Use the following information about XYZ Plumbing (FY=12/31), a public company with the most recent closing stock price of $6.00 (used for Diluted Shares calculations), to answer the following three problems:
Do not type in the Blue or Brown boxes below Do nor tipe in the Blue or Brown boxes below PROBLEM SOLVING Problem 1 Problem 2 Analysis Admin Key Statement of Cash Flows 2020 2020 Pis Admin Key Pts Net Income 1 Current Ratio Quick Ratio Gross Margin Operating Margin Accounts Receivable turnover Inventory turnover Total assct turnover Debt to Equity Return on Equity 2. 2 2 2 2 2 Adjustments Depreciation and amortization Cash Provided by Operating Assets and Liabilities Accounts Receivable Inventories Pre-paid expenses Accounts payable Accrued liabilities Nel Cash provided (used) by operating activities 2 2 4 2 2 2 2 2 2 Problem 3 Projections 2021E Admin Key S Cash Provided from Investing Activities Additions to property, plant and equipment Net Cash provided (used) by investing activities Revenue (Increase of 25% from 2020) OGS Gross Profit (Gross Margin increases by 0.5% from 2020) Pts 1 1 1 $ 2 2 SG&A (Improves by 1.5% from 2020) R&D (Increases by 15% in total dollars from 2020) Deprec & Amort (no change from 2020) Total Op. Expense Cash Provided from Financing Activities Additions to long term borrowing Addition to short term borrowing Nct Cash provided (used) by financing activities 2 2 2 Operating Profit S Net Cash Flow 2 S Interest cost (given) Interest income (given) 875,000 65,000 875,000 65,000 S Total 26 S Pre-Tax Tax (21% rate) Net Income 1 $ e YELLOW shaded boxes. S EPS - Basic EPS - Diluted (See Information sheet for Equity Structure ) $ e is written in the first YELLOW shaded box in the "2" row " Do not type in the Blue or Brown boxes below Do nor tipe in the Blue or Brown boxes below PROBLEM SOLVING Problem 1 Problem 2 Analysis Admin Key Statement of Cash Flows 2020 2020 Pis Admin Key Pts Net Income 1 Current Ratio Quick Ratio Gross Margin Operating Margin Accounts Receivable turnover Inventory turnover Total assct turnover Debt to Equity Return on Equity 2. 2 2 2 2 2 Adjustments Depreciation and amortization Cash Provided by Operating Assets and Liabilities Accounts Receivable Inventories Pre-paid expenses Accounts payable Accrued liabilities Nel Cash provided (used) by operating activities 2 2 4 2 2 2 2 2 2 Problem 3 Projections 2021E Admin Key S Cash Provided from Investing Activities Additions to property, plant and equipment Net Cash provided (used) by investing activities Revenue (Increase of 25% from 2020) OGS Gross Profit (Gross Margin increases by 0.5% from 2020) Pts 1 1 1 $ 2 2 SG&A (Improves by 1.5% from 2020) R&D (Increases by 15% in total dollars from 2020) Deprec & Amort (no change from 2020) Total Op. Expense Cash Provided from Financing Activities Additions to long term borrowing Addition to short term borrowing Nct Cash provided (used) by financing activities 2 2 2 Operating Profit S Net Cash Flow 2 S Interest cost (given) Interest income (given) 875,000 65,000 875,000 65,000 S Total 26 S Pre-Tax Tax (21% rate) Net Income 1 $ e YELLOW shaded boxes. S EPS - Basic EPS - Diluted (See Information sheet for Equity Structure ) $ e is written in the first YELLOW shaded box in the "2" row
