Use the information below provided by Angel Baby Angel Company Sales 8,250,000.00 Operating costs 4.725,000.00 Operating income 3,525,000.00 Interest expense 1,750,000.00 Earnings before taxes 1,775,000.00 Taxes (40%) 621,250.00 Net income 1,153,750.00 WACC 8%, Total invested capital 24.875,000. Calculate the EVA (2 decimal places)
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Use the information below provided by Angel Baby Angel Company
Sales
8,250,000.00
Operating costs
4.725,000.00
Operating income
3,525,000.00
Interest expense
1,750,000.00
Earnings before
taxes
1,775,000.00
Taxes (40%)
621,250.00
Net income
1,153,750.00
WACC 8%, Total invested capital 24.875,000. Calculate the EVA (2 decimal places)
Step by step
Solved in 3 steps
- 1. Use the information below provided by Angel Baby Angel Company: Sales 8,250,000.00 Operating costs 4,725,000.00 Operating income 3,525,000.00 Interest expense 1,750,000.00 Earnings before taxes 1,775,000.00 Taxes (40%) 621,250.00 Net income 1,153,750.00 WACC = 8%, Total invested capital 24,875,000. Calculate the EVA. (2 decimal places) 2. Refer to Angel Baby Angel Company, what is its TIE ratio? Use 4 decimal places in your final answer. 3. Refer to Angel Baby Angel Company, what is its Return on Invested Capital? Use 2 decimal places in your final answer. Express in percentageUse the information below provided by Angel Baby Angel Company: Sales 8,250,000.00 Operating costs 4,725,000.00 Operating income 3,525,000.00 Interest expense 1,750,000.00 Earnings before taxes 1,775,000.00 Taxes (40%) 621,250.00 Net income 1,153,750.00 WACC = 8%, Total invested capital 24,875,000. Question 1.) What is its TIE ratio? Use 4 decimal places in your final answer. 2.) What is its Return on Invested Capital? Use 2 decimal places in your final answer. Express in percentage 3.) Calculate the EVA. (2 decimal places)The following are available for divison X and Y Profit before interest and tax X 185 000 Y172 000 Capital employed X 1 540 000 Y 1 650 000 The cost of capital is 10% comment on the performance of the departments based on a. Return on capital employed b.residual income
- Takaful company has the following information: Earned contributions SR 500 Net claim incurred SR 100 Cash SR 50 Short-term investment SR 150 Average assets SR 1500 Total expenses SR 200 Net income SR 100 Gross contributions SR 600 Net contributions SR 550 What is expense ratio? а. 40% b. 30% С. 36.3% d. 50%II. solution. Mardou Company Martin Company P50,000,00 Compary Assets Current Assets P50,000 P25,0000 P25,0000 P12,500,000 Imvenbory Curent Labilites Equity P18,0000 PS5,00000 PI5,0000 P50000 PA5,000 PIO,0000 PT 200,000 Sales PIO,0000 Costs P8.9000 Cumpery Marin Compary Merou Compan Curent Rabio Quik Ratb Paifabilty Retum on TotalAssets Retum on Ruty11. Use the information below provided by Angel Baby Angel Company: Sales 8,250,000.00 Operating costs 4,725,000.00 Operating income 3,525,000.00 Interest expense 1,750,000.00 Earnings before taxes 1,775,000.00 Taxes (40%) 621,250.00 Net income 1,153,750.00 WACC = 8%, Total invested capital 24,875,000. Calculate the EVA. (2 decimal places) Refer to Angel Baby Angel Company, what is its Return on Invested Capital? Use 2 decimal places in your final answer. Express in percentage
- Use the table for the question(s) below Name Gannet New York Times McClatchy Media General 326 Lee Enterprises Average Maximum Minimum OA $6.52 OB $7.00 Market Enterprise Capitalization Value (5 million) 6350 2423 675 OC. $7.00 OD 17 24 267 1192 (5 million) 10,163 3472 3061 1724 14.89 Price/ Book PIE 7.36 0.73 18.09 2.64 9.76 1.68 0.39 6.55 0.82 11.33 1.25 +60% 112% -40% 69% Enterprise 1.31 Valuel Sales 1.4 1.10 1.40 1.57 1.35 +16% -18% Enterprise 7.65 Value/ EBITDA The table above shows the stock prices and multiples for a number of firms in the newspaper publishing industry. Another newspaper publishing firm (not shown) had sales of $600 million, EBITDA of $84 million, excess cash of $70 million, $11 milion of debt, and 120 million shares outstanding. If the average enterprise value to sales for comparable businesses is used, which of the following is the best estimate of the firm's share price? CIED 5.04 7.21 5.64 6.65 6.44 +22% -19%Problem From the following ledger balances, prepare trial balance, income statement, and balance sheet:Mr. X’s capital is 500,000Drawing 20,000Purchase 200,000Loan 100,000Machinery 50,000Return to suppliers 50,000Sales 400,000Return inward 600,000Carriage outward 20,000Bad debts 5,000Sundry Drs. 100,000B/R 20,000Sundry Crs. 50,000Carriage inward 10,000Salary and wages 5,000Depreciation 20,000Cash in hand 100,000Sale of scrap 5,000Closing stock 50,000Prepaid tax 10,000Outstanding wages 5,000 do not give solution in image10. Use the information below provided by Angel Baby Angel Company: Sales 8,250,000.00 Operating costs 4,725,000.00 Operating income 3,525,000.00 Interest expense 1,750,000.00 Earnings before taxes 1,775,000.00 Taxes (40%) 621,250.00 Net income 1,153,750.00 WACC = 8%, Total invested capital 24,875,000. Calculate the EVA. (2 decimal places) Refer to Angel Baby Angel Company, what is its TIE ratio? Use 4 decimal places in your final answer.
- Calculate working capital Alist of XYZ Company accounits is presented belov in alphabetical order: Aco. Dep.-Buildings Acc. Dep-Equipment Acc. Other Comprehensive Inoiome Accounts Payable Accounts Receivable 10 Additional Paidin Capital-obmmion Addtional Paidin Capital-preferredS 12 Allov ance for Doubtful Adcounts 42,400,00 28.080.00 880.00 17,920 00 17.200 00 19,200.00 9,200 00 640.00 61600 00 13 Bond: Payable idue 20271 14 Buldng: 15 Cash 16 Common Stock, $10 par 17 Curren Tan Payable 18 Discount on Bonds Pavable 19 Equipment 20 nventory 21 Land 22 Marketable Seourities (shoit term) 23 Patents (net) 24 Pieferned stook, $100 par 25 Retained Earnings 26 Revenues Salaries expense 28 Salalies Payable 29 Trademarks 115,200.00 2,320.00 24,000.00 8,320.00 5,520.00 57.920.00 29,760 00 24,000,00 4.880.00 7,840.00 16,800 00 36.960.00 85,600.00 %24 27 31.200.00 1,600.00 2.960.00 24 30M,Band/Aweretthree partnerssharing profits i int the ratio 2::2::11Their|Balance Sheetas at 31.3.2012 was as under: BALANCE SHEET as at 31.3.2012 Liabilities $ Assets $ General ReservE M's Capital B's Capital FAs Capital Creditors 28,000 30,000 20,000 10,000 25,000 17,500 4,C00 TZ1500 28,500 45,500 15,000 30,000 Casih Debtors Stock Land & Building Motor Vehicle Bilis Payable Goodwill 1,30,500 1,30,500 Bdied on 12th June, 2012. According to the deed, his legal representatives entitied ito: (fa) Batanceiin Capital A/c ((b) Shareof goodwill valued on the basis of thrice the averoge profits far ithe pastifourcompieted years. ((0) Shareinprofits upto the dote of death on the basis of average profits forthe pastifour completet yeurs. ((d) ifntereston capital@ 18% p.a. Profits forithe yearsending on/March 31“ of 2009, 2010, 2011 and2012 respectively.were $50,000, $E8,00, $40,000, $52,0ODirespectively. Theifirmihaitaken amatonvéhičteibutítwas mot recordetdi inthelhooksitillttate. The market…Oreo reported the following for the period:Sales P1,000,000Cost of Sales P300,000Operating expenses P100,000Determine the OSD assuming that Oreo is a corporation
