Problem 1 - 30 points Use the following information to complete the income statement for Company A for the year ending December 31, 2018 (show work): Income Statement Information Revenue Gross Margin Selling General and Administrative (SG&A) Research and Development (R&D) Depreciation expense (D&A) Interest Expense Interest Income Tax Rate $ 120,000,000 56.0% 22.5% of revenue 15.0% of revenue $ 5,000,000 $ 5,000,000 $ 2,600,000 21% 10,000,000 2,500,000 2,500,000 $ 5.00 Securities Information Weighted Average Shares (12/31/1X) A Warrants exercisable @ $2.50 B Warrants exercisable @ $3.00 Stock Price (12/31/1X) Complete the following Income Statement Answers go in the yellow boxes Revenue Cost of Goods Sold Gross Profit Points $ 120,000,000 $ 120,000,000 1 Points Complete the following Income Statement Answers go in the yellow boxes Revenue Cost of Goods Sold Gross Profit $ 120,000,000 1 Operating Expenses SG&A R&D D&A Operating Expenses Total 1 1 MARIE Operating Income 5 Interest Expense, net Pre Tax Income Tax Net Income 1 1 2 EPS Basic EPS Diluted 5 10 Total Points 30 Use this table (below) to help with your Total Points 30 Use this table (below) to help with your Diluted Share Calculations Note: For losses, only Basic Shares are used in calculating Diluted EPS Basic A warrants B warrants Total Proceeds A warrants B warrants Total Proceeds Shares repurchased Diluted shares used to calculate Diluted EPS Problem 2 - 10 Points Given the information below, calculate the Working Capital and Current Ratio 1 2 $3,200,000 $2,000,000 3 4 6 Cash and marketable seourities - Accounts Receivable (Gross) - Allowance for doubtful accounts Accounts Payable- Accumulated Depreciation Inventory- Other Current Assets - Common Stock at Par Value - Current portion of long term notes - Other Current Liabilities - Goodwill - Long-Term debt - 7 8 9 $2,800,000 2,500,000 $3,500,000 $1,000,000 $100,000 $1,000,000 $1,950,000 $10,000,000 $10,000,000 10 11 12 Answers go in the yellow boxes Working Capital Current Ratio 5 U 10 Problem 3 - 20 Points Given the following Information on ABC Corp, calculate the ratios below ABC Corp. Year end statements Balance Sheet 12/31/19 Balance Sheet 12/31/18 ASSETS $ Cash ASSETS Cash Accounts Recievable Inventory Total Current Assets 2019 3,000,000 2,000,000 3,000,000 8,000,000 LLABILITIES Accounts Payable Current portion of LTD Accrued Liabilities Total Current Liabilities 2019 1,700,000 900.000 1,400,000 $ 4,000,000 Accounts Recievable Inventory Total Current Assets 2018 3,300,000 2,500,000 3,200,000 9,000,000 LLABILITIES Accounts Payable Current portion of LTD Accrued Liabilities Total Current Liabilities 2018 2,000,000 1,000,000 1,000,000 4,000,000 Property Plant & Equipment, net 8,000,000 Long Term Debt (LTD) 9,000,000 Property Plant & Equipment, net 8,000,000 Long Term Debt (LTD) 9,000,000 Other Assets 2,000,000 Shareholder's Equity 5,000,000 Other Assets 2.000.000 Shareholder's Equity 6,000,000 Total Assets $ 18,000,000 Total Liabilities & Equity 18.000.000 Total Assets $ 19,000,000 Total Liabilities & Equity S 19,000,000 Income Statement FY 12/31 Answers go in the yellow boxes Revenue Cost of Goods Sold Gross Profit 2019 $ 15,000,000 5,000,000 10,000,000 2 Current ratio 12/31/19 Accounts Receivable Turnover (2019) Total Asset Turnover (2019) Inventory Turnover (2019) Debt to Equity 12/31/19 Selling General & Admin Research and Development 3,000,000 1,500,000 2 Income Statement FY 12/31 Answers go in the yellow boxes Revenue Cost of Goods Sold Gross Profit 2019 $ 15,000,000 5,000,000 10,000,000 2 2 2 2 Selling General & Admin Research and Development Depreciation and Amortization Total Operating expenses 3,000,000 1,500,000 1,500,000 6,000,000 Current ratio 12/31/19 Accounts Receivable Turnover (2019) Total Asset Turnover (2019) Inventory Turnover (2019) Debt to Equity 12/31/19 Revenue to Cash (2019) Days revenue in Cash (2019) Days Inventory (2019) Return on Assets (2019) Return on Equity (2019) 2 2. 2 Operating Profit 4,000,000 2 2 Interest Income Interest Expense 100,000 700,000 20 Pre tax Profit Tax (@21%) Net income 3,400,000 714,000 $ 2,686,000 Problem 1 - 30 points Use the following information to complete the income statement for Company A for the year ending December 31, 2018 (show work): Income Statement Information Revenue Gross Margin Selling General and Administrative (SG&A) Research and Development (R&D) Depreciation expense (D&A) Interest Expense Interest Income Tax Rate $ 120,000,000 56.0% 22.5% of revenue 15.0% of revenue $ 5,000,000 $ 5,000,000 $ 2,600,000 21% 10,000,000 2,500,000 2,500,000 $ 5.00 Securities Information Weighted Average Shares (12/31/1X) A Warrants exercisable @ $2.50 B Warrants exercisable @ $3.00 Stock Price (12/31/1X) Complete the following Income Statement Answers go in the yellow boxes Revenue Cost of Goods Sold Gross Profit Points $ 120,000,000 $ 120,000,000 1 Points Complete the following Income Statement Answers go in the yellow boxes Revenue Cost of Goods Sold Gross Profit $ 120,000,000 1 Operating Expenses SG&A R&D D&A Operating Expenses Total 1 1 MARIE Operating Income 5 Interest Expense, net Pre Tax Income Tax Net Income 1 1 2 EPS Basic EPS Diluted 5 10 Total Points 30 Use this table (below) to help with your Total Points 30 Use this table (below) to help with your Diluted Share Calculations Note: For losses, only Basic Shares are used in calculating Diluted EPS Basic A warrants B warrants Total Proceeds A warrants B warrants Total Proceeds Shares repurchased Diluted shares used to calculate Diluted EPS Problem 2 - 10 Points Given the information below, calculate the Working Capital and Current Ratio 1 2 $3,200,000 $2,000,000 3 4 6 Cash and marketable seourities - Accounts Receivable (Gross) - Allowance for doubtful accounts Accounts Payable- Accumulated Depreciation Inventory- Other Current Assets - Common Stock at Par Value - Current portion of long term notes - Other Current Liabilities - Goodwill - Long-Term debt - 7 8 9 $2,800,000 2,500,000 $3,500,000 $1,000,000 $100,000 $1,000,000 $1,950,000 $10,000,000 $10,000,000 10 11 12 Answers go in the yellow boxes Working Capital Current Ratio 5 U 10 Problem 3 - 20 Points Given the following Information on ABC Corp, calculate the ratios below ABC Corp. Year end statements Balance Sheet 12/31/19 Balance Sheet 12/31/18 ASSETS $ Cash ASSETS Cash Accounts Recievable Inventory Total Current Assets 2019 3,000,000 2,000,000 3,000,000 8,000,000 LLABILITIES Accounts Payable Current portion of LTD Accrued Liabilities Total Current Liabilities 2019 1,700,000 900.000 1,400,000 $ 4,000,000 Accounts Recievable Inventory Total Current Assets 2018 3,300,000 2,500,000 3,200,000 9,000,000 LLABILITIES Accounts Payable Current portion of LTD Accrued Liabilities Total Current Liabilities 2018 2,000,000 1,000,000 1,000,000 4,000,000 Property Plant & Equipment, net 8,000,000 Long Term Debt (LTD) 9,000,000 Property Plant & Equipment, net 8,000,000 Long Term Debt (LTD) 9,000,000 Other Assets 2,000,000 Shareholder's Equity 5,000,000 Other Assets 2.000.000 Shareholder's Equity 6,000,000 Total Assets $ 18,000,000 Total Liabilities & Equity 18.000.000 Total Assets $ 19,000,000 Total Liabilities & Equity S 19,000,000 Income Statement FY 12/31 Answers go in the yellow boxes Revenue Cost of Goods Sold Gross Profit 2019 $ 15,000,000 5,000,000 10,000,000 2 Current ratio 12/31/19 Accounts Receivable Turnover (2019) Total Asset Turnover (2019) Inventory Turnover (2019) Debt to Equity 12/31/19 Selling General & Admin Research and Development 3,000,000 1,500,000 2 Income Statement FY 12/31 Answers go in the yellow boxes Revenue Cost of Goods Sold Gross Profit 2019 $ 15,000,000 5,000,000 10,000,000 2 2 2 2 Selling General & Admin Research and Development Depreciation and Amortization Total Operating expenses 3,000,000 1,500,000 1,500,000 6,000,000 Current ratio 12/31/19 Accounts Receivable Turnover (2019) Total Asset Turnover (2019) Inventory Turnover (2019) Debt to Equity 12/31/19 Revenue to Cash (2019) Days revenue in Cash (2019) Days Inventory (2019) Return on Assets (2019) Return on Equity (2019) 2 2. 2 Operating Profit 4,000,000 2 2 Interest Income Interest Expense 100,000 700,000 20 Pre tax Profit Tax (@21%) Net income 3,400,000 714,000 $ 2,686,000