In: Finance
The following balance sheet and income statement
should be used for questions #1
through #6:
Kuipers, Inc.
2001 Income Statement
(OMR in millions)
Net sales 9,625
Less: Cost of goods sold 5,225
Less: Depreciation 1,890
Earnings before interest and taxes 2,510
Less: Interest paid 850
Taxable income 1,660
Less: Taxes 581
Net income 1,079
Addition to retained earnings 679
Dividends paid 400
Kuipers, Inc.
12/31/00 and 12/31/01 Balance Sheet
(in OMR, in millions)
2000 2001 2000 2001
Cash 1,455 260 Accounts payable 1,150 2,863
Accounts rec. 2,460 3,975 Notes payable 2,600 1,628
Inventory 1,405 885 Total 3,750 4,491
Total 5,320 5,120 Long-term debt 7,000 7,600
Net fixed assets 19,300 21,720 Common stock 5,500 5,700
Retained earnings 8,370 9,049
Total assets 24,620 26,840 Total liabilities 24,62 26,840
The following balance sheet and income statement should be used for
questions #1
through #6:
Kuipers, Inc.
2001 Income Statement
(OMR in millions)
Net sales 9,625
Less: Cost of goods sold 5,225
Less: Depreciation 1,890
Earnings before interest and taxes 2,510
Less: Interest paid 850
Taxable income 1,660
Less: Taxes 581
Net income 1,079
Addition to retained earnings 679
Dividends paid 400
Kuipers, Inc.
12/31/00 and 12/31/01 Balance Sheet
(in OMR, in millions)
2000 2001 2000 2001
Cash 1,455 260 Accounts payable 1,150 2,863
Accounts rec. 2,460 3,975 Notes payable 2,600 1,628
Inventory 1,405 885 Total 3,750 4,491
Total 5,320 5,120 Long-term debt 7,000 7,600
Net fixed assets 19,300 21,720 Common stock 5,500 5,700
Retained earnings 8,370 9,049
Total assets 24,620 26,840 Total liabilities 24,62
26,840
1. (2 points) What is the firm’s operating cash flow for
2001?
2. (2 points) What is the firm’s net capital spending for
2001?
3. (2 points) What is the firm’s change in net working capital for
2001?
4. (2 points) What is the firm’s cash flow from assets for
2001?
5. (2 points) What is the firm’s cash flow to creditors for
2001?
6. (2 points) What is the firm’s cash flow to stockholders for
2001?
7. (2 points) Granny puts OMR 65,000 into a bank account earning
3%. You can’t withdraw the money until the balance has tripled. How
long will you have to leave the money in the account?
8. (2 points) In 1889, Vincent Van Gogh’s painting, “Sunflowers”,
sold for OMR 200. One hundred years later it sold for OMR 30
million. Had the painting been purchased by your great-grandfather
and passed on to you, how much total interest was earned from this
investment? How much of this was interest on interest?
9. (2 points) An insurance company promises to pay Hana OMR 2.25
million on her 50th birthday in return for a one-time payment of
OMR 520,000 today. (Hana just turned 30.) At what rate of interest
would Hana be indifferent between accepting the company’s offer and
investing the premium on her own?
10. (2 points) An account was opened with an investment of OMR
1,000 five years ago. The ending balance in the account is OMR
1,750. If interest was compounded daily, what rate was earned on
the account?
11. (2 points) You work for a furniture store. You normally sell a
living room set for OMR 2,500 and finance the full purchase price
for 12 monthly payments at 24% APR compounded monthly. You are
planning to run a zero-interest financing sale during which you
will finance the set over 12 months at 0% interest. How much do you
need to charge for the bedroom set during the sale in order to earn
your usual combined return on the sale and the financing?
12. (2.5 points) You are planning to borrow OMR 4,500. You can
repay the loan in 40 monthly payments of OMR 132.75 each or 36
monthly payments of OMR 145.20 each. You decide to take the
40-month loan. During each of the first 36 months you make the loan
payment and place the difference between the two payments (OMR
12.45) into an investment account earning 10% APR. Beginning with
the 37th payment you will withdraw money from the investment
account to make your payments. How much money will remain in the
investment account after your loan is repaid?
13. (2 points) What would your payment be on a 20-year, OMR 150,000
loan at 14% interest compounded monthly assuming the payments are
made semi-annually?
14. (2.5 points) When you were born, your dear Aunt Muna promised
to deposit OMR 700 into a savings account bearing a 5% compounded
annual rate on each birthday, beginning with your first. You have
just turned 21 and want the money. However, it turns out that dear
(forgetful) Aunt Muna made no deposits on your fifth and eleventh
birthdays. How much is in the account right now?
15. (2 points) You have found your dream home. The selling price is
OMR 220,000; you will put OMR 30,000 down and obtain a 30-year
fixed-rate mortgage at 7.5% APR compounded monthly for the balance.
Assume that monthly payments begin in one month. What will each
payment be?
16. (2 points) You are comparing two annuities with equal present
values and a discount rate of 10.25 percent. One annuity pays OMR
4,000 at the end of each year for the next 20 years. How much does
the second annuity pay each year if it pays on the first day of
each year for 20 years?
17. (2 points) Your firm needs to borrow OMR 110,000. The loan
calls for weekly payments of OMR 400 at an interest rate of 6.5
percent compounded weekly. The first payment is due today. What is
the time period of this loan in years?
18. (2 points) Your father invested a lump sum 25 years ago at 8.25
percent interest compounded monthly. Today, he gave you the
proceeds of that investment which totalled OMR 58,785. How much did
your father originally invest?
19. (2 points) You expect to receive OMR 11,500 at graduation in 3
years. You plan on investing this money at 10 percent compounded
monthly until you have OMR 75,000. How many years from now will it
be until this occurs?
20. (2 points) Issa recently found out that he can reduce his
mortgage interest rate from 12 percent to 8 percent. The value of
homes in their neighbourhood has been increasing at the rate of 7.5
percent annually. If Issa was to refinance their house with OMR
2,500 in closing costs in addition to the mortgage balance of OMR
125,000 over a period of time to coincide with his chosen
retirement age in 22 years, what would the monthly payment be for
principal and interest (hint: closing costs are going to be added
to the mortgage)?
21. (2 points) Khalid wants to pay one-half of the college costs
for his daughter, Ahlam. She will be attending a private college
with annual costs of OMR 28,000 today. Ahlam is 10 years old and
will be starting college in eight years. If these costs are
expected to increase annually by 8 percent, how much will Khalid
need to provide for her first year of college?
22. (2 points) You invest OMR 600 in a mutual fund for two years.
The mutual fund earned 25% in the first year and lost 10% in the
second year. How much is your mutual fund worth at the end of the
second year?
1 | The firm’s operating cash flow for 2001 | ||||||
a | Net Income | 1079 | |||||
b | Add: Depreciation (Non Cash exense) | 1890 | |||||
Decrease/(Increase ) in Current Assets: | |||||||
c | Increase in Accounts Receivable | -1515 | (3975-2460) | ||||
d | Decrease in Inventory | 520 | (1405-885) | ||||
Increase/(Decrease ) in Current Liabilities: | |||||||
e | Increase in accounts Payable | 1713 | (2863-1150) | ||||
F=a+b+c+d+e | OPERATING CASH FLOW FOR 2001 | 3687 | |||||
2 | The firm’s net capital spending for 2001 | ||||||
Net Fixed asset at beginning of year | 19300 | ||||||
Less: Depreciation for the year | 1890 | ||||||
Calculated Net Fixed asset at End of year | 17410 | ||||||
Add:Assets added during the Year | 4310 | (21720-17410) | |||||
Actual Net Fixed Asset at end of year2001 | 21720 | ||||||
The firm’s net capital spending for 2001 | 4310 | ||||||
3 | the firm’s change in net working capital for 2001 | ||||||
Net working Capital =Current assets -Current Liabilities | |||||||
At The Beginning of the Year: | |||||||
Current assets: | |||||||
a | Cash | 1455 | |||||
b | Accounts Receivable | 2460 | |||||
c | Inventory | 1405 | |||||
D=a+b+c | Total Current Assets | 5320 | |||||
Current liabilities: | |||||||
e | Accounts Payable | 1150 | |||||
f | Notes Payable | 2600 | |||||
G=e+f | Total Current Liabilities | 3750 | |||||
H=D-G | Net working Capital at Beginning of year | 1570 | |||||
At The END of the Year: | |||||||
Current assets: | |||||||
a | Cash | 260 | |||||
b | Accounts Receivable | 3975 | |||||
c | Inventory | 885 | |||||
D=a+b+c | Total Current Assets | 5120 | |||||
Current liabilities: | |||||||
e | Accounts Payable | 2863 | |||||
f | Notes Payable | 1628 | |||||
G=e+f | Total Current Liabilities | 4491 | |||||
H=D-G | Net working Capital at END of year | 629 | |||||
Change in Net Working Capital | -941 | (629-1570) | |||||
4 | Cash Flow from Assets | ||||||
a | Increase in Accounts Receivable | -1515 | |||||
b | Decrease in Inventory | 520 | |||||
c | Cash Flow for net capital spending | -4310 | |||||
D=a+b+c | Cash Flow from Assets | -5305 | |||||
Related SolutionsThe following Income Statement and Balance Sheet should be used: Creative Analysis, Inc. 2015 Income Statement...The following Income Statement and Balance Sheet
should be used:
Creative Analysis, Inc.
2015 Income Statement
Net sales
$8,500
Cost of goods sold
7,210
Depreciation
400
Earnings before interest and
taxes
890
Interest paid
40
Taxable Income
$850
Taxes
310
Net Income
$540
Dividends
$324
Addition to retained earnings
$216
Creative Analysis, Inc.
2015 Balance Sheet
Cash
$1,600
Accounts Payable
$2,075
Accounts Rec.
975
Long-term debt
425
Inventory
2,425
Common stock
3,000
Total
$5,000
Retained earnings
1,700
Net fixed
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Use the following Income Statement and Balance Sheet of firm X to answers Questions (1) &...Use the following Income Statement and Balance Sheet of firm X
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Income Statement, 2016
Balance Sheet, 2016
Sales
5,000,000
Assets
Costs except Depr.
-3,500,000
Cash and Equivalents
1,096,000
EBITDA
1,500,000
Accounts Receivable
960,000
Depreciation
-10,900
Inventories
90,000
EBIT
1,489,100
Total Current Assets
2,146,000
Interest Expense (net)
-100,500
Property Plant & Equipment
2,190,000
Pretax Income
1,388,600
Total Assets
4,336,000
Income Tax
-486,010
Liabilities &Equity
Net Income
902,590
Accounts Payable
900,000
Debt
950,000
Total Liabilities
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Use the following Income Statement and Balance Sheet of firm X to answers Questions (1) &...Use the following Income Statement and Balance Sheet of firm X
to answers Questions (1) & (2)
Income Statement, 2016
Balance Sheet, 2016
Sales
5,000,000
Assets
Costs except Depr.
-3,500,000
Cash and Equivalents
1,096,000
EBITDA
1,500,000
Accounts Receivable
960,000
Depreciation
-10,900
Inventories
90,000
EBIT
1,489,100
Total Current Assets
2,146,000
Interest Expense (net)
-100,500
Property Plant & Equipment
2,190,000
Pretax Income
1,388,600
Total Assets
4,336,000
Income Tax
-486,010
Liabilities &Equity
Net Income
902,590
Accounts Payable
900,000
Debt
950,000
Total Liabilities
1,850,000...
Analyze the Balance Sheet and Income Statement for ABC Company. Come up with 6 questions for...Analyze the Balance Sheet and Income Statement for ABC Company.
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Balance Sheet
12/31/2017 and 12/31/2016
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Liabilities
12/31/2017
12/31/2016
12/31/2017
12/31/2016
Current Assets
Current Liabilities
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Analyzing, Forecast, and Interpret Income Statement and Balance Sheet Following are the income statement and balance...Analyzing, Forecast, and Interpret Income Statement and
Balance Sheet
Following are the income statement and balance sheet of Whole Foods
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WHOLE FOODS MARKET INC.
Consolidated Statement of Operations
Fiscal Years Ended (in millions)
Sept 25, 2016
Sept 27, 2015
Sales
$15,724
$15,389
Cost of goods sold and occupancy costs
10,313
9,973
Gross profit
5,411
5,416
Selling, general and administrative expenses
4,477
4,472
Pre-opening expenses
64
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Relocation, store closures and lease termination costs
13
16
Operating income
857...
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Following are the income statement and balance sheet of Whole Foods
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WHOLE FOODS MARKET INC.
Consolidated Statement of Operations
Fiscal Years Ended (in millions)
Sept 25, 2016
Sept 27, 2015
Sales
$15,724
$15,389
Cost of goods sold and occupancy costs
10,313
9,973
Gross profit
5,411
5,416
Selling, general and administrative expenses
4,477
4,472
Pre-opening expenses
64
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13
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[The following information applies to the questions displayed below.] Income statement and balance sheet data for...[The following information applies to the questions displayed
below.]
Income statement and balance sheet data for The Athletic Attic
are provided below.
THE ATHLETIC ATTIC
Income Statements
For the years ended December 31
2019
2018
Net sales
$10,400,000
$8,900,000
Cost of goods
sold
6,800,000
5,450,000
Gross profit
3,600,000
3,450,000
Expenses:
Operating expenses
1,600,000
1,600,000
Depreciation expense
200,000
210,000
Interest expense
40,000
50,000
Income tax expense
400,000
360,000
Total expenses
2,220,000
2,220,000
Net income
$1,360,000
$1,230,000
THE ATHLETIC ATTIC
Balance Sheets...
The balance sheet should be prepared before the income statement and after the retained earnings statement...The balance sheet should be prepared
before the income statement and after the retained earnings
statement
after the income statement and before the retained earnings
statement
before the income statement and the retained earnings
statement
after the income statement and the retained earnings
statement
The income statement should be prepared after the balance sheet and before the retained earnings statement...The income statement should be prepared
after the balance sheet and before the retained earnings
statement
after the retained earnings statement and before the balance
sheet
before the retained earnings statement and balance sheet
after the retained earnings statement and balance sheet
Required information [The following information applies to the questions displayed below.] Income statement and balance sheet...Required information
[The following information applies to the questions
displayed below.]
Income statement and balance sheet data for Great Adventures,
Inc., are provided below.
GREAT ADVENTURES, INC.
Income Statement
For the year ended December 31, 2022
Net sales revenues
$
193,410
Interest revenue
400
Expenses:
Cost of goods sold
$
39,900
Operating expenses
68,480
Depreciation expense
18,650
Interest expense
10,276
Income tax expense
15,900
Total expenses
153,206
Net income
$
40,604
GREAT ADVENTURES, INC.
Balance Sheets
December 31, 2022 and...
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