| Extra Credit Assignment: |
| Due Date: Friday 12/4/20. Extra Credit session will be open from 12 noon to midnight (PST) ONLY (No Exceptions) |
| Notes: |
| - The % will be added directly to your grade so if you have 86%, full 5% will take your grade to 91% |
| - No partial credits for any questions. "All or None" score for each question but working "Must" required for all answers |
| - If you score zero, it will not impact your current grade but this is a great opportunity to improve your overall grade |
|
|
|
|
| FY-19 |
| Revenue |
|
|
| $ 10,000,000 |
| Cost of Sales |
|
|
| 7,500,000 |
| Gross Profit |
|
|
| 2,500,000 |
| Gross Margin |
|
|
| 25.0% |
| Operating Expenses |
|
|
| 1,000,000 |
| Depreciation |
|
|
| 200,000 |
| Amortization |
|
|
| 100,000 |
| Total Operating Expenses |
|
|
| 1,300,000 |
| Operating Income |
|
|
| 1,200,000 |
| Interest Expenses |
|
|
| 100,000 |
| Profit Before Tax |
|
|
| 1,100,000 |
| Tax |
|
|
| 275,000 |
| Net Income |
|
|
| $ 825,000 |
| DSO |
|
|
| 36 |
| DIO |
|
|
| 30 |
| DPO |
|
|
| 30 |
| FY-20 Assumptions: |
| Income Statement |
|
| Decrease in Revenue by 25% |
|
| Gross Margin for FY-20 is 20% |
|
| Increase in DSO by 3 days |
|
| Decrease in DSO by 1 day |
|
| Improvement in DPO by 2 days |
|
| FY-19 Operating Expenses include $100,000 severance payment and $50,000 one time lease termination cost |
|
| Keep Operating Expenses % same as FY-19 on the Total Cost of Sales excluding unusual itmes |
|
| Increase Depreciation Expense by 4% |
|
| No Change in Amortization Expense |
|
| Increase Interest Expense by 2.5% |
|
| Tax Rate for FY-20 is 15% |
| Balance Sheet: |
|
| Increase in DSO by 3 days |
|
| Improvement in DIO by 3 day |
|
| Increase in DPO by 3 days |
|
| Increase in Prepaid Expense by $25,000 |
|
| Increase in Accrued Expense by $75,000 |
|
| The Company paid $50,000 FY-19 Accrued Bonus in FY-20. |
|
| Capital Expenditures $500K. Depreciation already included in depreciation exense assumptions |
|
| Total Short-Term and Long-Term Debt as of December 31, 2020 is $0.1M & $0.3M respectively |
|
| Total Equity as of December 31, 2020 is $2M |
|
|
|
|
|
|
|
| Points |
| % |
| Q1 |
Compute A/R, Inventory & A/P for FY-19 & FY-20 |
|
|
|
|
| 10.0 |
| 1.25% |
| Q2 |
Compute Cash Flows from Operating Activities for FY-20 |
|
|
|
|
| 18.0 |
| 2.25% |
| Q3 |
Prepare EBITDA for FY-19 & FY-20 |
|
|
|
|
| 4.0 |
| 0.50% |
| Q4 |
Prepare Non-GAAP Net Income for FY-19 & FY-20 |
|
|
|
|
| 6.0 |
| 0.75% |
| Q5 |
Compute ROIC for FY-20 |
|
|
|
|
| 2.0 |
| 0.25% |
|
| Total |
|
|
|
|
| 40.0 |
| 5.00% |
Babu Dev
ExtraCredit_Fall20.xlsx
