Finance Assignment Help
Complete the following assignment in an Excel document – use a new sheet in Excel for each question.
Submit the complete document prior to the due date via Blackboard. Late submissions will be
penalized by 20% per day.
Part A: Calculating Operating Cash Flows and Net Working Capital
- Create an Income Statement.
Tally Corp has the following information for 2014:
Sales – $235,000
Cost – $141,000
Other Expenses – $7,900
Depreciation Expense – $17,300
Interest Expense – $12,900
Taxes – $19,565
Dividends – $12,300
2014 New Equity – $6,100
Net New Long-term Debt – $(4,500)
Change in Fixed Assets – $25,000
- Answer the following questions:
- What is the 2014 Operating Cash Flow?
- What is the 2014 Cash Flow to Creditors?
- What is the 2014 Cash Flow to Stockholders?
- If Net Fixed Assets increased by $25,000 during the year what is the addition to NWC?
Part B: Standardized Financial Statements and Ratios
2013 and 2014 Statement of Financial Position
2013 2014 2013 2014
Current Assets Current Liabilities
Cash $ 8,436 $ 10,157 A/P $ 43,050 $ 46,821
A/R 21,530 23,406 Notes Payable 18,384 17,382
Inventory 38,760 42,650
Total $ 68,726 $ 76,213 Total $ 61,434 $ 64,203
Long-term Debt $ 25,000 $ 32,000
Common Stock &
Retained Earnings 168,998 188,316
Net Plant & Equip $ 226,706 $ 248,306 Total $ 208,998 $ 228,316
Total Liabilities &
The 2014 combined common-size, common-base year statement of financial position for Tomson. Round your intermediate calculations to 2 decimal places and final answers to 4 decimal places.
- The current ratio for each year
- The quick ratio for each year
- The cash ratio for each year
- The NWC to total assets ratio for each year
- The debt-equity ratio and the equity multiplier for each year
- The total debt ratio and the long-term debt ratio for each year
Round all answers to 2 decimal places.
Part C: Pro Forma Statements and EFN
Consider the following simplified financial statements for Turnbull Inc. – assuming no income taxes.
The company has predicted a sales increase of 15 percent. Assume that Turnbull Inc. pays out half of its
net income in the form of a cash dividend. Cost and assets vary with sales, but debt and equity do not.
Assets $ 25,300 Debt $ 5,800
Equity $ 19,500
Total $ 25,300 Total $ 25,300
Sales $ 32,000
Net Income $ 7,600
Sales Increase 15%
Payout rate 50%
- Prepare the Pro Forma Statements for Turnbull Inc.
- Determine the EFN