2016 Spring2
Financial Concepts
Assignment 1
Financial Statement Analysis
PS: some guidance located at bottom of this document.
Student
Name: ___________________________
Instructions
A) Calculate the total Current Assets, Total Assets, Total Liabilities and Equity, Gross profit, Operating Profit, Earning
and Net Income after Tax on the Balance Sheet and Income statement below (rows highlighted in yellow)
B) Calculate the percentage of each line item under Assets to the Total Assets, each line item under Liabilities and Eq
Liabilities and Equity, and Cost of Goods Sold , SG&A and Interest Expense to Revenue (blue boxes)
C) Calculate the value of the ratio of the questions listed below – Show your work by specifying the formula you used f
calculations.
D) For $ values, no need to leave any decimals, e.g. Gross Profit = $34,000.
E) Leave ratios and percentages in 2 decimal place, e.g. TIE = 2.81; ROA = 4.83%; etc.
Suggestion: calculate the yellow subtotals before going on to
answer individual questions (e.g. the current assets, etc.). These
are intermediate numbers used in various ratios.
2020
2021
Big Apple Enterprises
2020
Yr 2021
ASSETS
Cash
4,500
6,500
Accounts Receivable
21,000
21,500
Inventory
7,500
8,000
Current Assets
Other Non-current Assets
Net Fixed Assets
TOTAL ASSETS
10,500
18,500
62,000
8,000
26,000
70,000
LIABILITIES
Current Liabilities
Debt
Equity
TOTAL LIABILITIES & EQUITY
20,000
22,000
20,000
12,000
28,000
30,000
INCOME STATEMENT
Revenue
Cost of Goods Sold (COGS)
Gross Profit
125,000
85,000
155,000
110,000
SG&A
Operating Profit (EBIT)
20,000
29,000
Interest Expense
Earnings Before Taxes (EBT)
Taxes
Net Income After Tax (NIAT)
2,800
3,450
Other Information
Tax Rate
2020
30%
Yr 2021
30%
BU MET AD-632OL
=1=
[1]
[2]
Common size
Balance Sheet &
Income Stat
2020
Yr 2021
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
Wk3 Ex5
2016 Spring2
Shares Outstanding
Dividends paid
2,000
3,000
3,500
2,300
$8.00
$7.00
Share Price
2016 Spring2
For each of the calculations or ratios below, show work by specifying the formula you used to get its numeric
answer (question #3 has been completed as an example):Note the following:
– Write down the formula where it notes specify your formula used and enter your excel formula and
answer in the row highlighted in green
– All questions in this assignment are related to 2021 data with the exception of question numbers 17 and
18 (question 17 and 18 is asking for the growth rate, hence, need to use the data from both years 2020
and 2021) Note – growth rate should equal to (P2 – P1) / P1
Yr 2021
[3]
What was the company’s Gross Profit in 2021?
e.g. Gross Profit = Rev – COGS
[4]
What was the company’s Gross Margin ratio in 2021?
Gross Margin =
specify your formula used
[5]
What was the company’s Operating Profit (EBIT) in 2021?
EBIT =
specify your formula used
[6]
What was the company’s Pretax Income (EBT) Margin Ratio in 2021?
EBT =
specify your formula used
[7]
How much Income Tax did they pay in 2021?
Income Tax =
specify your formula used
[8]
What was the company’s Net Income After Tax (NIAT) in 2021?
NIAT =
specify your formula used
[9]
What was the company’s Net Operating Profit After Tax (NOPAT) in 2021?
NOPAT =
specify your formula used
[10]
What was the company’s Times Interest Earned (TIE) in 2021?
TIE =
specify your formula used
[11]
What was the company’s Profit Margin ratio in 2021?
Profit Margin =
specify your formula used
[12]
What was the company’s Return on Assets (ROA) in 2021?*
ROA =
specify your formula used
[13]
What was the company’s Return on Equity (ROE) in 2021? *
ROE =
specify your formula used
[14]
What is the company’s Current ratio in 2021?
Current Ratio =
specify your formula used
[15]
What was the company’s Quick Ratio in 2021?
BU MET AD-632OL
=2=
45,000
Wk3 Ex5
2016 Spring2
Quick Ratio =
specify your formula used
[16]
What was the company’s Day’s Sales Outstanding (DSO) in 2021?
day-count of 365 days per year.
DSO =
specify your formula used
Assume a
[17]
What was the rate of the company’s asset growth between 2020 and 2021?
Asset Growth =
specify your formula used
[18]
What was the rate of the company’s sales’ growth between 2020 and 2021?
Sales Growth =
specify your formula used
Yr. 2021
[19]
What was the company’s Debt-to-Equity ratio in 2021?
Debt-to-Equity Ratio =
specify your formula used
[20]
What was the company’s Earnings Per Share (EPS) in 2021?
EPS =
specify your formula used
[21]
What was the company’s Price-Earnings (P/E) ratio in 2021?
P/E Ratio =
specify your formula used
[22]
What was the company’s Dividend Payout ratio (DPR) in 2021?
DPR =
specify your formula used
[23]
What were the Dividends Per Share paid in 2021?
Dividend Per Share =
specify your formula used
[24]
What was the Dividend Yield in 2021?
Dividend Yield =
specify your formula used
BU MET AD-632OL
=3=
Wk3 Ex5
2016 Spring2
[25]
In one paragraph, please analyze the Statement of Income for 2021 as compared to 2020:
monkey2
Q&As
BU MET AD-632OL
=4=
Wk3 Ex5
2016 Spring2
g Profit, Earning before Taxes, Taxes
ow)
iabilities and Equity to the total
rmula you used for each of these
monkey2
BU MET AD-632OL
=5=
Wk3 Ex5
2016 Spring2
BU MET AD-632OL
=6=
Wk3 Ex5
Financial Concepts
Assignment 2
Financial Statement Analysis
Short Answer Questions
Please answer all of these questions in no more than one paragraph or you may use an outline
form:
Each question will be worth 20 points:
1. What three factors would influence your evaluation as to whether a companys current
ratio is good or bad?
2. What does the number of days sales uncollected indicate?
3. Why is a companys capital structure, as measured by debt and equity ratios, important
to financial statement analysis?
4. What ratios would you compute to evaluate management performance?
5. Suggest several reasons why a 2:1 current ratio might not be adequate for a particular
company?
2016 Spring2
Financial Concepts
Assignment 1
Financial Statement Analysis
PS: some guidance located at bottom of this document.
Student
Name: ___________________________
Instructions
A) Calculate the total Current Assets, Total Assets, Total Liabilities and Equity, Gross profit, Operating Profit, Earning
and Net Income after Tax on the Balance Sheet and Income statement below (rows highlighted in yellow)
B) Calculate the percentage of each line item under Assets to the Total Assets, each line item under Liabilities and Eq
Liabilities and Equity, and Cost of Goods Sold , SG&A and Interest Expense to Revenue (blue boxes)
C) Calculate the value of the ratio of the questions listed below – Show your work by specifying the formula you used f
calculations.
D) For $ values, no need to leave any decimals, e.g. Gross Profit = $34,000.
E) Leave ratios and percentages in 2 decimal place, e.g. TIE = 2.81; ROA = 4.83%; etc.
Suggestion: calculate the yellow subtotals before going on to
answer individual questions (e.g. the current assets, etc.). These
are intermediate numbers used in various ratios.
2020
2021
Big Apple Enterprises
2020
Yr 2021
ASSETS
Cash
4,500
6,500
Accounts Receivable
21,000
21,500
Inventory
7,500
8,000
Current Assets
Other Non-current Assets
Net Fixed Assets
TOTAL ASSETS
10,500
18,500
62,000
8,000
26,000
70,000
LIABILITIES
Current Liabilities
Debt
Equity
TOTAL LIABILITIES & EQUITY
20,000
22,000
20,000
12,000
28,000
30,000
INCOME STATEMENT
Revenue
Cost of Goods Sold (COGS)
Gross Profit
125,000
85,000
155,000
110,000
SG&A
Operating Profit (EBIT)
20,000
29,000
Interest Expense
Earnings Before Taxes (EBT)
Taxes
Net Income After Tax (NIAT)
2,800
3,450
Other Information
Tax Rate
2020
30%
Yr 2021
30%
BU MET AD-632OL
=1=
[1]
[2]
Common size
Balance Sheet &
Income Stat
2020
Yr 2021
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
Wk3 Ex5
2016 Spring2
Shares Outstanding
Dividends paid
2,000
3,000
3,500
2,300
$8.00
$7.00
Share Price
2016 Spring2
For each of the calculations or ratios below, show work by specifying the formula you used to get its numeric
answer (question #3 has been completed as an example):Note the following:
– Write down the formula where it notes specify your formula used and enter your excel formula and
answer in the row highlighted in green
– All questions in this assignment are related to 2021 data with the exception of question numbers 17 and
18 (question 17 and 18 is asking for the growth rate, hence, need to use the data from both years 2020
and 2021) Note – growth rate should equal to (P2 – P1) / P1
Yr 2021
[3]
What was the company’s Gross Profit in 2021?
e.g. Gross Profit = Rev – COGS
[4]
What was the company’s Gross Margin ratio in 2021?
Gross Margin =
specify your formula used
[5]
What was the company’s Operating Profit (EBIT) in 2021?
EBIT =
specify your formula used
[6]
What was the company’s Pretax Income (EBT) Margin Ratio in 2021?
EBT =
specify your formula used
[7]
How much Income Tax did they pay in 2021?
Income Tax =
specify your formula used
[8]
What was the company’s Net Income After Tax (NIAT) in 2021?
NIAT =
specify your formula used
[9]
What was the company’s Net Operating Profit After Tax (NOPAT) in 2021?
NOPAT =
specify your formula used
[10]
What was the company’s Times Interest Earned (TIE) in 2021?
TIE =
specify your formula used
[11]
What was the company’s Profit Margin ratio in 2021?
Profit Margin =
specify your formula used
[12]
What was the company’s Return on Assets (ROA) in 2021?*
ROA =
specify your formula used
[13]
What was the company’s Return on Equity (ROE) in 2021? *
ROE =
specify your formula used
[14]
What is the company’s Current ratio in 2021?
Current Ratio =
specify your formula used
[15]
What was the company’s Quick Ratio in 2021?
BU MET AD-632OL
=2=
45,000
Wk3 Ex5
2016 Spring2
Quick Ratio =
specify your formula used
[16]
What was the company’s Day’s Sales Outstanding (DSO) in 2021?
day-count of 365 days per year.
DSO =
specify your formula used
Assume a
[17]
What was the rate of the company’s asset growth between 2020 and 2021?
Asset Growth =
specify your formula used
[18]
What was the rate of the company’s sales’ growth between 2020 and 2021?
Sales Growth =
specify your formula used
Yr. 2021
[19]
What was the company’s Debt-to-Equity ratio in 2021?
Debt-to-Equity Ratio =
specify your formula used
[20]
What was the company’s Earnings Per Share (EPS) in 2021?
EPS =
specify your formula used
[21]
What was the company’s Price-Earnings (P/E) ratio in 2021?
P/E Ratio =
specify your formula used
[22]
What was the company’s Dividend Payout ratio (DPR) in 2021?
DPR =
specify your formula used
[23]
What were the Dividends Per Share paid in 2021?
Dividend Per Share =
specify your formula used
[24]
What was the Dividend Yield in 2021?
Dividend Yield =
specify your formula used
BU MET AD-632OL
=3=
Wk3 Ex5
2016 Spring2
[25]
In one paragraph, please analyze the Statement of Income for 2021 as compared to 2020:
monkey2
Q&As
BU MET AD-632OL
=4=
Wk3 Ex5
2016 Spring2
g Profit, Earning before Taxes, Taxes
ow)
iabilities and Equity to the total
rmula you used for each of these
monkey2
BU MET AD-632OL
=5=
Wk3 Ex5
2016 Spring2
BU MET AD-632OL
=6=
Wk3 Ex5
Financial Concepts
Assignment 2
Financial Statement Analysis
Short Answer Questions
Please answer all of these questions in no more than one paragraph or you may use an outline
form:
Each question will be worth 20 points:
1. What three factors would influence your evaluation as to whether a companys current
ratio is good or bad?
2. What does the number of days sales uncollected indicate?
3. Why is a companys capital structure, as measured by debt and equity ratios, important
to financial statement analysis?
4. What ratios would you compute to evaluate management performance?
5. Suggest several reasons why a 2:1 current ratio might not be adequate for a particular
company?
