You are an analyst and have certain rates of return, profit margins, and other information on...

 

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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.) EXHIBIT P2.8 Financial Statements for Jeff, Matt and Mike Associates n.com Operating revenue Cost of goods sold.. abon ?-1 Income tax rate 30.0% ?-2 Preferred stock dividend rate. Selling, general and administrative ?-3 Change in preferred stock 9.0% $ 1,000 Depreciation and amortization (All) 2-4 Retained earnings-beginning balance $4,400 Operating income (EBIT) ?-5 Inventory purchases.. $12,400 Interest expense... ?-6 Capital expenditures (PPEQ) $15,000 Beginning of year balance intangible assets.. $ 2,500 Income before income tax expense (EBT). ?-7 Common dividends $ 3,014 Income tax expense (benefit).. 7-8 Net income.. ?-9 Cash.. 7-10 Cost of goods sold expense ratio 28.571% Accounts receivable.. ?-11 Selling, general and administrative expense ratio 33.333% Inventory.. ?-12 Total liabilities to total assets 0.546 EBITDA to interest 8.000 Current assets 2-13 EBITDA to fixed charges 4.776 Property, plant and equipment-gross (PPEQ) 2-14 Quick (asset test) ratio 1.531 Accumulated depreciation... 7-15 Days of inventory held 133.833 Property, plant and equipment-net ?-16 Accounts receivable collection period.. 32.776 Trade cash cycle. 103.028 Intangible assets ...... ?-17 Provision for bad debts ratio 4.546% Total assets with excess assets. 2-18 Depreciable life of gross plant 12.500 Depreciable life of net plant. 8.500 Accounts payable. Accruals. Total current liabilities.. Total debt.. 2-19 PPEQ investment (CAPEX) to revenues. PPEQ investment (CAPEX) to depreciation. 35.714% 2.500 ?-20 $ 3,070 Earnings per share (EPS)-basic. $4.375 2-21 Shares outstanding for basic EPS 984.0 Total liabilities. ?-22 Preferred stock Common stock-paid-in-capital Retained earnings Shareholders' equity 7-23 2-24 ?-25 ?-26 Total liabilities and stockholders' equity. ?-27 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.) EXHIBIT P2.8 Financial Statements for Jeff, Matt and Mike Associates n.com Operating revenue Cost of goods sold.. abon ?-1 Income tax rate 30.0% ?-2 Preferred stock dividend rate. Selling, general and administrative ?-3 Change in preferred stock 9.0% $ 1,000 Depreciation and amortization (All) 2-4 Retained earnings-beginning balance $4,400 Operating income (EBIT) ?-5 Inventory purchases.. $12,400 Interest expense... ?-6 Capital expenditures (PPEQ) $15,000 Beginning of year balance intangible assets.. $ 2,500 Income before income tax expense (EBT). ?-7 Common dividends $ 3,014 Income tax expense (benefit).. 7-8 Net income.. ?-9 Cash.. 7-10 Cost of goods sold expense ratio 28.571% Accounts receivable.. ?-11 Selling, general and administrative expense ratio 33.333% Inventory.. ?-12 Total liabilities to total assets 0.546 EBITDA to interest 8.000 Current assets 2-13 EBITDA to fixed charges 4.776 Property, plant and equipment-gross (PPEQ) 2-14 Quick (asset test) ratio 1.531 Accumulated depreciation... 7-15 Days of inventory held 133.833 Property, plant and equipment-net ?-16 Accounts receivable collection period.. 32.776 Trade cash cycle. 103.028 Intangible assets ...... ?-17 Provision for bad debts ratio 4.546% Total assets with excess assets. 2-18 Depreciable life of gross plant 12.500 Depreciable life of net plant. 8.500 Accounts payable. Accruals. Total current liabilities.. Total debt.. 2-19 PPEQ investment (CAPEX) to revenues. PPEQ investment (CAPEX) to depreciation. 35.714% 2.500 ?-20 $ 3,070 Earnings per share (EPS)-basic. $4.375 2-21 Shares outstanding for basic EPS 984.0 Total liabilities. ?-22 Preferred stock Common stock-paid-in-capital Retained earnings Shareholders' equity 7-23 2-24 ?-25 ?-26 Total liabilities and stockholders' equity. ?-27