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The company's sustainable growth : rate The company's Z-score

The company's sustainable growth : rate The company's Z-score

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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EXERCISE 6: THE SUSTAINABLE GROWTH RATE AND THE Z-SCORE Using Eagle Electronics Inc.'s financial statements below, calculate the following: 1. The company's sustainable growth rate 2. The company's Z-score Non-current assets. Current assets Inventories Trade receivables Cash and cash equivalents Total current assets Total assets Statement of Financial Position (in S) 2,000,000 600,000 300,000 100,000 1,000,000 3,000,000 Revenue Cost of sales Gross profit Expenses* Profit before taxes Equity Income tax expense Profit for the year Share capital Retained earnings Total equity Non-current liabilities Current liabilities Trade and other payables Notes payable Bank loan Total current liabilities Total liabilities Total equity and liabilities Statement of Income and Statement of Retained Earnings (partial) (in $) Dividends Increase in retained earnings * Includes $ 100,000 of finance costs. 3,000,000 (1,500,000) 1,500,000 (900,000) 600,000 (300,000) 300,000 (100,000) 200,000 400,000 850,000 1,250,000 1,000,000 350,000 100,000 300,000 750,000 1,750,000 3,000,000
Transcribed Image Text:EXERCISE 6: THE SUSTAINABLE GROWTH RATE AND THE Z-SCORE Using Eagle Electronics Inc.'s financial statements below, calculate the following: 1. The company's sustainable growth rate 2. The company's Z-score Non-current assets. Current assets Inventories Trade receivables Cash and cash equivalents Total current assets Total assets Statement of Financial Position (in S) 2,000,000 600,000 300,000 100,000 1,000,000 3,000,000 Revenue Cost of sales Gross profit Expenses* Profit before taxes Equity Income tax expense Profit for the year Share capital Retained earnings Total equity Non-current liabilities Current liabilities Trade and other payables Notes payable Bank loan Total current liabilities Total liabilities Total equity and liabilities Statement of Income and Statement of Retained Earnings (partial) (in $) Dividends Increase in retained earnings * Includes $ 100,000 of finance costs. 3,000,000 (1,500,000) 1,500,000 (900,000) 600,000 (300,000) 300,000 (100,000) 200,000 400,000 850,000 1,250,000 1,000,000 350,000 100,000 300,000 750,000 1,750,000 3,000,000
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