Solve in excel plz and show work Financial Statements ABC CORPORATION Balance Sh
ID: 2549835 • Letter: S
Question
Solve in excel plz and show work
Financial Statements
ABC CORPORATION
Balance Sheet
Year Ended December 31 (in $ millions)
Assets
2006
2005
Liabilities & Stockowner’s Equity
2006
2005
Current Assets
Current Liabilities
Cash
22.2
19.5
Accounts Payable
29.2
24.5
Accounts Receivables
18.5
13.2
Notes Payable / Short-Term Debt
4.5
3.2
Inventories
14.2
14.3
Current Maturities of Long-Term Debt
13.3
12.3
Other Current Assets
2.0
1.0
Other Current Liabilities
3.0
4.0
Total Current Assets
56.9
48.0
Total Current Liabilities
50.0
45.0
Long Term Assets
Long-Term Liabilities
Land
22.2
20.7
Long-Term Debt
98.9
56.3
Buildings
36.5
30.5
Capital Lease Obligations
---
---
Equipment
39.7
33.2
Total Debt
98.9
56.3
Less Accumulated Depreciation
(18.7)
(17.5)
Deferred Taxes
7.6
7.4
Net Property, Plant, and Equipment
79.7
66.9
Other Long-Term Liabilities
----
----
Goodwill
22.0
---
Total Long Term Liabilities
106.5
63.7
Other Long-Term Assets
21.0
14.0
Total Liabilities
156.5
108.7
Total Long Term Assets
122.7
80.9
Stockholder’s Equity
23.1
20.2
Total Assets
179.6
128.9
Total Liabilities and Stockholder’s Equity
179.6
128.9
ABC Corporation
Income Statement
Year Ended December 31 ($ in millions)
2006
2005
Total Sales
188.8
176.1
Cost of Sales
(153.4)
(147.3)
Gross Profit
35.4
28.8
Selling, General and Administration Expenses
(13.5)
(13.0)
Research and Development
(9.2)
(7.6)
Depreciation and Amortization
(2.2)
(1.1)
Operating Income
10.5
7.1
Other Income
----
----
Earnings Before Interest and Tax (EBIT)
10.5
7.1
Interest Income (or Expense)
(7.7)
(4.6)
Pretax Income
2.8
2.5
Taxes
(0.7)
(0.6)
Net Income
2.1
1.9
Earnings per share
$0.556
$0.528
Diluted Earnings Per Share
$0.526
$0.500
ABC Corporation has 3.8 million shares outstanding and shares are trading for $15
Calculate the following for 2005. – (30PTS, Two Points Each)
Quick Ratio
Current Ratio
Market to Book Ratio
Debt to Equity Ratio
Enterprise Value
EPS
Operating Margin
Net Profit Margin
Return on Equity
P/E Ratio
Inventory Turnover
Days of Sales Outstanding
ROA
ROE
Did the tax rate increase from 2005 to 2006? If so, by how much?
Assets
2006
2005
Liabilities & Stockowner’s Equity
2006
2005
Current Assets
Current Liabilities
Cash
22.2
19.5
Accounts Payable
29.2
24.5
Accounts Receivables
18.5
13.2
Notes Payable / Short-Term Debt
4.5
3.2
Inventories
14.2
14.3
Current Maturities of Long-Term Debt
13.3
12.3
Other Current Assets
2.0
1.0
Other Current Liabilities
3.0
4.0
Total Current Assets
56.9
48.0
Total Current Liabilities
50.0
45.0
Long Term Assets
Long-Term Liabilities
Land
22.2
20.7
Long-Term Debt
98.9
56.3
Buildings
36.5
30.5
Capital Lease Obligations
---
---
Equipment
39.7
33.2
Total Debt
98.9
56.3
Less Accumulated Depreciation
(18.7)
(17.5)
Deferred Taxes
7.6
7.4
Net Property, Plant, and Equipment
79.7
66.9
Other Long-Term Liabilities
----
----
Goodwill
22.0
---
Total Long Term Liabilities
106.5
63.7
Other Long-Term Assets
21.0
14.0
Total Liabilities
156.5
108.7
Total Long Term Assets
122.7
80.9
Stockholder’s Equity
23.1
20.2
Total Assets
179.6
128.9
Total Liabilities and Stockholder’s Equity
179.6
128.9
Explanation / Answer
Calculation of ratios for 2005 (All amounts are in $ million)
a) Quick ratio = Liquid Assets/Current Liabilities
Liquid Assets = Total Current Assets - Inventories
= $48.0 - $14.3 = $33.7
Quick ratio = $33.7/$45.0 = 0.75
b) Current Ratio = Current Assets/Current Liabilities
= $48.0/$45.0 = 1.07
c) Market to Book Ratio = Market Value of shares/Book Value of shares
Market Value of shares = No. of shares outstanding*Market Price per share
= 3.8 million*$15 per share = $68.4 million
Book value of shares is equal to stockholder's equity
Market to Book Ratio = $68.4/$20.2 = 3.4
d) Debt to Equity Ratio = Total Liabilites/Stockholder's Equity
= $108.7/$20.2 = 5.4
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