Homework 1

Notes: 1. Current share price for Lots to gain corporation is $14.96 and the share outstanding is 100000.

Based on the information answer the following questions.

1. What is the operating cash flow (OCF) of the firm?

2. What is the change in net working capital of the firm?

3. Calculate the net capital spending.

4. Calculate the Cash Flow From Assets (CFFA).

5. Calculate the following ratios-

1. Current ratio

2. Quick ratio

3. Cash ratio

4. Net working capital to total asset

5. Account receivables turnover ratio

6. Inventory turnover ratio

7. Total asset turnover ratio

8. Total debt ratio

9. Debt to Equity ratio

10. Equity multiplier ratio

11. Cash coverage ratio

12. Profit margin

13. Return on assets (ROA)

14. Return on Equity (ROE)

15. Earnings per share

16. Price/Earnings ratio

Homework 1 covers chapter 2 and 3. Lots to Gain Corporation Income Statement for 2018 Sales Cost of Goods Sold Depreciation Other operating expenses Earnings before Interest and Taxes Interest Paid Earnings before Taxes Taxes Net Income $65,000 52,000 500 3,000 9,500 80 9,420 1,978 $7,442 Dividends Paid Addition to Retained Earnings $500 $6,942 Cash Accounts Receivable Inventory Fixed Assests Balance Sheet for 2018 and 2017 2018 2017 360 170 Accounts Payable 1,500 600 Notes Payable 800 500 Long Term Debt 6,802 500 Common Stock Paid-in-surplus Retained Earnings 9,462 1,770 Total Liab.& Equity 2018 450 600 800 50 150 $7,412 2017 135 4651 600 500 501 470 1,7701 Total Assets 9,462 Mail