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Assignment for Prof.sayed

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Mahmoud Zizo
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19 views

Assignment for Prof.sayed

Uploaded by

Mahmoud Zizo
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 4

Q.

Answer

 OCF = EBIT + Depreciation – Tax = 6000 + 3000 -1360 = 7640


 NCS = Δ FA + Depreciation 1500 + 3000 = 4500 $
 Δ NWC = NWC 2016 − NWC 2015= (18500 - 8916) - (18000- 9000)=584
 CFFA = OCF − NCS − Δ NWC= 7640 - 4500 - 584 = 2556
 CFTC = Intrest − Δ LTD= 2000 - ( - 2000) = 4000
 CFTS = Dividenace − Δ CommonStock = 1056 - 2500 = - 1444

Q.4

Answer

CR = CA / CL CR = 2.07

QR = CA- INV / CL QR= 1.57

Cash Ratio = Cash + Cash equivalent / CL Cash Ratio = 0.34

Q.5

Answer

TDR = TD / TA TDR = 2.28

Total Debt To Equity ratio = Total Debt / Total Equity Total Debt To Equity ratio= 0.78

EM= TA / TE EM = 1.78

Interest Coverage = Earnings before interest and taxes / Interest Interest Coverage = 3

Cash Coverage = Earnings before interest and taxes+ Depreciation / Interest Cash Coverage= 5.25

Q6

Answer

Total asset turnover = Sales Revenues / Total assets = 25000/50000 = 0.5

Fixed asset turnover = Sales revenues / Fixed asset = 25000/31500 = 0.79

Current Asset turnover = Sales Revenues / Current asset = 25000 / 18500 = 1.35
Invertory turnover = COGS / Inventory= 16000 / 4500 = 3.5

Days sales of inventory = 360 / 3.5 = 103

Account Receivable turnover= Credit sales / Account Receivable= 25000 / 11000 = 2.2

Days sales AR (collection period)= 360/2.2 = 164

Account payable turnover = COGS / Account payble = 16000 / 2500 = 6.4

Paid Period= 360 / 6.4 = 56

Cash turnover = Sales Revenues / cash= 25000/ 3000 = 8.3

Cash Period= 360/8.3 = 43

Q7

Answer

Net Profit Margin =Net income / Sales = 2640/25000 = 10.56

Return on Asset = Net income / Total Asset = 2640/50000 = 5.28

Return on Equity = Net income / Total Equity = ROA * EM = 2640/28084 = 9.4

Return on Investment = 6000 / 50000 = 12%

Q8

Answer

Dupont analysis

ROE = PM * TAT * EM = 0.11 * 0.05 * TA/TE

= 0.11 * 0.05 * 50000/28084 = 0.09 = 9%


Q9

Answer

EPS = Net income/no. of shares = 2640/1000 = 2.6

P-E Ratio = Price/EPS = 40/2.6 = 15.3

Book value = Owner equity/no. of shares = 28084/1000 = 28.1

Market-to-book ratio = 50/28.1 = 1.78

Q10

Answer

Total Debt = Total Assets * 0.2 = 50000 * 0.2 = 10000

Total Debt ratio = 10000/50000 = 0.2

Total equity = Total Assets – Total Debt = 50000 – 10000 = 40000

Total Equity Ratio = 40000/50000=0.8

Debt on Equity ratio = Total Debt/Total Equity = 10000/40000 = 0.25

Equity Multiplier = Total Assets/Total Equity = 50000/40000 = 1.25

Return on Equity = Net income/Owner equity = 2640/40000 = 0.066

Q11

Answer

Total Debt = Total Assets * 0.8 = 50000 * 0.8 = 40000

Total Debt ratio = 40000/50000=0.8

Total equity = Total Assets – Total Debt = 50000 – 40000 = 10000

Total Equity Ratio = 10000/50000=0.2

Debt to Equity ratio = 40000/10000= 4

Equity Multiplier EM = 50000/10000= 5

ROE = 2640/10000 = 0.264


Q12

Answer

AR turnover = 360/120 = 3

AR = Credit sales / Account Receivable = 25000/3= 8333

Current ratio = CA/CL=3000+8333+4500= 15833/8916= 1.77

Quick ratio = (CA-inventory)/CL = 3000+8333 = 11333/8916= 1.27

Q13

Dividend Ratio = Net income / Dividend = 2640/1056=2.5

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