NAME Use the following information about XYZ Plumbing (FY=12/31), a public company with the most recen $5.00, to answer the following three problems: PROBLEM SOLVING Statement of Cash Flows Net Income Adjustments Depreciation and amortization Cash Provided by Operating Assets and Liabilities Accounts Receivable Inventories Pre-paid expenses Accounts payable Accrued liabilities Net Cash provided (used) by operating activities Problem 1 2015 Admin Key Pts 1 1 2 2 2 2 2 2 Cash Provided from Investing Activities Additions to property, plant and equipment Net Cash provided (used) by investing activities 2 2 Cash Provided from Financing Activities Additions to long term borrowing Addition to short term borrowing Net Cash provided (used) by financing activities 2 2 2 Net Cash Flow 2 Total Instructions: 1. All answers go in the YELLOW 2. Make sure your name is written in the first YELLOW shaded box in the "2" row 3. Do not resize, reshape or change any of the boxes on this page. 4. Save this file by adding your name to the end i.e., "Final Exam Answer Sheet - Fall 2016- Mintz" 5. All the information needed is on this sheet and the Information Sheet shaded boxes. 26 company with the most recent closing stock price of Problem 2 Analysis 2015 Admin Key Pts Current Ratio Accounts Receivable turnover Inventory turnover Revenue to Cash Return on Assets Return on Equity Problem 3 1 1 1 1 1 1 Projections 2016E Pts Revenue (Increase of 20% from 2015) CGS Gross Profit (Gross Margin increases by 1.5% from 2015) 1 1 1 SG&A (Improves by 1% from 2015) R&D (Increases by 10% in total dollars) Deprec & Amort (no change) Total Op. Expense 1 1 1 1 Operating Profit 1 Interest cost (given) Interest income (given) Pre-Tax Tax (35% rate) $ $ 800,000 250,000 1 1 Total 6 Net Income 1 EPS - Basic EPS - Diluted 1 6 Total GRAND TOTAL 18 50 Common Size XYZ Plumbing - Income Statement $ 2014 10,000,000 100.0% $ 4,000,000 6,000,000 40.0% 60.0% SG&A R&D 2,000,000 1,000,000 20.0% 10.0% Deprec & Amort Total Op. Expense 500,000 3,500,000 5.0% 35.0% 2,500,000 25.0% 650,000 90,000 6.5% 0.9% Revenue CGS Gross Profit Operating Profit $ Interest cost Interest income Pre-Tax $ 1,940,000 19.4% Tax (35% rate) Net Income $ 679,000 1,261,000 35.0% 12.6% $ 0.13 EPS - Basic EPS - Diluted Average Shares Outstanding 10,000,000 Diluted Shares Diluted Shares Information Officers and Directors Options Exercise Price 2,000,000 $ 2.00 Publice Warrants Exercise Price 4,000,000 $ 3.00 Stock Price used for calculating Diluted Shares Diluted Shares Calculation Table Basic Shares $ 5.00 10,000,000 O&D warrants Public Total Proceeds Officers and Directors Public Shareholders Total Proceeds Buyback Price Total Shares repurchased Diluted Shares $ 5.00 Common Size $ 2015 12,500,000 100.0% $ 5,000,000 7,500,000 40.0% 60.0% $ Common Size $ 2016E 15,625,000 $ 6,250,000 9,375,000 40.0% 60.0% 100.0% XYZ Plumbing - Balance Sheet ASSETS 2,500,000 1,000,000 20.0% 8.0% 3,125,000 1,000,000 Cash 20.0% A/R 6.4% Inventory 500,000 4,000,000 4.0% 32.0% 500,000 4,625,000 3.2% Pre-paid expenses 29.6% Total Current Assets 3,500,000 28.0% 4,750,000 30.4% Building and Improvements 750,000 150,000 $ 800,000 250,000 6.0% 1.2% 0.0% Equipment 5.1% 1.6% Depreciation $ 2,900,000 23.2% $ 4,200,000 26.9% Net PP&E $ 1,015,000 1,885,000 35.0% 15.1% $ 1,470,000 2,730,000 9.4% 17.5% Total Assets $ 0.19 10,000,000 $ $ 0.27 0.27 10,000,000 g - Balance Sheet 2014 2015 2014 2015 500,000 1,500,000 1,000,000 500,000 1,000,000 1,000,000 500,000 3,500,000 520,000 3,020,000 12,000,000 14,000,000 100,000 100,000 9,900,000 9,900,000 500,000 2,385,000 Total Stockholder's Equity 10,500,000 12,385,000 Total Liabilities + Equity 26,000,000 29,405,000 3,000,000 1,000,000 2,000,000 3,935,000 1,500,000 2,300,000 LIABILITIES Accounts Payable Notes Payable Current portion of LTD 500,000 6,500,000 670,000 8,405,000 Accrued Liabilities Total Current Liabilities 15,000,000 15,000,000 5,000,000 20,000,000 7,000,000 22,000,000 500,000 1,000,000 19,500,000 21,000,000 26,000,000 29,405,000 Long-Term Debt Stockholder's Equity Common Stock at Par Paid in Capital Retained Earnings