Section_12_Practice_Set_NEW_Solutions

Section_12_Practice_Set_NEW_Solutions - AEM 323 Section 12...

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AEM 323 Section 12 Spring 2006 Chapter 14- Financial Statement Analysis Based on presentations in lecture: 1) Create Comparative Financial Statements for the 2004 and 2003 years that show amount as well as percent changes over the two years. 2) Develop "Trend Percentages" using 2002 as your base year. 3) Common Size Financial Statements for 2004 and 2003. 4) Complete the Financial Statement Ratio Analysis at the "Answers" Tab. 5) Assume number of shares outstanding to be 2,400,000 5) Assume market price per share is $43.01 6) Assume that tax rate t=25%
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Income Statement 2002-2003 2003-2004 Trend % 2002 Base Year Common Size % PERIOD ENDING 31-Dec-04 31-Dec-03 31-Dec-02 Amount % Amount % 2003 2004 2003 2004 Total Revenue 21,962,000 21,044,000 19,564,000 1,480,000 7.56 918,000 4.36 7.56 4.69 100.00 100.00 Cost of Revenue 7,638,000 7,762,000 7,105,000 657,000 9.25 -124,000 (1.60) 9.25 (1.75) 36.88 34.78 Gross Profit 14,324,000 13,282,000 12,459,000 823,000 6.61 1,042,000 7.85 6.61 8.36 63.12 65.22 Selling General and Administrative 8,626,000 8,061,000 7,001,000 1,060,000 15.14 565,000 7.01 15.14 8.07 38.31 39.28 Operating Income or Loss 5,698,000 5,221,000 5,458,000 -237,000 (4.34) 477,000 9.14 (4.34) 8.74 24.81 25.94 Income from Continuing Operations: Total Other Income/Expenses Net 720,000 452,000 240,000 212,000 88.33 268,000 59.29 88.33 111.67 2.15 3.28 Earnings Before Interest And Taxes 6,418,000 5,673,000 5,698,000 -25,000 (0.44) 745,000 13.13 (0.44) 13.07 26.96 29.22 Interest Expense 196,000 178,000 199,000 -21,000 (10.55) 18,000 10.11 (10.55) 9.05 0.85 0.89 Income Before Tax 6,222,000 5,495,000 5,499,000 -4,000 (0.07) 727,000 13.23 (0.07) 13.22 26.11 28.33 Income Tax Expense 1,375,000 1,148,000 1,523,000 -375,000 (24.62) 227,000 19.77 (24.62) 14.90 5.46 6.26 Minority Interest - - - - - - - - - - - Net Income From Continuing Ops 4,847,000 4,347,000 3,976,000 371,000 9.33 500,000 11.50 9.33 12.58 20.66 22.07 Non-recurring Events Discontinued Operations - - - - - - - - - - - Extraordinary Items - - - - - - - - - - - Effect Of Accounting Changes - - -926,000 - - - - - - - - s5 - - - - - - - - - - - Net Income 4,847,000 4,347,000 3,050,000 1,297,000 42.52 500,000 11.50 42.52 16.39 20.66 22.07 Preferred Stock And Other Adjustments
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This homework help was uploaded on 02/19/2009 for the course AEM 3230 taught by Professor Little,j.e. during the Spring '08 term at Cornell University (Engineering School).

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Section_12_Practice_Set_NEW_Solutions - AEM 323 Section 12...

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