Question 1: Complete F/S (1 point)

1. Balance Sheet (unit : million $)
	2022	2023
Cash and equivalent	50	60
Short-term investment	0	40
Account receivable	500	380
Inventories	1000	820
Total current assets
Net plant and equipment	2000	1700
Total assets
Accounts payable	200	190
Notes payable	280	130
Accruals	300	280
Total current liabilities	780	600
Long-term bonds	1200	1000
Total debt	1980	1600
Preferred Stocks (400000 shares)	100	100
Common Stock (50000000 shares)	500	500
Retained earnings	970	800
Total common equity
Total liabilities and equity
2. Income Statement (unit: million $)
	2022	2023
Sales	5000	4760
Operating Cost except depreciation & amortization	3800	3560
EBITDA
Depreciation & Amortization	200	170
other operating expenses	500	480
EBIT
Less interest	120	100
EBT
Taxes (40%)
Net Income before preferred dividends
Preferred dividends	8.0	8
Net Income
Dividends to common	50.0	48
Addition to retained earnings
Assume 50000000shares of common stock outstanding

Question 2: Using information in Question 1, please estimate the followings (3 points):

• EPS (earnings per share)
• DPD (dividend per share)
• BVPS (Book value per share)
• CFPS (cash flow per share)
• Net Operating working capital = (cash+A/R+investory) - (accounts payable+accurals)
• Total net operating working capital = net operating working capital + net plant and equipment (or net fixed asset)
• Net Operating Profit After Tax = EBIT*(1-t)
• Return on Invested Capital (ROIC) = NOPAT/Total operating capital
• MVA = market value (= share price * number of share) - total common equity
• Free cash flows

Question 3: please calculate the following ratios (2 points):

1. Liquidity

Current ratio

2. Asset Management

Inventory turnover

Days sales outstanding

Fixed assets turnover

Total assets turnover

3. Debt Management

Total debt to total assets

Time-interest earned (TIE)

4. Profitability

Profit margin

Basic earning power

Return on total assets

Return on common equity

4. Market value (Price $31 per share)

PE ratio

Price/cash flow

Market/book