Excersize completed fin 4-1

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Southern New Hampshire University *

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325

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Finance

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Feb 20, 2024

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FIN 325 Exercise Two Handout Liquidity Ratios Current Ratio = Current Assets / Current Liabilities 114,246,000 / 45,625,000 =2.50 1) Quick Ratio = (Current Assets − Inventory) / Current Liabilities ( 114,246,000 - 2,660,000) / 45,625,000 = 2.45 Leverage Ratios 2) Long-term Debt/Equity Ratio = Long-term Debt / Equity 20,645,000 / 89,784,000=23% 3) Total Debt/Equity Ratio = (Short-term Debts + Long-term Debts) / Equity (20,645,000 + 2,000,000)/ 89,784,000=25.22% Profitability Ratios 4) Net Profit Margin = Net Profit after Taxation / Sales 22,074,000/ 86,833,000 =25.42 5) Operating Profit Margin = Operating Profit / Sales 27,759,000 /86,833,000= 31.97% 6) Return on Equity = Net Profit after Taxation / Equity 22,074,000/ 89,784,000=24.59% 7) Return on Total Assets = Net Profit after Taxation / Total Assets 22,074,000/ 172,384,000 =12.81% 8) Return on Capital Employed = Net Profit after Taxation / (Total Assets − Current Liabilities) 22,074,000( 172,384,000 - 45,625,000) = 22,074,000/126,759,00=17.41% Efficiency Ratios 9) Inventory Turnover = Sales / Inventory 86,833,000 / 2,660,000=32.64 10) Assets Turnover = Sales / Total Assets

86,833,000 /172,384,000 =0.50 Market Value Ratios 11) Price Earnings Ratio = Current Stock Price / Earnings Per Share (EPS) 46.72/0.32=146 Other Fundamental Indicators 12) Earnings Per Share (EPS ) = Net Profit after Taxation / Issued Common Shares 22,074,000/68,366,000 = 0.32 13) Net Asset Value (NAV) = (Total Assets − Total Liabilities) / Issued Common Shares ( 172,384,000 -82,600,000)/ 68,366,000 =1.31 FIN 325: Microsoft Corporation (MSFT) 46.71 0.74(1.61%) 6/18/15 3:25PM EDT - Nasdaq Real Time Price Income Statement All numbers in thousands; Currency in USD Period Ending Jun 30, 2014 Jun 30, 2013 Jun 30, 2012 Total Revenue 86,833,000 77,849,000 73,723,000 Cost of Revenue 26,934,000 20,249,000 17,530,000 Gross Profit 59,899,000 57,600,000 56,193,000 Operating Expenses Research Development 11,381,000 10,411,000 9,811,000 Selling General and Administrative 20,632,000 20,425,000 18,426,000 Non Recurring 127,000 - 6,193,000 Others - - - Total Operating Expenses - - -

Operating Income or Loss 27,759,000 26,764,000 21,763,000 Income from Continuing Operations Total Other Income/Expenses Net 61,000 288,000 504,000 Earnings Before Interest And Taxes 27,820,000 27,052,000 22,267,000 Interest Expense - - - Income Before Tax 27,820,000 27,052,000 22,267,000 Income Tax Expense 5,746,000 5,189,000 5,289,000 Minority Interest - - - Net Income From Continuing Ops 22,074,000 21,863,000 16,978,000 Non-recurring Events Discontinued Operations - - - Extraordinary Items - - - Effect Of Accounting Changes - - - Other Items - - - Net Income 22,074,000 21,863,000 16,978,000 Preferred Stock And Other Adjustments - - - Net Income Applicable To Common Shares 22,074,000 21,863,000 16,978,000

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FIN 325: Microsoft Corporation (MSFT) 46.71 0.74(1.61%) 6/18/15 3:25PM EDT - Nasdaq Real Time Price Income Statement All numbers in thousands; Currency in USD Period Ending Jun 30, 2014 Jun 30, 2013 Jun 30, 2012 Total Revenue 86,833,000 77,849,000 73,723,000 Cost of Revenue 26,934,000 20,249,000 17,530,000 Gross Profit 59,899,000 57,600,000 56,193,000

Operating Expenses Research Development 11,381,000 10,411,000 9,811,000 Selling General and Administrative 20,632,000 20,425,000 18,426,000 Non Recurring 127,000 - 6,193,000 Others - - - Total Operating Expenses - - - Operating Income or Loss 27,759,000 26,764,000 21,763,000 Income from Continuing Operations Total Other Income/Expenses Net 61,000 288,000 504,000 Earnings Before Interest And Taxes 27,820,000 27,052,000 22,267,000 Interest Expense - - - Income Before Tax 27,820,000 27,052,000 22,267,000 Income Tax Expense 5,746,000 5,189,000 5,289,000 Minority Interest - - - Net Income From Continuing Ops 22,074,000 21,863,000 16,978,000 Non-recurring Events Discontinued Operations - - - Extraordinary Items - - - Effect Of Accounting Changes - - - Other Items - - - Net Income 22,074,000 21,863,000 16,978,000 Preferred Stock And Other Adjustments - - - Net Income Applicable To Common Shares 22,074,000 21,863,000 16,978,000

46.75 0.78(1.70%) 6/18/15 3:29PM EDT - Nasdaq Real Time Price Balance Sheet All numbers in thousands; Currency in USD

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Period Ending Jun 30, 2014 Jun 30, 2013 Jun 30, 2012 Assets Current Assets Cash And Cash Equivalents 8,669,000 3,804,000 6,938,000 Short Term Investments 77,040,000 73,218,000 56,102,000 Net Receivables 21,485,000 19,118,000 17,815,000 Inventory 2,660,000 1,938,000 1,137,000 Other Current Assets 4,392,000 3,388,000 3,092,000 Total Current Assets 114,246,000 101,466,000 85,084,000 Long Term Investments 14,597,000 10,844,000 9,776,000 Property Plant and Equipment 13,011,000 9,991,000 8,269,000 Goodwill 20,127,000 14,655,000 13,452,000 Intangible Assets 6,981,000 3,083,000 3,170,000 Accumulated Amortization - - - Other Assets 3,422,000 2,392,000 1,520,000 Deferred Long Term Asset Charges - - - Total Assets 172,384,000 142,431,000 121,271,000 Liabilities Current Liabilities Accounts Payable 13,569,000 10,182,000 9,653,000 Short/Current Long Term Debt 2,000,000 2,999,000 1,231,000 Other Current Liabilities 30,056,000 24,236,000 21,804,000 Total Current Liabilities 45,625,000 37,417,000 32,688,000 Long Term Debt 20,645,000 12,601,000 10,713,000 Other Liabilities 11,594,000 10,000,000 8,208,000 Deferred Long Term Liability Charges 4,736,000 3,469,000 3,299,000 Minority Interest - - - Negative Goodwill - - - Total Liabilities 82,600,000 63,487,000 54,908,000 Stockholders' Equity Misc Stocks Options Warrants - - - Redeemable Preferred Stock - - - Preferred Stock - - - Common Stock 68,366,000 67,306,000 65,797,000 Retained Earnings 17,710,000 9,895,000 (856,000) Treasury Stock - - - Capital Surplus - - -

Other Stockholder Equity 3,708,000 1,743,000 1,422,000 Total Stockholder Equity 89,784,000 78,944,000 66,363,000 Net Tangible Assets 62,676,000 61,206,000 49,741,000