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Analyze credit risk in the past and current years
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- Solution to Ratio Analysis Questions Selected ratios formulars Unilever 2021 BOPP 2021 ROCE PBIT / net assets * 100 (32,424/39,406 *100 = - 82% 102,154 / 192,758 *100 =53% Net Assets Turnover Revenue / Net Assets 526,912 / 39,406 = 13 times 214,174 / 192,758 = 1 time Gross Profit Margin Gross profit / revenue *100 97,046 / 526,912 *100 18.4% 115,462 / 214,174 * 100 54% Net Profit Before Tax PBT / revenue * 100 (35,005) / 526,912* 100 = -6.6% 104,778 / 214,174* 100 =48.9% Current Ratio Current assets / current liabilities 214,665/341,171 = 0.5 139,104 / 30,368 = 4.5 Quick Ratio Current assets – inventory / current liabilities 214,665-91,627 /341,171 = 0.4 139,104 -13,248/ 30,368 = 4.1 Inventory Days Inventory / cost of sales * 365 days 91,627/ 429,866 *365 = 77 days 13,248 / 101,397 *365 = 47 days Receivable Days Receivables / cost of sales * 365 days 24,515 / 429,866 *365 =20 days 92,860 /…Question 1 Find out CFFA in two different ways using EXCEL Here is the B/S and 1/S: "Current Accounts -2009: CA = 3625; CL = 1787 %3D -2008: CA = 3596; CL = 2140 •Fixed Assets and Depreciation -2009: NFA = 2194; 2008: NFA = 2261 %3! -Depreciation Expense = 500 •Long-term Debt and Equity -2009: LTD = 538; Common stock & APIC = 462 -2008: LTD = 581; Common stock & APIC = 372 %3D •Income Statement -EBIT = 1014; Taxes = 368 -Interest Expense = 93; Dividends 285 Use the editor to format your answerexplain each ratio of this list what happened in 2019, 2020, 2021? List of Ratios 2019 2020 2021 Gross Profit Margin 4.96% 4.18% 9.91% Net profit Margin 10.89% 10.12% 9.59% Return on Asset 9.54% 7.92% 8.25% Return on Equity 50.95% 53.44% 49.47%
- Income Statement: The income statement of Taco Bell company is given for the years 2020 & 2019. 2020 2019 General and administrative expenses 25,000 24,000 Interest expense 1,200 1,500 Net sales $124,000 $138,000 Selling expenses 11,880 12,720 Income taxes $1,109.5 1,883 COGS 108,000 95,000 Gain on Sale of land 450 600 1. What is the operating profit marain for the company over the years 2020 and + O d) ENG TOSHIBAConsider 2021 consolidated balance sheet and income statement for Pfizer Corporation (PFE). The company projects that its revenue for 2022 will grow at the annual rate of 50%. > All assets are assumed to grow at the same rate as sales. > All current liabilities are assumed to grow at the same rate as sales. All operating expenses are assumed to grow at the same annual growth rate as sales. All non-operating income/expenses as well as depreciation and amortization are assumed to remain at the same level as they were in 2021. For the time being, the company wants to keep its long-term debt at 2021 level. Company plans to keep the same dividend payout ratio as it did in 2021. Balance Sheet as of December 31, 2021 Assets Liabilities and Owner's Equity Current Assets Current Liabilities Cash & Short Term 31,069 Current Portion of Long Term Debt 1,636 Investments 11,479 Accounts Payable 9,059 | Income Tax Payable 8,086 Other Current Liabilities Dividends Payable Accrued Payroll Notes Payable…Partial Income Statement Excel Exercise Compute the Following ՀԱՐ Sales COGS SG&A Depreciation Debt Int. Rate Tax Rate* 2019 100 40 EBITDA EBIT 25 Interest 10 EBT 0.08 Tax 0.25 Net Income ? ? ? ? ? ? Partial Balance Sheet Debt and Loans 150 Total Equity 150 Total Assets 300 Inv. Change 10 A/R Change A/P Change 35 20 Net Profit Margin Equity Multiplier Verify Dupont ROE ? סיי ? ? ? ? ? * Assume all taxes paid in current period (no accrued taxes) for rest of course CF from Operations ROE Asset Turnover CED Tt O 24
- Data needed: SFP Asset section 1. Cash 16.3% 2. AR 6.3% 3. Short term investment 0.2% 4. Inventory 2.2% 5. Prepaid expenses 0.4% 6. PPE 74.7% Data needed: SFP Liabilities and OE section. 1. Current liab 16% 2. Non-current liab 34.2% 3. OE 49.9% Data needed: SCI 1. COGS 38.6% 2. Selling and admin exp 6.8% 3. Interest exp 0.1% 4. Income tax exp 0.5% 5. Net income 54%Profit margin (%) Total asset turnover Equity multiplier ROE Company A 2018 33.2 0.345 1.20 2019 29.5 0.406 1.26 2020 36.9 0.330 1.13 Company B 2018 36.9 0.463 1.30 2019 33.5 0.360 1.23 2020 26.2 0.436 1.36 Calculate ROE for both companies and interpret your answer. Which company will you prefer for investment in 2018, 2019 and 2020? Explain. Interpret the values in profit margin, total asset turnover and equity multiplier. Will your investment decision for 2018, 2019 and 2020 change once you use DuPont identity instead of ROE? Explain. Note- answer both the parts of the questionWhat is Ratio Corporation's Fiscal 2021 Return on Assets? Question 12 options: 35.18% 53.53% 31.88% 48.84%
- Question 5 -/1 View Policies Current Attempt in Progress Marigold Corp.reported the following items for 2019: $50000 Income tax expense Contribution margin 120000 Controllable fixed costs 80000 Interest expense 62000 Total operating assets 28000 How much is controllable margin? O $50000 O $30000 O $40000 O $120000A. Belowis the Statement of Firancial Position of QM General Merchandise: Increase (Decrease) 2019 2020 Percentage P 192,375 937,508 152,618 P1,282,500 P1,392,750 P 265,500 968,500 159,750 Curent Assets Property, Plant, and Equipment Other Assets Total Assets Liabilities |Total Current Liabilities Long-term debt Owner's Capit al Total Liabilities and Equity P 220,590 491,198 570,713 P1,282,500 P1,392,750 P 225,450 460,250 706,950 Requirements: Prepare a horizontal aralysis for QM General Merchandise.Forecast income statement - ALL FIGURES IN $ MILLION Financial year ending 31 March 2023 2024 2025 Revenue 165.0 180.0 210.0 Less: Operating expenses 120.0 128.0 145.0 Operating earnings before depreciation 45.0 52.0 65.0 Less: Depreciation 30.0 32.0 25.0 Earnings before interest and tax (EBIT) 15.0 20.0 40.0 Less: Interest expense 5.0 5.0 5.0 Earnings before tax 10.0 15.0 35.0 Less: Tax expense 2.8 4.2 9.8 Net profit (earnings) 7.2 10.8 25.2 In addition, you have collected the following information: Operating working capital (OWC) in each year will be 10% of revenue in that year Capital expenditure (capex) will be $25 million in each year The corporate tax rate is 28%. What is Electrix's free cash flow to the firm (FCF) in year 2025? Thanks!