Given the following Year 12 Financial Statement data for a footwear company: Inc

Question

Given the following Year 12 Financial Statement data for a footwear company:
Income Statement Data

Year 12 (in 000s)
Net Revenues from Footwear Sales $ 300,000
Operating Profit (Loss) 75,000
Net Profit (Loss) $ 45,500

Balance Sheet Data
Cash on Hand 10,000
Total Current Assets $ 70,000
Total Assets 320,000
Overdraft Loan Payable 5,000
1-Year Bank Loan Payable 12,000
Current Portion of Long-term Loans 20,000
Total Current Liabilities 58,500
Long-Term Bank Loans Outstanding 100,000
Shareholder Equity: Year 11 Balance Year 12 Change
Common Stock 10,000 0 10,000
Additional Capital 101,000 0 101,000
Retained Earnings 30,000 20,500 50,500
Total Shareholder Equity 141,000 +20,500 161,500

Other Financial Data
Depreciation $12,500
Dividend payments $25,000






Based on the above figures and the formula for calculating the default-risk ratio found on the Help screen for p. 5 of the Footwear Industry Report and p. 28 of the Player

Explanation / Answer

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