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After Dan’s analysis of East Coast Yachts’ cash flow (at the end of our previous chapter), Larissa approached Dan about the company’s performance and future growth plans. First, Larissa wants to find out how East Coast Yachts is performing relative to its peers. Additionally, she wants to find out the future financing necessary to fund the company’s growth. In the past, East Coast Yachts experienced difficulty in financing its growth plan, in large part because of poor planning. In fact,...
RATIOS AND FINANCIAL PLANNING AT EAST COAST YACHTS Dan Ervin was recently hired by East Coast Yachts to assist the company with its short-term financial planning and also to evaluate the company’s financial performance. Dan graduated from college five years ago with a finance degree, and he has been employed in the treasury department of a Fortune 500 company since then. East Coast Yachts was founded 10 years ago by Larissa Warren. The company’s operations are located near Hilton Head...
EAST COAST YACHTS 2017 Income Statement Sales $611.582.000 Cost of goods sold 431,006,000 Selling, general, and administrative 73.085.700 Depreciation 19.958.400 EBIT $ 87,531.900 Interest expense _11.000,900 EBT $ 76,531,000 Taxes 30.612.400 Net income $ 45.918.600 Dividends $ 17.374.500 Retained earnings $ 28,544.100 EAST COAST YACHTS 2017 Balance Sheet Current assets Current liabilities Cash and equivalents $ 11,119.700 Accounts payable $ 44.461.550 Accounts receivable 18.681,500 Accrued expenses 6.123.200 Inventory 20.149.650 Total current liabilities S 50.584.750 Other _1.172.200 Total current assets $...
Q4. Calculate the sustainable growth rate for LSUS corporation. Calculate external funds needed (EFN) and prepare pro forma income statements and balance sheets assuming growth at precisely this rate. Recalculate the ratios in the previous question. What do you observe? Choice 2: Ratios and Financial Planning After Han’s analysis of LSUS corporation’ cash flow, Amanda, the CEO of the company, approached Han about the company’s performance and future growth plans. First, Amanda wants to find out how LSUS corporation is...
eamings $44,461,550 6.123.200 S 50,584,750 2019 Balance Sheet LSUS Corporation Current Assets Current liabilities Cash and equivalents $ 11,119,700 Accounts payable Accounts receivable 18,681,500 Accrued expenses Inventory 20,149,650 Total current liabilities Other 1,172,200 Total current assets $ 51,123,050 Fixed assets Long-term debt Property, plant, and equipment $457,509,600 Total long-term liabilities Less accumulated depreciation (113,845,900) Net property, plant, and equipment $343,663,700 Intangible assets and others 6.772.000 Stockholders' equity Total fixed assets $350.435,700 Preferred stock Common stock Capital surplus Accumulated retained $169,260.000...
1. Compare the performance of S&S Air to the industry. For each ratio, comment on why it might be viewed as positive or negative relative to the industry. Suppose you create an inventory ratio calculated as inventory divided by current liabilities. How do you think S&S Air’s ratio would compare to the industry average? Financial analysis calculations: current ratio = 0.74 quick ratio = 0.39 cash ratio = 0.15 total asset turnover = 2.01 inventory turnover = 27.96 receivables turnover...
The instructions on how to do the problem is on the first picture. Where the answers go is on the last picture attached The Income Statement and Balance Sheet for The Home Depot, Inc. can be found as separate worksheets on tabs (a) and (b), respectively. On worksheet O, prepare a ratio analysis for 2017 and 2016 that includes the following ratios: Current ratio Net income to average common stockholder's equity Inventory turnover Number of days' sales in accounts receivable...
Statement of the Assignment: Please prepare a comprehensive list of financial ratios as introduced in Chapter 3 of the textbook. Write a brief explanation below each financial ratio, e.g. what does the financial ratio measures or what the significance of it is. For example: Current Ratio = Current Assist / Current Liabilities Current ratio measures whether our current assets, if liquidated, are sufficient to pay all of our current liabilities. A CR of 1.5, for example, shows that if we...
Question 1 Income Statement Paper and Board Berhad For the Year Ended December 31, 2016 RM Sales 2,080,976 (-) Cost of Goods Sold 1,701,000 Gross Profits 379,976 (-) Operating Expenses 273,846 Operating Profits 106,130 (-) Interest 19,296 Net Profit before taxes 86,834 (-) Taxes 34,734 Net Profit after taxes 52,100 Balance Sheet Paper and Board Berhad December 31, 2016 Assets Cash Accounts receivable Inventories Total Current Assets Gross fixed assets (-) Accumulated Depreciation Net Fixed Assets Total Assets RM 95,000...
Please show all work. 1. Statement of Cash Flows and Standardized Financial Statements a) Net income for your firm was $10,000 last year. The depreciation expense was $2,500; accounts receivable increased $1,250; accounts payable increased $800; and inventories increased by $2,000. Identify the sources and uses of cash • What was the total cash flow from operations for the period? Operating activities = Net Income + Depreciation + Source (inflow) - Use foutflow) b) i) Prepare the 2018 common-size Income...