**OST Supply Corporation Proforma Financial Statements**The financial statements are presented in thousands (000s).**Income Statements**- **2020 and 2021:** - Sales - Cost of goods sold - Gross profit - Operating Expenses - Advertising - Depreciation - EBIT (Earnings Before Interest and Taxes) - Interest - EBT (Earnings Before Taxes) - Taxes - EAT (Earnings After Taxes) - Dividends**Balance Sheets**- **2020 and 2021:** - **Current Assets:** - Cash - Accounts receivable - Inventory - Total current assets - **Fixed Assets:** - Land - Buildings and equipment - Less: accumulated depreciation - Total fixed assets - Total assets**Liabilities and Equity**- **2020 and 2021:** - Accounts payable - Bank notes - Total current liabilities - Long-term debt - Common stock - Retained earnings - Total liabilities & equity**Additional Financial Need (AFN):** A calculation space is provided for determining any additional financing required.This table structure helps in assessing the company's projected financial performance for the years 2020 and 2021. ## Forecast of Financial Areas for OST Supply Corporation### Table: OST Supply Corp. - Forecasts for 2020 and 2021| | 2020 | 2021 ||-----------------------|--------------|-----------------|| **Sales** | | 125,425,000 || **Net Profit Margin** | | 3.15% || **Dividends** | | 0 || **Total Assets** | 71,671,429 | || **Long Term Debt** | 35,835,714 | || **Common Stock** | 18,459,000 | |- **Last year's (2020) Retained Earnings**: 11,250,000### Instructionsa. **Complete the proforma financial statements** using the data provided by filling in the unshaded blanks. The dark grey blanks do not need to be filled.b. **Based on your proforma financial statements**, determine the firm's estimated Additional Funds Needed for 2021.### ExplanationThis table contains the projected financial data for OST Supply Corporation for the year 2021. The sales figure is projected at $125,425,000 with a net profit margin of 3.15%. No dividends are expected to be declared in 2021. The total assets, long-term debt, and common stock for the year need to be calculated or provided based on the current and previous data. Retained earnings from 2020 stand at $11,250,000. The task involves completing the proforma financial statements to identify additional funding requirements for 2021.

Financial statements are in the form of written records that are used in conveying the business…

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Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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i. Use the following simplified 2019 balance sheet to show, in general terms, how an improvement in one of the ratios—say, the DSO—would affect the stock price. For example, if the company could improve its collection procedures and thereby lower the DSO from 38.1 days to 27.8 days, how would that change “ripple through” the financial statements (shown in thousands below) and influence the stock price? Accounts receivable $ 402 Debt $ 965 Other current assets 888 Net fixed assets 361 Equity 686. Total assets $1,651 Total liabilities and equity $1,651 j. Although financial statement analysis can provide useful information about a company’s operations and its financial condition, this type of analysis does have some potential problems and limitations, and it must be used with care and judgment. What are some problems and limitations?
What is the Financial Analysis of each year?
The management of Kosoko traders wants to establish theamount of financial needs for the next two years.Thebalance sheet of the firm as at 31stDecember 2016 is asfollows:Shs.‘000’Net fixed assets 124,800Stock 38,400Debtors 28,800Cash 7,200TotalAssets 199,200Financedby:Ordinary share capital 84,000Retained earnings 35,20012%long-term debt 20,000Trade creditors 36,000Accrued expenses 24,000TOTAL 199,200For the year ended 31st December,2016sales amounted to sh.240,000,000.The firm projects that the sales will increase by15%in 2017and 20% in 2018.After tax profit on sales has been 11% but the management ispessimistic about future operating costs and use anafter-tax profit on sales rate of 8%per annum by 2018.The firmintends to maintain it's dividend pay out ratio 80%.Assets areexpected to vary with sales,while trade creditors and accruedexpenses form the spontaneous sources of financing.Any external financing will be effected through the use of commercial paper.calculate amount of external…
Calculate the projected price/earnings ratio and market/book ratio. Explain whether these ratios indicate that investors will be expected to have a high or low opinion of the company. Computron's Balance Sheets (Millions of Dollars) 2019 2020 Assets Cash and equivalents $ 60 $ 50 Short-term investments 100 10 Accounts receivable 400 520 Inventories 620 820 Total current assets $ 1,180 $ 1,400 Gross fixed assets $ 3,900 $ 4,820 Less: Accumulated depreciation 1,000 1,320 Net fixed assets $ 2,900 $ 3,500 Total assets $ 4,080 $ 4,900 Liabilities and equity Accounts payable $ 300 $ 400 Notes payable 50 250 Accruals 200 240 Total current liabilities $ 550 $ 890 Long-term bonds 800 1,100 Total liabilities $ 1,350 $ 1,990 Common stock 1,000 1,000 Retained earnings 1,730 1,910 Total equity $ 2,730 $ 2,910 Total liabilities and equity $ 4,080 $ 4,900…
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30. Yellow Enterprises reported the following ($ in thousands) as of December 31, 2021. All accounts have normal balances. Deficit (debit balance in retained earnings) Common stock Paid-in capital-share repurchase Treasury stock (at cost) Paid-in capital -excess of par $ 3,000 2,000 1,000 400 30,000 During 2022 ($ in thousands), net income was $9,000; 25% of the treasury stock was resold for $450; cash dividends declared were $600; cash dividends paid were $500. A. $29,600. B. $35,600. C. $30,400. D. $28,600. What ($ in thousands) was shareholders' equity as of December 31, 2021?
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A firm has the following accounts and financial data for 2020: Sales = 30000 Cost of goods sold = 3000 Accounts payable = 500 Accounts receivables = 100 Number of shares of Common stocks = 1000 Preferred stock dividends = 95 operating expenses = 700 Interest expense=200 Tax rate = 25% Current liability = 1000 PRICE IS 7 What is the firm's earnings available to common shareholders for 2020? WHAT IS THE P/E RATIO? WHAT IS THE EPS
An analyst gathered the following information about the company: 2021 net sales R10 000 000 2021 net profit margin 5.0% 2022 expected sales growth -15.0% 2022 expected profit margin 5.4% 2022 expected ordinary shares outstanding 120 000 The analyst's estimate of the company's 2022 earnings per share should be closest to... a. R2.26 b. R2.72 C. R3.83 d. R4.17

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