Some problems require you to also make comments and provide narrative explanation and comment.Be sure they are also included on the spreadsheet prior to you saving and making your submission. Problems, and explanations, should be on the spreadsheet.
A B C D E F 11 12 Chapter 3 13 14 Problems 1, 2, 3 15 16 17 18 Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green NOTE: Some functions used in these spreadsheets may require that the "Analysis ToolPak" or "Solver Add-in" be installed in Excel. To install these, click on "Tools|Add-Ins" and select "Analysis ToolPak" and "Solver Add-In." 35 36 Chapter 3 #1 #2 #3 (+Chapter 3 Question 1 Inour area Sales Assets Debt Costs Equity Taxable income $ Total $ Total $ Taxes (0%) Net income Tax rate Dividend paid Next year's sales 20 21 Percent increase in sales = #DIVOI 22 Pro forma income statement Pro forma balance sheet 23 Sales Assets #DIVO! Deb 24 25 Costs #DIVO! Equity #DIVIO #DIVIO! 26 Taxable income #DIVO Total #DIVOI Total 27 Taxes (0) #DIVO! 28 Net income #DIVOI 29 30 Dividends #DIVO! 31 Add To RE #DIVO! 32 External financingDIVO! 34 35 36 Text Area 37 1 Chapter 3 #1 #2 #3 +Chapter 3 Question 2 3 Input area: 5 6 7 Total asset turnover 8 Profit margin 9 Equity multiplier 10 Payout ratio 11 12 13 Output area: 14 15 16 Return on equity 0.00% 17 18 Plowback ratio 100.00% 19 20 Sustainable growth rate 0.00% 21 22 23 24 25 26 27 4 Chapter 3 #1 #2 #3 +Chapter 3 Question 3 Input area: Net income Sales 10 Sales 11 12 13 Output area: 14 15 16 Profit margin #DIV/O! 17 18 As long as both net income and sales are measured 19 in the same currency, there is not a problem; in fact, 20 except for some market value ratios like EPS and 21 BVPS, none of the financial ratios discussed in the 22 text are measured in terms of currency. This is one 23 reason why financial ratio analysis is widely used in 24 international finance to compare business operations 25 of firms and/or divisions across national economic 26 borders. 27 28 Net income #DIV/O! 29 30 Chapter 3 #1 #2 #3 +Download the Chapter 3 Excel spreadsheet by clicking on the arrow following this link & 3-1. EFN The most recent financial statements for Bello. Inc., are shown here: Income Statement Sales S 37.400 Costs 26.100 Taxable Income 5 11.500 Taxes (21%) 2.415 Net Income 9.085 Balance Sheet Assets $ 135.000 Debi $37/000 Equity $98,000 135.000 Told $135.000 Note: Assets and costs are proportional to sales: debt and equity are not A dividend of $2.700 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $42.112. What external financing is needed? What Is the purpose of the need to calculate external financing? 3-2. Sustainable Growth: Assuming the following ratios are constant, what is the sustainable growth rate given the following measures? . Total asset turnover = 2.65 . Profit margin - 5.7% . Equity multiplier = 1.60 . Payout ratio = 70% 3-3. Ratios and Foreign Companies: Albertson's Industries had a net loss of 618.137 on sales of C279.386. What was the company's profit margin? Does the fact that these figures are quoted in a foreign currency make any difference? Why? In dollars, sales were $359.815. What was the net loss in dollars? How can a firm operate at a net loss? Explain
