Cash flows from financing activities Issuance of long-term debt Dividends 82,515 2,633,454 -0- -0- Payment of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Cash flows from financing activities Issuance of long-term debt Dividends 82,515 2,633,454 -0- -0- Payment of long-term debt (1,932,602) (3,108,251) Net cash provided by financing activities Net increase (decrease) in cash (1,850,087) $(1,519,769) (474,797) $(1.390.237) Sunny Day Stores, Inc. Statement of Operations Required: 4,528,915 (204,198) (1,588,391) 2,736,326 $2,131,669 Net revenue 2017 $217,710,782 2016 $202,393,136 2015 $191,243,016 Cost and expenses Costs of goods sold 176,102,027 158,643,287 146,652,853 Selling, general, and administrative 44,631,749 43,687,704 41,805,330 Interest expense-net 1,551,138 1,728,650 1,658,732 Net gain from sale of property (532,570) (174,657) (100,322) 221,752,344 203,884,984 190,016.593 Income (loss) before taxes (4,041,562) (1,491,848) 1,226,423 Provision (benefit) for income taxes Current (400,000) 63,444 50,000 Deferred Net income (loss) (1,077,323) (512,995) 563,000 (1,477,323) $ (2,564,239) Earnings per common share $ (1.51) (449,551) $ (1,042.297) $ 613,000 $ (0.61) $ 613,423 0.36 page 331 It's late January 2018, and Prudential and First Florida have hired you to act on their behalf in negotiations with Sunny Day Stores. Both lenders want to restructure their loans to address the company's current financial problems, and the restructured loans may require covenant changes. Prudential and First Florida seek your advice on the type and amount of collateral to be required, revised interest rates, and possible changes to the payment schedules. In addition, the lenders have asked you to suggest new minimum net worth, working capital, and interest coverage ratios for 2018 and 2019. Specifically: 1. What type and amount of collateral do you suggest be required? 2. Should a higher interest rate be charged? Why or why not? 3. What changes would you suggest be made to the payment schedule? 4. What new minimum net worth, working capital, and interest coverage limits would you suggest the lenders set? 5. Suppose the company asked permission to resume payment of its $0.12 per share dividend, which was suspended in 2016. What advice would you give Prudential and First Florida? Cash flows from financing activities Issuance of long-term debt Dividends 82,515 2,633,454 -0- -0- Payment of long-term debt (1,932,602) (3,108,251) Net cash provided by financing activities Net increase (decrease) in cash (1,850,087) $(1,519,769) (474,797) $(1.390.237) Sunny Day Stores, Inc. Statement of Operations Required: 4,528,915 (204,198) (1,588,391) 2,736,326 $2,131,669 Net revenue 2017 $217,710,782 2016 $202,393,136 2015 $191,243,016 Cost and expenses Costs of goods sold 176,102,027 158,643,287 146,652,853 Selling, general, and administrative 44,631,749 43,687,704 41,805,330 Interest expense-net 1,551,138 1,728,650 1,658,732 Net gain from sale of property (532,570) (174,657) (100,322) 221,752,344 203,884,984 190,016.593 Income (loss) before taxes (4,041,562) (1,491,848) 1,226,423 Provision (benefit) for income taxes Current (400,000) 63,444 50,000 Deferred Net income (loss) (1,077,323) (512,995) 563,000 (1,477,323) $ (2,564,239) Earnings per common share $ (1.51) (449,551) $ (1,042.297) $ 613,000 $ (0.61) $ 613,423 0.36 page 331 It's late January 2018, and Prudential and First Florida have hired you to act on their behalf in negotiations with Sunny Day Stores. Both lenders want to restructure their loans to address the company's current financial problems, and the restructured loans may require covenant changes. Prudential and First Florida seek your advice on the type and amount of collateral to be required, revised interest rates, and possible changes to the payment schedules. In addition, the lenders have asked you to suggest new minimum net worth, working capital, and interest coverage ratios for 2018 and 2019. Specifically: 1. What type and amount of collateral do you suggest be required? 2. Should a higher interest rate be charged? Why or why not? 3. What changes would you suggest be made to the payment schedule? 4. What new minimum net worth, working capital, and interest coverage limits would you suggest the lenders set? 5. Suppose the company asked permission to resume payment of its $0.12 per share dividend, which was suspended in 2016. What advice would you give Prudential and First Florida?
Expert Answer:
Related Book For
Financial Reporting and Analysis
ISBN: 978-1259722653
7th edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
Posted Date:
Students also viewed these accounting questions
-
Use the attached "words.txt" file to store the words along with their ranks in an AVL tree. Then provide the user the option to search for any word. If the word exists the program displays the rank...
-
Maggie, Bihun, and Mee decided to go into the landscaping business. The three orally declared that they would be partners in PPL Landscapers, sharing profits and losses equally. Maggie, Bihun, Mee...
-
For the directed graph at the right, find the adjacency matrix A, compute A3, and determine the number of paths of length 3 from v1 to v4 and from v2 to v3. 02 03
-
Sheriff Bassam is up for reelection in Washington County. The funds available for the campaign are about $10,000. Although the reelection committee would like to launch the campaign in all four...
-
A university pumps its water from wells located on campus. The falling water table has caused pumping costs to increase, the quantity of water available to decrease, and the quality of water to...
-
The Holtz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine, Inc., for $7.20 per share on January 1, 2014. The remaining 20 percent of Devines shares also traded...
-
= 5. Find the path delay D of the logic chain shown below. Assume Cout 15C, and the numbers on the gate indicates the input capacitance Cin- In 5C 5C (2-points) 3C 4C 5C 4C Out Cout
-
Evaluate the maritime transport operation cost in terms of fixed cost such land for port terminals, cargo handling equipment and ship and in operation cost in maintained, fuel ,labor, port charges?
-
Economics: Elasticity Explain shortly. Please do correctly and take your time. There is a written question at the bottom. There are total thirty one MC and one written. 1. What is the effect on total...
-
What type of global strategy do Tesla have? Has it evolved? Must be 2 pages.
-
Suppose that the current spot exchange rate is 0.80/$ and the three-month forward exchange rate is 0.7813/$. The three-month interest rate is 5.60% per annum in the United States and 5.40% per annum...
-
Please Create a Cybersecurity plan that explains project data and processes will be secured. This is for an online banking platform that offers loans, investments, credit cards, and checking and...
-
What other potential revenue streams outside of fantasy sports and professional teams should Bloomberg Sports venture into it either domestically or internationally?
-
1) In the video, Mark Addicks, the Chief Marketing Officer of General Mills, discussed how the company carefully researches consumers and how it spends its day actively seeking opportunities wherein...
-
Refer to the data for problem 13-36 regarding Long Beach Pharmaceutical Company. Required: Compute each division's residual income for the year under each of the following assumptions about the...
-
You are studying survival times for mice given a drug at one of three doses (Low, Medium, or High). You define two dummy variables: (a) With these definitions, write the expressions for the mean...
-
The data in Table 8.25 were collected in order to study factors affecting the supply and demand for commercial air travel. Data on various aspects of commercial air travel for an arbitrarily chosen...
-
It is beneficial to be able to estimate the yield of useful product of a tree based on measurements of the tree taken before it is harvested. Measurements on four such variables were taken on a...
Study smarter with the SolutionInn App