Landmark Solutions Worksheet 2021 T2 2021
xlsx
keyboard_arrow_up
School
University of New South Wales *
*We aren’t endorsed by this school
Course
3650
Subject
Finance
Date
Jul 1, 2024
Type
xlsx
Pages
21
Uploaded by SargentArmadillo2196
Exhibit 1 Landmark's Simplified Financial Statements, 2010-2014 (U.S. $ millions)
2010
2011
2012
2013
2014 [E]
Income statement
Net sales
289.9 304.1 316.4 329.0 345.5 COGS
259.4
273.1
284.1
295.3
310.4
Gross profit
30.5
31.0
32.3
33.7
35.1
Operating expenses
20.9
21.6
26.7
28.6
30.3
Depreciation and amortization
1.6
1.6
1.7
1.7
1.8
Operating profit
8.0
7.8
3.9
3.4
3.0
Interest expense
0.0
0.0
0.3
0.2
0.0
Income taxes
2.8
2.7
1.3
1.1
1.1
Net income
5.2
5.1
2.3
2.1
2.0
EPS
$1.30
$1.27
$0.58
$0.52
$0.49
Dividend
$0.20
$0.20
$0.20
$0.20
$0.20
Balance sheet
Cash
3.6
4.2
3.3
1.5
0.4
Accounts receivable
20.7
22.0
29.3
30.4
31.0
Other current assets
6.3
5.1
4.9
5.0
4.9
Current assets
30.6
31.3
37.5
36.9
36.3
Net PP&E
3.1
5.1
7.2
9.2
11.2
Investments and other assets
45.0
47.1
47.3
47.6
47.2
Total assets
78.7
83.6
92.0
93.7
94.6
Accounts payable
5.6
5.3
7.6
8.9
10.4
Bank borrowing
0.0
0.0
4.0
2.5
0.0
Current Liabilities
5.6
5.3
11.6
11.4
10.4
Accrued expenses and deferred taxes
13.9
13.9
15.0
15.3
15.5
Other non-current liabilities
16.6
17.5
17.0
17.3
17.9
Total liabilities
36.1
36.7
43.6
44.0
43.8
Shareholders' equity
42.6
46.9
48.4
49.7
50.8
Total liabilities and equity
78.7
83.6
92.0
93.7
94.6
Exhibit 2 Broadway's Simplified Financial Statements, 2010-2014 (U.S. $ millions)
2010
2011
2012
2013
2014 [E]
Income statement
Net sales
137.8
143.5
149.5
155.3
161.9
COGS
126.1
131.5
137.1
142.5
148.6
Gross profit
11.7
12.0
12.4
12.8
13.3
Operating expenses
2.9
2.9
2.9
3.0
3.0
Depreciation and amortization
1.8
2.2
2.5
2.8
2.9
Operating profit
7.0
6.9
7.0
7.0
7.4
0.4
0.4
0.4
0.4
0.4
Income taxes
2.3
2.3
2.3
2.3
2.5
Net income
4.3
4.2
4.3
4.3
4.6
EPS
$1.23
$1.21
$1.22
$1.23
$1.30
Dividends
$0.24
$0.24
$0.24
$0.24
$0.24
Balance sheet
Cash
1.8
1.0
1.9
1.5
2.1
Accounts receivable
13.1
13.5
14.6
15.2
16.2
Other current assets
2.8
4.0
4.1
4.2
4.2
Current assets
17.7
18.5
20.6
20.9
22.5
Net PP&E
16.0
17.4
18.6
19.7
20.9
Investments and other assets
35.9
38.6
41.8
43.2
43.5
Total assets
69.6
74.5
81.1
83.8
86.8
Accounts payable
9.3
9.9
10.4
11.0
11.5
0.4
0.4
0.4
0.4
0.4
Current Liabilities
9.7
10.3
10.8
11.4
11.9
Long-term debt
8.2
7.7
8.7
8.3
7.9
Accrued expenses and deferred taxes
11.6
12.8
13.1
13.3
13.0
Other non-current liabilities
11.0
11.2
12.5
11.4
10.9
Total liabilities
40.5
42.0
45.1
44.4
43.7
Shareholders 'equity
29.1
32.5
36.0
39.4
43.1
Total liabilities and equity
69.6
74.5
81.1
83.8
86.8
Interest expense
a
Long-term debt, current portion
b
a
Interest rate on long-term debt outstanding is at 4.5% per year.
b
Principal amount of long-term debt is amortized at $0.4m per year.
Exhibit 3a Five-year Forecast of Landmark's Income and Cash Flow, 2015-2019 (U.S. $ millions)*
2015
2016
2017
2018
2019
Net sales
362.8
380.9
400.0
420.0
441.0
Operating profit
5.4
5.7
6.0
6.3
6.6
Net income
3.5
3.7
3.9
4.1
4.3
Depreciation and amortization
2.1
2.4
2.7
3.0
3.3
Change in net working capital
1.3
1.3
1.4
1.5
1.6
Capital expenditure
3.6
3.8
4.0
4.2
4.4
Total FCF
0.7
1.0
1.2
1.4
1.6
Exhibit 3b Five-year Forecast of Broadway's Income and Cash Flow, 2015-2019 (U.S. $ millions)*
2015
2016
2017
2018
2019
Net sales
168.4
175.1
182.1
189.4
197.0
Operating profit
6.7
7.0
7.3
7.6
7.9
Interest expense
0.4
0.4
0.4
0.4
0.4
Net income
4.1
4.3
4.5
4.7
4.9
Depreciation and amortization
3.1
3.3
3.5
3.7
3.9
Change in net working capital
0.4
0.4
0.4
0.4
0.4
Capital expenditure
4.2
4.4
4.6
4.7
4.9
Total FCF
2.8
3.1
3.3
3.5
3.7
*Numbers in the exhibits are based on the assumption Broadway does not acquire Landmark.
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Exhibit 4 Financial Data of Publically Traded Competitors, 2014 (U.S. $ millions)
Comparable Company 1
Comparable Company 2
Comparable Company 3
Sales
$13,945.7
$6,417.2
$836.9
Net income
$219.4
$123.8
$12.1
EPS
$0.95
$1.84
$0.55
Share price
$26.76
$46.83
$22.73
Number of shares outstanding
231.2
67.3
22.0
Market capitalization
$6,186.9
$3,151.7
$500.1
Debt
$5,887.0
$355.0
$289.0
Assets
$10,267.1
$3,465.9
$862.4
Equity beta
1.69
1.25
1.56
Exhibit 5 Selected Capital Markets Information as of September 1, 2014
Treasury:
3-month Treasury bill rate
0.04%
1-year Treasury bond rate
0.10%
10-year Treasury bond rate
2.56%
Corporate bond yield:
Aaa
4.16%
Aa
4.34%
A
4.52%
Baa
4.70%
Market risk premium
5.90%
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Landmark Solution
Use the worksh
Some basic prin
KISS - Keep It
Be Consisten
Keep the nat
Avoid hard-c
Stick with the
Week #
Week 2
Week 3
Week 4
Week 5
1 Page report
ns case exercises (Week 2-5)
heets created in this excel workbook to carry out the required financial modelling as listed in each week's exercises
nciples of financial modelling/analysis:
t Short and Simple. The exercises we covered in this course does not require fancy, colourful cells or Macro or VBA. nt - ie, column headings, width, fonts, etc
tural flow - ie, read like a book - from left to right, top-down, etc
coded figures. For calculated outputs, refer to source data as much as possible
e tabs we provided in this excel file. You don't need to create new tabs for what we do here.
Topics/Objectives
Create Proforma Financials for both Landmark and Broadway based on the mgmt' Base and Pessimistic case
Both Base and Pessimistic case
Landmark Proforma Financials
Broadway Proforma Financials
Estimate Cost of Capital for Landmark, Broadway & Industry
Calculate the "all-equity" (or Unlevered) beta for the comparable companies in Exhibit 4 Estimate the unlevered beta for the industry
Estimate Cost of Unlevered Equity of the industry (Using CAPM)
Estimate the cost of capital of Landmark and Broadway (and Combined):
- Estimate levered beta based on target D/E or using industry average
- Cost of levered equity
- WACC All workings are linked. Spreadsheet is well formatted and visually pleasing
Capital Structure
How does equity vs. debt financing impact on the capital structure and potential value to the acquisition?
Both Base and Pessimistic case
Merged Proforma (100% Debt Funded)
Merged Proforma (50% Debt Funded)
Valuation/Capital Budgeting Objective is to determine whether the acquisition of Landmark create values and whether the price of $120m is NPV p
- DCF Valuation of Landmark (without acquisition)
- DCF Valuation of Broadway (without acquisition)
- DCF Valuation of Landmark (with acquisition) Base and Pessimistic
- DCF Valuation of Broadway (with acquisition) Base and Pessimistic
- All figures should be linked and well presented
Sensitivity analysis of Landmark value to Broadway - WACC vs. Growth Rate of Broadway
- WACC vs. Operating margin
- NPV of the proposed acquisition to Broadway
Based on the analysis conducted, does the acquisition of Landmark present value to Broadway. Consider the following:
- What are the key risks/variables affecting whether the acquisition would create value?
- How should Broadway finance the acquisition ie, Debt vs. Equity
- Under Base/Pessimistic case, how much value is created for Landmark shareholders? And Broadway shareholders?
- You should consider using summary tables of various key figures / calculations to illustrate and support your commen
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
positive
ntary
Wk 4 - Proforma financials of Landmark (3 ways financials) 2015 - 2020
Base and Pessimistic case
Need to achieve
- List of assumptions driving the forecasts
- Income Statement
- Balance Sheet
- Cash flow Statement
- All figures are linked - Well formatted and presented
Exhibit 1 Landmark's Simplified Financial Statements, 2010-2014 (U.S. $ millions)
2010
2011
2012
2013
2014 [E]
Income statement
Net sales
289.9 304.1 316.4 329.0 345.5 COGS
259.4
273.1
284.1
295.3
310.4
Gross profit
30.5
31.0
32.3
33.7
35.1
Operating expenses
20.9
21.6
26.7
28.6
30.3
Depreciation and amortization
1.6
1.6
1.7
1.7
1.8
Operating profit
8.0
7.8
3.9
3.4
3.0
Interest expense
0.0
0.0
0.3
0.2
0.0
Income taxes
2.8
2.7
1.3
1.1
1.1
Net income
5.2
5.1
2.3
2.1
2.0
EPS
$1.30
$1.27
$0.58
$0.52
$0.49
Dividend
$0.20
$0.20
$0.20
$0.20
$0.20
Balance sheet
Cash
3.6
4.2
3.3
1.5
0.4
Accounts receivable
20.7
22.0
29.3
30.4
31.0
Other current assets
6.3
5.1
4.9
5.0
4.9
Current assets
30.6
31.3
37.5
36.9
36.3
Net PP&E
3.1
5.1
7.2
9.2
11.2
Investments and other assets
45.0
47.1
47.3
47.6
47.2
Total assets
78.7
83.6
92.0
93.7
94.6
Accounts payable
5.6
5.3
7.6
8.9
10.4
Bank borrowing
0.0
0.0
4.0
2.5
0.0
Current Liabilities
5.6
5.3
11.6
11.4
10.4
Accrued expenses and deferred taxes
13.9
13.9
15.0
15.3
15.5
Other non-current liabilities
16.6
17.5
17.0
17.3
17.9
Total liabilities
36.1
36.7
43.6
44.0
43.8
Shareholders' equity
42.6
46.9
48.4
49.7
50.8
Total liabilities and equity
78.7
83.6
92.0
93.7
94.6
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Wk 4 - Proforma financials of Broadway (3 ways financials) 2015 - 2020
Base and Pessimistic case
Need to achieve
- List of assumptions driving the forecasts
- Income Statement
- Balance Sheet
- Cash flow Statement
- All figures are linked - Well formatted and presented
Exhibit 2 Broadway's Simplified Financial Statements, 2010-2014 (U.S. $ millions)
2010
2011
2012
2013
2014 [E]
Income statement
Net sales
137.8
143.5
149.5
155.3
161.9
COGS
126.1
131.5
137.1
142.5
148.6
Gross profit
11.7
12.0
12.4
12.8
13.3
Operating expen
2.9
2.9
2.9
3.0
3.0
Depreciation and
1.8
2.2
2.5
2.8
2.9
Operating profit
7.0
6.9
7.0
7.0
7.4
0.4
0.4
0.4
0.4
0.4
Income taxes
2.3
2.3
2.3
2.3
2.5
Net income
4.3
4.2
4.3
4.3
4.6
EPS
$1.23
$1.21
$1.22
$1.23
$1.30
Dividends
$0.24
$0.24
$0.24
$0.24
$0.24
Balance sheet
Cash
1.8
1.0
1.9
1.5
2.1
Accounts receiv
13.1
13.5
14.6
15.2
16.2
Other current ass
2.8
4.0
4.1
4.2
4.2
Current assets
17.7
18.5
20.6
20.9
22.5
Net PP&E
16.0
17.4
18.6
19.7
20.9
Investments and
35.9
38.6
41.8
43.2
43.5
Total assets
69.6
74.5
81.1
83.8
86.8
Accounts payabl
9.3
9.9
10.4
11.0
11.5
0.4
0.4
0.4
0.4
0.4
Current Liabiliti
9.7
10.3
10.8
11.4
11.9
Long-term debt
8.2
7.7
8.7
8.3
7.9
Accrued expense
11.6
12.8
13.1
13.3
13.0
Other non-curren
11.0
11.2
12.5
11.4
10.9
Total liabilities
40.5
42.0
45.1
44.4
43.7
Shareholders 'eq
29.1
32.5
36.0
39.4
43.1
Total liabilities 69.6
74.5
81.1
83.8
86.8
Interest expense
a
Long-term debt, a
Interest rate on long-term debt outstanding is at 4.5% per year.
b
Principal amount of long-term debt is amortized at $0.4m per year.
Week 3- Estimate Cost of Capital for Landmark and Broadway
Need to achieve:
Calculate the "all-equity" (or Unlevered) beta for the comparable companies in Exhibit 4 Estimate the unlevered beta for the industry
Estimate Cost of Unlevered Equity of the industry (Using CAPM)
Estimate the cost of capital of Landmark and Broadway (and Combined):
- Estimate levered beta based on target D/E or using industry average
- Cost of levered equity
- WACC All workings are linked. Spreadsheet is well formatted and visually pleasing
Use the comparable companies information in Exhibit 4, Exhibit 5 and other appropriate information in the case to estimate Cost of Capital
Wk 4 - Proforma 3 way financials of Broadway (Post Acquisitions) 2015 - 2020 (100% debt funded)
Need to achieve
- Base case and Pessimistic case
- Income Statement
- Balance Sheet
- Cash flow Statement
- All figures are linked - Analysis on various relevant debt ratio
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Wk 4 - Proforma 3 way financials of Broadway (Post Acquisitions) 2015 - 2020 (50% debt funded)
Need to achieve
- Base case and Pessimistic case
- Income Statement
- Balance Sheet
- Cash flow Statement
- All figures are linked - Analysis on various relevant debt ratio
Wk 5 - Valuations
Objective of this week's exercise is to determine whether the acquisition of Landmark create values and wh
You should use information presented in Exhibit 3a & 3b and the findings from your Wk 3 and Wk 4 work
Need to do:
- DCF Valuation of Landmark (without acquisition)
- DCF Valuation of Broadway (without acquisition)
- DCF Valuation of Landmark (with acquisition) Base and Pessimistic
- DCF Valuation of Broadway (with acquisition) Base and Pessimistic
- All figures should be linked and well presented
hether the price of $120m is NPV positive
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Wk 5 - Valuation - assess sensivity of key variables to overall valuation
Sensitivity analysis of Landmark value to Broadway - WACC vs. Growth Rate of Broadway
- WACC vs. Operating margin
- NPV of the proposed acquisition to Broadway
- What are the key risks/variables affecting whether the acquisition would create value?
- How should Broadway finance the acquisition ie, Debt vs. Equity
- Under Base/Pessimistic case, how much value is created for Landmark shareholders? And Broadway shareho
- You should consider using summary tables of various key figures / calculations to illustrate and support your Based on the analysis conducted, does the acquisition of Landmark present value to Broadway. Consider the f
olders?
commentary
following:
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Related Documents
Related Questions
TABLE 2.5
2009-2013 Financial Statement Data and Stock Price Data
for Mydeco Corp.
Mydeco Corp. 2009-2013
(All data as of fiscal year end; in S million)
Income Statement
Revenue
2013
604.1
2009
2010
2011
2012
404.3
363.8
424.6
510.7
Cost of Goods Sold
Gross Profit
Sales and Marketing
Administration
(1883)
(173.8)
(206.2)
(293.4)
(246.8)
263.9
(102.1)
(66.4)
216.0
190.0
2184
310.7
(66.7)
(60.6)
(27.3)
(66.4)
(59.1)
(82.8)
(59.4)
(34.3)
(120.8)
(78.5)
(38.6)
Depreciation & Amortization
EBIT
Interest Income (Expense)
(27.0)
37.5
38.4)
57.0
61.4
41.9
72.8
(33.7)
27.7
(32.9)
4.6
32.2)
9.7
(37.4)
19.6
(39.4)
33.4
(11.7)
Pretax Income
Income Tax
(9.7)
18.0
(1.6)
3.0
(3.4)
6.3
(6.9)
12.7
Net Income
21.7
Shares eatstanding (milliona)
Earnings per share
55.0
$0.33
55.0
$0.05
55.0
$0.11
55.0
$0.23
55.0
$0.39
Balance Sheet
2009
2010
2011
2012
2013
Assets
Cash
48.8
68.9
69.8
86.3
69.8
28.4
77.5
76.9
85.0
Accounts Receivable
88.6
86.1
Inventory
Total Current Assets
Net Property, Plant & Equip.…
arrow_forward
Problem 13-2A (Algo) Ratios, common-size statements, and trend percents LO P1, P2, P3
[The following information applies to the questions displayed below]
Selected comparative financial statements of Korbin Company follow.
KORBIN COMPANY
Comparative Income Statements
For Years Ended December 31
2021
2020
2019
Sales
Cost of goods sold
$ 402,346 $ 308,230
242,212
$ 213,900
194,493
136,896
Gross profit
160,134
113,737
77,004
Selling expenses
57,133
42,536
28,235
Administrative expenses
36,211
27,124
17,754
Total expenses
93,344
69,660
45,989
Income before taxes
Income tax expense
66,790
44,077
31,015
12,423
9,036
6,296
Net income
$ 54,367
$ 35,041
$ 24,719
KORBIN COMPANY
Comparative Balance Sheets
December 31
Assets
Current assets
Long-term investments
Plant assets, net
Total assets
Current liabilities
Liabilities and Equity
Common stock
Other paid-in capital
Retained earnings
Total liabilities and equity
$ 180,932
2021
$ 63,959
116,973
0
2020
$ 42,808
800
106,691
$ 180,932
$ 150,299
$…
arrow_forward
Problem 17-2A (Algo) Ratios, common-size statements, and trend percents LO P1,
[The following information applies to the questions displayed below.]
Selected comparative financial statements of Korbin Company follow.
KORBIN COMPANY
Comparative Income Statements.
For Years Ended December 31
2021
Sales:
Cost of goods sold
Gross profit
Selling expenses
Administrative expenses
Total expenses
Income before taxes
Income tax expense
Net income
Assets
Current assets
2020
$436,580 $ 334,456
262,821
173,759
61,994
39,292
Long-term investments
Plant assets, net
Total assets
KORBIN COMPANY
Comparative Balance Sheets
December 31
Liabilities and Equity
Current liabilities
Common stock
Other paid-in capital
Retained earnings
Total liabilities and equity
212,045
122,411
46, 155
101,286
72,473
13,480
$ 58,993 $ 37,225
29,432
75,587
46,824
9,599
2021
$ 54,789
0
100, 200
$154,989
$ 22,628
72,000
9,000
51,361
2019
$ 232,100
148,544
83,556
30,637
19,264
49,901
33,655
6,832
$ 26,823
2020
$36,670
900
91,178…
arrow_forward
Problem 13-2A (Static) Ratios, common-size statements, and trend percents LO P1, P2, P3
Skip to question
[The following information applies to the questions displayed below.]Selected comparative financial statements of Korbin Company follow.
KORBIN COMPANY
Comparative Income Statements
For Years Ended December 31
2021
2020
2019
Sales
$ 555,000
$ 340,000
$ 278,000
Cost of goods sold
283,500
212,500
153,900
Gross profit
271,500
127,500
124,100
Selling expenses
102,900
46,920
50,800
Administrative expenses
50,668
29,920
22,800
Total expenses
153,568
76,840
73,600
Income before taxes
117,932
50,660
50,500
Income tax expense
40,800
10,370
15,670
Net income
$ 77,132
$ 40,290
$ 34,830
KORBIN COMPANY
Comparative Balance Sheets
December 31
2021
2020
2019
Assets
Current assets
$ 52,390
$ 37,924
$ 51,748
Long-term investments
0
500
3,950
Plant assets, net
100,000
96,000
60,000
Total assets
$ 152,390
$ 134,424
$ 115,698
Liabilities…
arrow_forward
Required Information
Problem 12-6B Use ratios to analyze risk and profitability (LO12-3, 12-4)
(The following information applies to the questions displayed below.]
Income statement and balance sheet data for The Athletic Attic are provided below.
THE ATHLETIC ATTIC
Incone Statements
For the years ended December 31
2022
$12, see, eee
8, 150,eee
4,350,000
2021
Net sales
Cost of goods sold
Gross profit
Expenses:
Operating expenses
bepreciation expense
Interest expense
Income tax expense
Total expenses
$11,0se,000
6,900,000
4,150,000
1,750,eee
200,000
55,000
58e,e00
2,585,000
$ 1,765,000
1,700,000
200, e00
55,000
500,000
2,455,e00
$ 1,695,000
Net incone
THE ATHLETIC ATTIC
Balance Sheets
December 31
2022
2021
2020
Assets
Current assets:
Cash
Accounts receivable
Inventory
Supplics
Long term assets:
Equipnent
Less: Accumulated depreciation
$
240,000
1,005,000
1,740,000
145,800
170,000
755,000
1,370,000
115,000
234,000
775,00e
1,048,eee
90,000
1,700,000
(75e,00e)
1,700,000
(S5e,000)…
arrow_forward
Required Information
Problem 12-6B Use ratios to analyze risk and profitablity (LO12-3, 12-4)
(The following information applies to the questions displayed below.]
Income statement and balance sheet data for The Athletic Attic are provided below.
THE ATHLETIC ATTIC
Incore Statements
For the years ended December 31
2022
$12,500,800
8,150,eee
4,350,000
2021
Not sales
Cost of goods sold
Gross profit
Expenses:
Operating cxpenses
Depreciation expense
Interest expense
Income tax expense
Total expenses
$11,e5e,000
6,900,000
4,150,000
1,750,000
200,e00
55,000
588, 000
2,585,000
1,700,000
200,800
55,000
500,000
2,455,000
$ 1,695,00e
Net income
$ 1,765,000
THE ATHLETIC ATTIC
Balance Sheets
December 31
2022
2021
20z0
Assets
Current assets:
0
Cash
Accounts receivable
Inventory
Supplics
Long term assets:
Equipment
Less: Accumulated depreciation
178,000
755,000
1,370,00e
115,000
234,000
775,000
1,040,eee
90,000
240,000
1,005,eee
1,740,000
145,000
1,700,000
(750,000)
$4,080,000
1,700,e00
(550,000)…
arrow_forward
please explain the result of income statement that provided in image below
arrow_forward
Explain Apple annual revenue
Apple annual revenue 2006 to 2023 ($bn)
Year
Revenue ($bn)
2006
19.1
2007
24.4
2008
37.4
2009
42.7
2010
65
2011
108
2012
156.3
2013
170.8
2014
182.6
2015
233.6
2016
215.4
2017
229.2
2018
265.5
2019
260.1
2020
274.5
2021
365.8
2022
394.1
2023
383.2
arrow_forward
Need help with this general accounting question
arrow_forward
Copp
arrow_forward
ccounting
Assume the following sales data for a company:
2026
$734000
2025
655500
2024
570000
If 2024 is the base year, what is the percentage increase in sales from 2024 to 2025?
129%
29%
115%
15%
arrow_forward
Bhupatbhai
arrow_forward
Walmart Revenue
The annual revenue of Walmart is given in the table below (source ).
Walmart Annual
Revenue
(Billions of US dollars)
559.151
Year
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
523.964
514.405
500.343
485.873
482.130
485.651
476.294
468.651
446.509
421.849
408.085
404.254
377.023
348.368
312.101
284.310
Apply linear regression to the data in the table to find a model
y = mx + b,
where y is Walmart's annual revenue in billions of US dollars, and a is the number of years since
2000.
Use the model y = mx + b with m rounded to the nearest tenth and 6 rounded to the nearest
arrow_forward
Q5
Revenues
Cost of Goods
Sold
Gross Profit
Selling, General
and Admin
Depreciation
EBIT
Income tax (35%)
Incremental
Earnings
Capital
Purchases
Changes to NWC
Year 0 Year 1
-280,0
00
Year 2
140,00 440,00
0
0
-70,00 220,00
0
0
Year 3 Year 4
440,00 350.00
0
0
220,00 175,00
0
0
70,000 220,00 220,00
0
0
-6400 6400
6400
175,00
0
6400
75.00 75.000 75,000 75,000
0
-11,40 138,60 138.60 93,600
0
0
0
3990 -48,51
48,51
0
32,76
0
0
-7410 90,090 90,090 60,840
-5.000 -5,000 -5,000 -5,000
A garage is installing a new "bubble-wash" car wash. It will promote the car wash as a fun activity for the family, and it is expected that the
novelty of this approach will boost sales in the medium term. If the cost of capital is 10%, what is the net present value (NPV) of this
project? Show all calculations
arrow_forward
Year
0
1
2
3
4
Earning and FCF Forecast ($ million)
Sales
433
468
516
547
574.3
Growth Versus Prior Year
0.081
0.103
0.06
0.05
Cost of Goods Sold
-313.56
-345.72
-366.49
-384.78
Gross Profit
154.44
170.28
180.51
189.52
Selling, General, and Administrative
-93.6
-103.2
-109.4
-114.86
Depreciation
-7
-7.5
-9
-9.5
EBIT
53.84
59.58
62.11
65.16
Less: Income Tax at 25%
-13.46
-14.9
-15.53
-16.29
Plus: Depreciation
7
7.5
9
9.5
Less: Capital Expenditures
-7.7
-10
-9.9
-10.4
Less: Increase in NWC
-6.3
-8.64
-5.58
-4.91
Free Cash Flow
33.38
33.55
40.1
43.055
Sora Industries has 61 million outstanding shares, $122 million in debt, $53 million in cash, and the following projected free cash flow for the next four years:
.
a. Suppose Sora's revenue and free cash flow are expected to grow at a 4.2% rate beyond year four. If Sora's weighted average cost of capital is 12.0%, what is the value of Sora stock based on this…
arrow_forward
What advice would you give to Juirgen
PROBLEM 17-19 Incomplete Statements; Analysis of Ratios [LO2, LO3, L04]
Incomplete financial statements for Tanner Company are given below:
Tanner Company
Income Statement
For the Year Ended December 31
Revenue.
$2,700,000
Cost of goods sold..
Gross margin.
Selling and administrative expenses . .
?
Net operating income
Interest expense
45,000
Net income before taxes
?
Income taxes, 40%.
?
Net income
2$
?
Scanned by CamScanı
Financial Staterment Analysis
923
Tanner Company
Balance Sheet.
December 31
Non-current Assets:
Plant and equipment, net
Current assets:
Accounts receivable, net . .
Inventory..
Cash and cash equivalents.
Total current assets
$ ?
Total assets
$ ?
Equity:
Common stock, $2.50 par value
Retained earnings
Total equity . . ..
Bonds payable, 10%
Current liabilities
?
$250,000
Total liabilities.
?
Total equity and liabilities
$ ?
The following additional information is available about the company:
Selected financial ratios computed…
arrow_forward
Solvency and Profitability Trend Analysis
Addai Company has provided the following comparative information:
20Y8
20Y7
20Y6
20Y5
20Y4
Net income
$273,406
$367,976
$631,176
$884,000
$800,000
Interest expense
616,047
572,003
528,165
495,000
440,000
Income tax expense
31,749
53,560
106,720
160,000
200,000
Total assets (ending balance)
4,417,178
4,124,350
3,732,443
3,338,500
2,750,000
Total stockholders’ equity (ending balance)
3,706,557
3,433,152
3,065,176
2,434,000
1,550,000
Average total assets
4,270,764
3,928,396
3,535,472
3,044,250
2,475,000
Average total stockholders' equity
3,569,855
3,249,164
2,749,588
1,992,000
1,150,000
You have been asked to evaluate the historical performance of the company over the last five years.
Selected industry ratios have remained relatively steady at the following levels for the last five years:
20Y4–20Y8
Return on total assets
28%…
arrow_forward
Solvency and Profitability Trend Analysis
Addai Company has provided the following comparative information:
20Y8
20Y7
20Y6
20Y5
20Y4
Net income
$273,406
$367,976
$631,176
$884,000
$800,000
Interest expense
616,047
572,003
528,165
495,000
440,000
Income tax expense
31,749
53,560
106,720
160,000
200,000
Total assets (ending balance)
4,417,178
4,124,350
3,732,443
3,338,500
2,750,000
Total stockholders’ equity (ending balance)
3,706,557
3,433,152
3,065,176
2,434,000
1,550,000
Average total assets
4,270,764
3,928,396
3,535,472
3,044,250
2,475,000
Average total stockholders' equity
3,569,855
3,249,164
2,749,588
1,992,000
1,150,000
You have been asked to evaluate the historical performance of the company over the last five years.
Selected industry ratios have remained relatively steady at the following levels for the last five years:
20Y4–20Y8
Return on total assets
28%…
arrow_forward
Solvency and Profitability Trend Analysis
Addai Company has provided the following comparative information:
20Y8
20Y7
20Y6
20Y5
20Y4
Net income
$273,406
$367,976
$631,176
$884,000
$800,000
Interest expense
616,047
572,003
528,165
495,000
440,000
Income tax expense
31,749
53,560
106,720
160,000
200,000
Total assets (ending balance)
4,417,178
4,124,350
3,732,443
3,338,500
2,750,000
Total stockholders’ equity (ending balance)
3,706,557
3,433,152
3,065,176
2,434,000
1,550,000
Average total assets
4,270,764
3,928,396
3,535,472
3,044,250
2,475,000
Average total stockholders' equity
3,569,855
3,249,164
2,749,588
1,992,000
1,150,000
You have been asked to evaluate the historical performance of the company over the last five years.
Selected industry ratios have remained relatively steady at the following levels for the last five years:
20Y4–20Y8
Return on total assets
28%…
arrow_forward
Solvency and Profitability Trend Analysis
Addai Company has provided the following comparative information:
20Y8
20Y7
20Y6
20Y5
20Y4
Net income
$1,078,700
$929,900
$781,400
$667,900
$566,000
Interest expense
366,800
334,800
289,100
220,400
175,500
Income tax expense
345,184
260,372
218,792
173,654
135,840
Total assets (ending balance)
8,226,651
8,779,231
6,276,721
6,620,869
5,020,826
Total stockholders' equity (ending balance)
2,543,681
3,148,667
2,003,133
2,553,135
1,531,881
Average total assets
8,502,941
7,527,976
6,448,795
5,517,391
4,722,930
Average stockholders' equity
2,846,174
2,575,900
2,278,134
2,042,508
1,808,307
You have been asked to evaluate the historical performance of the company over the last five years.
Selected industry ratios have remained relatively steady at the following levels for the last five years:…
arrow_forward
Solvency and Profitability Trend Analysis
Addai Company has provided the following comparative information:
20Y8
20Y7
20Y6
20Y5
20Y4
Net income
$1,078,700
$929,900
$781,400
$667,900
$566,000
Interest expense
366,800
334,800
289,100
220,400
175,500
Income tax expense
345,184
260,372
218,792
173,654
135,840
Total assets (ending balance)
8,226,651
8,779,231
6,276,721
6,620,869
5,020,826
Total stockholders' equity (ending balance)
2,543,681
3,148,667
2,003,133
2,553,135
1,531,881
Average total assets
8,502,941
7,527,976
6,448,795
5,517,391
4,722,930
Average stockholders' equity
2,846,174
2,575,900
2,278,134
2,042,508
1,808,307
You have been asked to evaluate the historical performance of the company over the last five years.
Selected industry ratios have remained relatively steady at the following levels for the last five years:…
arrow_forward
what does the percentages mean in vertical analysis?
Year 4
% of Sales
Year 3
% of Sales
Assets
Current Assets
Cash
$ 40,000
6.67
$ 36,000
6.67
Marketable Securities
20000
3.33
6000
1.11
Accounts Receivable
54000
9.00
46000
8.52
Inventories
135000
22.50
143000
26.48
Prepaid Items
25000
4.17
10000
1.85
Total Assets current
274000
45.67
241000
44.63
Investments
27000
4.50
20000
3.70
plant net
270000
45.00
255000
47.22
Land
29000
4.83
24000
4.44
Total Assets
$ 600,000
100.00
$ 540,000
100.00
Liabilities and Stock equity
Liabilities
Current Liabilities
Notes payable
$ 17,000
2.83
$ 6,000
1.11
Accounts payable
113800
18.97
100000
18.52
salaries payable
21000
3.50
15000
2.78
Total current liabilities
151800
25.30
121000
22.41
Noncurrent liabilities…
arrow_forward
ACC610
arrow_forward
QUESTION 8
P18-5A
P14.5A (LO 3)
are presented here (in millions).
Compute selected ratios, and compare liquidity, profitability, and solvency for two
сотрanies.
Suppose selected financial data of Target and Wal-Mart for 2020
Wal-Mart
Target
Corporation Stores, Inc.
Income Statement Data for Year
Net sales
$65,357
$408,214
Cost of goods sold
45,583
304,657
Selling and administrative expenses
15,101
79,607
L
Wal-Mart
Target
Corporation Stores, Inc.
Interest expense
707
2,065
Other income (expense)
(94)
(411)
Income tax eхрense
1,384
7,139
$ 2,488
Balance Sheet Data (End of Year)
Net income
$ 14,335
Current assets
$18,424
$ 48,331
Noncurrent assets
26,109
122,375
Total assets
$44,533
$170,706
Current liabilities
$11,327
$ 55,561
Long-term debt
Total stockholders' equity
17,859
44,089
15,347
71,056
Total liabilities and stockholders' equity
$44,533
$170,706
Beginning-of-Year Balances
Total assets
$44,106
$163,429
Total stockholders' equity
13,712
65,682
Current liabilities
10,512
55,390…
arrow_forward
Sh22
arrow_forward
Problem 13-2A (Algo) Ratios, common-size statements, and trend percents LO P1, P2, P3
(The following information applies to the questions displayed below.]
Selected comparative financial statements of Korbin Company follow.
KORBIN COMPANY
Comparative Income Statements
For Years Ended December 31
2021
2020
2019
$ 442,035
266,105
175,930
62,769
39,783
$ 338,635
212,324
126,311
46,732
29,800
76,532
49,779
10, 205
Sales
$ 235,000
Cost of goods sold
Gross profit
Selling expenses
Administrative expenses
Total expenses
Income before taxes
150,400
84,600
31,020
19,505
50,525
34,075
102,552
73,378
13,648
Income tax expense
6,917
Net income
$ 59,730
$ 39,574
$ 27,158
KORBIN COMPANY
Comparative Balance Sheets
December 31
2021
2020
2019
Assets
$ 55,578
$ 37,199
$ 49,726
4,570
56,095
Current assets
Long-term investments
Plant assets, net
900
104,820
95,143
Total assets
$ 160,398
$ 133,242
$ 110,391
Liabilities and Equity
$ 19,318
$ 23,418
68,000
8,500
60, 480
Current liabilities
$ 19,853
Common…
arrow_forward
Please give me true answer this financial accounting question
arrow_forward
QUESTION 7
Р18.3А
P18.ЗА (LO 3)
Jergan Corporation are presented here.
Perform ratio analysis, and discuss changes in financial position and operating results.
Jergan Corporation
Condensed balance sheet and income statement data for
Balance Sheets
December 31
2020
2019
2018
Cash
$ 30,000
$ 20,000
$ 18,000
Accounts receivable (net)
50,000
45,000
48,000
Other current assets
90,000
95,000
64,000
Investments
55,000
70,000
45,000
Plant and equipment (net)
500,000
370,000
358,000
$725,000
$600,000
$533,000
Current liabilities
$ 85,000
$ 80,000
$ 70,000
Long-term debt
Common stock, $10 par
145,000
85,000
50,000
320,000
310,000
300,000
Retained earnings
175,000
125,000
113,000
$725,000
$600,000
$533,000
Jergan Corporation
Income Statements
For the Years Ended December 31
2020
2019
Sales revenue
$740,000
$600,000
Less: Sales returns and allowances
40,000
30,000
Net sales
700,000
570,000
Cost of goods sold
Gross profit
425,000
350,000
275,000
220,000
Operating expenses (including income taxes)…
arrow_forward
Problem 19-4 Per-Share Ratios (LO3, CFA6)
You are given the following information for Smashville, Incorporated.
Cost of goods sold:
Investment income:
Net sales:
Operating expense:
Interest expense:
Dividends:
Tax rate:
Current liabilities:
Cash:
Long-term debt:
$ 200,000
$ 2,700
$ 333,000
$ 47,000
$ 7,400
$ 16,000
21%
$ 26,000
$ 21,000
$ 21,000
Other assets:
$ 43,000
$ 159,000
Other liabilities:
$ 5,000
Fixed assets:
Investments:
Operating assets:
$ 47,000
$ 39,000
During the year, Smashville, Incorporated, had 20,000 shares of stock outstanding and depreciation expense of $15,000. Calculate the
book value per share, earnings per share, and cash flow per share.
Note: Do not round intermediate calculations. Round your answers to 2 decimal places.
Book value per share
Earnings per share
Cash flow per share
$
12.85
arrow_forward
SEE MORE QUESTIONS
Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:9780134897264
Author:KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:Pearson,
Fundamentals of Financial Management (MindTap Cou...
Finance
ISBN:9781337395250
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i...
Finance
ISBN:9780077861759
Author:Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:McGraw-Hill Education
Related Questions
- TABLE 2.5 2009-2013 Financial Statement Data and Stock Price Data for Mydeco Corp. Mydeco Corp. 2009-2013 (All data as of fiscal year end; in S million) Income Statement Revenue 2013 604.1 2009 2010 2011 2012 404.3 363.8 424.6 510.7 Cost of Goods Sold Gross Profit Sales and Marketing Administration (1883) (173.8) (206.2) (293.4) (246.8) 263.9 (102.1) (66.4) 216.0 190.0 2184 310.7 (66.7) (60.6) (27.3) (66.4) (59.1) (82.8) (59.4) (34.3) (120.8) (78.5) (38.6) Depreciation & Amortization EBIT Interest Income (Expense) (27.0) 37.5 38.4) 57.0 61.4 41.9 72.8 (33.7) 27.7 (32.9) 4.6 32.2) 9.7 (37.4) 19.6 (39.4) 33.4 (11.7) Pretax Income Income Tax (9.7) 18.0 (1.6) 3.0 (3.4) 6.3 (6.9) 12.7 Net Income 21.7 Shares eatstanding (milliona) Earnings per share 55.0 $0.33 55.0 $0.05 55.0 $0.11 55.0 $0.23 55.0 $0.39 Balance Sheet 2009 2010 2011 2012 2013 Assets Cash 48.8 68.9 69.8 86.3 69.8 28.4 77.5 76.9 85.0 Accounts Receivable 88.6 86.1 Inventory Total Current Assets Net Property, Plant & Equip.…arrow_forwardProblem 13-2A (Algo) Ratios, common-size statements, and trend percents LO P1, P2, P3 [The following information applies to the questions displayed below] Selected comparative financial statements of Korbin Company follow. KORBIN COMPANY Comparative Income Statements For Years Ended December 31 2021 2020 2019 Sales Cost of goods sold $ 402,346 $ 308,230 242,212 $ 213,900 194,493 136,896 Gross profit 160,134 113,737 77,004 Selling expenses 57,133 42,536 28,235 Administrative expenses 36,211 27,124 17,754 Total expenses 93,344 69,660 45,989 Income before taxes Income tax expense 66,790 44,077 31,015 12,423 9,036 6,296 Net income $ 54,367 $ 35,041 $ 24,719 KORBIN COMPANY Comparative Balance Sheets December 31 Assets Current assets Long-term investments Plant assets, net Total assets Current liabilities Liabilities and Equity Common stock Other paid-in capital Retained earnings Total liabilities and equity $ 180,932 2021 $ 63,959 116,973 0 2020 $ 42,808 800 106,691 $ 180,932 $ 150,299 $…arrow_forwardProblem 17-2A (Algo) Ratios, common-size statements, and trend percents LO P1, [The following information applies to the questions displayed below.] Selected comparative financial statements of Korbin Company follow. KORBIN COMPANY Comparative Income Statements. For Years Ended December 31 2021 Sales: Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes Income tax expense Net income Assets Current assets 2020 $436,580 $ 334,456 262,821 173,759 61,994 39,292 Long-term investments Plant assets, net Total assets KORBIN COMPANY Comparative Balance Sheets December 31 Liabilities and Equity Current liabilities Common stock Other paid-in capital Retained earnings Total liabilities and equity 212,045 122,411 46, 155 101,286 72,473 13,480 $ 58,993 $ 37,225 29,432 75,587 46,824 9,599 2021 $ 54,789 0 100, 200 $154,989 $ 22,628 72,000 9,000 51,361 2019 $ 232,100 148,544 83,556 30,637 19,264 49,901 33,655 6,832 $ 26,823 2020 $36,670 900 91,178…arrow_forward
- Problem 13-2A (Static) Ratios, common-size statements, and trend percents LO P1, P2, P3 Skip to question [The following information applies to the questions displayed below.]Selected comparative financial statements of Korbin Company follow. KORBIN COMPANY Comparative Income Statements For Years Ended December 31 2021 2020 2019 Sales $ 555,000 $ 340,000 $ 278,000 Cost of goods sold 283,500 212,500 153,900 Gross profit 271,500 127,500 124,100 Selling expenses 102,900 46,920 50,800 Administrative expenses 50,668 29,920 22,800 Total expenses 153,568 76,840 73,600 Income before taxes 117,932 50,660 50,500 Income tax expense 40,800 10,370 15,670 Net income $ 77,132 $ 40,290 $ 34,830 KORBIN COMPANY Comparative Balance Sheets December 31 2021 2020 2019 Assets Current assets $ 52,390 $ 37,924 $ 51,748 Long-term investments 0 500 3,950 Plant assets, net 100,000 96,000 60,000 Total assets $ 152,390 $ 134,424 $ 115,698 Liabilities…arrow_forwardRequired Information Problem 12-6B Use ratios to analyze risk and profitability (LO12-3, 12-4) (The following information applies to the questions displayed below.] Income statement and balance sheet data for The Athletic Attic are provided below. THE ATHLETIC ATTIC Incone Statements For the years ended December 31 2022 $12, see, eee 8, 150,eee 4,350,000 2021 Net sales Cost of goods sold Gross profit Expenses: Operating expenses bepreciation expense Interest expense Income tax expense Total expenses $11,0se,000 6,900,000 4,150,000 1,750,eee 200,000 55,000 58e,e00 2,585,000 $ 1,765,000 1,700,000 200, e00 55,000 500,000 2,455,e00 $ 1,695,000 Net incone THE ATHLETIC ATTIC Balance Sheets December 31 2022 2021 2020 Assets Current assets: Cash Accounts receivable Inventory Supplics Long term assets: Equipnent Less: Accumulated depreciation $ 240,000 1,005,000 1,740,000 145,800 170,000 755,000 1,370,000 115,000 234,000 775,00e 1,048,eee 90,000 1,700,000 (75e,00e) 1,700,000 (S5e,000)…arrow_forwardRequired Information Problem 12-6B Use ratios to analyze risk and profitablity (LO12-3, 12-4) (The following information applies to the questions displayed below.] Income statement and balance sheet data for The Athletic Attic are provided below. THE ATHLETIC ATTIC Incore Statements For the years ended December 31 2022 $12,500,800 8,150,eee 4,350,000 2021 Not sales Cost of goods sold Gross profit Expenses: Operating cxpenses Depreciation expense Interest expense Income tax expense Total expenses $11,e5e,000 6,900,000 4,150,000 1,750,000 200,e00 55,000 588, 000 2,585,000 1,700,000 200,800 55,000 500,000 2,455,000 $ 1,695,00e Net income $ 1,765,000 THE ATHLETIC ATTIC Balance Sheets December 31 2022 2021 20z0 Assets Current assets: 0 Cash Accounts receivable Inventory Supplics Long term assets: Equipment Less: Accumulated depreciation 178,000 755,000 1,370,00e 115,000 234,000 775,000 1,040,eee 90,000 240,000 1,005,eee 1,740,000 145,000 1,700,000 (750,000) $4,080,000 1,700,e00 (550,000)…arrow_forward
- please explain the result of income statement that provided in image belowarrow_forwardExplain Apple annual revenue Apple annual revenue 2006 to 2023 ($bn) Year Revenue ($bn) 2006 19.1 2007 24.4 2008 37.4 2009 42.7 2010 65 2011 108 2012 156.3 2013 170.8 2014 182.6 2015 233.6 2016 215.4 2017 229.2 2018 265.5 2019 260.1 2020 274.5 2021 365.8 2022 394.1 2023 383.2arrow_forwardNeed help with this general accounting questionarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Essentials Of InvestmentsFinanceISBN:9781260013924Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.Publisher:Mcgraw-hill Education,
- Foundations Of FinanceFinanceISBN:9780134897264Author:KEOWN, Arthur J., Martin, John D., PETTY, J. WilliamPublisher:Pearson,Fundamentals of Financial Management (MindTap Cou...FinanceISBN:9781337395250Author:Eugene F. Brigham, Joel F. HoustonPublisher:Cengage LearningCorporate Finance (The Mcgraw-hill/Irwin Series i...FinanceISBN:9780077861759Author:Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan ProfessorPublisher:McGraw-Hill Education
Essentials Of Investments
Finance
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:9780134897264
Author:KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:Pearson,
Fundamentals of Financial Management (MindTap Cou...
Finance
ISBN:9781337395250
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i...
Finance
ISBN:9780077861759
Author:Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:McGraw-Hill Education