P2.8 EXHIBIT P2.8 Financial Statements for Jeff, Matt and Mike Associates Income Statendent Operating revenue Cost...

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P2.8 EXHIBIT P2.8 Financial Statements for Jeff, Matt and Mike Associates Income Statendent Operating revenue Cost of goods sold... Selling, general and administrative Depreciation and amortization (All) Operating income (EBIT) Interest expense. Income before income tax expense (EBT) Income tax expense (benefit).. Net income... Cash. Accounts receivable. Inventory... You are an analyst and have certain rates of return, profit margins, and other information on the Jeff, Matt, and Mike Associates Company. Using the information in the exhibit, complete the partial financial statements and calculate the missing financial ratios (shown as "?-#") in Exhibit P2.8. The company had no purchases or other additions to Intangible Assets. (All financial ratios using balance sheet numbers are calculated using Year 7 ending balances instead of average balances. The company had no sales or retirements of property, plant, and equipment or intangible assets. Essentially all of the company's property, plant, and equipment is depreciable. All changes in financing occur at the end of the fiscal year.) Current assets Property, plant and equipment-gross (PPEQ) Accumulated depreciation. Property, plant and equipment-net Intangible assets ....... Total assets with excess assets. Accounts payable.. Accruals.. Total current liabilities. Total debt... Total liabilities.. Preferred stock Common stock-paid-in-capital Retained earnings Shareholders' equity Total liabilities and stockholders' equity. ?-1 ?-2 ?-3 7-4 ?-5 ?-6 ?-7 ?-8 ?-9 ?-10 ?-11 ?-12 ?-13 ?-14 ?-15 ?-16 ?-17 ?-18 ?-19 ?-20 $ 3,070 ?-21 ?-22 ?-23 ?-24 ?-25 ?-26 ?-27 Income tax rate Preferred stock dividend rate.. Change in preferred stock. Retained earnings-beginning balance. Inventory purchases.. Capital expenditures (PPEQ) Beginning of year balance-intangible assets. Common dividends Cost of goods sold expense ratio Selling, general and administrative expense ratio Total liabilities to total assets. EBITDA to interest EBITDA to fixed charges Quick (asset test) ratio Days of inventory held Accounts receivable collection period. Trade cash cycle... Provision for bad debts ratio Depreciable life of gross plant Depreciable life of net plant... PPEQ investment (CAPEX) to revenues. PPEQ investment (CAPEX) to depreciation Earnings per share (EPS)-basic.. Shares outstanding for basic EPS. 30.0% 9.0% $ 1,000 $4,400 $12,400 $15,000 $ 2,500 $ 3,014 28.571% 33.333% 0.546 8.000 4.776 1.531 133.833 32.776 103.028 4.546% 12.500 8.500 35.714% 2.500 $4.375 984.0 > 1 7 P2.8 EXHIBIT P2.8 Financial Statements for Jeff, Matt and Mike Associates Income Statendent Operating revenue Cost of goods sold... Selling, general and administrative Depreciation and amortization (All) Operating income (EBIT) Interest expense. Income before income tax expense (EBT) Income tax expense (benefit).. Net income... Cash. Accounts receivable. Inventory... You are an analyst and have certain rates of return, profit margins, and other information on the Jeff, Matt, and Mike Associates Company. Using the information in the exhibit, complete the partial financial statements and calculate the missing financial ratios (shown as "?-#") in Exhibit P2.8. The company had no purchases or other additions to Intangible Assets. (All financial ratios using balance sheet numbers are calculated using Year 7 ending balances instead of average balances. The company had no sales or retirements of property, plant, and equipment or intangible assets. Essentially all of the company's property, plant, and equipment is depreciable. All changes in financing occur at the end of the fiscal year.) Current assets Property, plant and equipment-gross (PPEQ) Accumulated depreciation. Property, plant and equipment-net Intangible assets ....... Total assets with excess assets. Accounts payable.. Accruals.. Total current liabilities. Total debt... Total liabilities.. Preferred stock Common stock-paid-in-capital Retained earnings Shareholders' equity Total liabilities and stockholders' equity. ?-1 ?-2 ?-3 7-4 ?-5 ?-6 ?-7 ?-8 ?-9 ?-10 ?-11 ?-12 ?-13 ?-14 ?-15 ?-16 ?-17 ?-18 ?-19 ?-20 $ 3,070 ?-21 ?-22 ?-23 ?-24 ?-25 ?-26 ?-27 Income tax rate Preferred stock dividend rate.. Change in preferred stock. Retained earnings-beginning balance. Inventory purchases.. Capital expenditures (PPEQ) Beginning of year balance-intangible assets. Common dividends Cost of goods sold expense ratio Selling, general and administrative expense ratio Total liabilities to total assets. EBITDA to interest EBITDA to fixed charges Quick (asset test) ratio Days of inventory held Accounts receivable collection period. Trade cash cycle... Provision for bad debts ratio Depreciable life of gross plant Depreciable life of net plant... PPEQ investment (CAPEX) to revenues. PPEQ investment (CAPEX) to depreciation Earnings per share (EPS)-basic.. Shares outstanding for basic EPS. 30.0% 9.0% $ 1,000 $4,400 $12,400 $15,000 $ 2,500 $ 3,014 28.571% 33.333% 0.546 8.000 4.776 1.531 133.833 32.776 103.028 4.546% 12.500 8.500 35.714% 2.500 $4.375 984.0 > 1 7

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