FOUNDATION OF FINANCE – B02037

FINANCIAL ANALYSIS
Question 1:

Income Statement 2020

Cost of goods sold $ 6,220.00
Depreciation $ 890.00
Interest $ 460.00
Dividend paid $ 140.00
Selling and general expenses $1,950.00
Addition to retained earnings $ 330.00
Tax rate 30%
What are the sales for 2020?

Question 2:

Net Sales ????

Cost of Goods Sold $6,800
Depreciation $500
Tax 20%
Selling and Administrative Expense $2,300
Interest Payment $347
Dividend Paid $1,400 (30% of net income)

Question 3:
Balance Sheet
Assets 2018 2017
Current assets
Cash and marketable securities 661 530
Accounts receivable 166 247
Inventories 8,209 7,611
Other current assets 215 298
Total current assets 9,251 8,686

Fixed assets
Tangible fixed assets
Property, plant, and equipment 31,477 28,836
Less accumulated depreciation 8,755 7,475
Net tangible fixed assets 22,722 21,361

Long term investments 253 509

Other long-term assets 460 313
Total assets 32,686 30,869

Liabilities and Shareholders' Equity 2018 2017

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Current liabilities
Debt due for repayment 1,021 1,104
Accounts payable 4,543 4,137
Other current liabilities 2,458 2,510

Total current liabilities 8,022 7,751

Long term debt 5,039 5,576

Deferred income taxes 660 670
Other long term liabilities 910 774
Total liabilities 14,631 14,771

Common Stock and other paid-in- 735 729

capital
Retained earnings and capital surplus 17,320 15,369
Total shareholders' equity 18,055 16,098
Total liabilities and shareholders' 32,686 30,869
equity

Income Statement 2018

Net sales 48,230
Cost of goods sold 31,729
Selling, general, and administrative 11,158
expenses
Depreciation 1,539
Earning before interest and taxes (EBIT) ?
Interest expense 298
Earning before taxes (EBT) ?
Tax (20%) ?
Net Income ?

Dividends (30%) ?
Addition to retained earnings (70%) ?
Look up the latest financial statement for a company:
a. Fill in the blank (?) of Income statement.
b. Calculate the following all financial ratios.

4. Nimitz Rental Company provided the following information to its auditors. For the year ended
March 31, 2020, the company had revenues of $878,412, general and administrative expenses of
$352,666, depreciation expenses of $131,455, leasing expenses of $108,195, and interest expenses
equal to $78,122. If the company’s tax rate was 34 percent, what is its net income after taxes? (Trình
bày bảng income statement)

5. The following are the financial statements for Nederland Consumer Products Company for the
fiscal year ended September 30, 2018.
 FOUNDATION OF FINANCE – B02037
Income Statement for the Fiscal Year,
September 30, 2018
Net sales $51,407
Cost of products sold 25,076
Gross margin $26,331
Marketing, research, administrative exp. 15,746
Depreciation 758
Operating income (loss) $ 9,827
Interest expense 477
Earnings (loss) before income taxes 9,350
Income taxes 2,869
Net earnings (loss) $ 6,481

Balance Sheet as of 9/30/2018

Assets Liabilities and Stockholders’
Equity
Cash and marketable securities $ 5,469 Accounts payable $ 3,617
Investment securities 423 Accrued and other liabilities 7,689
Accounts receivable 4,062 Taxes payable 2,554
Total inventories 4,400 Debt due within one year 8,287
Deferred income taxes 958
Prepaid expenses & other 1,803
receivables
Total current assets $17,115 Total current liabilities $22,147
Property, plant, and equip., at 25,304 Long-term debt 12,554
cost
Less: Accumulated depreciation 11,196 Deferred income taxes 2,261
Net plant and equipment $14,108 Other non-current liabilities 2,808
Net goodwill & other intangible 23,900 Total liabilities $39,770
assets
Other non-current assets 1,925 Convertible Class A preferred 1,526
stock
Common stock 2,141
Retained earnings 13,611
Total stockholders’ equity $17,278
(deficit)
Total liabilities and
Total assets $57,048 stockholders’ equity $57,048

Calculate all the ratios are available.

6. As you can see, someone has spilled ink over some of the entries in the balance sheet and
income statement of Transylvania Railroad ( Table 28.12 ). Can you use the following information
to work out the missing entries?
• Debt ratio: .4.
• Times-interest-earned: 6.25.
• Current ratio: 1.4
• Quick ratio: 1.0
• Cash ratio: 0.2
Return on equity: 24%.
Inventory turnover: 5.0.
Receivables collection period: 71.2 days.
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