Question

BALANCE SHEET & IS ITEMS 2017      2018         

(thousands of US dollars)

Sales                         4,166       4,490 (NOTE: the firm

Cash                          2,150       2,198   plans on a 34%

Interest (expense)              274         316   marginal corp.

Other Expenses                  340         280   tax rate for

Inventory                     5,060       5,200   all revenues)

Net Fixed Assets             18,030      18,460                  

Depreciation                    590         590               

Cost of Goods Sold            1,410       1,602

SE(includes paid-in surplus) ?????       ?????

Retained Earnings            11,256      11,128 (ALSO:30,000 CBC

Accounts Payable              2,258       2,190   common equity   

Short-Term Notes Payable        416         390   shares (10% of

Dividends                       500         550   outstanding in

Accounts Receivable           2,846       3,206   ’09 targeted to

Long-Term Debt                7,200       8,400   be repurchased)

1. Operating Cash Flow(in thousands) for ‘18 is expected to be:

2. ‘17-‘18 changes in net working capital(NWC) are forecast at:

3. The summary CF measure Cash Flow From Assets for CBC equals:

4. What’s company P/E ratio if EOY 2018 share price equals $77?

(hint: you’ll need net income and EPS to calculate this one)

Answer 1

1.

	Operating Cash Flows				(in $ 000)
Inflow
	Change in Cash	(2198-2140)			48
	Accounts receivable				2846
	Long term Debt	(8400-7200)			1200
			Total		4094
Outflow	Interest				316
	Other expense				280
	Changes in Inventory	(5200-5060)			140
	Changes in Fixed Assets	(18460-18030)			430
	Changes in Cost of Goods Sold	(1602-1410)			192
	Accounts payable				2258
	Notes payable				416
	Dividends				500
	Tax expense				766.36
			Total		5298.36
	Net Cash Flow				-1204.36

Income statement
	dr		cr
Interest	316	Sales	4490
Other Exp	280	Change in stock	140
COGS	1602
Transfer to retained earnings	128
Dividend	50
Total	2376		4630
Profit before Tax	2254
Profit After tax	1487.64
Tax	766.36

2.

Changes in working capital		Amount
Assets
Accounts receivable		360
Inventory		-140
Cash		48
		268
Liabilities
Accounts payable		68
Notes payable		26
Dividends		-50
		44
Net Changes in working capital		312