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Below is a 2-part question. Please create a word document and/or spreadsheet to

ID: 2529335 • Letter: B

Question

Below is a 2-part question. Please create a word document and/or spreadsheet to answer the following prompts. Upload your response according to the directions. Thank you in advance for participating in Silberman College of Business’ assurance of learning assessment.

Part I: Reporting and Financial Statement Analysis

Given the following financial statements for Voice-Soft, a voice recognition company, answer the questions on the next page.

Income Statement for years

2010

2009

Sales

$5,500

$5,000

Operating Costs excluding Depreciation and Amortization

4,675

4,250

EBITDA

825

750

Depreciation and Amortization

190

180

EBIT

$635

$570

Interest Expense

62

50

EBT

$573

$520

Taxes (40%)

229

208

NI

$344

$312

Balance Sheet for years ending December 31

2010

2009

Assets:

Cash

$275

$250

Short Term Investments

55

50

Accounts Receivable

1,375

1,250

Inventories

825

750

   Total Current Assets

$2,530

$2,300

Net Plant and Equipment

1,925

1,750

Total Assets

$4,455

$4,050

Liabilities:

Notes Payable

$192

$100

Accounts Payable

580

500

Miscellaneous Payables

245

250

   Total Current Liabilities

$1,017

$850

Long-Term Debt

550

500

   Total Liabilities

$1,567

$1,350

Common Stock

2154

2,200

Retained Earnings

734

500

Less Treasury Stock

46

0

   Total Shareholder Equity

$2,888

$2,700

Liabilities and Shareholder Equity

$4,455

$4,050

Cash Flow Statement for year ending December 31, 2010

Operating Activities

   Net Income

$344

   Depreciation and Amortization

190

   Increase in Accounts Receivables

(125)

   Increase in Inventories

(75)

   Increase in Accounts Payables

80

   Decrease in Miscellaneous Payables

(5)

       Net Cash Provided by Operations

409

Investing Activities

   Purchase of equipment

(365)

   Increase in Short Term Investments

(5)

       Net Cash Used for Investment Activities

(370)

Financing Activities

   Dividends paid

(110)

   Increase in Notes Payable

92

   Increase in Long Term Debt

50

   Purchase stock for Treasury

(46)

       Net Cash used for Financing Activities

(14)

Beginning Cash Balance January 1, 2010

250

Ending Cash Balance December 31, 2010

275

      Net Cash Flow

$25

Develop and analyze the results of an extended DuPont equation based on 2009 and 2010.

??????=???????????? ???? ????????????????????? ?????????? ????????????????????????????? ????????????????????=,????-??????????.?,??????????-?????????? ????????????.?,?????????? ????????????-???????????????????? ????????????.

Income Statement for years

2010

2009

Sales

$5,500

$5,000

Operating Costs excluding Depreciation and Amortization

4,675

4,250

EBITDA

825

750

Depreciation and Amortization

190

180

EBIT

$635

$570

Interest Expense

62

50

EBT

$573

$520

Taxes (40%)

229

208

NI

$344

$312

Explanation / Answer

a DuPont Analysis 1 Total Margin =Net Income/Net Turnover% 2010 2009 =344/5500% =312/5000% 6.254545 6.24 2 Total asset turnover =Net sales/Total asset 2010 2009 =5500/4455 =5000/4050 1.234568 1.234567901 3 Equity Multiplier =Total asset/Total stockholder's equity 2010 2009 =4455/2888 =4050/2700 1.54259 1.5 4 Return on equity =profit margin*Total asset turnover*Equity Multiplier 2010 =6.2545*1.234568*1.54259 11.91 2009 =6.24*1.23456*1.5 11.56

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