Account Name Statement Type of Account

CALCULATION OF EPS AND RETAINED EAR

Earnings Per Share
Net Income After Tax 216,600.00
Preferred Dividends
No. of Outstanding 52,000.00
Common Stock 200,000.00
ANSWER $0.82

Retained Earnings (via Earnings Per Share)

Earnings Per
Common Share
stock to pay per 0.82
share
No. of Outstanding 0.60
Common Stock 200,000.00
ANSWER $44,000.00

INITIAL SALE PRICE OF COMMON STOCK

Amount Invested
Outstanding Common Stoc 250,000
PI Excess Capital 2,376,000
ANSWER $2,626,000.00

Price Per Share

Amount Invested 2,626,000.00
Number of Shares 500,000.00
ANSWER $5.25

STATEMENT OF RETAINED EARNINGS

X Company
Statement of Retained Earnings
For the Year Ended xxx
Beginning Balance 1,151,000.00
Net Income for the year en 528,000.00
Dividends paid to sharehol 98,000.00
Retained Earnings, xxx 1,324,000.00

Earnings Per Share (Alt. Computation)

Net Income for the year en 528,000.00
Dividends Paid 98,000.00
Number of Shares of Stock 100,000.00
ANSWER 4.30
Cash Dividend Per Share
Dividend paid on CS 98,000.00
Number of Shares of Stock 100,000.00
ANSWER 0.98

CHANGES IN STOCKHOLDERS' EQUITY

Net Income
Ending Retained Earnings 1,324,000.00
Beginning Retained Earnin 1,151,000.00
Dividends Paid 98,000.00
ANSWER 2,377,000.00

Average Price Per Share

New Stock Sold 600,000.00
PIC in excess of Par 5,250,000.00
Outstanding for the year 600,000.00
ANSWER 9.75

DEPRECIATION AND ACCOUNTING CASHF

Computing Operating Cashflow
Step: 1 Determine Deprecitaion
Asset value 165,000
Depreciation rate 45.00%
Depreciation 74,250

Step 2: Find EBIT

Sales Revenue
depreciation, interest, and 420,000
taxes 295,000
Depreciation 74,250
EBIT 50,750 Impact of non-cash charges on firm's cashflow

Step 3: Compute NOPAT

EBIT 50,750
Tax Rate 40%
NOPAT 30,450

Step 4: OCF
NOPAT 30,450
Depreciation 74,250
Operating Cashflow $104,700.00
DEPRECIATION AND CASHFLOW
Determine Depreciation
Cost of Asset
Residual/Salvage Value
Useful Life
#DIV/0!
FREE CASH FLOWS (How much is left?) DEPRECIATION AND CAS
Step 1: NFAI
Change in net fixed assets
Depreciation *Dep=Change in depreciation
NFAI 0.00

Step 2: NFAI
Changein current assets
Change in accounts payable
Accruals
NFAI 0.00

Step 3: OCF
NOPAT 0
Depreciation #DIV/0!
Operating Cashflow #DIV/0!

Step 4: FCF
OCF
NCAI
NFAI
0.00

FINANCIAL RATIOS
Gross profit margin
Gross profit 8,000,000
/ net sales 20,000,000
100.00 40.00

Net profit margin

Net Income 2,000,000
Net sales 20,000,000
100.00 10.00
Return on assets
Net income 2,000,000
Average total assets 30,000,000
0.07

Return on equity
Net Income 2,000,000
Shareholders equity 10,000,000
0.20

Earnings per share

Net Income 2,000,000
Dividendsoutstanding
average on pref stock 240,000
common share 20,000
88.00

BEP (Basic Earning Power)

EBIT
Total Assets
#DIV/0!
PRECIATION AND CAS DEPRECIATION AND CAS DEPRECIATION AND CAS DEPRECIATION AND CAS
DEPRECIATION AND CAS DEPRECIATION AND CAS DEPRECIATION AND CAS DEPRECIATION AND CAS
PRECIATION AND CAS DEPRECIATION AND CAS DEPRECIATION AND CAS DEPRECIATION AND CAS
CASH CONVERSION CYCLE
Operating Cycle
Average Age of Inventory
Average Collection Period
ANSWER 0

Cash Conversion Cycle (Formula 1)

Operating Cycle
Average Payment Period
ANSWER 0

Cash Conversion Cycle (Formula 2)

Average Age of Inventory
Average Collection Period
Average Payment Period
ANSWER 0

Total Resources
Inventory/COGS 9,500,000
Accounts Receivable/Sale 14,000,000
Accounts Payable/Purchas 5,000,000
Days sales inventory 90
Days Payable 60
Days in a year 365
ANSWER $4,972,602.74

Resource Investment Requirement

Annual Sales 3,000,000
Cash Conversion Cycle 51
Days in a Year 365
ANSWER $417,780.82

Additional Profit
Daily Expenditure 8,219
Rediction in CCC 25
Financing Rate 13%
ANSWER $26,711.75

EOQ Analysis
Demand PER YEAR 25,200
Cost Per Order 300
Carrying/Holding Cost 20
ANSWER 869.48 units

Reorder Point
Operating days in a year 250
Days of Lead Time 3
Daily Usage 101
Safety Stock 2
ANSWER 504 units

Total Number of Orders in a Year

Annual Demand
EOQ
ANSWER #DIV/0!

FLOAT
Collection Float
Mail Float
Processing Float
Clearance Float
ANSWER 0

Opportunity Cost
Opportunity Cost
Annual Fee
Collection Float Reduction
ANSWER 0

LOCKBOX SYSTEM
Amount of Cash Available
Annual Credit Sales 3,240,000
Reduction in Collection Pe 3
Days in a Year 365
ANSWER $26,630.14

Net Benefit/Cost
Amount of Cash 26,630
Rate of Return 15%
Cost of Lockbox 9,000
ANSWER -5,005
CASH DISCOUNTS
Cost of Giving Up Cash Discounts
Cash
No.of Discount
days payment can 2%
be delayed 20
Days in a year 365
100%
ANSWER 37.24%

WAGES
Present Value of Funds
Weekly payroll 925,000
Cost of funds 12%
Days in a year 365
922,876.12
2nd Week 920,757.12
TOTAL PAYMENT $1,843,633.24

INTEREST & LOANS

Interest Cost
Principal
Interest Rate
Time *day/365
ANSWER 0

EAR (Effective Annual Rate)

Step 1: No. of Compounding Periods
Days in a year 365
Loan Time 120
ANSWER 3.041666667

Step 2: Nominal Interest

Interest Cost 394.52
Bank Loan 10,000.00
ANSWER 0.0395

Step 2: EAR
ANSWER 12.49%

EFFECTIVE ANNUAL RATE (When Rate of Interest

Step 1: Rate of Interest
Face Value 1,000,000
Initial Proceeds 984,000
Rate of Interest 1.63%

Step 2: No. of Compounding Periods

Days in a year 365
Loan Time 120
ANSWER 3.041666667

Step 3: EAR
ANSWER 5.03%

EFFECTIVE ANNUAL RATE (With Initial Proceeds

Step 1: Rate of Interest
Brokerage fee 8,427
Face Value 1,000,000
Initial Proceeds 984,000
Total Cost 24,427
Net Proceeds 975,573
ANSWER 2.50%

Step 2: No. of Compounding Periods

Days in a year 365
Loan Time 120
ANSWER 3.041666667

Step 3: EAR
ANSWER 7.81%