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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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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