Introduction to Finance Week 5 – Numerical Exercises
Balance Sheet Dec 31 200X
Cash $45
Accounts Payables $45
Marketable Securities 33
Notes Payables 45
Receivables 66
Other Current liabilities 21
Inventory 159
Total Current liabilities $111
Total Current Assets 303
Long term debt 24
Total liabilities $135
Net Fixed Assets 147
Common Stock 114
Total Assets $450
Retained Earnings 201
Total stockholders’ equity 315
Total liabilities and equity 450
Income Statement Year 200X
Net sales $795
Cost of goods sold 660
Gross profit 135
Selling expenses 73.5
Depreciation 12
EBIT 49.5
Interest expense 4.5
EBT 45
Taxes (40% 18
Net Income 27
Calculate the following ratios:
Ratio Industry Average
Current ratio
Times interest earned
DSO
Inventory Turnover
Sales/Total Assets
Profit margin on sales
Return on Total Assets
Return on Common Equity
(Dividend payout is 50%)
Balance Sheet (End of the Year)
Assets $2,000
Debt $1000
Equity $1000
Total $2000 $2000
Income Statement
Sales $1000
Costs 800
Net Income 200
Week 1 Week 2 Week 3
Cash Receipts $1,000 $1,100 $900
Cash Disbursements (850) (1450) (1000)
