Investment Analysis and Forecasting
jess22
cf_XYZ_balance_sheet_and_income_statement.doc
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Assessment 1, Problem 1.
XYZ Inc.: Balance Sheet as of December 31, 2013 (in thousands)
|
Cash |
$75,000 |
Accounts Payable |
$150,000 |
|
Receivables |
300,000 |
Notes Payable |
90,000 |
|
Inventories |
125,000 |
Other current liabilities |
110,000 |
|
Total current assets |
500,000 |
Total Current Liabilities |
$350,000 |
|
|
|
Long-term debt |
250,000 |
|
Net fixed assets |
500,000 |
Common equity |
400,000 |
|
Total assets |
$1,000,000 |
Total liabilities and equity |
$1,000,000 |
XYZ Inc.: Income Statement for Year Ended December 31, 2012 (in thousands)
|
Sales |
$1,607,500 |
|
|
Cost of goods sold |
|
|
|
Materials |
$717,000 |
|
|
Labor |
453,000 |
|
|
Heat, light, and power |
68,000 |
|
|
Indirect labor |
113,000 |
|
|
Depreciation |
41,500 |
1,392,500 |
|
Gross Profit |
|
$215,000 |
|
Selling expenses |
|
115,000 |
|
General and administrative expenses |
|
30,000 |
|
Earning before interest and taxes (EBIT) |
|
$70,000 |
|
Interest expense |
|
24,500 |
|
Earnings before taxes (EBT) |
|
$45,500 |
|
Federal and state income taxes (40%) |
|
18,200 |
|
Net income |
|
$27,300 |
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