Financial Homework Help
Projections
| Jackson Inc. | |||||||||||||
| Complete the project income statement and (NPV & IRR) | Projected Income Statement | ||||||||||||
| Years | |||||||||||||
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | |
| Sales | |||||||||||||
| COGS | |||||||||||||
| Gross profit | |||||||||||||
| Operating expenses | |||||||||||||
| Operating income | |||||||||||||
| Tax at 35% | |||||||||||||
| Net income | |||||||||||||
| NPV | |||||||||||||
| IRR | |||||||||||||
P & L
| Sanders Sales Company | |||||
| Profit & Loss Statement | |||||
| For the Years Ended December 31, 2012, 2011, and 2010 | |||||
| 2012 | 2011 | 2010 | |||
| Net Sales | $ 3,985,266 | $ 4,395,877 | $ 4,657,880 | ||
| Cost of Goods Sold | 3,228,065 | 3,560,660 | 3,772,883 | ||
| Gross Profit on Sales | $757,201 | $835,217 | $884,997 | ||
| Operating Expenses: | |||||
| General and Administrative | $310,966 | $299,550 | $219,815 | ||
| Selling | 234,550 | 203,240 | 156,340 | ||
| Total Operating Expenses | $545,516 | $502,790 | $376,155 | ||
| Operating Income | $211,685 | $332,427 | $508,842 | ||
| Other Income (Expense): | |||||
| Interest Income | $11,320 | $13,220 | $25,610 | ||
| Interest Expense | (20,400) | (16,800) | (12,000) | ||
| Net Other Income | ($9,080) | ($3,580) | $13,610 | ||
| Income Before Provision For Income Taxes | $202,605 | $328,847 | $522,452 | ||
| Provision For Income Taxes | 70,912 | 115,096 | 182,858 | ||
| Net Income | $131,693 | $213,750 | $339,594 | ||
Balance Sheet
| Sanders Sales Company | |||||||||
| Balance Sheet | |||||||||
| At December 31, 2012, 2011, and 2010 | |||||||||
| Current Assets: | 2012 | 2011 | 2010 | ||||||
| Cash | $208,335 | $228,242 | $240,362 | ||||||
| Short-term investments | 234,455 | 237,700 | 261,000 | ||||||
| Accounts Receivable | 391,200 | 324,118 | 268,400 | ||||||
| Inventories | 334,400 | 295,600 | 190,400 | ||||||
| Prepaid Expenses | 88,000 | 64,300 | 36,600 | ||||||
| Total Current Assets | $1,256,390 | $1,149,960 | $996,762 | ||||||
| Property, Plant and Equipment | $6,920,000 | $5,905,087 | $4,810,750 | ||||||
| Less Accumulated Depreciation | 2,300,000 | 2,000,000 | 1,700,000 | ||||||
| Net Property, Plant and Equipment | $4,620,000 | $3,905,087 | $3,110,750 | ||||||
| Total Assets | $5,876,390 | $5,055,047 | $4,107,512 | ||||||
| Current Liabilities: | |||||||||
| Accounts Payable | $ 304,900 | $ 203,322 | $ 188,335 | ||||||
| Accrued Expenses | 218,102 | 189,265 | 179,477 | ||||||
| Short Term Notes Payable | 265,000 | 225,000 | 165,000 | ||||||
| Current Portion On Long-term Debt | 75,000 | 55,000 | 35,000 | ||||||
| Total Current Liabilities | $ 863,002 | $ 672,587 | $ 567,812 | ||||||
| Long-term Debt: | |||||||||
| Net Long-term Debt | 635,245 | 556,010 | 567,000 | ||||||
| Total Liabilities | $ 1,498,247 | $ 1,228,597 | $ 1,134,812 | ||||||
| Stockholders' Equity | |||||||||
| Paid-in Capital: | |||||||||
| Common Stock | $2,350,000 | $2,150,000 | $1,800,000 | ||||||
| Additional Paid In Excess of Par | 1,340,000 | 1,120,000 | 830,000 | ||||||
| Total Paid-in Capital | $3,690,000 | $3,270,000 | $2,630,000 | ||||||
| Retained Earnings | 688,143 | 556,450 | 342,700 | ||||||
| Total Stockholders' Equity | $4,378,143 | $3,826,450 | $2,972,700 | ||||||
| Total Liabilities and Stockholders' Equity | $ 5,876,390 | $ 5,055,047 | $ 4,107,512 | ||||||
Ratios
| COMPLETE The Financial Ratios for 2012, 2011, & 2010: | Financial Ratios - Sanders Sales | |||
| 2012 | 2011 | 2010 | ||
| Current ratio | ||||
| Quick Ratio | ||||
| Accounts Receivable Turnover | ||||
| Inv Turnover | ||||
| Debt ratio | ||||
| Profit Margin | ||||
| Return on Assets | ||||
| Return on Equity | ||||
| Fixed Asset Turnover | ||||
| Average Collection Period | ||||
Industry Ratios
| Industry Averages - Compare w/ Sanders calculations | |||||||
| 2012 | 2011 | 2010 | |||||
| Current ratio | 1.92 | 1.90 | 1.83 | ||||
| Quick Ratio | 1.22 | 1.19 | 1.15 | ||||
| A/R Turnover | 24.0 | 23.0 | 23.0 | ||||
| Inv Turnover | 23.5 | 23.0 | 22.0 | ||||
| Debt ratio | 28% | 27% | 26% | ||||
| Profit Margin | 24% | 24% | 24% | ||||
| Return on Assets | 9.00% | 9.00% | 9.00% | ||||
| Return on Equity | 12.00% | 12.00% | 12.00% | ||||
| Fixed Asset Turnover | 2.50 | 2.25 | 2.00 | ||||
| Avg Collection Period | 15.21 | 15.87 | 15.87 | ||||