What are the additional funds needed in Year 3? a. -$225.363 million b. $63.243 million C. $125.363 million d. $189.900 million e. $299.990 million
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- A Comparison of Firm Performance 1 2 2013 Financials 3 Net operating revenues 4 Cost of goods sold 5 Gross profit 6 Selling, general, and administrative expense 7 Other costs 8 Operating income 9 Interest expense 10 Other income (loss) - net 11 Income before income taxes 12 Income taxes 13 Net income 14 Assets 15 Cash and cash equivalents 16 Net receivables 17 Inventories 18 Prepaid expenses and other 19 Total current assets 20 Property, plant and equipment 21 Goodwill 22 Other assets 23 Total assets 24 Liabilities and Stockholder Equity 25 Accounts payable 26 Short-term debt 27 Total current liability 28 Long-term debt 29 Other liabilities 30 Total liabilities 31 Stockholder equity 32 B Walmart 469,162 352,488 116,674 88,873 27,801 2,251 187 25,737 7,981 17,756 7,781 6,768 43,803 1,588 59,940 116,681 20,497 5,987 203,105 59,099 12,719 71,818 41,417 113,235 89,870 C Macy's 27,931 16,725 11,206 8,440 88 2,678 388 (134) 2,156 767 1,389 1,836 371 5,308 361 7,876 8,196 3,743 1,176 20,991…Create an income statement and a balance sheet from the information below (this information is repeated but remains the same on other questions). Assume that the income tax rate for Peter's cookies is 6% and Peter's cookies does not incur any additional debt, issue any additional stock or distribute any dividends (hint: round up taxes to next whole dollar and net income is equal to retained earnings). Financial data Cash Cost of goods sold Short term debt Sales(revenue) Building Long term debt Expenses Inventory Interest expense $88,666 $66,688 $88,866 12,000 $66,888 90,555 100,000 241,055 175,000 Equipment 32,733 Accounts payable 122,000 Accounts receivable 36,000 Equity 35,000 Marketable securities 150,000 As of December 31, 2012 what is the net income for Peter's Cookies 120,000 73,555 37,955 6,000Fujita, Incorporated, has no debt outstanding and a total market value of $450,000. Earnings before interest and taxes, EBIT, are projected to be $57,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 16 percent higher. If there is a recession, then EBIT will be 24 percent lower. The company is considering a $215,000 debt issue with an interest rate of 8 percent. The proceeds will be used to repurchase shares of stock. There are currently 9,000 shares outstanding. Ignore taxes for questions (a) and (b). Assume the company has a market- to-book ratio of 1.0 and the stock price remains constant. a-1. Calculate return on equity (ROE) under each of the three economic scenarios before any debt is issued. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) a-2. Calculate the percentage changes in ROE when the economy expands or enters a recession. (A negative answer should be…
- calculate the efficiency ratios, liquidity ratios, leverage ratios, and profitability ratios for KPC Corporation for this year. Where data is available, also calculate ratios for last year. Use a 360-day year. All sales are on credit to business customers. Assume an income tax rate of 30 percent.The Lancaster Corporation's income statement is given below. Sales Cost of goods sold Gross profit Fixed charges (other than interest) Income before interest and taxes LANCASTER CORPORATION Interest Income before taxes Taxes (35%) Income after taxes a. What is the times-interest-earned ratio? Note: Round your answer to 2 decimal places. Times interest earned Fixed charge coverage times b. What would be the fixed-charge-coverage ratio? Note: Round your answer to 2 decimal places. times $ 234,000 175,000 $ 59,000 33,000 $ 26,000 17,300 $ 8,700 3,045 $ 5,655A. Wally asks you to create an Income Statement for 2020 using the information below. 1. 2020 sales were 150% of last year’s sales2. Gross profit margin was 55%3. Operating profit margins were 15% 4. Interest expense fell to 7%, given a change in interest rates 5. The tax rate was 30% B. Based on the change in Income between 2020 and 2019, how would you say AndrewCo is doing?
- Keller Cosmetics maintains an operating profit margin of 8.15% and a sales-to-assets ratio of 3.20. It has assets of $530,000 and equity of $330,000. Assume that interest payments are $33,000 and the tax rate is 30%. a. What is the return on assets? b. What is the return on equity? Note: For all requirement, enter your answers as a percent rounded to 2 decimal places. a. Return on assets b. Return on equity % %Which of the following has the highest interest rate? Select one: a. Corporate Bond O b. Government Bond c. Treasury Bills d. Callable Corporate Bond The ratio that is used to compare the market value between companies is Select one: a. Equity Muitiplier b. EPS c. P/E d. Profit margin You have 50,000BD which you can use to either buy cars or to deposit in a bank account for 1 year. Inflation for the year is estimated to be 7%, and the bank deposit rate is 4.5%. if you had a goal of purchasing as many cars as possible, when should you buy them? Select one: a. Now b. After a year c. After 2 years d. Not enough information to decideBased on the financial statements calculate the (1) efficiency ratios, (2) liquidity ratios, (3) leverage ratios, and (4) profitability ratios for KPC Corporation for this year. Where data is available, also calculate ratios for last year. Use a 360-day year. All sales are on credit to business customers. Assume an income tax rate of 30 percent.
- 7. If net sales amounted to P200,000, net income before tax is P80,000 and the income tax rate is 30%, how much is the profit margin ratio? *a. 0.40b. 0.28c. 2.5d. 3.57 8. Interest expense for the year amounted to P90,000. Income tax expense is P100,000. If net income after tax is P620,000, what is the times interest earned ratio? *a. 6.2b. 9c. 6.888d. P720,000The net profit margin tells how much profit a company makes for every dollar it generates in revenue. If N is the net income (the income after taxes have been paid) and R is the total revenue, then the net profit margin M is given by M(N, R) = . A certain company pays a tax rate of 10% on its income. (a) Use I for the income before taxes, and express the net income N in terms of I. (Be careful: N is the part of I left after taxes-not the part you pay in taxes.) N = (b) Use a formula to express the net profit margin in terms of the variables I and R. M =Using the income statement for Times Mirror and Glass Co., compute the following ratios: TIMES MIRROR AND GLASS Co. Income Statement Sales Cost of goods sold Gross profit Selling and administrative expense Lease expense Operating profit* Interest expense Earnings before taxes Taxes (30%) Earnings after taxes *Equals income before interest and taxes. a.Compute the interest Interest coverage ge ratio. (Round yo times $ 223,000 130,000 $ 93,000 44,000 19,100 $ 29,900 10,600 times $ 19,300 7,720 $ 11,580 answer to 2 decimal places.) b.Compute the fixed charge coverage ratio. (Round your answer to 2 decimal places.) Fixed charge coverage