Chapter03FinancialStatements

Chapter03FinancialStatements - OEM 2009 Program Financial...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
OEM 2009 Program Financial Statements, Cash Flow, and Taxes Page 1 CHAPTER 3 Financial Statements, Cash Flow, and Taxes Financial Statements ± The balance sheet ± The income statement ± Statement of retained earnings ± Statement of cash flows Balance Sheet Assets Year 4 Year 5 Cash 29 19 Accounts Receivable 549 711 Inventory 672 873 Current Assets 1,250 1,603 Gross Fixed Assets (PPE) 230 230 Less: Accumulated Depreciation (46) (60) Net Fixed Assets (PPE) 184 170 Total Assets 1,434 1,773 Balance Sheet Liabilities and Equity Year 4 Year 5 Accounts Payable 210 214 Notes Payable 329 539 Accruals 48 45 Current Liabilities 587 798 Long-term Debt 208 258 Total Liabilities 795 1,056 Common Stock 490 520 Retained Earnings 149 197 Total Equity 639 717 Total Liabilities and Equity 1,434 1,773 Income Statement Income Statement Year 4 Year 5 Sales (Net Revenues) 2,939 3,841 Cost of Goods Sold (2,279) (2,966) Gross Profit 660 875 Other Expenses (524) (703) Depreciation (14) (14) EBIT 122 158 Interest (38) (64) EBT 84 94 Taxes (40%) (34) (38) Net Income 51 57 Other Data Most Items on Per Share Basis Year 4 Year 5 Shares Outstanding 11,909,954 12,445,668 Book Value Per Share $53.68 $57.57 Dividends Per Share $0.60 $0.75 Total Dividends (in millions $7 1 $9 3 Total Dividends (in millions) $7.1 $9.3 To Retained Earnings (in millions) $43.5 $47.2 Price Per Share $58.23 $52.74 Earnings Per Share $4.25 $4.54 P/E Ratio 13.7 11.6 Total MV of Equity $694 $656 Lease Payments (in millions) $27 $48
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
OEM 2009 Program Financial Statements, Cash Flow, and Taxes Page 2 Questions ± The firm increased its net income, EPS, and dividends, yet the price of the stock dropped. Was this irrational behavior by investors? ² Not necessarily. Current earnings could have been less than expected, or they “perceive” problems arising in the future. Questions ± Why did management increase the dividend per share? ² They were probably trying to “signal” the market that the future is brighter than investors believe. It does not appear as if they were successful. Statement of Retained Earnings Components Year 4 Year 5 Beginning Balance 106 149 Add: Net Income 51 57 Less: Dividends Paid (7) (9) Ending Balance 149 197 Statement of Cash Flows Operations Year 4 Year 5 Operations: Net Income 51 57 Depreciation 14 14 Working Capital from Operations 65 71 (Increase) Decrease in Accounts Receivable (130 (162 (130) (162) (Increase) Decrease in Inventories (162) (201) Increase (Decrease) in Accounts Payable 18 4 Increase (Decrease) in Accruals 6 (3) Cash Flow from Operations (203) (291) Statement of Cash Flows Investing and Free Cash Flow Year 4 Year 5 Investing: Gross Fixed Assets (PPE) (10) 0 Change in Marketable Securities 0 0 Cash Flow from Investing (10) 0 Free Cash Flow (213) (291) Statement of Cash Flows Financing and Ending Cash Year 4
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 05/12/2010 for the course FIN 5405 taught by Professor Tapley during the Summer '08 term at University of Florida.

Page1 / 13

Chapter03FinancialStatements - OEM 2009 Program Financial...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online