Problems 14, 15 and Mini Case Ratios and Financial Planning at East Coast Yachts all in the excel sheet attached.

Question 14 Days' Sales in Receivables A company has net income of $265,000, a profit margin of 9.3 percent, and an accounts receivable balance of $145,300. Assuming 80 percent of sales are on credit, what is the company's days' sales in receivables? Receivables turnover = Days' sales in receivables = Sales = Total Credit Sales = Recievables Turnover = Sales Accounts recievables Net Income Profit Margin Percent of Sales on Credit Receivables Balance Sales Total Credit Sales 365 days receivables turnover 265,000 0.093 = 2,849,462.37 (0.8) = $2,849,462.37 (b) $ 2,279,569.90 Credit Sales Recievables Balance 2,279,569.90 145,300 (a) Receivables Turnover = 15.69 (c) Days Sales in Receivables = 365 15.69 (c) Days Sales in Recievables = 265,000 9.30% 80% 145,300 2,849,462.37 (b) $2,279,569.90 (a) Question 15 Ratios and Fixed Assets: The Le Bleu Company has a ratio of long-term debt to total assets of .35 and a current ratio of 1.25. Current liabilities are $950, sales are $5,780, profit margin is 9.4 percent, and ROE is 18.2 percent. What is the amount of the firm's net fixed assets? Input area: Long-term debt ratio Current ratio Current liabilities Sales Profit margin Return on equity Output area: Current assets Net income Total equity Long-term debt Total debt Total assets #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! Net fixed assets #VALUE! #1 Current Ratio = Quick Ratio = Total Assets Turnover = Inventory Turnover = Recievables Turnover = Debt Ratio = Debt-Equity Ratio = Equity Multiplier = Mini Case Ratios and Financial Planning for East Coast Yachts #2 Current Assets Current Liabilities INPUT DISCUSSION HERE Current Assets - Inventory Current Liabilities INPUT DISCUSSION HERE Sales Total Assets INPUT DISCUSSION HERE Cost of Goods Sold Inventory INPUT DISCUSSION HERE Sales Accounts Recievable INPUT DISCUSSION HERE Total Assets - Total Equity Total Assets INPUT DISCUSSION HERE Total Debt Total Equity INPUT DISCUSSION HERE Total Assets Interest Coverage = Profit Margin = Return on Assets = Return on Equity = Total Equity INPUT DISCUSSION HERE EBIT Interest Expense INPUT DISCUSSION HERE Net Income Sales INPUT DISCUSSION HERE Net Income Total Assets INPUT DISCUSSION HERE Net Income Total Equity INPUT DISCUSSION HERE GREAT JOB EAST COAST YACHTS :) Mini Case Ratios and Financial Planning for East Coast Yachts #3 Sustainable Growth Rate = ROE x b 1 - ROE x b Return on Equity = ROE = Sustainable Growth Rate = Net Income Total Equity 17,627,040 66,169,600 0.266 b= net income retained earnings 17,627,040 59,969,600 b= .266 x (29/100) 1 - .266 x (29/100) 0.07714 0.21286 0.3624 Sustainable Growth Rate = External Financing Needed = Assets x ^Sales Sales 130,338,900 234,300,000 x Spontaneous Liabilities Sales x ^Sales - A Simple Financial Planning Model A financial plan begins with the current financial statements. The income statement and balance sheet for East C Sales Costs Net income East Coast Yachts Income Statement $ 234,300,000 193,065,000 To find the funds the company will need to raise next year to funds its sales growth, we begin with the forecasted growth for the next year will be: Sales growth: 20% If sales grow by this amount, we can construct the pro forma, or projected financial statements. Under the assum rate, the pro forma statements will be: East Coast Yachts Pro forma Income Statement Sales Costs Net income #VALUE! The advantage of financial planning is that it allows us to see what could happen in the future and the options av occurred: Debt increased by: Net income was: So, dividends paid must have been: Of course, that is not the only option available to East Coast Yachts. The company could also keep all of the net in need to repurchase debt in order to keep the balance sheet in balance. The pro forma balance sheet under this s for East Coast Yachts PM x Projected Sales x (1-d) and balance sheet for East Coast Yachts are: Assets Total $ East Coast Yachts Balance Sheet 130,338,900 Debt Equity Total $ 40,480,000 66,169,600 we begin with the forecasted sales growth. In this case, we will assume that the sales statements. Under the assumption that all of the variables will grow by the sales growth East Coast Yachts Pro forma Balance Sheet Assets Debt Equity Total Total #VALUE! the future and the options available. For example, in this case the following must have #VALUE! #VALUE! #VALUE! uld also keep all of the net income as retained earnings. If this happens, the company will ma balance sheet under this scenario will be: East Coast Yachts Pro forma Balance Sheet Assets Total Debt Equity Total #VALUE! #VALUE! Mini Case Ratios and Financial Planning for East Coast Yachts #4 PUT DISCUSSION HERE Mini Case Ratios and Financial Planning for East Coast Yachts #5 s