Question

Questions using the financial statements below:

What is the Net Income Margin? State your answer as a % and round to the nearest whole number

What is the current ratio? Remember that a ratio is stated in reference to 1 (not as a percentage), and you should carry ratio out to two decimal places

What is the exact amount that account receivables increased during the year?

What is the total Cost of Sales for the year?

What month does the fiscal year begin in?

What is the quick ratio? Remember that a ratio is stated in reference to 1 (not as a percentage), and you should carry ratio out to two decimal places.

What two revenue line items make up more than 80% of the company’s revenue for the year? Hint: Write answers exactly like they are on the financial statements, capitalization and spaces included. Place a comma and space ", " in between your two answers.

How much did Park Systems invest in radio facilities?

What is EBITDA (Net Income before Interest Expense, Taxes, Depreciation and Amortization are deducted)?

How much did the company pay down its Note Payable?

Balance Sheet

Years Ended December 31 (in thousands)

Assets

Current Assets

Cash	$            23,283
Accounts Receivable, net	38,316
Prepaid Expenses	3,655
SIM Inventory	6,881
Total Current Assets	72,135
Long-Term Assets
Property & Equipment, net	462,602
Total Assets	$          534,737
Liabilities and Equity
Current Liabilities
Accounts Payable	$            14,807
Accrued Payroll	5,863
Accrued Expenses	14,659
Note Payable, current	26,972
Total Current Liabilities	62,301
Long-Term Liabilities
Note Payable, non-current	296,849
Total Liabilities	359,150
Stockholders Equity Common Stock	134
Retained Earnings	175,453
Total Stockholders Equity	175,587
Total Liabilities & Stockholders Equity	$          534,737

Income Statement Years Ended December 31

(in thousands)

Revenues
Data	$          201,663
SIM Subscription	120,998
SMS (texting)	40,333
SIM Purchase & Activation	19,113
Other Revenue	1,053
Total Revenues	383,160
Cost of Sales
GSM Roaming & Local Data	110,915
Carrier SMS Fees	24,200
SIM Manufacturing	8,601
Direct Labor	19,158
Total Cost of Sales	162,873
Gross Profit	220,287
Operating Expenses Core Telecom Network Ops	66,086
Sales and Marketing	32,575
Research and Development	9,772
Radio Tower Facilities	4,886
General & Administrative	65,149
Total Operating Expenses	178,468
Operating Income	41,818
Investment Income	1,685
Interest Expense	(9,715)
Foreign Exchange Gain (Loss)	(1,836)
Tax Provision Expense	(3,904)
Other Income (Expense)	1,051
Net Income	$            29,100

Statement of Cash Flows Year Ended December 31 (in thousands)

Operating Activities

Consolidated net income	$            29,100
Adjustments Depreciation and amortization	4,819
Changes in assets and liabilities: Accounts receivable	(3,483)
Inventory	(9,891)
Accounts payable	888
Accrued expenses	20,670
Net cash provided by operating activities	42,103

Investing Activities

Investment in radio facilities	(17,102)
Capital Equipment expenditure	(5,783)
Net cash (used in) investing activities	(22,884)
Financing Activities
Payments on note payable	(6,476)
Net cash provided by financing activities	(6,476)
Net increase (decrease) in cash and equivalents	12,743
Cash and equivalents, beginning of year	10,540
Cash and equivalents, end of year	$            23,283

Answer 1

Net Income	29,100
Revenue	3,83,160
Net Margin ratio	7.59%

Current Assets	72,135
Less Current Liabilities	62,301
Current Ratio	1.16

Accounts receivable increased during the year is $ 3483

Total cost of sales 162873

Fiscal year begins in January

Liquid Assets	62,139
Current Liabilities	62,301
Quick Ratio	1.00

Data and Sim subscriptions accounts for more than 80% of the total revenue.

17,102 is the investement in radio facility.

EBITDA is 43634 (29100+4819+9715)

6476 is paid down to its note payable