please do on excel please

Gross profit Seting, peral, and administrative penses Depreciation de Operating profits Interest pente Earnings before taus 129.000) 126.000) $ 65.000 H00 $57,000 16.000) $ 41.00 SGA Deprecation Realperatin Operating pool best experi Cabelo Income taxes Nit income Net income Number of Com Dividends pas Market price WAT Corpora Asset Accounts tec Inventories Other curren Total current Crossfied Mini Case This Mini Case is wailable in MyFinanceLab. After graduating from college in December 2014, Elizabeth Arce started her career at the W&T Corporation, a small to medium-sized warehouse distributor in Nashville, Tennessee. The company was founded by David Winston and Colin Tabor in 2000 after they had worked together in management at Wal-Mart. Although Arce had an offer from Sam's Club, she became excited about the opportunity with W&T. Win- ston and Tabor, as CEO and VP-marketing, respectively, assured her that she would be given every opportunity to take a leadership role in the business as quickly as she was prepared for the role. In addition to receiving a competitive salary, Arce will immediately be entitled to a bonus based on how well the company does financially. The bonus is determined by the amount of Economic Value Added (EVA) that is generated in a year. To begin, she will receive 1 percent of the firm's EVA each year, to be paid half in stock and half in cash. In any year that the EVA is negative, she will not receive a bonus. Also, the firm's stock is traded publicly on the NYSE MKT, a stock exchange for small-cap companies. The year of 2014 turned out to be a good year financially for the business. But in the ensuing year, 2015, the company experienced a 5.3 percent sales reduction, where sales declined from $5.7 million to $5.4 million. The downturn then led to other financial problems, including a 50 percent reduction in the company's stock price. The share price went from $36 per share at the end of 2014 to $18 per share at the conclusion of 2015! Financial information for W&T for both years is shown on the next page, where all the numbers, except for per share data are shown in thousands. a. Using what you have learned in this chapter and Chapter 3, prepare a financial analysis of W&T, comparing the firm's financial performance between the 2 years. In addition to the financial information provided on the next page the company's chief financial officer, Mike Stegemoller, has estimated the company's average cost of capital for all its financing to be 10.5 percent b. What conclusions can you make from your analysis? c. How much will Arce's bonus be in 2014 and 2015, in the form of both cash and stock? How many shares of the stock will Arce receive? d. What recommendations would you make to management? Accumulates Net fined as Tstal assets Liabilities ( Accounts pe Short-term Total current Loog term Common Common st Reainedes Total com Total liabil CHAPTER 4. Evaluating a Firm's Financial Porto 2015 $ 5.000 3.500 $ 1800 WLT Corporation Income Statement in thousands) 2014 Sat $ 5.700 Cemit of goods sold 3.200 Drossfit $ 2.000 Operating expenses Selling and Gepenses 50201 Depreciation pense 060 total operating expenses ${LICOS Operating profits 5840 stepense 200 Embelor tres taxable income $ 500 230) Meticane $10 All information Number of common shares outstanding 150 Dividends paid to stockholders $ 120 Mare price per share $ 36 10780 1500) $11.280 1520 275 $ 245 150 5: 120 $ her career at in Nashville Tabor in 2000, Arce had an h W&T. Win- WAT Corporation Balance Sheet 2014 2015 hat she would quickly as she Rattus recevable the current assets be entitled to s determined ear. To begin in stock and bonus. Also, for small-cap $ 300 700 600 125 $1.725 $4,650 01.2001 $2.950 5 495 915 780 160 $2350 $4.950 12.2001 $2.750 35.100 sfeest Accumulated depreciation business. But es reduction then led to this to and Equity pany's stock per share at $ 400 250 $ 650 1.250 corribilities $ 640 309 $ 940 1325 $2.265 page where $1,900 $1.100 rea financial between the e next page stimated the cncent $1.100 1.675 $2,775 $4625 Les and by $2.835 $5.100 oth cash and Gross profit Seting, peral, and administrative penses Depreciation de Operating profits Interest pente Earnings before taus 129.000) 126.000) $ 65.000 H00 $57,000 16.000) $ 41.00 SGA Deprecation Realperatin Operating pool best experi Cabelo Income taxes Nit income Net income Number of Com Dividends pas Market price WAT Corpora Asset Accounts tec Inventories Other curren Total current Crossfied Mini Case This Mini Case is wailable in MyFinanceLab. After graduating from college in December 2014, Elizabeth Arce started her career at the W&T Corporation, a small to medium-sized warehouse distributor in Nashville, Tennessee. The company was founded by David Winston and Colin Tabor in 2000 after they had worked together in management at Wal-Mart. Although Arce had an offer from Sam's Club, she became excited about the opportunity with W&T. Win- ston and Tabor, as CEO and VP-marketing, respectively, assured her that she would be given every opportunity to take a leadership role in the business as quickly as she was prepared for the role. In addition to receiving a competitive salary, Arce will immediately be entitled to a bonus based on how well the company does financially. The bonus is determined by the amount of Economic Value Added (EVA) that is generated in a year. To begin, she will receive 1 percent of the firm's EVA each year, to be paid half in stock and half in cash. In any year that the EVA is negative, she will not receive a bonus. Also, the firm's stock is traded publicly on the NYSE MKT, a stock exchange for small-cap companies. The year of 2014 turned out to be a good year financially for the business. But in the ensuing year, 2015, the company experienced a 5.3 percent sales reduction, where sales declined from $5.7 million to $5.4 million. The downturn then led to other financial problems, including a 50 percent reduction in the company's stock price. The share price went from $36 per share at the end of 2014 to $18 per share at the conclusion of 2015! Financial information for W&T for both years is shown on the next page, where all the numbers, except for per share data are shown in thousands. a. Using what you have learned in this chapter and Chapter 3, prepare a financial analysis of W&T, comparing the firm's financial performance between the 2 years. In addition to the financial information provided on the next page the company's chief financial officer, Mike Stegemoller, has estimated the company's average cost of capital for all its financing to be 10.5 percent b. What conclusions can you make from your analysis? c. How much will Arce's bonus be in 2014 and 2015, in the form of both cash and stock? How many shares of the stock will Arce receive? d. What recommendations would you make to management? Accumulates Net fined as Tstal assets Liabilities ( Accounts pe Short-term Total current Loog term Common Common st Reainedes Total com Total liabil CHAPTER 4. Evaluating a Firm's Financial Porto 2015 $ 5.000 3.500 $ 1800 WLT Corporation Income Statement in thousands) 2014 Sat $ 5.700 Cemit of goods sold 3.200 Drossfit $ 2.000 Operating expenses Selling and Gepenses 50201 Depreciation pense 060 total operating expenses ${LICOS Operating profits 5840 stepense 200 Embelor tres taxable income $ 500 230) Meticane $10 All information Number of common shares outstanding 150 Dividends paid to stockholders $ 120 Mare price per share $ 36 10780 1500) $11.280 1520 275 $ 245 150 5: 120 $ her career at in Nashville Tabor in 2000, Arce had an h W&T. Win- WAT Corporation Balance Sheet 2014 2015 hat she would quickly as she Rattus recevable the current assets be entitled to s determined ear. To begin in stock and bonus. Also, for small-cap $ 300 700 600 125 $1.725 $4,650 01.2001 $2.950 5 495 915 780 160 $2350 $4.950 12.2001 $2.750 35.100 sfeest Accumulated depreciation business. But es reduction then led to this to and Equity pany's stock per share at $ 400 250 $ 650 1.250 corribilities $ 640 309 $ 940 1325 $2.265 page where $1,900 $1.100 rea financial between the e next page stimated the cncent $1.100 1.675 $2,775 $4625 Les and by $2.835 $5.100 oth cash and