Financial Management Assignment Use the provided Excel template to submit your responses to each of the study problems from the textbook below:3–13, p. 73. Reviewing financial statements3–15, p. 7
3–13. (Reviewing financial statements) Prepare a balance sheet and income statement for TNT, Inc., from the following scrambled list of items:
Depreciation expense | $ 99,000 |
Cash | 337,500 |
Long-term debt | 501,000 |
Sales | 859,500 |
Accounts payable | 153,000 |
General and administrative expense | 118,500 |
Buildings and equipment | 1,342,500 |
Notes payable | 113,850 |
Accounts receivable | 251,250 |
Interest expense | 7,125 |
Accrued expenses | 11,850 |
Common stock | 433,500 |
Cost of goods sold | 445,500 |
Inventory | 148,950 |
Taxes | 75,750 |
Accumulated depreciation | 394,500 |
Taxes payable | 79,500 |
Retained earnings | 393,000 |
3–15. (Analyzing the cash flow statement) The cash flow statements for retailing giant BigBox, Inc., spanning the period 2013–2016 are as follows:
(US$ millions) | 12/31/2016 | 12/31/2015 | 12/31/2014 | 12/31/2013 |
Net income | $ 13,000 | $ 12,000 | $ 11,000 | $ 10,000 |
Depreciation expense | 6,500 | 6,300 | 5,000 | 4,000 |
Changes in working capital | 1,200 | 2,300 | 2,400 | 1,000 |
Cash flow from operating activities | $ 20,700 | $ 20,600 | $ 18,400 | $ 15,000 |
Capital expenditures | $ (16,000) | $ (14,500) | $ (14,000) | $ (12,300) |
Cash flow from investing activities | $ (16,000) | $ (14,500) | $ (14,000) | $ (12,300) |
Interest and financing cash flow items | $ (350) | $ (250) | $ (350) | $ 100 |
Total cash dividends paid | (3,600) | (2,800) | (2,500) | (2,200) |
Issuance (retirement) of stock | (8,000) | (1,500) | (3,600) | (4,500) |
Issuance (retirement) of debt | 1,500 | (100) | 4,000 | 4,100 |
Cash flow from financing activities | $ (10,450) | $ (4,650) | $ (2,450) | $ (2,500) |
Net change in cash | $ (5,750) | $ 1,450 | $ 1,950 | $ 200 |
4–25. (Calculating financial ratios) The balance sheet and income statement for the J. P. Robard Manufacturing Company are as follows:
Balance Sheet ($ thousands) | |
Cash | $ 500 |
Accounts receivable | 2,000 |
Inventory | 1,000 |
Total current assets | 3,500 |
Net fixed assets | 4,500 |
Total assets | $8,000 |
Accounts payable | $1,100 |
Accrued expenses | 600 |
Short-term notes payable | 300 |
Total current liabilities | $2,000 |
Long-term debt | 2,000 |
Total common stockholders’ equity | 4,000 |
Total liabilities and stockholders’ equity | $8,000 |
J. P. Robard Manufacturing Company | |
Income Statement ($ thousands) | |
Net sales (all credit) | $8,000 |
Cost of goods sold | (3,300) |
Gross profit | $4,700 |
Operating expenses (includes $500 depreciation) | (3,000) |
Net operating income | $1,700 |
Interest expense | (367) |
Earnings before taxes | $1,333 |
Income taxes (40%) | (533) |
Net income | $ 800 |
J. P. Robard Manufacturing Company |
Calculate the following ratios:
Current ratio | Operating return on assets |
Times interest earned | Debt ratio |
Inventory turnover | Average collection period |
Total asset turnover | Fixed asset turnover |
Operating profit margin | Return on equity |