FIN 3450

MID-TERM EXAM

-Use your time well.

-Use 12 point Times New Roman as your font.

-Whenever necessary, you must refer to the numbers you need to use in your calculations. Do not
type the numbers when you can refer to them.

-You will have one Excel workbook and three worksheets for this mid-term. Name your file as
LastnameFirstname_MT.xlsx (E.g. YamanDevrim_MT.xlsx)

-Save your file on your computer every ten minutes.

-After saving and closing your file check whether it can be re-opened.

-Upload your exam file to the “Mid-Term Exam” Dropbox on Elearning. If you have difficulty
uploading your file, email your file to me at devrim.yaman@wmich.edu from your WMU email
address.

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Total: 20 points

QUESTIONS

PART 1) (5.5 points) The following are the Sales and Net Income figures for Yuen
Corporation:

Years Sales Net Income

2020 87548 7712

2019 81667 6328
2018 78508 6093
2017 75947 5429
2016 71940 4178

On page 4 you will find the Excel worksheet and chart created for “Global
Industries”. Create the same worksheet for Yuen using the figures above for 2020
to 2016 (do not use the figures for Global Industries). Follow these instructions:

-Use the “AVERAGE” function to find Sales Growth.

-The format of numbers and text should be as they appear in the worksheet.
-The size and place of the chart should be as it appears in the worksheet.
-All calculations should be done by Excel.
-All formatting should be done by Excel. For example enter the number 87548
without any commas and format it with Excel.
-Name this worksheet “MT-1”.

PART 2) Use the following financial information for Yeates Industries for questions 2A
and 2B.

Item 2020 2019

Accounts Payable 175,200 145,600
Accounts Receivable 402,000 340,000
Accumulated
Depreciation 165,100 146,200
Cash & Equivalents 50,900 68,800
Common Stock 460,000 460,000
Depreciation Expense 18,900 18,900
Long-term Debt 424,610 323,430
Other Current Liabilities 140,000 136,000
Plant & Equipment 527,000 491,000
Short Term Notes 225,000 200,000
Retained Earnings ? 203,770

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Inventory ? 715,200

2A) (9 points) Build the Balance Sheets for 2019 and 2020 of Yeates Industries in Excel
by filling out the cells where you see question marks on page 5. Name this worksheet
“MT-2A”.

-Information for Retained Earnings (2020): The company’s Net Income for 2020 is $
44,880 and it has 100,000 shares outstanding. Its dividends per share for 2020 is $
Net Income
Earnings per share=
0.2266. (Hint: Number of Shares Outstanding ). Calculate the
retained earnings and record this figure in the related financial statement.

-Information for Inventory (2020): Use the relation “Total Assets=Total Liabilities and
Owners’ Equity” to find the amount of inventory for 2020. Make the calculation for this
variable on the worksheet using Excel.

2B) (5.5 points) Create the “Cash Flows From Operations” portion of the “Statement of
Cash Flows” by filling out the cells where you see question marks on page 5. Make sure
you use formulas and cell linking for columns B and C. Name this worksheet “MT-2B”.

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 Global Industries Profitability Analysis
(Thousands of Dollars)
2015 to 2020
2020 2019 2018 2017 2016 2015
Sales 67,345 55,484 43,878 32,602 25,811 20,649
Net Income 2,333 1,995 1,608 1,291 1,076 837
Net Profit Margin 3.46% 3.60% 3.66% 3.96% 4.17% 4.05%
Change in Sales 1.21 1.26 1.35 1.26 1.25
Sales Growth 26.74%

Global Industries Sales vs. Net Income

80,000
70,000
60,000
50,000
Dollars

Sales
40,000
Net Income
30,000
20,000
10,000
0
2020 2019 2018 2017 2016 2015
Years

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 Yeates Industries
Balance Sheet
As of Dec. 31, 2020
Assets 2020 2019
? ? ?
? ? ?
? ? ?
Total Current Assets ? ?
? ? ?
? ? ?
Net Fixed Assets ? ?
Total Assets ? ?

Liabilities and Owner's Equity

? ? ?
? ? ?
? ? ?
Total Current Liabilities ? ?
? ? ?
Total Liabilities ? ?
? ? ?
? ? ?
Total Shareholder's Equity ? ?
Total Liabilities and Owner's Equity ? ?

Yeates Industries
Statement of Cash Flows (Partial)
For the Year Ended Dec. 31, 2020
Cash Flows from Operations
Net Income 44,880
? ?
? ?
? ?
? ?
? ?
Total Cash Flows from Operations ?

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