109 R00 Problem 2- Dapper Dawg Industries Income Statement ($000's) Dapper Dawg Industres Balance Sheet (S 000's) ASSETS Current Assets Forecast Forecast 2016 2017 2018 2016 2017 2018 Sales Revenues 3,432,000.0 5, 834,400.0 7,035,600.0 2,864,000.0 4, 980,000,0 5,800,000.0 854,400.0 1,235,600.0 720,000.0 116,960.0 Cost of Goods Sold 14,000 71, 632 878, 000 1.716 480 Cash 9,000 7,282 20,000 632,160 1,287,360 568,000.0 Contribution Margin Operating Expe nses Short-tem Investments 48,600 340,000.0 612.960.0 Accounts Receivable 351,200 18,900.0 62,500.0 120,000.0 Depreciation Interest: Inventory 715,200 1,124,000 491,000 176,000.0 80,000.0 1,946,802 1,202,950 Total Current Assets 2,680, 112 158,560,0 63,424.0 Earnings B4 Taxes 146,600,0 58,640.0 422,640.0 Plant & Equipment Accumulated De preciation 1,220, 000 Taxes @ 40% 169,056.0 146,200 344.800 383, 160 836 840 263,160 939.790 Earnings After tax 87,960.0 95,136.0 253,584.0 Net Plant & Equipment TOTAL ASSETS 1.468,800 2,886 592 3,516, 952 Other Data that may be helpful Stock Price 8.50 $ 6.00 $ 12.17 LIABILITIES and SHAREHOLDERS'EQUITY Shares o/s 250,000 100,000 0.880 $ 0.220 $ 100, 000 Current Liabilities Accounts Payable Notes Payable 0.951 $ a 110 $ EPS 1.014 145,600 200,000 324,000 359, 800 DPS 0.220 300, 000 380, 000 1,039 800 500, 000 1,680, 936 296 216 1,977, 152 720,000 Tax Rate 40% 40% 40% Accrued Expenses 136.000 284,960 5.576 $ 7.909 40, 000 $ 40,000 Book Value per Share 6.638 $ 40,000 $ Total Current Liabilities 481,600 1,328960 Lease Payments 1,000,000 460,000 97,632 Long Term Debt 323,432 Common Shares Retained Earnings Industry Average 460,000 Ratios Forecast 203,768 663,768 Current 2.3 1.5 2.7 Total Equity 557,632 Quick 0.8 0.5 1.0 TOTAL UABIUTIES Inventory Turno ver 4.8 4.5 6.1 | ANDEQUITY 3516, 952 37.3 32.0 Day's Sales Outstanding Fixed Assets Tumover 1,468,800 2,886,592 69.6 10.0 6.2 7.0 Total Asset Tumover 2.3 2.0 2.5 Total Debt Ratio 54.8 80.7 50.0 TIE Ratio 3.3 0.1 6.2 Profit Margin Ratio Return on Assets Return on Equity 2.6% -1.6% 3.6% 6.0% -3.3% 9.0% 13.3% -17.1% 17.9% Price Earnings Ratio Price/Cash Flow a Complete the cash flow statement for 2018 b. Complete a common size statement for Dap per Dawg Industries for both years and the 9.7 N/A 16.2 8.0 27.5 7.6 forecast using an excel spreadsheet.- c. Complete the ratios using an excel spreadsheet. d. Use the Dupont ratio to calculate the ROE and which ratio should the firm try to improve? e. Do you observe any weakness or concerns in the firm's forecast?