Basic Financial Management Group assignment from 15% Table 1.1. Complex Food Products: Balance sheet December 31 (Millions of Dollars) Assume that the following Financial statement (balance sheet and income statement of Allied Food Products are given as follow. Assets 2001 2000 Liabilities $ Equity 2001 2000 Cash $ marketable securities $10 $80 Accounts payable $60 $30 Accounts Receivable $375 $315 Notes payable $110 $60 Inventories $615 $415 Accruals $140 $130 Total current assets $1,000 $810 Total current liabilities $310 $220 Net plant and Equipment $1,000 $870 Long term bonds $754 $580 Total debt $1,064 $800 Preferred stock (400,000 shares) $40 $40 Common stock (50,000 shares) $130 $130 Retained earnings $766 $710 Total common equity $896 $840 Total Assets $2,000 $1,680 Total liabilities and equity $2,000 $1,680 N.B The bonds have a sinking fund requirement of $20 million a year. A sinking fund simply involves the repayment of long-term debt. Thus, allied was required to pay off $20 million of its mortgage bonds during 2001. Table 1 .2 Complex Food Products: Income Statements For Years Ending December 31 (Millions of Dollars) 2001 2000 Net sales $3,000 $2,850.0 Operating costs excluding depreciation and amortization $2,616.2 $2,497.0 Earnings before interest and, taxes, depreciation, and amortization (EBITDA) $383.80 $353.0 Depreciation $100.0 $90.0 Amortization 0.00 0.00 Depreciation and amortization $100.0 $90.0 Earnings before interest and taxes (EBIT or operating income) $283.8 $263.0 Less interest $88.0 $60.0 Earnings before taxes (EBT) $195.8 $203.0 Taxes (40%) $78.3 $81.2 Net income before preferred dividends $117.5 $121.8 Preferred dividends $4.0 $4.0 Net income $113.5 $117.8 Common dividends $57.5 $53.0 Addition to retained earnings $56.0 $64.8 Per-share data: Common stock price $23.00 $26.00 Earnings per share (EPS)a $2.27 $2.36 Dividends per share (DPS)a $1.15 $1.06 Book value per share (BVPS)a $17.92 $16.80 Cash flow per share (CFPS)a $4.27 $4.16 N.B. There are 50,000,000 shares of common stock outstanding. Note that EPS is based on earnings after preferred dividends that is, on net income available to common stockholders. Calculations of EPS, DPS, BVPS, and CFPS for 2001 are as follows: Earnings per share ratio=(Net Income)/(Common SHares outstanding)=$113,500,000/$50,000,000=$2.27 Dividends per share ratio=(Dividends paid to common stockHolders)/(Common SHares outstanding)=$57,500,000/$50,000,000=$1.15 Book value per share ratio=(Total common Equity)/(Common SHares outstanding)=$896,000,000/$50,000,000=$17.9 Cash flow per share ratio=(Net Income+Depreciation+Amortization)/(Common SHares outstanding)=$213,500,000/$50,000,000=$4.27 General Instruction Based on the above given financial statement calculate the following Ratio analysis of complex food product company at 2001, 2002 and show the appropriate procedures properly, clearly and understandably. Liquidity ratio Current ratio Quick ratio Activity ratio Inventory turnover Average collection period Average payment period Total asset turn over Fixed asset turnover ratio Debt or leverage ratio Debt to asset ratio Debt to equity ratio Times-interest-earned ratio Profitability ratio Gross Profit Margin Net Profit Margin ROI (ROA) Return of Equity (ROE) EPS DPS Marketability Ratio . Price- Earning (P/E) Ratio Market-to Book ratio