General Instructions: Short Answer Questions (5 points each) The financial statements are in the Appendix and figures are all in millions. Any of your answers that are to be in millions", such as FCF Statements, means that $1,250,000 is input 1.25 and not 1,250,000. Any answers that are %'s, compute to two decimal places", should be input as a whole number (ie. 10.15% is input as 10.15, not 0.1015). Any answers that are negative, then make sure to include the negative sign to the answer (i.e. -5 is input in Canvas as-5). You are a financial analyst reviewing a small chain of coffee shops, Espresso Patronum. Calculate EPS for 2018 (in dollars, to two decimal places). Calculate Debt-to-Equity Ratio for 2017 (to two decimal places 6 7 Calculate Debt-to-Equity Ratio for 2018 (to two decimal places) 8 From a capital structure perspective, has Espresso Patronum become MORE or LESS risky? Plus This Percentage on Anything Over the Base 15% 25% 34% Taxable Income $0-50,000 $50,001-75,000 $75,001-$100,000 $100,001-335,000 $335,001-10,000,000 $10,000,001-15,000,000 $15,000,001-18,333,333 Over $18,333,333 Pay This Amount on Base Income $0 $7,500 $13,750 $22,250 $113,900 $3,400,000 $5,150,000 $6,416,667 39% 34% 35% 38% 35% Espresso Patronum Coffee Company Income Statement (millions) Income Statement 2018 Sales $ 100 Less: Cost of Goods Sold $ (27) Gross Profit $ 73 Less: Other Operating Expenses $ (15) EBITDA (Earnings Before Interest, Taxes, Depreciation & Ame) $ 58 Less: Depreciation & Amortization $ (15) EBIT (Earnings Before Interest & Taxes) 43 Less: Interest $ EBT/Earnings Before Taxes & Taxable Income) $ 18 Less: Taxes $ (5) Net Income $ 13 Less: Common Stock Dividends $ (5) Addition to Retained Earnings $ 8 S (25) Assets Current Assets Cash Accounts Receivable Inventory Total Espresso Patronum Coffee Company Balance Sheet (millions) 2018 2017 Liabilities & Equity 2018 2017 $ 55 $ 50 Current Liabilities Accrued Wages & Taxes $ 12 $ 10 $ 10 $ 20 Accounts Payable $ 10 $ 5 $ 120 $ 100 Notes Payable $ 5 $ 10 $ 185 $ 170 Total $ 27 $ 25 Fixed Assets $ $ 185 $ 212 $ 135 160 Plant & Equipment Less: Depreciation Net Plant & Equip Other Fixed Assets $ $ $ $ 125 $ 65 Long-Term Debt (35) $ (20) Total Debt 90 $ 45 25 $ 25 Stockholder's Equity Common Stock Retained Earnings Total Equity 300 $ 240 Total Liabilities & Equity * 6 million common shares are outstanding $ $ $ $ 25 $ 63 $ 88 $ 300 $ 25 55 80 240 Total Assets $ 3