Finance System (problem 2-12)

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This document provides financial information for Apex-Pal International Ltd. for 2007 and 2008. It includes income statements, balance sheets, and questions about working capital, free cash flow, and dividends. Specifically: Net working capital was $210 million in both 2007 and 2008. Free cash flow in 2008 was $58 million. The large increase in dividends from 2007 to 2008 can be explained by the company's higher net income providing more funds for dividends.

FINANCIAL STATEMENTS, CASH
FLOWS AND TAXES
Problem 2-12
pp. 55-56

2008 2007
Sales $1,200.00 $1000.0
Operating costs excluding depreciation and
amortization
$1,020.00 850.0
EBITDA $180.0 $150.0
Depreciation and amortization 30.0 25.0
Earnings before interest and taxes $150.0 $125.0
Interest 21.7 20.2
Earnings before taxes $128.3 $104.8
Taxes (40%) 51.3 41.9
Net Income $77.0 $62.9
Common Dividends $60.5 $46.4

APEX-PAL International Ltd.: Balance Sheets as of December 31
(million of dollars)
2008 20
Assets
Cash and Cash Equivalents $12.0 $1
Accounts Receivable 180.0 15
Inventories 180.0 20
Total Current Assets $372.0 $36
Net Plant and Equipment 300.0 25
Total Assets $672.0 $61
Liabilities and Equity
Accounts Payable $108.0 $9
Notes Payable 67.0
Accruals 72.0 6
Total Current Liabilities $247.0 $2
Long-term Bonds 150.0 15
Total Debt $397.0 $3
Common stock (50 million shares) 50.0 5
Retained Earnings 225.0 20
Common Equity $275.0 $25

1. WHAT ARE THE NET WORKING CAPITAL FOR
2007 AND 2008?
 Net Working Capital= Current Assets-(Payables + Payables)
= $360.0 - ($90.0+$60.0)
=$360.0 - $150.0
2007 =$210.0
2008 =$210.0

2. WHAT WAS THE 2008 FREE CASH FLOW?
 FCF=EBIT(1-T) + Depreciation – [(Capital
Expenditures + Change in Net Working Capital)]
= $150.0 (1-.40) + 30.0 – $80.0 + [(372-360) –
(180-150)]
= $90.0 + 30.0 – $80.0 + $18.0
FCF = $58 million dollars

3. HOW WOULD YOU EXPLAIN THE LARGE
INCREASE IN 2008 DIVIDENDS?
 Due to the increase in the company’s net
income, there are more funds to render out
dividends.

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This assignment for American Eagle Outfitter for Fed 2,2013 -Jan,28 2012 Tool Kit for Analysis of Financial Statements Financial statements are analyzed by calculating certain key ratios and then comparing them with the ratios of other firms and by examining the trends in ratios over time. We can also combine ratios to make the analysis more revealing, those indicated below are exceptionally useful for this type of analysis. RATIO ANALYSIS (Section 3.1) American Eagle outtfitters Years starts and ends on Feb 2 2013, Jan 28,2012 Input Data: 2013 2012 Year-end common stock price $12.26 $13.86 Year-end shares outstanding (in thousands) 616,756 612,191 Tax rate 15% 12% After-tax cost of capital Lease payments (in thousands) $18,998 $21,439 Required sinking fund payments $0 $0 Balance Sheets (in thousands of dollars) Assets 2013 2012 Cash and equivalents $906,223 $767,218 * Added to cash and quivalents prepaid expense and deferred income taxes Short-term investments $2,995,097 $2,461,700 2013 2012 Accounts receivable $454,252 $336,143 69,701 49,411 prepaid expenses and other Inventories $419,686 $340,297 103,736 49,931 deferred income taxes Total current assets $4,775,258 $3,905,358 Net plant and equipment $1,636,987 $1,647,570 * In addition to equpment also includes goodwill, intangible assets, and other assets Total assets $6,412,245 $5,552,928 2013 2012 641,030 641,030 goodwill Liabilities and equity 312,332 326,136 intangible assets Accounts payable $356,428 $335,072 107,481 120,332 other assets Notes payable $0 $0 Accruals $619,795 $594,886 Total current liabilities $976,223 $929,958 Long-term bonds $608,319 $477,246 2013 2012 Total liabilities $1,584,542 $1,407,204 3,193,623 2,900,896 additional paid-in capital Preferred stock (2,00,000 shares: none issued) $0 $0 -1,622,709 -1,496,904 treasury stock Common stock (616,756,134 shares oustanding 2013 and 612,191,412 outstanding in 2012 $720 $700 9981 10,614 accumulated other comprehensive income Retained earnings $3,246,088 $2,730,418 Total common equity $4,827,703 $4,145,724 * Added to Total Common equity additional paid-in capital, treasuary stock, and accumulated other comprehensive income Total liabilities and equity $6,412,245 $5,552,928 Income Statements (in thousands of dollars) 2013 2012 Net sales $4,280,159.0 $3,997,930.0 Operating costs $3,631,920.0 $3,349,631.0 Earnings before interest, taxes, depr. & amort. (EBITDA) $648,239.0 $648,299.0 Depreciation $0.0 $0.0 Amortization $0.0 $0.0 Depreciation and amortization $0.0 $0.0 Earnings before interest and taxes (EBIT) $648,239.0 $648,299.0 Less interest -$13,800.0 -$15,097.0 Earnings before taxes (EBT) $662,039.0 $663,396.0 Taxes (15.0%,.

Question 3Q=50,000 - (25 P)FC=2,750,000VC=200unitTC=FC+VCTVC=VC.docx

makdul

Question 3Q=50,000 - (25 * P)FC=2,750,000VC=200/unitTC=FC+VCTVC=VC/unit * # of Units ProducedTC=$2,750,000 + 200QQ=50,000 - (25 * P)25P=50,000-QP=(50,000/25) - (1Q/25)P=2000 - 0.04QTR=P * QTR=(2000 - 0.04Q) * QTR=2000Q-0.04Q2MR=dTR=2000 - 0.08QdQMC=dTC=200dQMR = MC at profit maximizing levelQ2000 - 0.08Q = 200Q0.08Q = 2000 - 200Q0.08Q = 1800Q1800/0.08 = 25,500Q=25,500P=2000 - 0.04QP=2000 - 0.04 (22,500)P=2000 - 900P=$1,100AC=TC/QTC=$2,750,000 + 200 (22,500)TC=$2,750,000 + 4,500,000TC=7,250,000AC=MCAC=$200Profit=TR - TCTR=P * QTR=$1,100 * 22,500TR=24,750,000.00Profit=24,750,000 - 7,250,000Profit=17,500,000==== Question 4Impacts of the ransactions on the major financial statementsStatement of cash flowsCash flows from operating activitiesRevenuesDiscount on goods$ (800,000.00)Total operating cash inflowsCash flows from investing activitiesIncrease in the value ofProperty, Plant, and Equipment$ 2,100,000.00Net flow from other non operating activitiesDecrease in accounts receivable$ (1,500,000.00)Total cash flows $ (200,000.00)Income statementRevenues$ (800,000.00)ExpensesBad debt expense$ 1,500,000.00Gross profit$ (2,300,000.00)Add: Income from non-operating activities$ 2,100,000.00Net income$ (200,000.00)Balance sheetsCurrent assetsLiabilities and stockholders equityCash$ 2,100,000.00Dividends & retained earnings$ 2,100,000.00$ (800,000.00)Less:$ (1,500,000.00)Net change in cash$ 1,300,000.00$ (800,000.00)Accounts receivable$ (1,500,000.00)Change in the Total assets$ (200,000.00)Change in stockholders equity$ (200,000.00)A write-off of an Accounts Receivable amount of $1.5 millionThis reduces the accounts receivable in the balance sheet by $1.5 million.In the income statement, the operating expense (bad debts expense increases by $1.5 million) thus decreasing the net income by the same amount.In the statement of cash flows, the change in the accounts receivable decreases by $1. millionProperty, Plant, and Equipment asset valued at $5 million for cash, which generated a profit of $2.1 million.Cash flow from the sale of property, plant and equipmet increases in the statement of cash flows by $2.1 millionIncome from non operating activities increases by $2.1 million Cash in the balance sheet will increase by $2.1 millionIPS gave a 10% discount to a customerThe revenues in the income statement will decrease by $0.8 millionCash in the balance sheet statement will decrease by $0.8 millionIn the statement of cash flows, the net income will decrease by $0.8 million AMD Income StatementConsolidated Statements of Operations - USD ($) shares in Millions, $ in Millions12 Months EndedDec. 31, 2016Dec. 26, 2015Dec. 27, 2014Income Statement [Abstract]Net revenue$4,272$3,991$5,506Cost of sales3,2742,9113,667Gross margin9981,0801,839Research and development1,0089471,072Marketing, general and administrative460482604Amortization of acquired intangible assets0314Restructuring and other special charges, net-1012971Licensing gain- ...

Analysis of Financial statements of ABC Inc

Lovneet Singh

Ch02 P14 Build a Model Spring 1, 201372212Chapter 2. Ch 02 P14.docx

arnit1

Ch02 P14 Build a Model Spring 1, 20137/22/12Chapter 2. Ch 02 P14 Build a ModelExcept for charts and answers that must be written, only Excel formulas that use cell references or functions will be accepted for credit. Numeric answers in cells will not be accepted.a. Cumberland Industries' most recent sales were $455,000,000; operating costs (excluding depreciation) were equal to 85% of sales; net fixed assets were $67,000,000; depreciation amounted to 10% of net fixed assets; interest expenses were $8,550,000; the state-plus-federal corporate tax rate was 40% and Cumberland paid 25% of its net income out in dividends. Given this information, construct Cumberland's income statement. Also calculate total dividends and the addition to retained earnings.The input information required for the problem is outlined in the "Key Input Data" section below. Using this data and the balance sheet above, we constructed the income statement shown below.Key Input Data for Cumberland Industries2010 (Thousands of dollars)Sales Revenue$455,000Expenses (excluding depreciation) as a percent of sales85.0%Net fixed assest$67,000Depr. as a % of net fixed assets10.0%Tax rate40.0%Interest expense$8,550Dividend Payout Ratio25%Cumberland Industries: Income Statement (Thousands of dollars)2010SalesOperating costs excluding depreciation EBITDADepreciation (Cumberland has no amortization charges) EBITInterest expense EBTTaxes (40%) Net incomeCommon dividendsAddition to retained earningsb. Cumberland Industries' partial balance sheets are shown below. Cumberland issued $10,000,000 of new common stock in the most recent year. Using this information and the results from part a, fill in the missing values for common stock, retained earnings, total common equity, and total liabilities and equity. Dollar value of common stock issued (in thousands of dollars)$10,000Cumberland Industries December 31 Balance Sheets(in thousands of dollars)20102009AssetsCash and cash equivalents$91,450$74,625Short-term investments11,40015,100Accounts Receivable108,47085,527Inventories38,45034,982 Total current assets$249,770$210,234 Net fixed assets67,00042,436Total assets$316,770$252,670Liabilities and equityAccounts payable$30,761$23,109Accruals30,40522,656Notes payable12,71714,217 Total current liabilities$73,883$59,982Long-term debt80,26363,914 Total liabilities$154,146$123,896Common stock$90,000Retained earnings38,774 Total common equity$128,774Total liabilities and equity$252,670Check for balancing (this should be zero):c. Construct the statement of cash flows for the most recent year. Statement of Cash Flows(in thousands of dollars)Operating ActivitiesNet IncomeAdjustments: Noncash adjustment: Depreciation Due to changes in working capital: Due to change in accounts receivable Kenneth D. Jackson: An increase in accounts receivable from the pevious year to the current year reduces the net cash provided by operating activities Due to change in inventories Kenneth D. ...

The Coca-Cola Company - Financial Analysis and ProjectionsRaeann Bailey

Financial Management

Rohit Krishnan

I am working on a Supply Chain problem and I am struggling to find t.pdf

amiteksecurity

I am working on a Supply Chain problem and I am struggling to find the following: Profit Margin Asset Turnover Cash to Cash (C2C) Accounts Receivable Turnover (ART) Inventory Turnover (INVT) Property, plant, and equipment Turnover (PPET) Please show work so I can follow! Year End January 31, 2013 ($ millions) Net Operating Revenues Cost of Goods Sold Gross Profit Selling, General and administrative expense Operating Income Interest Expense Other income (loss) net Income before income taxes ncome taxes Net Income Walmart 469,162 352,488 1,166,745 88,873 27,801 2,251 187 25,737 7,981 17,756 Assets Cash and cash equivalents Net receivables Inventories Total current assets Property, plant, and equipment Goodwill Other assets Total assets 7,781 6,768 43,803 59,940 116,681 20,497 5,987 203,105 Liabilities and Stockholder Equity Accounts payable Short-term debt Total current liability Long-termm debt Total liabilities Stockholder equity 59,099 12,719 71,818 41,417 126,243 76,343 Solution = Net income/net sales x100 =$17,756/$469,162 x 100 =3.78 =Net sales/Average total assets =$469,162/$203,105 =2.31 = Cash + Cash equivalents/ =$7,781/$71,818=0.11 4.Accounts receivable turnover =Net credit sales/Average accounts receivables =$469,162/$6,768=69.32 5.Inventory Turnover =Cost of Goods sold/Average inventory =$352,488/$43,803 =8.05 6.Property ,Plant and equipment Turnover =Net sales/ Net Property ,Plant and equipment =$469,162/$116,681 =4.02.

ch17X.ppt

ViviIndahBintari1

Company InformationACCT 370 Excel ProjectJohnson & JohnsonCompany

LynellBull52

Company InformationACCT 370 Excel ProjectJohnson & JohnsonCompany InformationCompany NameJohnson & JohnsonTicker SymbolJNJIndustryPharmaceuticals, Consumer products, Medical DevicesProducts and Services OfferedBeauty, Over The Counter Pharmaceuticals, Baby Care, Oral Care, Women's Health, Wound CareImmunology, Infectious Disease Vaccines, Neuroscience, Oncology, Cardiovascular Metabolic DiseasesOrthopaedic, Surgery, Cardiovascular, Diabetes care, Vision CareMajor CompetitorsPfizer, Merck, Proctor & Gamble, Bristol Myers Squibb, Unilever Historical Income StatementsJOHNSON & JOHNSON AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOMEAt December 30, 2018 and December 30, 2017(Dollars in Millions) (Note 1)$2,018.00$2,017.00$2,016.00Net earnings$15,297.00$1,300.00$16,540.00Other comprehensive income (loss), net of tax Foreign currency translation-$1,518.00$1,696.00-$612.00 Securities: (1) Unrealized holding gain (loss) arising during period-$1.00$159.00-$52.00 Reclassifications to earnings$1.00-$338.00-$141.00 Net change$0.00-$179.00-$193.00 Employee benefit plans: Prior service credit (cost), net of amortization-$44.00$2.00$21.00 Gain (loss), net of amortization-$56.00$29.00-$862.00 Effect of exchange rates$92.00-$201.00$159.00 Net change-$8.00-$170.00-$682.00 Derivatives & hedges: Unrealized gain (loss) arising during period-$73.00-$4.00-$359.00 Reclassifications to earnings-$192.00$359.00$110.00 Net change-$265.00$355.00-$249.00Other comprehensive income (loss)-$1,791.00$1,702.00-$1,736.00Comprehensive income$13,506.00$3,002.00$14,804.00 Historical Balance SheetsJOHNSON & JOHNSON AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETSAt December 30, 2018 and December 30, 2017(Dollars in Millions Except Share and Per Share Amounts) (Note 1)201820172016AssetsCurrent assetsCash and cash equivalents (Notes 1 and 2)$ 18,107.00$ 17,824.00$ 18,972.00Marketable securities (Notes 1 and 2)$ 1,580.00$ 472.00$ 22,935.00Accounts receivable trade, less allowances for doubtful accounts $248 (2017, $291)$ 14,098.00$ 13,490.00$ 11,699.00Inventories (Notes 1 and 3)$ 8,599.00$ 8,765.00$ 8,144.00Prepaid expenses and other receivables$ 2,699.00$ 2,537.00$ 3,282.00Assets held for sale (Note 20)$ 950.00$ - 0$ - 0Total current assets$ 46,033.00$ 43,088.00$ 65,032.00Property, plant and equipment, net (Notes 1 and 4)$ 17,035.00$ 17,005.00$ 15,912.00Intangible assets, net (Notes 1 and 5)$ 47,611.00$ 53,228.00$ 26,876.00Goodwill (Notes 1 and 5)$ 30,453.00$ 31,906.00$ 22,805.00Deferred taxes on income (Note 8)$ 7,640.00$ 7,105.00$ 6,148.00Other assets$ 4,182.00$ 4,971.00$ 4,435.00Total assets$ 152,954.00$ 157,303.00$ 141,208.00Liabilities and Shareholders’ EquityCurrent liabilitiesLoans and notes payable (Note 7)$ 2,796.00$ 3,906.00$ 4,684.00Accounts payable$ 7,537.00$ 7,310.00 ...

Company information acct 370 excel projectjohnson & johnsoncompany

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Analysis of Financial statements of ABC Inc

Ch02 P14 Build a Model Spring 1, 201372212Chapter 2. Ch 02 P14.docx

The Coca-Cola Company - Financial Analysis and Projections

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Company information acct 370 excel projectjohnson & johnsoncompany

Finance System (problem 2-12)

1. FINANCIAL STATEMENTS, CASH FLOWS AND TAXES Problem 2-12 pp. 55-56

2. 2008 2007 Sales $1,200.00 $1000.0 Operating costs excluding depreciation and amortization $1,020.00 850.0 EBITDA $180.0 $150.0 Depreciation and amortization 30.0 25.0 Earnings before interest and taxes $150.0 $125.0 Interest 21.7 20.2 Earnings before taxes $128.3 $104.8 Taxes (40%) 51.3 41.9 Net Income $77.0 $62.9 Common Dividends $60.5 $46.4

3. APEX-PAL International Ltd.: Balance Sheets as of December 31 (million of dollars) 2008 20 Assets Cash and Cash Equivalents $12.0 $1 Accounts Receivable 180.0 15 Inventories 180.0 20 Total Current Assets $372.0 $36 Net Plant and Equipment 300.0 25 Total Assets $672.0 $61 Liabilities and Equity Accounts Payable $108.0 $9 Notes Payable 67.0 Accruals 72.0 6 Total Current Liabilities $247.0 $2 Long-term Bonds 150.0 15 Total Debt $397.0 $3 Common stock (50 million shares) 50.0 5 Retained Earnings 225.0 20 Common Equity $275.0 $25

4. 1. WHAT ARE THE NET WORKING CAPITAL FOR 2007 AND 2008?  Net Working Capital= Current Assets-(Payables + Payables) = $360.0 - ($90.0+$60.0) =$360.0 - $150.0 2007 =$210.0 2008 =$210.0

5. 2. WHAT WAS THE 2008 FREE CASH FLOW?  FCF=EBIT(1-T) + Depreciation – [(Capital Expenditures + Change in Net Working Capital)] = $150.0 (1-.40) + 30.0 – $80.0 + [(372-360) – (180-150)] = $90.0 + 30.0 – $80.0 + $18.0 FCF = $58 million dollars

6. 3. HOW WOULD YOU EXPLAIN THE LARGE INCREASE IN 2008 DIVIDENDS?  Due to the increase in the company’s net income, there are more funds to render out dividends.

8. MEMBERS: Hannah Espanola Karen Bacharo Krestyl Anne Abrasado Rey-An Trinidad Arielle Soria Joan Mae Lee Engr. Katherene Lee Leila Selebio Charmi Gatoc Charizze Hechanova Paul Magbanua

Finance System (problem 2-12)

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