QUESTION 22 10 points Save Answer On a piece of paper you will photograph and email to your section instructor upon completion of the exam, show your work for the following calculations for the balance sheet and income statement shown below: a. What is the 2019 operating cash flow? b. What is the 2019 change in net working capital? c. What is the 2019 net capital spending? D. What is the 2019 cash flow from assets? (enter this number as your response to this question] Lots to Gain Corporation Peers LGC 5.71 14.26 0.19 Income Statement for 2019 Sales Cost of Goods Sold Depreciation Other operating expenses Earnings before Interest and Taxes Interest Paid Earnings before Taxes Taxes 14.12 $600,000 225,000 90,000 126,000 159,000 10,440 148,560 31,198 $117,362 2019 Ratios Quick Ratio Current Ratio Net Working Capital / Total Assets Account Receivables Turnover Inventory Turnover Debt/equity ratio Profit Margin Total Asset Turnover Equity Multiplier 1.29 0.07 0.19 0.80 0.93 5.31 14.06 0.14 17.65 1.61 0.13 0.20 0.40 1.13 Net Income Dividends Paid Addition to Retained Earnings $75,000 $42,362 Cash Accounts Receivable Inventory Total Current Assets Fixed Assests Balance Sheet for 2019 and 2018 2019 2018 $51,000 $60,000 Accounts Payable 34,000 28,000Notes Payable 140,000 125,000 Total Current Liabilities 225,000 213,000 Long Term Debt 1,274,962 1,168,050 Common Stock Paid-in-surplus Retained Earnings $1,499,962 $1,381,050Total Liab.& Equity 2019 2018 $12,000 $14,000 4,000 4,650 16,000 18,650 156,600 104,400 55,000 50,000 980000 958,000 292,362 250,000 $1,499,962 $1,381,050 Total Assets QUESTION 23 10 points Save Answer How much would you be willing to pay today for an investment that promises to pay you pay $15,000 in 15 years if your required return on the investment is 5% per year? QUESTION 24 10 points Save Answer You are offered a 18-year annuity of $10,000 annual payments. However, the annuity begins in 7 years (you will not receive any payments for 7 years, but will then receive $10,000 at the end of each year for 18 years. If the discount rate is 6% per year (compounded annually), what is the current value of the annuity? QUESTION 25 10 points Save Answer Suppose you save $500 a month for 15 years. If you are able to earn 12% per year on your savings, how much will you have accumulated by the end of 15 years? Assume monthly compounding. QUESTION 26 5 points Save Answer Upon completion of the exam, 1. Pledge that I did not receive nor give any unauthorized assistance during the completion of the exam nor did I use any unauthorized resource. 2. I will email a photo of my completed work for the problems (questions 22-25) to heather howard@wsu.edu within the next 10 minutes. Yes O No Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers Close Window Save and Submit QUESTION 21 Considering the ratios below for LGC corporation and its peers, is LGC'S ROE better than its peers? Peers LGC 6.03 5.63 14.58 14.38 0.19 0.14 15.29 19.12 2019 Ratios Quick Ratio Current Ratio Net Working Capital / Total Assets Account Receivables Turnover Inventory Turnover Debt/equity ratio Profit Margin Total Asset Turnover Equity Multiplier 1.43 1.79 0.08 0.14 0.20 0.19 0.83 0.43 0.94 1.14 Yes No
