Project FINANCE AND BUDGET
armystace
assignment_1_mgt252.docx
MGT252. Project Finance and Budgeting
Assignment 1
1. What is the Balance Sheet? What does it tell us about an organization?
2. What is the Income Statement? What does it tell us about an organization?
3. What is the Cash Flow Statement? What does it tell us about an organization?
4. Using the data from the following Financial Statements, compute:
a. Current ratio:
b. Quick ratio:
c. Profit margin on sales:
d. Return on total assets:
e. Return on equity:
|
Balance Sheet |
Ajax Corp. |
|
Acme, Inc. |
|
Cash |
$2,255,000 |
|
$67,000 |
|
Accounts Receivable |
$565,000 |
|
$1,110,000 |
|
Inventory |
$1,332,000 |
|
$2,441,000 |
|
|
|
|
|
|
Total Current Assets |
$4,152,000 |
|
$3,618,000 |
|
|
|
|
|
|
Net Property, Plant and Equipment |
$369,000 |
|
$1,327,000 |
|
Other Assets |
$211,000 |
|
$597,000 |
|
|
|
|
|
|
Total Assets |
$4,732,000 |
|
$5,542,000 |
|
|
|
|
|
|
Accounts Payable |
$27,000 |
|
$168,000 |
|
Notes Payable Sort Term |
$426,000 |
|
$819,000 |
|
Other Short Term Liabilities |
$2,000 |
|
$56,000 |
|
|
|
|
|
|
Total Current Liabilities |
$455,000 |
|
$1,043,000 |
|
|
|
|
|
|
Notes Payable Long Term |
$1,222,000 |
|
$943,000 |
|
|
|
|
|
|
Total Liabilities |
$1,677,000 |
|
$1,986,000 |
|
|
|
|
|
|
Stockholders' Equity |
$3,055,000 |
|
$3,556,000 |
|
|
|
|
|
|
Total Liabilities and Stockholders' Equity |
$4,732,000 |
|
$5,542,000 |
|
Income Statement |
Ajax Corp. |
|
Acme, Inc. |
|
Sales |
$32,752,000 |
|
$4,835,000 |
|
Cost of Sales |
$28,273,000 |
|
$2,966,000 |
|
|
|
|
|
|
Gross Profit |
$4,479,000 |
|
$1,869,000 |
|
|
|
|
|
|
Selling, General and Administrative Expenses |
$2,541,000 |
|
$912,000 |
|
|
|
|
|
|
Income before Interest and Taxes |
$1,937,000 |
|
$957,000 |
|
|
|
|
|
|
Interest Expense |
$129,000 |
|
$88,000 |
|
|
|
|
|
|
Income before Taxes |
$1,808,000 |
|
$869,000 |
|
|
|
|
|
|
Taxes |
$723,000 |
|
$280,000 |
|
|
|
|
|
|
Net Income |
$1,085,000 |
|
$589,000 |
5. What does each of these financial ratios tell us about a company?
a. Current ratio
b. Quick ratio:
c. Profit margin on sales:
d. Return on total assets:
e. Return on equity:
1
