You have the following financial information about Berkeley Automobile Company. Please use this information to answer the following questions Berkeley Automobile Company Inc. (000's) 2018 2019 Sales $ 9,500 $ 14,000 Net Fixed Assets $ 10,800 $ 9,650 Inventory $ 3,100 $ 4,513 Cost of Goods Sold $ 6,900 $ 9,242 Interest $ 300 $ 390 Cash $ 575 $ 550 Common Stock (APIC) $ 2,500 $ 2,500 Depreciation $ 375 $ 355 Accounts Receivable $ 1,600 $ 4,891 Accounts Payable $ 2,400 $ 3,750 Long-Term Debt $ 3,500 $ 4,145 Tax Rate 34% 34% Dividends $ 824 $ 1,115 Common Shares Outstanding 200 200 Book Value Per Share $ 50.88 558.54 Price / Earnings Multiple (PE) 10 What is Berkeley Automobile's dividend payout ratio for 2018 and 2019? What is its "plowbacka tained earnings? Please show work (5 Points). 2018 2019 Dividend Payout Ratio Plowback Ratio 7. What is Berkeley Automobile's Operating Cash Flow (OCF) for 2019? Please show work (5 points). 8. What is Berkeley Automobile's Net Capital Spending (NCS) in 2019? Please show work (5 points) Pg. 5 Assessment #1b tis Berkeley Automobiles cash flow from fixed assets (CFFA) for 2019? What portion went to creditors? what portion went to stockholders? (10 points) 2019 CFFA = Cash flow to creditors: Cash flow to stockholders: 10. Has Berkeley Automobile's profit margin improved from 2018 to 2019? Please show work (5 points) 11. What is Berkeley Automobile's internal growh rate for 2018 and 2019? What is Berkeley Automobile's sustainable growth rate for 2018 and 2019? (10 points) 2018 2019 Internal Growth Rate Sustainable Growth Rate 12. Based upon its price earnings multiple (PE ratio), what is the market price of its stock at the end of 2018 and 2019? (5 points) 2018: 13. Berkeley Automobile had one of its best yearly performances in 201911 Management has decided that it would like to reward its shareholders and make a special payout (dividend). This special "one-time dividend is payable on Jan 15, 2020". In the amount of $3 million. Will the company need external financing to pay this one-time dividend on Jan 15, 2020? How much external financing (EFN) would they need for Jan 15, 2020? (Show work) (5 points). Extra Credit: (10 points) Reconcile the Statement of Cash Flows for Berkeley Automobile Inc. for 2019. Cash, beginning of year $575 Operating Activities Investment Activities Financing Activities $550 Cash, end of year Pg. 7 Assessment #1b You have the following financial information about Berkeley Automobile Company. Please use this information to answer the following questions Berkeley Automobile Company Inc. (000's) 2018 2019 Sales $ 9,500 $ 14,000 Net Fixed Assets $ 10,800 $ 9,650 Inventory $ 3,100 $ 4,513 Cost of Goods Sold $ 6,900 $ 9,242 Interest $ 300 $ 390 Cash $ 575 $ 550 Common Stock (APIC) $ 2,500 $ 2,500 Depreciation $ 375 $ 355 Accounts Receivable $ 1,600 $ 4,891 Accounts Payable $ 2,400 $ 3,750 Long-Term Debt $ 3,500 $ 4,145 Tax Rate 34% 34% Dividends $ 824 $ 1,115 Common Shares Outstanding 200 200 Book Value Per Share $ 50.88 558.54 Price / Earnings Multiple (PE) 10 What is Berkeley Automobile's dividend payout ratio for 2018 and 2019? What is its "plowbacka tained earnings? Please show work (5 Points). 2018 2019 Dividend Payout Ratio Plowback Ratio 7. What is Berkeley Automobile's Operating Cash Flow (OCF) for 2019? Please show work (5 points). 8. What is Berkeley Automobile's Net Capital Spending (NCS) in 2019? Please show work (5 points) Pg. 5 Assessment #1b tis Berkeley Automobiles cash flow from fixed assets (CFFA) for 2019? What portion went to creditors? what portion went to stockholders? (10 points) 2019 CFFA = Cash flow to creditors: Cash flow to stockholders: 10. Has Berkeley Automobile's profit margin improved from 2018 to 2019? Please show work (5 points) 11. What is Berkeley Automobile's internal growh rate for 2018 and 2019? What is Berkeley Automobile's sustainable growth rate for 2018 and 2019? (10 points) 2018 2019 Internal Growth Rate Sustainable Growth Rate 12. Based upon its price earnings multiple (PE ratio), what is the market price of its stock at the end of 2018 and 2019? (5 points) 2018: 13. Berkeley Automobile had one of its best yearly performances in 201911 Management has decided that it would like to reward its shareholders and make a special payout (dividend). This special "one-time dividend is payable on Jan 15, 2020". In the amount of $3 million. Will the company need external financing to pay this one-time dividend on Jan 15, 2020? How much external financing (EFN) would they need for Jan 15, 2020? (Show work) (5 points). Extra Credit: (10 points) Reconcile the Statement of Cash Flows for Berkeley Automobile Inc. for 2019. Cash, beginning of year $575 Operating Activities Investment Activities Financing Activities $550 Cash, end of year Pg. 7 Assessment #1b
