EBIT 645001 Interest 28792 Times Interest Earned 23 Compute the Current Ratio

# Ebit 645001 interest 28792 times interest earned 23

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EBIT \$ 645,001 Interest \$ 28,792 Times Interest Earned 23 Compute the Current Ratio on the following: Current Assets \$ 1,400,815 Current Liabilities \$ 693,849 Current Ratio 24 Compute the Quick Ratio on the following: Current Assets \$ 1,400,815 Inventory \$ 666,748 Current Liabilities \$ 693,849 Quick Ratio
. Place results in the columns headed Common-sized. Chg & Pct Chg columns. Dollar Chg Pct Chg
. industries.
1 2 Using the two most recent years shown (2015 & 2016), create a two-year percentage of sales forecas Use the 2-year percentage of sales forecast to develop a pro forma budget for the following year. Ass Develop a quarterly sales budget for the following year. Income Statement for the year ended: 2014 2015 2016 Sales \$ 498,541 \$ 367,450 \$ 389,864 Cost of Goods Sold Inventory, 1/1 \$ 116,081 \$ 85,919 \$ 112,969 Purchases \$ 115,372 \$ 147,970 \$ 187,540 Available for sale \$ 231,453 \$ 233,889 \$ 300,509 Inventory, 12/31 \$ 85,919 \$ 112,969 \$ 129,125 Cost of goods sold \$ 145,534 \$ 120,920 \$ 171,384 Gross profit \$ 353,007 \$ 246,530 \$ 218,480 Expenses Advertising \$ 6,166 \$ 5,915 \$ 6,770 Office lease \$ 8,750 \$ 9,110 \$ 9,544 Insurance \$ 3,906 \$ 3,754 \$ 4,010 Office supplies \$ 2,110 \$ 2,680 \$ 3,862 Salaries \$ 62,378 \$ 72,924 \$ 94,347 Communications \$ 3,708 \$ 5,507 \$ 7,014 Travel \$ 1,070 \$ 6,310 \$ 8,733 Depreciation \$ 4,192 \$ 4,192 \$ 4,192 Operating expenses \$ 92,280 \$ 110,392 \$ 138,472 Operating income \$ 260,727 \$ 136,138 \$ 80,008 Taxes \$ 65,182 \$ 34,035 \$ 20,002 Net income \$ 195,545 \$ 102,104 \$ 60,006 3 Sensitivity analysis measures the impact of changes. What would be percentage effect on net profit 4 What is a pro forma financial statement? Define the term forecasting .
5 6 The following are weekly sales volume figures. Compute a three week moving average. Round the a Use the TREND function as an ARRAY function to predict weekly sales for the time series and to pred Week Sales volume Moving Avg 1 748 2 660 3 814 4 693 5 572 6 374 7 297 8 418 9 451 10 825 11 770 12 792 13 770 14 660 15 704 16 17 18 7 Differentiate linear and nonlinear relationships. 8 Next, create a second Scatter Diagram using the same data points. Insert a 3rd order polynomial tren Define baseline data . Considering the sales volume data in the previous problem, plot Weeks by Sales Volume in a Scatter D
st for the items shown in the income statement. sume a 6% sales increase over the previous year. Percentage of Sales Sales Bu 2-year average 2017 Projection Q1 Q2 be of a 2% price increase of the COGS purchases)?
average to the nearest whole number. dict sales for weeks 16-18. Round to the nearest whole number. nd line. Does this trend line fit the data better? Diagram. Insert a linear trend line including R 2. Does a straight line fit the data well?
udget Q3 Q4 =\$J\$21/4 =SUM(L20:L21) =L22-L24 =TRUNC(\$J24*L\$18)/\$J\$18 =L18-L24
1 Describe the key components of developing an effective business case. 2 The following represents key elements in developing a business case and show h Year: 1 2 3 4 5 New E-Reader: Sales Forecast (\$Millions) Total sales, New E-Reader \$8 \$14 \$18 \$28 Cost of Goods Sold @ 50% of sales \$4 \$7 \$9 \$14 Incremental Gross Profit, New E-Reader \$4 \$7 \$9 \$14 In this case the relevant benefit of the new product is the incremental profit. incremental value \$4 \$7 \$9 \$14 \$0 The relevant cost factors should be identified and estimated over the timeframe of the case. 3 Relevant costs: Lost value, Current Product \$6.00 \$6.00 \$6.00 \$6.00 Advertising \$2.00 \$1.00 \$0.50 \$0.50 New product management team \$1.00 \$1.00 \$1.00 \$1.00 Market research expenses \$0.50 \$0.00 \$0.00 \$0.00 Incremental maintenance \$0.00 \$0.50 \$0.50 \$0.50 4 Total costs \$9.50 \$8.50 \$8.00 \$8.00 5 Calculate net income.

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