Question

I've provided this question as it appears in the book. No information is missing.

Answer 1

	Statement of Profit
1	Revenue (WN-1)	42,000
2	COGS Expense	(12,000)
3	Selling and Admin Expenses	(14,000)
	EBITDA	16,000
4	Depreciation & Amortization	(6,000)
5	Operating Income(EBIT)	10,000
6	Interest Expenses (WN-5)	2,000
7	EBT	8,000
8	Income Tax	2,400
9	Profit After Tax/Net Income	5,600
10	Cash (WN-8)	929
11	Account Receivable	3,772
12	Inventory (WN-9)	4,547
13	Current Assets		9,247
14	PPEQ Gross	15,000
15	Accumulated Depreciation	(6,000)
16	PPEQ Net		9,000
17	Intangible Assets		2,500
18	Total Assets		20,747
19	Accounts Payable
20	Accruals
	Total Current Libilities		3,070
21	Total Debt(WN-10)		8,258
22	Total Liabilities		11,328
23	Preferred Stock	15,001
24	Common Stock-paid up capital	98,400
25	Retained Earnings (WN-7)	5,691
26	Shareholders Equity		119,092
27	Total Libilities and stockholders equity		130,420
	WN-1
	PPEQ Investment (CAPEX) to revenue	0.35714
	PPEQ(CAPEX)	15,000
	Revenue (PPEQ CAPEX/.35714)	42,000
	WN-2
	COGS Expenses Ratio	0.28571
	Revenue	42,000
	COGS Expense	12,000
	WN-3
	Selling and Admin Expenses Ratio	0.333333
	Selling and Admin Expenses	14,000
	WN-4
	PPEQ Investment (CAPEX) to Depreciation	2.5
	Depreciation	6000
	WN-5
	EBITDA to Interest	8
	EBITDA to fixed Charge	4.776
	Fixed Charges	3,350
	Interest	2,000
	Dividend to Preferred Shares	1,350
	% of Dividend to Preferred shares	9%
	Preferred shares capital	15,001
	WN-7
	Earning Available for Equity shareholders	4,305
	Common Dividends	3,014
	Retained Earnings during the year	1,291
	Retained Earnings-beginning balance	4,400
	Total Retained Earnings	5,691
	WN-8
	Quick Asset Ratio	1.531
	Total Current Libilities	3070
	Quick Asset	4,700
	Quick Asset=Current Assets-Inventory
	WN-9
	Inventory Purchase	12,400
	Days of inventory held	134
	Inventory Held	4,547
	WN-10
	Total Liabilities to Total Assets	0.546
	Total Assets	20,747
	Total Liabilities	11,328
	Total Current Assets	3,070
	Total Debt	8,258