Prepare a 2007 balance sheet for Jarrow Corp. based on the following information: cash 175,000; patents and copyrights 720,000; accounts payable 430,000; accounts receivable 140,000; tangible net fixed assets 2,900,000; inventory 265,000; notes payable 180,000; accumulated retained earnings 1,240,000, long-term debt 1,430,000.

Building an Income Prepare a Balance Sheet:

Statement

During the year, the Senbet Discount Tire company had gross sales of $1 million. The firm?s cost of goods sold and selling expenses were $300,000 and $200,000, respectively. Senbet also had notes payable of $1 million. These notes carried an interest rate of 10 percent. Depreciation was $100,000. Senbet?s tax rate was 35 percent.

What is Senbet?s net income?

Corporate Finance Final Assignment-2016 Total Marks: 30 Last date of Submission: 03/05/2016 Warf Computers, Inc. (20 Marks) Warf Computers, Inc., was founded 15 years ago by Nick Warf, a computer programmer. The small initial investment to start the company was made by Nick and his friends. Over the years this same group has supplied the limited additional investment needed by the company in the form of both equity and short and long term debt. Recently the company has developed a virtual keyboard (VK). The VK uses sophisticated artificial intelligence algorithms that allow the user to speak naturally and have the computer input the text, correct spelling and grammatical errors, and format the document according to pre-set user guidelines. The VK even suggests alternative phrasing and sentence structure, and it provides detailed stylistic diagnostics. Based on a proprietary, very advanced software/hardware hybrid technology, the system is a full generation beyond what is currently on the market. To introduce the VK, the company will require significant outside investment. Nick has made the decision to seek this outside financing in the form of new equity investments and bank loans. Naturally,, new investors and the banks will require a detailed financial analysis. Your employer, Angus Jones & Partners, LLC, has asked you to examine the financial statement provided by Nick. Here is the balance sheet for the two most recent years and the most recent income statement: Current assets: Cash and equivalents Accounts receivable Inventories Other Total current assets Fixed assets: Property, plant and Equipment Less: accumulated dep Net property, plant and Equipment Intangible assets and others Total fixed assets WARF COMPUTERS BALANCE SHEET ($ in thousands) 2007 2006 Current Liabilities: 232 201 accounts payable 367 342 Notes payable 329 340 Accrued expenses 47 40 total current liabilities 975 923 long term liabilities: 2,105 1,630 deferred taxes 2007 2006 263 68 126 457 197 53 205 455 143 82 687 560 long-term debt 1,418 1,070 total long-term liabilities 629 772 589 671 406 363 stockholders' equity: 1,824 1,433 preferred stock Common stock Capital surplus 10 72 438 10 64 399 Total assets Accumulated retained Earnings Less: treasury stock Total equity Total liabilities and 2,799 2,356 shareholders' equity 1,147 822 -97 1,570 -65 1,230 2,799 2,356 Nick has also provided the following information: during the year the company raised $94,000 in nw long-term debt and retired $54,000 in long term debt. The company also sold $47,000 in new stock and repurchased $32,000 in stock. The company purchased $629,000 in fixed assets and sold $111,000 in fixed assets. Sales Cost of goods sold Selling, general & admin expenses Depreciation Operating income Other income EBIT Interest expense Pre-tax income Taxes Current $286 Deferred 61 Net income Addition to retained earnings Dividends WARF COMPUTERS INCOME STATEMENT ($ in thousands) 3,875 2,286 434 127 1,028 38 1,066 76 990 347 643 325 318 Angus has asked you to prepare the financial statement of cash flows. He has also asked you to answer the following questions: 1. How would you describe Warf Computers' cash flow? 2. Which cash flow statement more accurately describes the cash flows at the company? 3. In light of your previous answers, comment on Nick's expansion plans. Prepare a Balance Sheet: (05 Marks) Prepare a 2007 balance sheet for Jarrow Corp. based on the following information: cash 175,000; patents and copyrights 720,000; accounts payable 430,000; accounts receivable 140,000; tangible net fixed assets 2,900,000; inventory 265,000; notes payable 180,000; accumulated retained earnings 1,240,000, long-term debt 1,430,000. Building an Income Statement (05 Marks) During the year, the Senbet Discount Tire company had gross sales of $1 million. The firm's cost of goods sold and selling expenses were $300,000 and $200,000, respectively. Senbet also had notes payable of $1 million. These notes carried an interest rate of 10 percent. Depreciation was $100,000. Senbet's tax rate was 35 percent. What is Senbet's net income? ********