just question 5

186 Chapter 5 Evaluating Operating and Financial Performance INCOME STATEMENT Net sales Cost of goods sold Gross profit Marketing General and administrative Depreciation EBIT Interest Earnings before taxes Income taxes (40% rate) Net income 2018 $1,300,000 780,000 520,000 130,000 150,000 40,000 200,000 45,000 155,000 62,000 $ 93,000 2019 $1,600,000 960,000 640,000 160,000 150,000 55,000 275,000 55,000 220,000 88,000 $ 132,000 A. B. Calculate the cash build, cash burn, and net cash burn or build for Munich Exports in 2019. Assume that 2020 will be a repeat of 2019. If your answer in Part A resulted in a net cash burn position, calculate the net cash burn monthly rate and indicate the num- ber of months remaining "until out of cash." If your answer in Part A resulted in a net cash build position, calculate the net cash build monthly rate and indicate the expected cash balance at the end of 2020. 6. (Liquidity Ratios and Cash Burn or Build) The Castillo Products Company was started in 2017. The company manufactures components for personal digital assistant (PDA) products and for other hand-held electronic products. A difficult operating year, 2018, was followed by a profitable 2019. However the fo... C. A. Calculate the operating return on assets. B. Determine the effective interest rate paid on the long-term debt. Calculate the NOPAT margin. How does this compare with the results for the net profit margin? Did the owners benefit from the use of interest-bearing long-term debt? 5. (Cash Burn and Build) Following are two years of income statements and balance sheets for the Munich Exports Corporation. MUNICH EXPORTS CORPORATION 2018 BALANCE SHEET Cash Accounts receivable Inventories Total current assets Fixed assets, net Total assets Accounts payable Accruals Bank loan Total current liabilities Long-term debt Common stock ($0.05 par) Additional paid-in-capital Retained earnings Total liabilities and equity $ 50,000 200,000 450,000 700,000 300,000 $1,000,000 $ 130,000 50,000 90,000 270,000 400,000 50,000 200,000 80,000 $1,000,000 2019 $ 50,000 300,000 570,000 920,000 380,000 $1,300,000 $ 180,000 70,000 90,000 340,000 550,000 50,000 200,000 160,000 $1,300,000