Fin 534 week 2 homework assignment set 1*****a++ rated tutorial


Directions: Exculpation the subjoined questions on a severed muniment. Explain how you reached the exculpation or illusion your result if a historical investigation is needed, or twain. Submit your assignment using the assignment converge in the way shell. This homeresult assignment is rate 100 points.

Use the subjoined notice for Questions 1 through 8:

Assume that you of-late graduated and accept honorable reputed to result as an boarding advisor at the one of the firms on Wall Street. You accept been presented and asked to criticism the subjoined Pay Propose and Et Sheets of one of the firm’s clients. Your boss has open the subjoined set of questions you must exculpation.

Income Statements and Et Sheet

Balance Sheet

 

2012

2013

 

2014

Cash

$9,000

$7,282

$14,000

Short-term boardings

48,600

20,000

71,632

Accounts receivable

351,200

632,160

878,000

Inventories

715,200

1,287,360

1,716,480

Total vulgar property

$1,124,000

$1,946,802

$2,680,112

Gross agricultural property

491,000

1,202,950

1,220,000

Less: Accumulated diminution

146,200

263,160

383,160

Net agricultural property

$344,800

$939,790

$836,840

Total property

$1,468,800

$2,886,592

$3,516,952

 

 

 

 

Liabilities and Equity

 

 

 

Accounts payable

$145,600

$324,000

$359,800

Notes payable

200,000

720,000

300,000

Accruals

136,000

284,960

380,000

Total vulgar liabilities

$481,600

$1,328,960

$1,039,800

Long-term debt

323,432

1,000,000

500,000

Common store (100,000 shares)

460,000

460,000

1,680,936

Retained hues

203,768

97,632

296,216

Total equity

$663,768

$557,632

$1,977,152

Total liabilities and equity

$1,468,800

$2,886,592

$3,516,952

 

Income Statements

2012

2013

2014

Sales

$3,432,000

$5,834,400

$7,035,600

Cost of commodities sold negative depr.

2,864,000

4,980,000

5,800,000

Depreciation and amortization

18,900

116,960

120,000

Other expenses

340,000

720,000

612,960

Total detached costs

$3,222,900

$5,816,960

$6,532,960

EBIT

$209,100

$17,440

$502,640

Interest expense

62,500

176,000

80,000

EBT

$146,600

($158,560)

$422,640

Taxes (40%)

58,640

-63,424

169,056

Net pay

$87,960

($95,136)

 

$253,584

Other Data

  

2012

2013

 

2014

Stock expense

$8.50

$6.00

$12.17

Shares outstanding

100,000

100,000

250,000

EPS

$0.88

($0.95)

$1.104

DPS

$0.22

0.11

0.22

Tax rate

40%

40%

40%

Book treasure per share

$6.64

$5.58

$7.909

Lease payments

$40,000

   

$40,000

$40,000

 

 

Ratio Analysis

2012

2013

 

Industry Average

Current

2.3

1.5

2.7

Quick

0.8

0.5

1.0

Inventory turnover

4

4

6.1

Days sales outstanding

37.3

39.6

32.0

Fixed property turnover

10

6.2

7.0

Total property turnover

2.3

2

2.5

Debt harmony

35.60%

59.60%

32.0%

Liabilities-to-property harmony

54.80%

80.70%

50.0%

TIE

3.3

0.1

6.2

EBITDA coverage

2.6

0.8

8.0

Profit extremity

2.60%

−1.6%

3.6%

Basic earning influence

14.20%

0.60%

17.8%

ROA

6.00%

−3.3%

9.0%

ROE

13.30%

−17.1%

17.9%

Price/Earnings (P/E)

9.7

−6.3

16.2

Price/Cash career

8

27.5

7.6

Market/Book

1.3

1.1

2.9

2.  Suppose Congress transitional the tax laws so that Berndt’s diminution expenses doubled. No changes in operations occurred. What would betide to reputed avail and to net money career? 


3.  Calculate the 2014 vulgar and fast harmonys established on the projected et prevarication and pay propose basis. What can you say environing the company’s liquidity pose in 2013? 


6.  Calculate the 2014 avail extremity, basic earning influence (BEP), retaliate on property (ROA), and retaliate on equity (ROE). What can you say environing these harmonys? 


7.  Calculate the 2014 expense / hues harmony, expense / money career harmony, and chaffer / body harmony.