USE THE DATA IN THE TABLE BELOW TO ANSWER QUESTIONS 19 – 24 (Assume all account
ID: 2668924 • Letter: U
Question
USE THE DATA IN THE TABLE BELOW TO ANSWER QUESTIONS 19 – 24(Assume all account figures are in dollars)
Jaguar Productions 2009 2010
Accounts payable 230 360
Accounts receivable, net 1,650 1 ,550
Accruals 225 285
Cash 95 35
Common stock 1,810 1,500
Cost of goods sold 4,430 4,820
Depreciation expenses 420 590
Interest expenses 180 270
Inventory 4,930 5,620
Long-term debt 6,500 6,820
Net fixed assets 8,910 9,440
Net sales 8,550 9,090
Notes payable 400 840
Operating expenses (excl.dep) 2,310 2 ,580
Retained earnings 6,420 6,840
Taxes 390 290
19. Gross Profit for 2010 is $________.
20. The times interest earned ratio for 2010 is ____X.
21. ROE for 2010 is _____%.
22. Cash flow from operating activities in 2010 is $ _______.
23. Cash flow from investing activities in 2010 is $ _________.
24. Cash flow from financing activities in 2010 is $ _________.
Explanation / Answer
19. Gross Profit is just Revenue - Cost of Goods Sold. Here that is 9090 - 4820 = 4270 20. The TIE or times interest earned is simply EBIT/interest expense. We dont know EBIT so we must find EBIT which is Sales - COGS - depreciation - operating expenses = 1100 so TIE is = 1100/270 = 4.074x 21. ROE is Net Income/Shareholders Equity. Net income = (EBIT - Interest Expense) - Taxes = (1100-270) - (290) = 540. Shareholders Equity = Retained earnings + common stock = 6840 + 1500 = 8340 so ROE = 540/8340 = 6.47% 22. CFO = Net Income + Depreciation + change in A/R + change in inventory + change in accounts payable - change in accruals = 540 + 590 + (1550-1650) + (4930 - 5620) + (360-230) + (225-285) = 530 23. CFI = Capital expenditures which is change in net fixed assets = (8910-9440) = -530 24. CFF = change in LTD debt + change in notes payable = (6820 - 6500) + (840 - 400) = 760
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