1. Please adhere to directions on the attachment

2. No plagiarism, APA format

3. Need within 8hrs or less

4. Only MBA worthy work; If you can not submit this level of work do not send a bid!!!!!

Corporate Annual Report

Project

Read Chapter 1 from eText, “Getting Under the Hood of an Annual Report”

Select a U.S. publicly-traded company for the project from the list provided by your instructor

You have to pick one of the following and pull the 10-K

CVS

Darden

Ford

Proctor and Gamble

This week you will begin this project. It will be completed and handed in next week.

• Read pages 693-695 and familiarize yourself with the “Accounting Cycle

Review Problem A”

• Complete Requirements 1, 2, and 3

• Use the template provided below to complete the work.

Template for Accounting Review Problem

Corporate Annual Report

Corporate Annual Report Project

Introduction

The Big Calculating Tool ™ for your annual report Calculating financial ratios is an important part of analyzing an annual report for a public company. Using this calculating tool can help you make the task much easier. Analyzing trends is a vital aspect of interpreting the financial data in an annual report. Not only will the Big Calculating Tool crunch the numbers for you, it will also display the data with line and bar charts. You will quickly be able to see and identify the important financial trends. The financial data is arranged from left to right with the most recent financial data appearing in the leftmost column. This is consistent with how financial data is reported on the financial statements of your annual report. Trend information and charts are arranged with the most recent data appearing in the rightmost column. This is consistent with the manner in which trend data and historical charts are generally displayed. You won’t waste time crunching numbers. You’ll have more time to get under the hood of your annual report and understand what is happening in your company. You’ll find an individual worksheet for each calculation along with a worksheet for the balance sheet, statement of operations and statement of cash flows.

Clicking on the hyperlinks in the

Table of Calculations

will take you right to the financial data, trend information and trend charts.

Copyright DA Bittar and Associates 2

0

12,

2013

Instructions

How to Use the Big Calculating Tool Follow these instructions and the Big Calculating Tool will crunch all of the numbers for you. 1) Enter your setup data in the yellow fields. Enter your Company’s official name here: XYZ Company Inc. Current Year Previous Year Next Previous Year Enter the fiscal years for the SEC Forms 10K here: 2014

2013

2011 2014 2013 2011
Enter the price per share of common stock here: $58.000

$58.000 $58.000
2) How to enter your Company’s financial data into The Big Calculator

Balance Sheet

Substitute the values in the spreadsheet for the values from your Company’s Balance Sheet. You may also change the account descriptions to match those used by your Company. Statement of Operations Substitute the values in the spreadsheet for the values from your Company’s Statement of Operations. You may also change the account descriptions to match those used by your Company. Statement of

Cash

Flows Substitute the values in the spreadsheet for the values from your Company’s

Statement of Cash Flows

. You may also change the account descriptions to match those used by your Company.

Table of Calculations

Table of Calculations

?

Balance

Ratio

Margin Ratio

–

or Long Term Debt to Shareholders’ Equity Ratio

or Debt Service Ratio

(Click on the ‘Go Arrow’ Buttons below to view the calculations)
Question 4.7 – First look at the company’s strength
	Question 4.10 – Debt to equity and the competition
Question 4.15 – The big questions. Are they makin’ money? Are they lookin’ good?
	Question 4.17 – How strong is your company’s cash position?
	Question 4.18 – How well can your company pay its bills
	Question 4.19 – How leveraged is your company?
	Question 4.20 – How well does your company invest in its future?
	Question 4.21 – Capital and Treasury Stock
Question 5.1 –				Working Capital
Question 5.2 – Acid Test or Quick Ratio
Question 5.3 –		Current Ratio
Question 5.4 –		Cash Ratio
Question 5.5 –		Return on Sales Ratio
Question 5.6 –		Return on Equity Ratio
Question 5.7 – Return on	Assets
Question 5.8 –		Asset Turnover Ratio
Question 5.9 –				Gross Profit
	Question 5.10 –			Inventory Turnover Ratio
Question 5.11 – Days in Inventory Ratio
	Question 5.12 –			Accounts Receivable Turnover Ratio
	Question 5.13 – Average Collection Period
	Question 5.14 –		Accounts Payable Turnover Ratio
	Question 5.15 –		Net Working Capital Turnover Ratio
Question 5.						16				Debt to Equity Ratio
	Question 5.17 –		Debt to Asset Ratio
	Question 5.18 –		Gearing Ratio
	Question 5.19 –		Interest Coverage Ratio
Question 5.20 -Earnings per Share
	Question 5.21 –		Price/Earnings Ratio
Question 5.22 –	Dividend per Share
	Question 5.23 –		Dividend Payout Ratio

Balance Sheet

XYZ Company Inc.
Balance Sheet

2014 2013 2011

Assets
Cash

30,836 30,836

45,903 45,903

98,697 98,697

11,776 11,776

93,663 93,663

current assets

$280,875 $280,875

3,694,064 3,694,064

52,980 52,980

31,721 31,721

32,798 32,798

Other

109,553 109,553

Other

154,136 154,136

Other

109,934 109,934

assets

$4,185,186 $4,185,186

$4,466,061 $4,466,061

47,654 47,654

54,134 54,134

183,634 183,634

327,808 327,808

Other

7,720 7,720

$620,950 $620,950

2,350,971 2,350,971

65,000 65,000

Other

72,485 72,485

Other

161,185 161,185

Other

112,736 112,736

Other

42,526 42,526

$2,804,903 $2,804,903

$3,425,853 $3,425,853

1,254 1,254

1,970,820 1,970,820

(46,800) (46,800)

(884,051) (884,051)

(1,015) (1,015)

Other

$1,040,208 $1,040,208

$4,466,061 $4,466,061 $4,466,061

Balanced Balanced

– 0 – 0

$0.01 $0.01

125,527,846 125,527,846

1,252,662 1,252,662

1,970,820 1,970,820 1,970,820

	(enter in thousands)
Current assets:
								30,836
	Short term investments						45,903
				Accounts receivable									98,697
				Inventories						11,776
Deferred tax assets			93,663
Pre-paid expenses
																			Other
		Total			$									280,875
Other assets
Long term marketable securities			3,694,064
		Property, plant and equipment, net			52,980
Goodwill			31,721
Acquired intangible assets, net			32,798
		109,553
		154,136
		109,934
Total		other			$4,185,186
			Total assets						$									4,466,061
Liabilities and owner’s equity
Current liabilities:
				Accounts payable						47,654
		Accrued expenses			54,134
		Accrued taxes			183,634
Deferred revenue			327,808
		7,720
						Total current liabilities			$																		620,950
Non current liabilities:
Deferred revenue – non current			2,350,971
			Long term debt						65,000
		72,485
		161,185
		112,736
		42,526
	Total non-current liabilities			$			2,804,903
		Total Liabilities			$						3,425,853
Shareholder’s equity:
Common stock, no par value			1,254
Treasury stock																		1,970,820
Additional paid in capital			(46,800)
Retained earnings			(884,051)
Accumulated other income			(1,015)
				Total owner’s equity			$												1,040,208
Total liabilities and owner’s equity
		Balanced
		– 0
	Equity per share						$0.01
Number of Shares	(in thousands)
				Number of Shares Common Stock															125,527,846
		Number of Shares Preferred Stock									1,252,662
				Number of Shares Treasury Stock

Stmt of Operations

XYZ Company Inc.

(enter in thousands)
2014 2013 2011

2,291,757 2,291,757

13,595 13,595

Other net revenue

6

152,566 152,566

$2,457,918 $2,457,918

$1,000 $1,000

Gross Profit

$2,456,918 $2,456,918

1,508,571 1,508,571

148,327 148,327

Other

274,858 274,858

Other

268,506 268,506

Other

16,892 16,892

Other

(1,982) (1,982)

Other 152,566 152,566 152,566
Other 0 0 0

$2,367,738 $2,367,738

$89,180 $89,180

56 56 56

(18,863) (18,863)

1,432 1,432

($17,375) ($17,375)

and income

Interest expense

($124,873) ($124,873)

$3,538 $3,538

other

other

$ (121,335) $ (121,335)

($49,530) ($49,530)

$2,340 $2,340

($51,870) ($51,870)

$28.26 $28.26

$12.50 $12.50

Consolidated Statement of Operations
Revenue
					Net sales																		2,291,757
	Other net revenue			13,595
					152,			56
		Net revenue			$						2,457,918
				Cost of Goods Sold			$												1,000
		$									2,456,918
Operating Expenses
Research and development			1,508,571
Selling, general and administrative			148,327
		274,858
		268,506
		16,892
		(1,982)
		Total Operating Expenses			$						2,367,738
		Income From Operations			$						89,180
Non Operating Income
Item 1
Item 2			(18,863)
Item 3			1,432
		Total Non-Operation Income			($17,375)
	Interest expense
		($124,873)
Interest Income			$3,538
		Total interest expense and income			$			(121,335)
	Income Before Income Taxes						($49,530)
		Provision for income tax			$						2,340
					Net Income (Loss)			($51,870)
					Earnings Per Share: Basic																		$28.26
	Dividends per Share: Basic												$12.50

Stmt of Cash Flows

XYZ Company Inc.
Statement of Cash Flows

2014 2013 2011

$81,827 $81,827

(68,175) (68,175)

281,933 281,933

19,856 19,856

943 943

(5,367) (5,367)

Inventories
Accounts payable

13,721 13,721

(4,148) (4,148)

Other

29,664 29,664

Other

$268,427 $268,427

56,176 56,176

30,817 30,817

(160,131) (160,131)

(32,724) (32,724)

1,431 1,431

(88,682) (88,682)

Other

(10,786) (10,786)

($203,899) ($203,899)

482,669 482,669

308,212 308,212

45,066 45,066

(77,007) (77,007)

Other

(874,459) (874,459)

($115,519) ($115,519)

($50,991) ($50,991)

$30,836 $30,836

(Enter in thousands)
		Cash balance at the beginning of the period									$81,827
Cash flows from operating activities
Net income			(68,175)
Adjustments to reconcile net income to cash generated by operating activities:
Depreciation, amortization and accretion			281,933
Share-based compensation expense			19,856
Deferred income tax expense			943
Changes in operating assets and liabilities:
Accounts receivable, net			(5,367)
Vendor non-trade receivables
Other current and non-current assets
		13,721
Other current and non-current liabilities			(4,148)
		29,664
				Cash generated by operating activities									$						268,427
Cash flows from investing activities
Purchases of marketable securities			56,176
Proceeds from maturities of marketable securities			30,817
Proceeds from sales of marketable securities			(160,131)
Payments made in connection with business acquisitions, net of cash acquired			(32,724)
Payments for acquisition of property, plant and equipment			1,431
Payments for acquisition of intangible assets			(88,682)
		(10,786)
		Cash used in investing activities									($203,899)
Cash flows from financing activities
Proceeds from issuance of common stock			482,669
Excess tax benefits from equity awards			308,212
Taxes paid related to net share settlement of equity awards			45,066
Cash paid for dividends			(77,007)
		(874,459)
		Cash generated by financing activities									($115,519)
Other change in cash or cash equivalents
		Increase/(decrease) in cash and cash equivalents									($50,991)
		Cash balance at the end of the period															$30,836

Q 4.7

2011 2013 2014

Cash $30,836 $30,836 $30,836

Accounts receivable

$98,697 $98,697 0.00%

Inventories

$11,776 $11,776 0.00%

Property, plant and equipment, net

$52,980 $52,980 0.00%

Accounts payable

$47,654 $47,654 0.00%

Accrued expenses

$54,134 $54,134 0.00%

Accrued taxes

$183,634 $183,634 0.00%

Long term debt

$65,000 $65,000 0.00%

Number of Shares Common Stock 125,527,846 125,527,846 125,527,846 0.00%
Number of Shares Treasury Stock 1,970,820 1,970,820 1,970,820 0.00%

2014 2013 2011

Cash $30,836 $30,836 $30,836
Accounts receivable $98,697 $98,697 $98,697
Inventories $11,776 $11,776 $11,776
Property, plant and equipment, net $52,980 $52,980 $52,980
Accounts payable $47,654 $47,654 $47,654
Accrued expenses $54,134 $54,134 $54,134
Accrued taxes $183,634 $183,634 $183,634
Long term debt $65,000 $65,000 $65,000

Number of Shares Common Stock 125,527,846 125,527,846 125,527,846
Number of Shares Treasury Stock 1,970,820 1,970,820 1,970,820

Question 4.7 – First look at the company’s strength
																															Trend Analysis
% Change 2013 to 2014
																														Return to Table of Calculations
									0.00%
					$98,697
					$11,776
					$52,980
					$47,654
					$54,134
					$183,634
					$65,000
																															Financial Data

Q 4.7

2011
2013
2014
Balance Sheet Strength Trend

Q 4.10

Number of Shares Common Stock
Number of Shares Treasury Stock
Equities Trend

Q 4.15

Question 4.10 – Debt to equity and the competition

Trend Analysis
2011 2013 2014 Return to Table of Calculations
Debt to Equity Ratio

0.062 0.062

Financial Data
2014 2013 2011
Long term debt 65,000 65,000 65,000

Total owner’s equity 1,040,208 1,040,208 1,040,208

Debt to Equity Ratio 0.062 0.062 0.062

Total owner’s equity

0.062

Debt to Equity Ratio = Long term debt

÷

Q 4.15

Debt to Equity Ratio
Debt to Equity Ratio Trend

Q 4.17

Trend Analysis
2011 2013 2014 Return to Table of Calculations

Net revenue 2,457,918 2,457,918 2,457,918
Cost of Goods Sold 1,000 1,000 1,000
Gross Profit 2,456,918 2,456,918 2,456,918
Total Operating Expenses 2,367,738 2,367,738 2,367,738
Income From Operations 89,180 89,180 89,180
Total Non-Operation Income

(17,375) (17,375)

Provision for income tax 2,340 2,340 2,340
Net Income (Loss)

(51,870) (51,870)

Financial Data
2014 2013 2011
Net revenue 2,457,918 2,457,918 2,457,918
Cost of Goods Sold 1,000 1,000 1,000
Gross Profit 2,456,918 2,456,918 2,456,918
Total Operating Expenses 2,367,738 2,367,738 2,367,738
Income From Operations 89,180 89,180 89,180
Total Non-Operation Income (17,375) (17,375) (17,375)
Provision for income tax 2,340 2,340 2,340
Net Income (Loss) (51,870) (51,870) (51,870)

4.15 – The big questions. Are they makin’ money? Are they lookin’ good?

(17,375)

(51,870)

Q 4.17

2011
2013
2014
Operating Statement Trend

Q 4.18

Question 4.17 – How strong is your company’s cash position?
Trend Analysis
2011 2013 2014 Return to Table of Calculations
Cash generated by operating activities $268,427 $268,427 $268,427
Cash used in investing activities ($203,899) ($203,899) ($203,899)
Cash generated by financing activities ($115,519) ($115,519) ($115,519)
Increase/(decrease) in cash and cash equivalents ($50,991) ($50,991) ($50,991)
Cash balance at the beginning of the period $81,827 $81,827 $81,827
Cash balance at the end of the period $30,836 $30,836 $30,836
Financial Data
2014 2013 2011
Cash generated by operating activities $268,427 $268,427 $268,427
Cash used in investing activities ($203,899) ($203,899) ($203,899)
Cash generated by financing activities ($115,519) ($115,519) ($115,519)
Increase/(decrease) in cash and cash equivalents ($50,991) ($50,991) ($50,991)
Cash balance at the beginning of the period $81,827 $81,827 $81,827
Cash balance at the end of the period $30,836 $30,836 $30,836

Q 4.18

2011
2013
2014
Cash Position Trend

Q 4.19

Question 4.18 – How well can your company pay its bills

Trend Analysis
2011 2013 2014 Return to Table of Calculations

0.432 0.432

Financial Data
2014 2013 2011

Cash generated by operating activities 268,427 268,427 268,427
Total current liabilities 620,950 620,950 620,950

Operating Cash Flow Ratio 0.432 0.432 0.432

	Operating Cash Flow Ratio						0.432
Operating Cash Flow Ratio = Cash generated by operating activities ÷ Total current liabilities

Q 4.19

Operating Cash Flow Ratio
Operating Cash Flow Ratio Trend

Q 4.20

Question 4.19 – How leveraged is your company?
Trend Analysis
2011 2013 2014 Return to Table of Calculations

(2.212) (2.212)

Financial Data
2014 2013 2011
Cash generated by operating activities 268,427 268,427 268,427

Total interest expense and income (121,335) (121,335) (121,335)

Cash Interest Coverage Ratio (2.212) (2.212) (2.212)

	Cash Interest Coverage Ratio						(2.212)
Cash Interest Coverage Ratio = Cash generated by operating activities ÷ Total interest expense and income

Q 4.20

Cash Interest Coverage Ratio
Cash to Interest Coverage Ratio

Q 4.21

Question 4.20 – How well does your company invest in its future?
Trend Analysis
2011 2013 2014 Return to Table of Calculations

3410.296 3410.296

Financial Data
2014 2013 2011
Earnings Per Share: Basic $28.26 $28.26 $28.26
Equity per share $0.01 $0.01 $0.01
Earnings to Equity Ratio 3410.296 3410.296 3410.296

	Earnings to Equity Ratio						3410.296
Earnings to Equity Ratio = Earnings Per Share: Basic ÷ Equity per share

Q 4.21

Earnings to Equity Ratio
Earnings to Equity Ratio

Q 5.1

Question 4.21 – Capital and Treasury Stock
Trend Analysis

(in thousands)

Return to Table of Calculations

2011 2013 2014

Number of Shares Common Stock 125,527,846 125,527,846 125,527,846
Number of Shares Preferred Stock 1,252,662 1,252,662 1,252,662
Number of Shares Treasury Stock 1,970,820 1,970,820 1,970,820
Financial Data
2014 2013 2011
Number of Shares Common Stock 125,527,846 125,527,846 125,527,846
Number of Shares Preferred Stock 1,252,662 1,252,662 1,252,662
Number of Shares Treasury Stock 1,970,820 1,970,820 1,970,820

Q 5.1

Number of Shares Common Stock
Number of Shares Preferred Stock
Number of Shares Treasury Stock
Equities Trend

Q 5.2

Trend Analysis
2011 2013 2014 Return to Table of Calculations

Working Capital Balance

(340,075) (340,075)

Financial Data
2014 2013 2011

280,875 280,875 280,875

Total current liabilities 620,950 620,950 620,950
Working Capital Balance (340,075) (340,075) (340,075)

Question 5.1 – Working Capital Balance
											(340,075)
	Total current assets
Working Capital Balance = Total current assets – Total current liabilities

Q 5.2

Working Capital Balance
Working Capital Balance

Q 5.3

Trend Analysis
2011 2013 2014 Return to Table of Calculations

0.283 0.283

Financial Data
2014 2013 2011
Cash 30,836 30,836 30,836
Accounts receivable 98,697 98,697 98,697
Short term investments 45,903 45,903 45,903

Total

175,436 175,436

Total current liabilities 620,950 620,950 620,950
Acid Test Ratio 0.283 0.283 0.283

Question 5.2 – Acid Test or Quick Ratio
	Acid Test Ratio						0.283
		175,436
Acid Test Ratio = (Cash + Accounts receivable + Short term investments) ÷ Total current liabilities

Q 5.3

Acid Test Ratio
Acid Test Ratio Trend

Q 5.4

Trend Analysis
2011 2013 2014 Return to Table of Calculations

Current Ratio

0.452 0.452

Financial Data
2014 2013 2011
Total current assets 280,875 280,875 280,875
Total current liabilities 620,950 620,950 620,950
Current Ratio 0.452 0.452 0.452

÷

Question 5.3 – Current Ratio
					0.452
Current Ratio = Total current assets ÷ Total current liabilities

Q 5.4

Current Ratio
Current Ratio Trend

Q 5.5

Trend Analysis
2011 2013 2014 Return to Table of Calculations

Cash Ratio

0.05 0.05

Financial Data
2014 2013 2011
Cash 30,836 30,836 30,836
Total current liabilities 620,950 620,950 620,950
Cash Ratio 0.05 0.05 0.05

÷

Question 5.4 – Cash Ratio
					0.05
Cash Ratio = Cash ÷ Total current liabilities

Q 5.5

Cash Ratio
Cash Ratio Trend

Q 5.6

Trend Analysis
2011 2013 2014 Return to Table of Calculations

Return on Sales Ratio

(0.023) (0.023)

Financial Data
2014 2013 2011
Net Income (Loss) (51,870) (51,870) (51,870)
Net sales 2,291,757 2,291,757 2,291,757
Return on Sales Ratio (0.023) (0.023) (0.023)

÷

Question 5.5 – Return on Sales Ratio
					(0.023)
Return on Sales Ratio = Net Income (Loss) ÷ Net sales

Q 5.6

Return on Sales Ratio
Return on Sales Ratio Trend

Q 5.7

Trend Analysis
2011 2013 2014 Return to Table of Calculations

Return on Equity Ratio

(0.05) (0.05)

Financial Data
2014 2013 2011
Net Income (Loss) (51,870) (51,870) (51,870)
Total owner’s equity 1,040,208 1,040,208 1,040,208
Return on Equity Ratio (0.05) (0.05) (0.05)

÷

Question 5.6 – Return on Equity Ratio
					(0.05)
Return on Equity Ratio = Net Income (Loss) ÷ Total owner’s equity

Q 5.7

Return on Equity Ratio
Return on Equity Ratio Trend

Q 5.8

Trend Analysis
2011 2013 2014 Return to Table of Calculations

Return on Assets Ratio

(0.012) (0.012)

Financial Data
2014 2013 2011
Net Income (Loss) (51,870) (51,870) (51,870)

Total assets 4,466,061 4,466,061 4,466,061

Return on Assets Ratio (0.012) (0.012) (0.012)

÷

Question 5.7 –		Return on Assets Ratio
					(0.012)
Return on Assets Ratio = Net Income (Loss) ÷ Total assets

Q 5.8

Return on Assets Ratio
Return on Assets Ratio Trend

Q 5.9

Trend Analysis
2011 2013 2014 Return to Table of Calculations

Asset Turnover Ratio

0.513 0.513

Financial Data
2014 2013 2011
Net sales 2,291,757 2,291,757 2,291,757
Total assets 4,466,061 4,466,061 4,466,061
Asset Turnover Ratio 0.513 0.513 0.513

÷

Question 5.8 – Asset Turnover Ratio
					0.513
Asset Turnover Ratio = Net sales ÷ Total assets

Q 5.9

Asset Turnover Ratio
Asset Turnover Ratio Trend

Q 5.10

Trend Analysis
2011 2013 2014 Return to Table of Calculations

Gross Profit Margin Ratio

1.072 1.072

Financial Data
2014 2013 2011
Gross Profit 2,456,918 2,456,918 2,456,918
Net sales 2,291,757 2,291,757 2,291,757
Gross Profit Margin Ratio 1.072 1.072 1.072

÷

Question 5.9 –		Gross Profit Margin Ratio
					1.072
Gross Profit Margin Ratio = Gross Profit ÷ Net sales

Q 5.10

Gross Profit Margin Ratio
Gross Profit Margin Ratio Trend

Q 5.11

Question 5.10 – Inventory Turnover Ratio
Trend Analysis
2011 2013 2014 Return to Table of Calculations

Inventory Turnover Ratio

0.085 0.085

Financial Data
2014 2013 2011
Cost of Goods Sold 1,000 1,000 1,000
Inventories 11,776 11,776 11,776
Inventory Turnover Ratio 0.085 0.085 0.085

÷

								0.085
Inventory Turnover Ratio = Cost of Goods Sold ÷ Inventories

Q 5.11

Inventory Turnover Ratio
Inventory Turnover Ratio Trend

Q 5.12

Trend Analysis
2011 2013 2014 Return to Table of Calculations

Days In Inventory Ratio

4,239.36 4,239.36

Financial Data
2014 2013 2011

360 360 360

Inventory Turnover Ratio 0.085 0.085 0.085
Days In Inventory Ratio 4,239.36 4,239.36 4,239.36

÷

Question 5.11 –		Days In Inventory Ratio
					4,239.36
							360
Days In Inventory Ratio = 360 ÷ Inventory Turnover Ratio

Q 5.12

Days In Inventory Ratio
Days In Inventory Ratio Trend

Q 5.13

Question 5.12 – Accounts Receivable Turnover Ratio
Trend Analysis
2011 2013 2014 Return to Table of Calculations

Accounts Receivable Turnover Ratio

23.22 23.22

Financial Data
2014 2013 2011
Net sales 2,291,757 2,291,757 2,291,757
Accounts receivable 98,697 98,697 98,697
Accounts Receivable Turnover Ratio 23.22 23.22 23.22

÷

								23.22
Accounts Receivable Turnover Ratio = Net sales ÷ Accounts receivable

Q 5.13

Accounts Receivable Turnover Ratio
Accounts Receivable
Turnover Ratio Trend

Q 5.14

Question 5.13 – Average Collection Period
Trend Analysis
2011 2013 2014 Return to Table of Calculations

16 16 16

Financial Data
2014 2013 2011
360 360 360 360
Accounts Receivable Turnover Ratio 23.22 23.22 23.22
Average Number Days Collection Period 16 16 16

÷

	Average Number Days Collection Period
Average Number Days Collection Period = 360 ÷ Accounts Receivable Turnover Ratio

Q 5.14

Average Number Days Collection Period
Average Collection Period Trend

Q 5.15

Question 5.14 – Accounts Payable Turnover Ratio
Trend Analysis
2011 2013 2014 Return to Table of Calculations

Accounts Payable Turnover Ratio

0.021 0.021

Financial Data
2014 2013 2011
Cost of Goods Sold 1,000 1,000 1,000
Accounts payable 47,654 47,654 47,654
Accounts Payable Turnover Ratio 0.021 0.021 0.021

÷

					0.021
Accounts Payable Turnover Ratio = Cost of Goods Sold ÷ Accounts payable

Q 5.15

Accounts Payable Turnover Ratio
Accounts Payable Turnover
Ratio Trend

Q 5.16

Question 5.15 – Net Working Capital Turnover Ratio
Trend Analysis
2011 2013 2014 Return to Table of Calculations

Net Working Capital Turnover Ratio

(6.739) (6.739)

Financial Data
2014 2013 2011
Total current assets 280,875 280,875 280,875
Total current liabilities 620,950 620,950 620,950

Working Capital (340,075) (340,075) (340,075)

Net sales 2,291,757 2,291,757 2,291,757
Working Capital (340,075) (340,075) (340,075)
Net Working Capital Turnover Ratio (6.739) (6.739) (6.739)

÷

					(6.739)
Working Capital = Total current assets – Total current liabilities
Net Working Capital Turnover Ratio = Net sales ÷ Working Capital

Q 5.16

Net Working Capital Turnover Ratio
Net Working Capital Turnover Ratio Trend

Q 5.17

Trend Analysis
2011 2013 2014 Return to Table of Calculations

Debt to Equity Ratio

3.293 3.293

Financial Data
2014 2013 2011

Total Liabilities 3,425,853 3,425,853 3,425,853

Total owner’s equity 1,040,208 1,040,208 1,040,208
Debt to Equity Ratio 3.293 3.293 3.293

÷

Question 5.16 – Debt to Equity Ratio
					3.293
Debt to Equity Ratio = Total Liabilities ÷ Total owner’s equity

Q 5.17

Debt to Equity Ratio
Debt to Equity Ratio Trend

Q 5.18

Question 5.17 – Debt to Asset Ratio
Trend Analysis
2011 2013 2014 Return to Table of Calculations

Debt to Asset Ratio

0.767 0.767

Financial Data
2014 2013 2011
Total Liabilities 3,425,853 3,425,853 3,425,853
Total assets 4,466,061 4,466,061 4,466,061
Debt to Asset Ratio 0.767 0.767 0.767

÷

					0.767
Debt to Asset Ratio = Total Liabilities ÷ Total assets

Q 5.18

Debt to Asset Ratio
Debt to Asset Ratio Trend

Q 5.19

Question 5.18 – Gearing Ratio

Trend Analysis
2011 2013 2014 Return to Table of Calculations

Gearing Ratio

2.696 2.696

Financial Data
2014 2013 2011

Total non-current liabilities 2,804,903 2,804,903 2,804,903

Total owner’s equity 1,040,208 1,040,208 1,040,208
Gearing Ratio 2.696 2.696 2.696

÷

					2.696
Gearing Ratio = Total non-current liabilities ÷ Total owner’s equity

Q 5.19

Gearing Ratio
Gearing Ratio Trend

Q 5.20

Question 5.19 – Interest Coverage Ratio or Debt Service Ratio
Trend Analysis
2011 2013 2014 Return to Table of Calculations

Interest Coverage Ratio

0.408 0.408

Financial Data
2014 2013 2011
Income Before Income Taxes ($49,530) ($49,530) ($49,530)

Total interest expense and income

($121,335) ($121,335)

Interest Coverage Ratio 0.408 0.408 0.408

÷

					0.408
		($121,335)
Interest Coverage Ratio = Income Before Income Taxes ÷ Total interest expense and income

Q 5.20

Interest Coverage Ratio
Interest Coverage Ratio Trend

Q 5.21

Trend Analysis
2011 2013 2014 Return to Table of Calculations
Earnings Per Share: Basic $28.26 $28.26 $28.26
Financial Data
2014 2013 2011
Earnings Per Share: Basic $28.26 $28.26 $28.26

Question 5.20 – Earnings per Share

Q 5.21

Earnings Per Share: Basic
Earnings per Share Trend

Q 5.22

Question 5.21 – Price/Earnings Ratio
Trend Analysis
2011 2013 2014 Return to Table of Calculations

Price/Earnings Ratio

2.052 2.052

Financial Data
2014 2013 2011

$58.000 $58.000 $58.000

Earnings Per Share: Basic $28.26 $28.26 $28.26
Price/Earnings Ratio 2.052 2.052 2.052

÷

					2.052
Stock Price
Price/Earnings Ratio = Stock Price ÷ Earnings Per Share: Basic
* Manually enter Stock Price on Instruction Sheet

Q 5.22

Price/Earnings Ratio
Price/Earnings Ratio Trend

Q 5.23

Trend Analysis
2011 2013 2014 Return to Table of Calculations

Dividend per Share $12.50 $12.50 $12.50

Financial Data
2014 2013 2011

$12.50 $12.50 $12.50

Question 5.22 – Dividend per Share

Dividend per Share*

*Manually enter Divdend per Share on Instruction sheet

Q 5.23

Dividend per Share
Dividend per Share Trend

Template

Question 5.23 – Dividend Payout Ratio
Trend Analysis
2011 2013 2014 Return to Table of Calculations

Dividend Payout Ratio

0.44 0.44

Financial Data
2014 2013 2011
Dividends per Share: Basic $12.50 $12.50 $12.50
Earnings Per Share: Basic $28.26 $28.26 $28.26
Dividend Payout Ratio 0.44 0.44 0.44

÷

					0.44
Dividend Payout Ratio = Dividends per Share: Basic ÷ Earnings Per Share: Basic

Template

Dividend Payout Ratio
Dividend Payout Ratio Trend

Ver Changes

Trend Analysis

Next Previous Year Previous Year Current Year

Financial Data
Current Year Previous Year Next Previous Year

Version Changes
Ed 3	Build 3
11/24/12	Changes to Statement of Cash Flows
Added three rows. 1 row for new data entry field and 2 blank rows for spaces.
“Other change to cash or cash equivelants”
Value is added to the formula for ‘Increase/(decrease) in cash and cash equivalents’
11/26/12	Changes to Page 4.17
Added percent of change from previous year to current year
Changed trend chart to exclude common stock and treasury stock
Added new trend chart to show only common stock and treasury stock