a. Complete the cash flow statement for 2018. (5 marks) (ALREADY DONE)

b. Complete a common size statement for Dapper Dawg Industries for both years and the forecast using an excel spreadsheet. (5 marks)

c. Complete the ratios using an excel spreadsheet. (5 marks)

d. Use the Dupont ratio to calculate the ROE and which ratio should the firm try to improve? (4 marks)

e. Do you observe any weakness or concerns in the firms forecast? (2 marks)

Problem 2-21 marks Dapper Dawg In dustres nce Sheet ($ 000's) Dapper Dawg Industries Income Statement ($000's) Forecast Forec 2016 2017 SSCTS 2016 2017 018 Sales Revenues Cost of Goods Sold 3,432, 5,834,4 7.035.600 Current Assets 2,864,000.0 4,980,000.0 5,800,000.0 7,282 20,000 14000 Cash 9 000 Contribution Margin 568.000.0 854,400.0 1,235.600.0 Short-te m Investmen ts 71,632 Operating Expe nse s 340,000,0 720,000,0 612,9600 ciation Interert 1,287,360 1,716, 480 176.000.0 80.0000 715.200 Inventory Total Current Assets 62.500.0 1,124,000 1,946,802 2,680, 112 Earnings B4 Taxes 146,600.0 158,560.0 422,6400 Plant & Equipment 491,000 1,202,950 1,220,000 58.640.0 169.0560 Taxes 40% 63,424.0 preciation Earnings After tax 87.9600 253,584.0 95.136.0 Net Plant & Equi pment 344.800 939,790 836 840 Other Data that may be helpful TOTAL ASSETS L468.800 2,886,592 3516 952 LIABILITIES and SHAREHOLDERS'EQUITY Charer alt 100.000 100,000 000 05c Current Liabilities 0951 $ 0110 $ 0.880 $ 0.220 S EPS 1.014 le 145,600 324.000 DPS 0.220 Notes Payable 200,000 720,000 300 000 Accrued Expe nses 284,960 ark Value per Share 136,000 380, 000 6638 5 7.909 Total Current Liabilities 481,600 1,328960 1,039, 800 40,000 $ 40,000 $ Lease Payments 40,000 Long Term Debt 323,432 1,000,000 s00,000 Industry Ratios Forecast Average Betained Earnings 203,768 97,632 296,216 2.3 1.5 Total Equity 663,768 557,632 1,977, 152 Quick 0.8 0.5 1.0 TOTAL UABIUTIES ANDEQUITY Inventory Turnover 4.8 4.5 6.1 Day's Sales Outstanding 37.3 69.6 32.0 1,468,800 2,886592 3516952 Total Asset Tumove 23 2 5 20 Total Debt Ratio 30.7 5o.0 54.8 6.2 TIE Ratio 3.3 0.1 in Ratio Return on Assets 6.0% 9.0% 13.3 % Return on Equity Price Earnings Ratio Price/Cash Flow 17.9 % -17.19% 9.7 N/A 16.2 27.5 ( 5 mark b. Complete a common size statement for Dapper Dawg Industries for both years and the 8.0 7.6 the cash flow statement forecast using an excel spreadsheet. (5 marks) c. Complete the ratios using an excel spreadsheet. (5 marks) d. Use the Dupont ratio to calculate the ROE and which ratio should the firm try to improve? (4 marks) concerns in the firm's forecast? (2 marks) e. Do you observe any weakness