Short Answer Questions (5 points each) General Instructions: The financial statements are in the Appendix and figures are all in millions Any of your answers that are to be in millions, such as FCF Statements, means that $1,250,000 is input 1.25 and not 1,250,000 Any answers that are's compute to two decimal places, should be input as a whole number fie. 10.15 input as 10.15 not 0.1015). Any answers that are negative, then make sure to include the negative sign to the answer file is input in Canvas os 5). . You are a financial analyst reviewing a small chain of coffee shops Espresso Patronum. 1 Assume Espresso Patronum earned EBT of $22 mil, then using the Tax Tables, what would be their Tax Liability in millions, to two decimal places)? 2 3 4 5 Assume Espresso Patronum earned E8T of $23 mil, then using the Tax Tables, what would be their Effective Tax Rate (in % to two decimal places)? Assume Espresso Patronum earned EBT of 523 mil , then using the Tax Tables, what would be their Marginal Tax Rate (in % to two decimal places)? Calculate Net Working Capital for 2017 in millons, no decimals), Calculate EPS for 2018 in dollars, to two decimal places) Calculate Debt-to-Equity Patio for 2017 (to two decimal places Calculate Debt to Equity Ratio for 2016 (to two decimal places From a capital structure perspective, has Espresso Patronum become MORE OF LESS ticky? Patronum stars are trading at $23.87 per share then what's the 2015 7/Elatio to two decimal place What 2018 HOE o two decimal places 6 2 10 hp . * 14 & 2 # 3 $ 4 96 5 6 N 00 9 W E R T T Y U O F G H J K slo xo > V B N M M Pay This Amount on Base Income Plus This Percentage on Anything Over the Base $0 15% $7,500 25% $13,750 34% Taxable Income $0-50,000 $50,001-75,000 $75,001 $100,000 $100,001-335,000 $335,001-10,000,000 $10,000,001-15,000,000 $15,000,001-18,333,333 Over $18,333,333 $22,250 39% $113,900 34% 35% $3,400,000 $5,150,000 38% $6,416,667 35% Espresso Patronum Coffee Company Income Statement millons) Income Statement 2011 Sales $ 100 Less Cost of Goods Sold 51271 Gross Profit 23 Less Other Operating Expenses 5 (15) EBITDA (Earnings before interest, Taves, Depreciation Amz 55 Less Depreciation & Amortization 0151 EBIT (Earnings Before interest & Taxes) 5 Les interest 525) EBT{Earnings Before Taves B Taxable income) 30 Less Taxes $ 15) Net Income $ Less Common Stock Dividends IS Addition to retained Earnings wwwwwwwwww hp 0 # 3 $ 4 % 5 6 & 7 00 9 WER T C ETEarnings Before Taxes & Taxable income) Less: Taxes Net Income Less: Common Stock Dividends Addition to Retained Earnings $ S $ S $ TO 18 (5) 13 (5) 8 Assets Current Assets Cash Accounts Receivable Inventory Total Espresso Patronum Coffee Company Balance Sheet (millions) 2018 2017 Liabilities & Equity 2018 2017 $ 55 S 50 Current Liabilities Accrued Wages & Taxes $ 12 S 10 $ 10 S 20 Accounts Payable S 10 S 5 $ 120 S 100 Notes Payable $ 5$ 10 S 185S 170 Total $ 27S 25 Fixed Assets S $ Plant & Equipment Less: Depreciation Net Plant & Equip Other Fixed Assets 185$ 212 $ 135 160 $ $ $ $ 125 S 65 Long-Term Debt (35) S (20) Total Debt 90 S 45 25 S 25 Stockholder's Equity Common Stock Retained Earnings Total Equity 300 $ 240 Total Liabilities & Equity * 6 million common shares are outstanding S S $ $ 25 S 63 $ 88 S 300 S 25 55 80 240 Total Assets $ 3 3 11:52 FNCE 3050 Section... g Q FNCE Section Review One Sports Biome Generation . The written anden Avalores Femme 1.250.000 Acomoda". sos het een made sure the same Yowering solchef hoe ont ! eo Patron 28therine sa two decimal placed ? Am Patro. 52 sweden Air Presto $23.then the whole wodem 5 Cable TPS for 2018 in dollar to the decina plan Calcone Otto-foto for 2017 tomme Canette yetu 2018 Besteci Facture per presencia? shares reg $238? pere the harsheim 10 W ROK to w domu Previous Next D Dashboard Calendar To Do Notifications Inbox 11:52 of 3 ZOOM + 1 You are a financial analyst reviewing a small chain of coffee shops, Espresso Patronum Assume Espresso Patronum earned EBT of $23 mil, then using the Tax Tables, what would be their Tax Liability (in millions, to two decimal places)? Assume Espresso Patronum earned EBT of $23 mil, then using the Tax Tables, what would be their effective Tax Rate (in %, to two decimal places)? Assume Espresso Patronum earned EBT of $23 mil, then using the Tax Tables, what would be their Marginal Tax Rate (in % to two decimal places)? 2 3 4 Calculate Net Working Capital for 2017 (in millions, no decimals). 5 Calculate EPS for 2018 (in dollars, to two decimal places). 6 Calculate Debt-to-Equity Ratio for 2017 (to two decimal places 7 Calculate Debt-to-Equity Ratio for 2018 (to two decimal places) 8 From a capital structure perspective, has Espresso Patronum become MORE or LESS risky? 9 If Patronum shares are trading at $23.87 per share, then what is the 2018 P/E Ratio (to two decimal places)? 10 What is 2018 ROE (% to two decimal places)? Page of 3 ZOOM APPENDIX: TAX TABLE & FINANCIAL STATEMENTS Plus This Percentage on Anything Over the Base Pay This Amount on Base Income Taxable income $0 15% $7,500 25% $13,750 34% $22,250 39% $0-50,000 $50,001-75,000 $75,001-$100,000 $100,001-335,000 $335,001-10,000,000 - $10,000,001-15,000,000 $15,000,001-18,333,333 Over $18,333,333 $113,900 34% $3,400,000 35% 38% $5,150,000 $6,416,667 35% Espresso Patronum Coffee Company Income Statement (milions) Income Statement 2018 Sales S 100 Espresso Patronum Coffee Company Income Statement (millions) Income Statement 2018 Sales $ 100 Less: Cost of Goods Sold $ (27) Gross Profit $ 73 Less: Other Operating Expenses $ (15) EBITDA (Earnings Before Interest, Taxes, Depreciation & Amz) $ 58 Less: Depreciation & Amortization $ (15) EBIT (Earnings Before Interest & Taxes) $ 43 Less: Interest (25) $ 18 EBT(Earnings Before Taxes & Taxable income) Less: Taxes (5) $ 13 Net Income Less: Common Stock Dividends (5) Addition to Retained Earnings ei ole 00 Current Assets Assets Cash Accounts Receivable Inventory Total Espresso Patronum Coffee Company Balance Sheet (millions) 2018 2017 Liabilities & Equity 2018 2017 $ 55 S 50 Current Liabilities Accrued Wages & Taxes S 12 s 10 S 10 $ 20 Accounts Payable $ 10 S 5 $ 120 $ 100 Notes Payable $ 5 $ 10 S 185 $ 170 Total $ 27S 25 Fixed Assets s S 1855 212S 135 160 Plant & Equipment Less: Depreciation Net Plant & Equip Other Fixed Assets $ $ $ 125$ 65 Long Term Debt (35) S (20) Total Debt 90 $ 45 25$ 25 Stockholder's Equity Common Stock Retained Earnings Total Equity 300 $ 240 Total Liabilities & Equity * 6 million common shares are outstanding $ $ S $ 25$ 63 $ 88 $ 300 $ 25 55 80 240 Total Assets $ 3