. Short Computations (2 points each) General Instructions: The financial statements for BOCK and FTA 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 (i.e. 10.15% is input as 10.15, not 0.1015) Any answers that are negative, then make sure to include the negative sign to the answer (i.e. -5 is input in Canvas as -5). You are a financial analyst reviewing a small beer business, the Baby Got Bock Beer Company (NYSE Ticker: BOCK). Their financial statements are located in the Appendix in BLUE. BOCK shares are trading at $4.95 per share. 11 Calculate the Cash Ratio for 2018 (to two decimal places). 12 Compute Total Assets Turnover Ratio for 2018 (to two decimal places). 13 Compute Debt-To-Equity Ratio for 2018 (to two decimal places). 14 Compute ROE for 2018 (ROE is a %, please compute to two decimal places). 15 Compute Price-to-Earnings Ratio for 2018 (to two decimal places). You are comparing BOCK to a rival beer company, Fat Tire Ale (NYSE Ticker: FTA). FTA financial statements are located in the Appendix in GREEN. FTA shares are trading at $5.20 per share. 16 Calculate the Cash Ratio for 2018 (to two decimal places). 17 Compute Total Assets Turnover Ratio for 2018 (to two decimal places). Compute Debt-To-Equity Ratio for 2018 (to two decimal places). 18 19 Compute ROE for 2018 (ROE is a %, please compute to two decimal places). Compute Price-to-Earnings Ratio for 2018 (to two decimal places). 20 Now, you'd like to compare the two companies based on the financial ratios you computed above. Don't compute new ratios, just use the ones you computed already (above). 21 Which company (BOCK or FTA) has stronger liquidity? 22 Which company (BOCK or FTA) has stronger asset management? Which company (BOCK or FTA) has stronger debt management (.e. less debt relative to capital structure)? 23 24 Which company (BOCK or FTA) has stronger profitability? 25 Which company (BOCK or FTA) has the higher market valuation (based on having a higher P/E Ratio)? 26 27 28 29 30 31 32 Statement of Free Cash Flows (4 points each) Use this template to prepare a statement of Free Cash Flows for BOCK. Your figures should be in millions and some entries could be zero. Please use one decimal place of precision (i.e. every number should xx.x). EBIT Compute Implied Tax Rate (%, two decimals) - Implied Taxes + Depreciation +/- Change in Net Operating Working Capital +/- Change in Long-Term Capital Free Cash Flow Use this template to prepare a statement of Free Cash Flows for FTA. Your figures should be in millions and some entries could be zero. Please use one decimal place of precision (i.e. every number should xx.x). EBIT Compute Implied Tax Rate (%, two decimals) - Implied Taxes + Depreciation +/- Change in Net Operating Working Capital +/- Change in Long-Term Capital Free Cash Flow 33 34 35 36 37 38 39 Baby Got Bock Beer Company Income Statement Income Statement Sales Less: Cost of Goods Sold $ Gross Profit $ Less: Other Operating Expenses $ EBITDA (Earnings Before Interest, Taxes, Depreciation & Amz) $ Less: Depreciation & Amortization $ EBIT (Earnings Before Interest & Taxes) $ Less: Interest $ EBT(Earnings Before Taxes, i.e. Taxable Income) Less: Taxes Net Income Less: Common Stock Dividends $ Addition to Retained Earnings $ 2018 150 (65) 85 (10) 75 (6) 69 (20) 49 (16) 33 (15) 18 $ Assets Current Assets Cash Accounts Receivable Inventory Total Baby Got Bock Beer Company Balance Sheet 2018 2017 Liabilities & Equity 2018 2017 $ 13 $ 12 Current Liabilities Accrued Wages & Taxes $ 10 $ 7 $ 35 $ 30 Accounts Payable $ 21 $ 20 $ 60 $ 50 Notes Payable $ 23 $ 20 $ 108 '$ 92 Total $ 54 '$ 47 Fixed Assets $ $ 85 $ 139 $ 80 127 Gross Plant & Equipment Less: Depreciation Net Total Fixed Assets Other Assets $ $ $ $ 125 $ 100 Long-Term Debt (15) $ (9) Total Debt 110 $ 91 10 $ 10 Stockholder's Equity Common Stock Retained Earnings Total Equity 228 $ 193 Total Liabilities & Equity *100 million common shares outstanding S $ $ $ 25 $ 64 $ 89 $ 228 $ 20 46 66 193 Total Assets $ Fat Tire Ale Company Income Statement Income Statement Sales Less: Cost of Goods Sold Gross Profit Less: Other Operating Expenses EBITDA (Earnings Before Interest, Taxes, Depreciation & Amz) Less: Depreciation & Amortization EBIT (Earnings Before Interest & Taxes) Less: Interest EBT(Earnings Before Taxes, i.e. Taxable Income) Less: Taxes Less: Common Stock Dividends Addition to Retained Earnings $ $ $ $ $ $ $ $ $ $ $ $ $ 2018 124 (60) 64 (24) 40 (12) 28 (8) 20 (7) 13 Net Income 13 Assets Current Assets Cash Accounts Receivable Inventory Total Fat Tire Ale Company Balance Sheet 2018 2017 Liabilities & Equity 2018 2017 $ 24 $ 24 Current Liabilities Accrued Wages & Taxes $ 67 $ 56 $ 22 $ 30 Accounts Payable $ 102 $ 104 $ 160 $ 144 Notes Payable $ 31 $ 29 $ 206 $ 198 Total $ 200 $ 189 Fixed Assets 157 $ $ $ $ $ $ 140 329 Gross Plant & Equipment Less: Depreciation Net Total Fixed Assets Other Assets 357 $ $ 305 $ 277 Long-Term Debt (21) $ (9) Total Debt 284 $ 268 33 $ 33 Stockholder's Equity Common Stock* Retained Earnings Total Equity 523 $ 499 Total Liabilities & Equity * 50 million shares outstanding $ $ $ $ 134 $ 32 $ 166 $ 523 $ 151 19 170 499 Total Assets $