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income_statement.docxFIN 534 – Homework Set #1
© 2015 Strayer University. All Rights Reserved. This document contains Strayer University Confidential and Proprietary information and may not be copied, further distributed, or otherwise disclosed in whole or in part, without the expressed written permission of Strayer University. FIN 534 Homework Set #1 1156 (5-19-2015) Page 2 of 3
|
Income Statements |
2012 |
2013 |
2014 |
|
Sales |
$3,432,000 |
$5,834,400 |
$7,035,600 |
|
Cost of goods sold except depr. |
2,864,000 |
4,980,000 |
5,800,000 |
|
Depreciation and amortization |
18,900 |
116,960 |
120,000 |
|
Other expenses |
340,000 |
720,000 |
612,960 |
|
Total operating costs |
$3,222,900 |
$5,816,960 |
$6,532,960 |
|
EBIT |
$209,100 |
$17,440 |
$502,640 |
|
Interest expense |
62,500 |
176,000 |
80,000 |
|
EBT |
$146,600 |
($158,560) |
$422,640 |
|
Taxes (40%) |
58,640 |
-63,424 |
169,056 |
|
Net income |
$87,960 |
($95,136) |
$253,584 |
|
Other Data |
2012 |
2013 |
2014 |
|
Stock price |
$8.50 |
$6.00 |
$12.17 |
|
Shares outstanding |
100,000 |
100,000 |
250,000 |
|
EPS |
$0.88 |
($0.95) |
$1.104 |
|
DPS |
$0.22 |
0.11 |
0.22 |
|
Tax rate |
40% |
40% |
40% |
|
Book value per share |
$6.64 |
$5.58 |
$7.909 |
|
Lease payments |
$40,000 |
$40,000 |
$40,000 |
|
Ratio Analysis |
2012 |
2013 |
Industry Average |
|
Current |
2.3 |
1.5 |
2.7 |
|
Quick |
0.8 |
0.5 |
1.0 |
|
Inventory turnover |
4 |
4 |
6.1 |
|
Days sales outstanding |
37.3 |
39.6 |
32.0 |
|
Fixed assets turnover |
10 |
6.2 |
7.0 |
|
Total assets turnover |
2.3 |
2 |
2.5 |
|
Debt ratio |
35.60% |
59.60% |
32.0% |
|
Liabilities-to-assets ratio |
54.80% |
80.70% |
50.0% |
|
TIE |
3.3 |
0.1 |
6.2 |
|
EBITDA coverage |
2.6 |
0.8 |
8.0 |
|
Profit margin |
2.60% |
−1.6% |
3.6% |
|
Basic earning power |
14.20% |
0.60% |
17.8% |
|
ROA |
6.00% |
−3.3% |
9.0% |
|
ROE |
13.30% |
−17.1% |
17.9% |
|
Price/Earnings (P/E) |
9.7 |
−6.3 |
16.2 |
|
Price/Cash flow |
8 |
27.5 |
7.6 |
|
Market/Book |
1.3 |
1.1 |
2.9 |
