Finance 5questions

Figuroa Corp

 

 

 

Balance Sheet

 

 

 

FYE 12/31/2015

 

 

 

Assets:

2015

 

2014

Current Assets

 

 

 

Cash

13407

 

6135

Accounts Receivable

30915

 

28419

Inventory

56295

 

51163

Total Current Assets

100617

 

85717

 

 

 

 

Property Plant and Equipment

525000

 

475000

Less Accumulated Depreciation’

-167440

 

-148544

Net Property Plant and Equipment

357560

 

326456

Total Assets

458177

 

412173

 

 

 

 

Liabilities and Owners Equity

 

 

 

Current Liabilities

 

 

 

Accounts Payable

48185

 

45166

Notes payable

18257

 

17773

Total Current Liabilities

66442

 

62939

 

 

 

 

Long Term Debt

39000

 

44000

Total Liabilities

105442

 

106939

 

 

 

 

Owners Equity

 

 

 

Common Stock &

 

 

 

Paid in Capital

50000

 

45000

 

 

 

 

Retained Earnings

302735

 

260234

Total Owners Equity

352735

 

305234

Total Debt and O/E

458177

 

412173

 

 

 

 

 

 

 

Figuroa Corp

 

 

 

Income Statement

 

 

 

FYE 12/31/2015

 

 

 

Sales

925000

 

 

Cost of Goods Sold

735000

 

 

Depreciation

18896

 

 

Fixed Costs

45000

 

 

Earnings Before Interest and Ta
xes

126104

 

 

Interest

3500

 

 

Taxable Income

122604

 

 

Income Tax

22604

 

 

Net Income

100000

 

 

Dividends Paid

57499

 

 

Additions to Retained earnings

42501

 

 

 

 

For the Financial Statements above, compute the Operating Cash Flow, Cash Flow from Assets, Cash Flow to Creditors and Cash Flow to Stockholders for FYE 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2.) For the Financial Statements above identify each relevant item as a Source or Use of Cash. Prepare an analysis to determine the net change in cash between 2014 and 2015.

 

 

 

 

 

 

 

 

 

 

 

 

 

3.) For the financial statements above, determine the following ratios: Accounts Receivable Turnover, Day Sales in Inventory, Debt/Equity Ratio, Current Ratio, and the Equity Multiplier

 

 

 

4.) Assume you are going to buy a car. The price of the car is $40,000. The finance company requires a 20% down payment and will finance the car at 7.25%/annum for 5 years with the first payment on the car due one month from Delivery. What is the monthly payment on the car?

 

 

 

 

What is the Effective Annual Interest Rate on the Loan?

 

 

 

 

 

5.) Find the Present Value and Net Present Value of the following cash flows using 12% as a discount rate

CF 0

-425000

CF1

85000

CF2

85000

CF3

75000

CF4

65000

CF5

75000

CF6

75000

CF7

95000

CF8

95000

CF9

95000

CF10

95000

 

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