Prestige Worldwide - Trial balance as of December 31, 2018:

Gross Service Revenue $ 115,981,250

Bad Debt Expense $ 2,655,000

Discounts on Sales $ (3,575,000)

Salaries $ 55,825,000

Benefits $ 14,178,292

Administrative $ 4,342,500

Insurance $ 325,000

Interest $ 164,575

Depreciation $ 3,200,000

Maintenance $ 435,500

Purchased Services $ 6,146,500

Rent $ 2,240,000

Supplies $ 9,169,813

Utilities-Electricity $ 356,000

Cash and Cash Equivalents $ 9,545,000

Short-term Investments $ 2,750,000

Net Accounts Receivables $ 7,125,000

Inventory - Supplies $ 1,135,000

Property and Equipment $ 90,500,000

Accumulated Depreciation $ (43,500,000)

Investment Income $ 94,500

Account Payable $ 2,375,000

Accrued Expenses $ 9,125,000

Notes Payable $ 16,515,000

Contributions Received by Prestige $ 1,000,000

Long-Term Debt $ 26,500,000

Retained Earnings $ 13,040,000

Net revenues will reflect on Financial Statements what the finance organization actually expects to collect. Prestige Worldwide has a tax rate of 25% for 2018.

1. Using the information given above, construct the Income Statement and Balance Sheet for the Fiscal Year ended December 31, 2018.

2.If the benchmark for operating margin ratio is 20.06% for the entertainment industry, how does Prestige World wides compare to this benchmark? What are the implications to Prestige Worldwide of this ratio?

3. If the benchmark for net profit margin is 9.86% for the industry, how does PW's compare to this benchmark? What are the implications to PW's of this ratio?

4. What is the estimated Cash Flow using only the income statement or estimate the amount of cash generated during FY 2018 using the income statement. (Cash Flow = Net Income+Noncash expenses). The only Non-cash expense listed is depreciation expense. Why is this calculation Important to Manage?

5. What is PWs Times Interest Earned ratio?