Construct the cash flow statement for the year 2014

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Reference no: EM13720407

1. Construct the cash flow statement for the year 2014

2. Compute the following financial ratios for the two years 2013, 2014

1. Total Asset Turnover

2. Fixed Asset Turnover

3. Inventory Turnover

4. Average collection period.

5. Current Ratio

6. Quick (Acid Test)

7. Cash ratio

8. Market-to-Book

9. P/E ratio

10. ROE

3. Decompose the ROE for the two years into:

Tax Burden, Interest Burden, Margin, Turnover, Leverage, Compound Leverage and ROA

Write a short note on the financial health of the company.

Income Statement	2012	2013	2014
Sales Revenues		110,000	140,000
COGS (including Depreciation)		44,000	70,000
Depreciation		40,000	44,000
S&A Expenses		40,000	42,000
Operating Income		26,000	28,000
Interest Expense		18,000	25,000
Taxable Income		8,000	3,000
Income Tax (40%)		3,200	1,200
Net Income		4,800	1,800

Balance Sheet	2007	2008	2009
Cash & MS	20,000	8,000	4,000
Accounts Receivable	30,000	36,000	40,000
Inventories	30,000	45,000	60,000
Net PPE	100,000	120,000	130,000
Total Assets	180,000	209,000	234,000
Liabilities
Accounts Payable	50,000	55,000	60,000
Short-term Debt	45,000	65,000	85,000
LT Debt (8% Bonds)	75,000	75,000	75,000
Total Liabilities	170,000	195,000	220,000

Shareholders Equity	10,000	14,000	14,000

Price per share		$ 80.00	$ 72.00
No of shares	10,000	10,000	10,000
Dividends Paid		800	1,800

Reference no: EM13720407

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