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1) Calculate the value or the ratio of items in the boxes 2) Show your work by s

ID: 2742755 • Letter: 1

Question

1) Calculate the value or the ratio of items in the

boxes

2) Show your work by specifiying the formula you used for each of these calculations.

3) For $ values, no need to display any decimals, e.g Gross Profit = $34,000.

4) For unitless ratios and percentages, display 1 decimal place, e.g. TIE = 2.8; ROA = 4.7%.

(1)

(2)

Suggestion: Calculate the subtotals (e.g. the current assets) before going on to answer the individual questions.

Commonsize

Balance Sheet &

Income Statement

Big Apple Enterprises

2013

2014

2013

2014

Total Assets

62,000

72,000

100.0%

100.0%

Inventories

7,500

8,200

Receivables

21,000

21,000

Cash

4,500

6,000

Current Assets

Other Non-current Assets

10,500

11,300

Net Fixed Assets

18,500

25,500

Current Liabilities

19,000

14,000

Debt

23,000

28,000

Equity

20,000

30,000

Total Liabilities & Equity

Revenues

125,000

142,000

100.0%

100.0%

Cost of Goods Sold (COGS)

89,000

108,000

Gross Profit

SG&A

21,000

25,000

Operating Profit (EBIT)

Interest Expense

2,800

3,500

Earnings Before Taxes (EBT)

Taxes

Net Income After Tax (NIAT)

Other Information

Tax Rate

35%

35%

Number of Shares Outstanding

10,000

13,000

Common Dividends Paid

3,000

3,900

Share Price

$8.00

$7.50

2014 Summer2

For each of the calculations or ratios below, indicate the formula that you are using to compute the quantum as well as the numeric answer.

Year:

2014

3)

What is the company's Gross Profit in 2014?

e.g.

Gross Profit = Rev - COGS

34,000

4)

What is the company's Gross Margin in 2014?

Gross Margin = … specify your formula used

5)

What is the company's Operating Profit (EBIT) in 2014?

EBIT = … specify your formula used

6)

What was the company's Pretax Income in 2014? (EBT)

EBT = … specify your formula used

7)

How much Income Tax did they pay in 2014?

Income Tax = … specify your formula used

8)

What was the company's Net Income After Tax in 2014?

NIAT = … specify your formula used

9)

What was the company's NOPAT in 2014?

NOPAT = … specify your formula used

10)

What was the company's Times Interest Earned in 2014?

TIE = … specify your formula used

11)

What was the company's Profit Margin in 2014?

Profit Margin = … specify your formula used

12)

What was the Company's Return on Assets in 2014 ?

ROA = … specify your formula used

13)

What was the company's Return on Equity in 2014?

ROE = … specify your formula used

14)

What is the company's Current Ratio in 2014?

Current Ratio = … specify your formula used

15)

What is the company's Quick Ratio in 2014?

Quick Ratio = … specify your formula used

16)

What is the company's Total Asset Turnover Ratio in 2014?

Total Asset Turnover = … specify your formula used

17)

What is the company's Inventory Turnover Ratio in 2014?

Inventory Turnover = … specify your formula used

18)

What is the company's Day's Sales Outstanding (DSO) in 2014 assuming 365 days per year?

DSO = … specify your formula used

19)

What is the rate of the the company's asset growth between 2013 and 2014?

Asset Growth = … specify your formula used

20)

What is the rate of the company's sales' growth between 2013 and 2014?

Sales Growth = … specify your formula used

21)

What were the company's Net Operating Working Capital in 2014?

NOWC = … specify your formula used

22)

What was the company's Operating Capital in 2014?

Operating Capital = … specify your formula used

23)

What was the company's Debt to Equity Ratio in 2014?

Debt-to-Equity Ratio = … specify your formula used

24)

What was the company's Equity Multiplier in 2014?

Equity Multiplier = … specify your formula used

25)

What was the company's Return on Invested Capital (ROIC) in 2014?

ROIC = … specify your formula used

26)

What was the company's Earnings Per Share in 2014?

EPS = … specify your formula used

27)

What was the company's Price/Earnings Ratio in 2014?

PE Ratio = … specify your formula used

28)

What was the company's Dividend Payout Ratio in 2014?

Dividend Payout Ratio = … specify your formula used

29)

What were the Dividends Per Share paid in 2014?

Dividend Per Share = … specify your formula used

30)

What was the Dividend Yield in 2014?

1) Calculate the value or the ratio of items in the

boxes

2) Show your work by specifiying the formula you used for each of these calculations.

3) For $ values, no need to display any decimals, e.g Gross Profit = $34,000.

4) For unitless ratios and percentages, display 1 decimal place, e.g. TIE = 2.8; ROA = 4.7%.

(1)

(2)

Suggestion: Calculate the subtotals (e.g. the current assets) before going on to answer the individual questions.

Commonsize

Balance Sheet &

Income Statement

Big Apple Enterprises

2013

2014

2013

2014

Total Assets

62,000

72,000

100.0%

100.0%

Inventories

7,500

8,200

Receivables

21,000

21,000

Cash

4,500

6,000

Current Assets

Other Non-current Assets

10,500

11,300

Net Fixed Assets

18,500

25,500

Current Liabilities

19,000

14,000

Debt

23,000

28,000

Equity

20,000

30,000

Total Liabilities & Equity

Revenues

125,000

142,000

100.0%

100.0%

Cost of Goods Sold (COGS)

89,000

108,000

Gross Profit

SG&A

21,000

25,000

Operating Profit (EBIT)

Interest Expense

2,800

3,500

Earnings Before Taxes (EBT)

Taxes

Net Income After Tax (NIAT)

Other Information

Tax Rate

35%

35%

Number of Shares Outstanding

10,000

13,000

Common Dividends Paid

3,000

3,900

Share Price

$8.00

$7.50

2014 Summer2

For each of the calculations or ratios below, indicate the formula that you are using to compute the quantum as well as the numeric answer.

Year:

2014

3)

What is the company's Gross Profit in 2014?

e.g.

Gross Profit = Rev - COGS

34,000

4)

What is the company's Gross Margin in 2014?

Gross Margin = … specify your formula used

5)

What is the company's Operating Profit (EBIT) in 2014?

EBIT = … specify your formula used

6)

What was the company's Pretax Income in 2014? (EBT)

EBT = … specify your formula used

7)

How much Income Tax did they pay in 2014?

Income Tax = … specify your formula used

8)

What was the company's Net Income After Tax in 2014?

NIAT = … specify your formula used

9)

What was the company's NOPAT in 2014?

NOPAT = … specify your formula used

10)

What was the company's Times Interest Earned in 2014?

TIE = … specify your formula used

11)

What was the company's Profit Margin in 2014?

Profit Margin = … specify your formula used

12)

What was the Company's Return on Assets in 2014 ?

ROA = … specify your formula used

13)

What was the company's Return on Equity in 2014?

ROE = … specify your formula used

14)

What is the company's Current Ratio in 2014?

Current Ratio = … specify your formula used

15)

What is the company's Quick Ratio in 2014?

Quick Ratio = … specify your formula used

16)

What is the company's Total Asset Turnover Ratio in 2014?

Total Asset Turnover = … specify your formula used

17)

What is the company's Inventory Turnover Ratio in 2014?

Inventory Turnover = … specify your formula used

18)

What is the company's Day's Sales Outstanding (DSO) in 2014 assuming 365 days per year?

DSO = … specify your formula used

19)

What is the rate of the the company's asset growth between 2013 and 2014?

Asset Growth = … specify your formula used

20)

What is the rate of the company's sales' growth between 2013 and 2014?

Sales Growth = … specify your formula used

21)

What were the company's Net Operating Working Capital in 2014?

NOWC = … specify your formula used

22)

What was the company's Operating Capital in 2014?

Operating Capital = … specify your formula used

23)

What was the company's Debt to Equity Ratio in 2014?

Debt-to-Equity Ratio = … specify your formula used

24)

What was the company's Equity Multiplier in 2014?

Equity Multiplier = … specify your formula used

25)

What was the company's Return on Invested Capital (ROIC) in 2014?

ROIC = … specify your formula used

26)

What was the company's Earnings Per Share in 2014?

EPS = … specify your formula used

27)

What was the company's Price/Earnings Ratio in 2014?

PE Ratio = … specify your formula used

28)

What was the company's Dividend Payout Ratio in 2014?

Dividend Payout Ratio = … specify your formula used

29)

What were the Dividends Per Share paid in 2014?

Dividend Per Share = … specify your formula used

30)

What was the Dividend Yield in 2014?

Explanation / Answer

3)

What is the company's Gross Profit in 2014?

e.g.

Gross Profit = Rev - COGS

34,000

4)

What is the company's Gross Margin in 2014?

Gross Margin = Gross Profit/Revenue

23.94%

5)

What is the company's Operating Profit (EBIT) in 2014?

EBIT =Gross profit - SG&A

9000

6)

What was the company's Pretax Income in 2014? (EBT)

EBT =EBIT-Interest

5500

7)

How much Income Tax did they pay in 2014?

Income Tax =EBT*Tax Rate

1925

8)

What was the company's Net Income After Tax in 2014?

NIAT =EBT-Tax rate

3575

9)

What was the company's NOPAT in 2014?

NOPAT =EBIT*(1-Tax rate)

5850

10)

What was the company's Times Interest Earned in 2014?

TIE =EBIT/Interest

2.57

11)

What was the company's Profit Margin in 2014?

Profit Margin =NIAT/Revenue

2.52%

12)

What was the Company's Return on Assets in 2014 ?

ROA =NIAT/Total assets

4.96%

13)

What was the company's Return on Equity in 2014?

ROE =NIAT/Equity

11.92%

14)

What is the company's Current Ratio in 2014?

Current Ratio = Current assets/ current liabilities

2.51

15)

What is the company's Quick Ratio in 2014?

Quick Ratio =Quick assets/quick liabilities

1.93

16)

What is the company's Total Asset Turnover Ratio in 2014?

Total Asset Turnover =Sales/Total assets

1.97

17)

What is the company's Inventory Turnover Ratio in 2014?

Inventory Turnover =Sales/ Inventory

17.32

18)

What is the company's Day's Sales Outstanding (DSO) in 2014 assuming 365 days per year?

DSO = Accounts receivable/Sales*No of days

53.98

19)

What is the rate of the the company's asset growth between 2013 and 2014?

Asset Growth = (Current year assets- Previous year assets )*100 /Previous year assets

16.13%

20)

What is the rate of the company's sales' growth between 2013 and 2014?

Sales Growth =(Current year sales- Previous year sales )*100 /Previous year sales

13.6%

21)

What were the company's Net Operating Working Capital in 2014?

NOWC =Currents assets-current liabilities

21200

22)

What was the company's Operating Capital in 2014?

Operating Capital = Currents assets-current liabilities

21200

23)

What was the company's Debt to Equity Ratio in 2014?

Debt-to-Equity Ratio =Debt/Equity

0.93

24)

What was the company's Equity Multiplier in 2014?

Equity Multiplier =Total assets/total equity

2.4

25)

What was the company's Return on Invested Capital (ROIC) in 2014?

ROIC =(Net income-dividends)/Total capital

(0.45)%

26)

What was the company's Earnings Per Share in 2014?

EPS = net income/no of shares

0.275

27)

What was the company's Price/Earnings Ratio in 2014?

PE Ratio =MPS/EPS

27.27

28)

What was the company's Dividend Payout Ratio in 2014?

Dividend Payout Ratio =Dividend/EPS*100

110%

29)

What were the Dividends Per Share paid in 2014?

Dividend Per Share =Dividend/No of shares

0.30

30)

What was the Dividend Yield in 2014?

4%

3)

What is the company's Gross Profit in 2014?

e.g.

Gross Profit = Rev - COGS

34,000

4)

What is the company's Gross Margin in 2014?

Gross Margin = Gross Profit/Revenue

23.94%

5)

What is the company's Operating Profit (EBIT) in 2014?

EBIT =Gross profit - SG&A

9000

6)

What was the company's Pretax Income in 2014? (EBT)

EBT =EBIT-Interest

5500

7)

How much Income Tax did they pay in 2014?

Income Tax =EBT*Tax Rate

1925

8)

What was the company's Net Income After Tax in 2014?

NIAT =EBT-Tax rate

3575

9)

What was the company's NOPAT in 2014?

NOPAT =EBIT*(1-Tax rate)

5850

10)

What was the company's Times Interest Earned in 2014?

TIE =EBIT/Interest

2.57

11)

What was the company's Profit Margin in 2014?

Profit Margin =NIAT/Revenue

2.52%

12)

What was the Company's Return on Assets in 2014 ?

ROA =NIAT/Total assets

4.96%

13)

What was the company's Return on Equity in 2014?

ROE =NIAT/Equity

11.92%

14)

What is the company's Current Ratio in 2014?

Current Ratio = Current assets/ current liabilities

2.51

15)

What is the company's Quick Ratio in 2014?

Quick Ratio =Quick assets/quick liabilities

1.93

16)

What is the company's Total Asset Turnover Ratio in 2014?

Total Asset Turnover =Sales/Total assets

1.97

17)

What is the company's Inventory Turnover Ratio in 2014?

Inventory Turnover =Sales/ Inventory

17.32

18)

What is the company's Day's Sales Outstanding (DSO) in 2014 assuming 365 days per year?

DSO = Accounts receivable/Sales*No of days

53.98

19)

What is the rate of the the company's asset growth between 2013 and 2014?

Asset Growth = (Current year assets- Previous year assets )*100 /Previous year assets

16.13%

20)

What is the rate of the company's sales' growth between 2013 and 2014?

Sales Growth =(Current year sales- Previous year sales )*100 /Previous year sales

13.6%

21)

What were the company's Net Operating Working Capital in 2014?

NOWC =Currents assets-current liabilities

21200

22)

What was the company's Operating Capital in 2014?

Operating Capital = Currents assets-current liabilities

21200

23)

What was the company's Debt to Equity Ratio in 2014?

Debt-to-Equity Ratio =Debt/Equity

0.93

24)

What was the company's Equity Multiplier in 2014?

Equity Multiplier =Total assets/total equity

2.4

25)

What was the company's Return on Invested Capital (ROIC) in 2014?

ROIC =(Net income-dividends)/Total capital

(0.45)%

26)

What was the company's Earnings Per Share in 2014?

EPS = net income/no of shares

0.275

27)

What was the company's Price/Earnings Ratio in 2014?

PE Ratio =MPS/EPS

27.27

28)

What was the company's Dividend Payout Ratio in 2014?

Dividend Payout Ratio =Dividend/EPS*100

110%

29)

What were the Dividends Per Share paid in 2014?

Dividend Per Share =Dividend/No of shares

0.30

30)

What was the Dividend Yield in 2014?

4%