Managerial Finance Problem Set

Managerial Finance Problem Set https://www.homeworkmarket.com/questions/managerial-finance-problem-set "This problem Set is based on materials covered in modules 1 and 2. It is designed for you to demonstrate your understanding of basic financial statements, financial statement analysis, break-even concepts, financial and operating leverages. Before you start this assignment, please review Modules 1 and 2 materials thoroughly. Finance date of Adams Stores, Inc. for the year ending 2016 and 2017. Items                                    2016                     2017 Sales                                $3,432,000            $5,834,400 Cash                                  9,000                     7,282 Other Expenses                340,000                 720,000 Retained Earnings            203,768                 97,632 Long-term debt                 323,432                 1,000,000 Cost of goods sold           2,864,000               4,980,000 Depreciation                     18,900                    116,960 Short-term investments    48,600                     20,000 Fixed Assets                     491,000                  1,202,950 Interest Expenses             62,500                     176,000 Shares outstanding (par value = $46.00)         100,000                   100,000 Market Price of stock         8.50                          6 Accounts Receivable        351,200                    632,160 Accounts payable             145,600                    324,000 Inventory                           715,200                    1,287,360 Notes Payable                  200,000                     720,000 Accumulated Depreciation 146,200                    263,160 Accruals                           136,000                      284,960 Tax Rate                              40%                          40% complete the following activities using the financial information above: Part 1: Financial Statements A. Prepare the income statement for 2016 and 2017. Include statement of retained earnings for 2017. The company paid $11,000 dividend in 2017. B. Prepare the balance sheet for 2016 and 2017 C. Prepare Common-Size financial statements of income statement and balance sheet. D. Prepare Statement of Cash Flows Part 2: Financial Statement Analysis A. Based on your financial statements (from Part 1), calculate the following ratios for the two years. Show all your calculations in good form. Show your formulas. If you use excel, each calculation need to show the excel formula Current ratio Quick ratio Inventory turnover (times) Average collection period (days) Total asset turnover (times) Debt ratio Times interest earned Gross profit margin Net profit margin Return on total assets Return on equity P/E ratio Return on equity using DuPont Analysis B. Comments on the ratios by comparing 2016 to 2017 ratios. C. Assume Adams Stores, Inc. is a retail company similar to WalMart, Myers, or Target. Compare 2017 ratios to the industry average. Please note that Adams Stores, Inc. is not a real company. To find comparable industry ratios, you need to search for industry ratios for retail. See information on Moodle for instructions on how to find industry ratios. Based on the industry average, how is Adams Stores, Inc. doing financially?