NSU ACT 5140 Assignment

NSU ACT 5140 Assignment

NSU ACT 5140 Assignment
Subject: Business    / Accounting   
Question

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Instructor's Grade on Assignment:
Instructor's Comments:
Ratios equal 40% of the grade
Each calculation not correctly computed is a deduction of 1/130 of a point
The calculation not correct is highlighted in red========>
(example)
Assessment Analysis is worth 60% of grade
(Each page of assessments is worth 10% x 6 pages) Calculations for Assignment Grade Total Incorrect Ratios Computed
Correct Ratios Computed
Total Ratios to Compute
Score For Ratios Important Note:
When submitting assignment please rename file as follows: Also be sure you do the follow (Your Last Name) (Your First Initial), Foodie's Analysis 1. Submitted By
2. Date of Submission
3. Signature R
E
A
D Please Be Sure You Read Note Above
Submitting Paper Before Please Submit your Paper to:
yessman@nova.edu Assignment Grade 167
0
167
– X 100% = 0.00 Also be sure you do the following to the left: – You will see below 4 "green" tabs and 5 "red tabs".
Green Tabs Represent the information you will need to compute the answers required in the red tabs.
The Red tabs represent where you will place your answers.
Each red tab requires 2 things: (1) Calculated Answers in Each Box (2) Explanations in the text box area
In each red tab you will need to fill in each box where a calcuclated amount is required.
The text box found in each red tab area is for you to explain what your calculated answers in the boxes
represent.
For instance, if a current ratio goes up then it shows the creditor that the company is has more liquidity and
they are better short term risk.
Using the accompanying financial statements (found in the green tabs), assess the Foodie's Outlet
concerning liquidity, solvency, profitability, and stock performance. For each area, you should calculate the
ratios we discussed in class and provide a brief analysis of the ratios calculated. You do not need to perform
vertical analysis for this assignment. Legend for Tabs Listed Below
Green Tabs – Information Required for Red Tab Answers
1. SP – Historical Stock Prices
2. IS – Income Statement
3. BS – Balance Sheet
4. CF – Statement of Cash Flows
Red Tabs – You will supply your answers in these tabs
There are 2 sets of answers required
1. In the Boxes you will put your calculations for the ratio required
2. In the text box you will write text about what your ratios mean to an
outside investor, creditor, etc.
1.
2.
3.
4.
5. Short-Term
– Answers to your short term ratios
Long-Term
– Answers to your long term ratios
Profitability
– Answers to your profitability ratios
DuPont Analysis – Answers to your DuPont Analysis Ratios
Stock
– Answers to your Stock Ratios Once you are done with your answers – email
them to me to the following email address:
yessman@nova.edu Foodie's Outlet
Historical Stock Prices
Fiscal Year Ended 12/31/2016 12/31/2015 12/31/2014 12/31/2013
Adjusted Closing Price
$100.00
$90.00
$70.00
$55.00
Common Shares Outstanding (millions)
1,250
1,300
1,400
1,500
Common Shares + Fully diluted
1,275
1,326
1,421
1,515
conversion shares Historical Dividends Paid
Dividends Paid $3,031 $2,530 $2,243 $1,743 12/31/2012
$40.00
1,550
1,550 Foodie's Outlet
Income Statements $ in millions
For the Years Ended
NET SALES 12/31/2016 12/31/2015 12/31/2014 12/31/2013
$87,000
$83,000
$79,000
$74,754 Cost of sales 57,254 54,671 52,021 48,912 GROSS PROFIT 29,746 28,329 26,979 25,842 Operating Expenses:
Selling, General and Administrative
Depreciation and Amortization
Total Operating Expenses
OPERATING INCOME 16,801
1,690
18,491
11,255 16,280
1,640
17,920
10,409 16,122
1,627
17,749
9,230 16,508
1,568
18,076
7,766 (166)
919
0 (337)
830
0 (12)
711
0 (20)
632
(67) 753
10,502
4,012
$6,490 493
9,916
3,631
$6,285 699
8,531
3,082
$5,449 545
7,221
2,686
$4,535 Interest and Other (Income) Expense:
Interest and Investment Income
Interest Expense
Other
Interest and Other, net
Earnings before income taxes
Provision for Income Taxes
NET EARNINGS Foodie's Outlet
Balance Sheets $ in millions
As of 12/31/2016 12/31/2015 12/31/2014 12/31/2013
ASSETS
Current assets:
Cash and cash equivalents
Accounts receivable, net
Merechandise inventories
Other current assets $1,701
1,890
11,809
1,078 $1,727
1,484
11,079
1,016 $1,993
1,398
11,057
895 $2,494
1,395
10,710
773 Total Current Assets 16,478 15,306 15,343 15,372 Property & Equipment, at cost
Less Accumulated Depreciation and Amortization
Net Property & Equipment 39,266
17,075
22,191 38,513
15,793
22,720 39,064
15,716
23,348 38,491
14,422
24,069 Goodwill
Other assets
TOTAL ASSETS 2,102
1,263
$42,034 1,353
571
$39,950 1,289
602
$40,582 1,170
473
$41,084 LIABILITIES AND SHAREHOLDERS EQUITY
Current liabilities:
Short-term debt
Accounts payable
Accrued salaries & related expenses
Sales taxes payable
Deferred revenue
Income taxes payable
Current installments of long-term debt
Other accrued expenses $350
6,565
1,515
476
1,566
34
77
1,943 $290
5,807
1,391
434
1,468
35
38
1,806 $0
5,797
1,428
396
1,337
12
33
1,746 $0
5,376
1,414
472
1,270
22
1,321
1,587 Total Current Liabilities 12,526 11,269 10,749 11,462 Long-term debt, excluding current installments
Other long-term liabilities
Deferred income taxes
Total liabilities 20,888
1,965
854
36,233 16,869
1,844
642
30,624 14,691
2,042
514
27,996 9,475
2,051
319
23,307 Shareholders equity:
Common stock
Paid-in capital
Retained earnings
Accumulated other comprehensive income (loss)
Treasury stock, at cost
Total shareholders equity 88
9,347
30,454
(894)
(33,194)
5,801 88
8,885
26,935
(388)
(26,194)
9,326 88
8,402
23,244
46
(19,194)
12,586 88
7,948
20,038
397
(10,694)
17,777 TOTAL LIABILITIES AND SHAREHOLDERS EQUITY $42,034 $39,950 $40,582 $41,084 Foodie's Outlet
Statements of Cash Flows This is the newest of the 4 financial statements
Accounting Principles Board Opionion 19 -1971 – Statement
Financial Accounting Standards Board Statement 95 – 1987 $ in millions
For the Years Ended
OPERATING ACTIVITIES:
Net earnings
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization
Stock-based compensation expense
Gain on sales of investments
Changes in Assets and Liabilities, net of the effects of acquisition and disposition
Receivables, net
Merchandise inventories
Other current assets
Accounts payable and accrued expenses
Deferred revenue
Income taxes payable
Deferred income taxes
Other
Net cash provided by operating activities
INVESTING ACTIVITIES:
Capital expenditures
Proceeds from sales of investments
Payments for business acquired
Proceeds from sales of property & equipment
Net cash used by investing activities
FINANCING ACTIVITIES:
Proceeds from short-term borrowings, net
Proceeds from long-term borrowings, net of discount 12/31/2016 12/31/2015 12/31/2014 12/31/2013
$6,490 $6,285 $5,449 $4,535 1,863
244
(144) 1,786
225
(323) 1,757
228
0 1,684
218
97 (181)
(546)
(5)
888
109
154
15
(33) (81)
(124)
(199)
244
146
168
159
(104) (15)
(455)
(5)
605
75
119
(31)
(35) (143)
(350)
93
698
121
87
107
(172) $8,854 $8,182 $7,692 $6,975 (1,503)
144
(1,666)
43 (1,442)
323
(200)
48 (1,389)
0
(206)
88 (1,312)
0
(170)
50 ($2,982) ($1,271) ($1,507) ($1,432) 60
3,991 290
1,981 0
5,222 0
0 Repayments of long-term debt
Repurchases of common stock
Proceeds from sales of common stock
Cash dividends paid to stockholders
Other financing activities (39)
(7,000)
228
(3,031)
4 (39)
(7,000)
252
(2,530)
(25) (1,289)
(8,546)
241
(2,243)
(37) (32)
(3,984)
784
(1,743)
(59) Net cash used by financing activities ($5,787) ($7,071) ($6,652) ($5,034) $85
(111) ($160)
(106) ($467)
(34) $509
(2) 1,727
$1,701 1,993
$1,727 2,494
$1,993 1,987
$2,494 $874
$3,852
96% $782
$3,449
95% $639
$2,835
92% $617
$2,471
92% Change in Cash and Cash Equivalents
Effect of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year SUPPLEMENTAL DISCLOSURE OF CASH PAYMENTS MADE FOR
Interest, net of capitalized interest
Income taxes This is the newest of the 4 financial statements
Accounting Principles Board Opionion 19 -1971 – Statement of Changes in Financial Position
Financial Accounting Standards Board Statement 95 – 1987 Liquidity Ratios
Calculate the Ratios Below:
Fiscal Year Ended 12/31/2016 12/31/2015 12/31/2014 12/31/2013
Current ratio
Working capital
Acid-test ratio
Inventory turnover (times)
Days sales in inventory
Accounts receivable turnover (times)
Days sales in receivables
Free cash flow 1.32 Need to fill in these bl
Be sure to show your Average inventory
Average A/R Ratio
Current Ratio =
Working Capital =
Acid-Test Ratio = How to Calculate Ratio
Current Assets ÷ Current Liabilities
Current Assets – Current Liabilities
(Cash & Equivilents + Marketable Securities + A/R) ÷ Current Liabilities Inventory Turnover (Times) =
Average Inventory =
Days Sales In Inventory =
Accounts Receivable Turnover (Times) =
Average Accounts Receivable =
Days Sales In Accounts Receivable = Cost of Goods Sold ÷ Average Inventory
(Beginning Finished Goods Inventory + Ending Finished Goods Inventory) ÷ 2
(Ending Inventory ÷ Cost of Goods Sold) x 365
Net Sales ÷ Average Accounts Receivable
(Beginning Accounts Receivable + Ending Accounts Receivable) ÷ 2
(Ending A/R ÷ Credit Sales) x 365
(Use total sales if you cannot get credit sales)
(If you don’t know the credit sales ratio to total sales use total net Sales)
Operating Cash Flow – Amounts spent on Capital Expenditures
(Simple Formula) Free Cash Flow = Need to fill in these blanks with the ratio calculations required
Be sure to show your work in each cell Meaning of Ratio
Near Term Paying Ability (Comparative)
Near Term Paying Ability (Absolute)
Very Near Term Paying Ability (Comparative)
less than 1 may be a problem
Efficiency of Inventory Management
Liquidity of Inventory
Efficiency of Receivabale Collection
Liquidity of Receivables
Cash Remaining for Anything the company chooses Solvency Ratios
Calculate the Ratios Below:
Fiscal Year Ended 12/31/2016 12/31/2015 12/31/2014 12/31/2013
Debt to Equity
Long Term Debt to equity
Interest coverage Need to fill in these blanks with the r
Be sure to show your work in each c Long term liabilities Ratio
Debt to Equity = How to Calculate Ratio
Long Term Liabilities ÷ Total Stockholders' Equity Book shows this as Total Liabilities ÷ Total Stockholders' Equity Interest Coverage = Operating Income / Interest Expense Meaning of Ratio Ratio of Creditor vs Owner Financin Shows how easily interest can be p Since in this example interest is not shown net of tax (it is shown before operating income), we can just use operating income here
(or earnings before income tax which is the same thing) as the numerator Rule of Thumb' – Says a current ratio of 2 is considered good while one of 3 or better is considered outstanding, but actually could be different for different compan
A current ratio below 1 indicates that the company has a hard time meeting these payments Need to fill in these blanks with the ratio callculations required
Be sure to show your work in each cell either cell references or numbers used Ratio of Creditor vs Owner Financing Shows how easily interest can be paid on outstanding debt onsidered outstanding, but actually could be different for different companies and maket sectors Profitability Ratios ` Calculate the Ratios Below:
Fiscal Year Ended 12/31/2016 12/31/2015 12/31/2014 12/31/2013
Asset turnover
Return on sales
Gross margin %
Return on assets
Return on equity
Average interest rate
Average total assets
Interest Expense
Income tax rate
1 – Income Tax Rate
Net of tax interest expense Need to fill in these blanks wit
Be sure to show your work in Net of tax interest expense
+ Net Earnings
= Net Earnings + Net of tax interest expense
Average equity
Average total liabilities Ratio
Asset Turnover =
Average Total Assets =
Return on Sales =
Gross Margin Ratio =
Book Shows How to Calculate Ratio
Net Sales / Average Total Assets
(Beginning Total Assets + Ending Total Assets) / 2
Net Income + Net of Tax Interest Expense / Net Sales
(Net Sales – Cost of Goods Sold) / Net Sales
(Net Income – Cost of Goods Sold) / Net Sales
This is incorrect!!! Return on Assets =
Return on Equity =
Average Stockholders' Equity =
Average Interest Rate =
Average Total Liabilities = Net Income + Net of Tax Interest Expense / Average Total Assets
Net Income / Average Stockholders' Equity
(Beginning Stockholders' Equity + Ending Stockholders' Equity) / 2
Interest Expense / Average Total Liabilities
(Beginning Total Liabilities + Ending Total Liabilities) / 2 Income Tax Rate =
1- Income Tax Rate = Provision for Income Tax / Earnings Before Income Taxes
1 – Income Tax Rate Net of Tax Interest Expense =
Net Earnings – Net of Tax Interest Expense = 1- Income Tax Rate x Interest Expense
Net Earnings – Net of Tax Interest Expense Need to fill in these blanks with the ratio calculations required
Be sure to show your work in each cell either cell references or numbers used Meaning of Ratio
Efficiency of Total Assets
Profitability of Sales with Given Assets
Gross Profit per Sales Dollar Profitability of Assets
Profitability of Shareholders' Investment
Interest Rate paid on total debt Gives Investor knowledge of the rate they are paying overall for income taxes
Interest is an expense we want to add back
On the income statement it is shown net of tax
Therefore we have to add back the tax effect
to make it comparable to operating income DuPont Analysis
Calculate the Ratios Below:
Fiscal Year Ended 12/31/2016 12/31/2015 12/31/2014
Return on assets (calculated)
Return on sales
Asset turnover
Product Need to fill in these blanks with the ratio calculat
Be sure to show your work in each cell either cel The idea here is for you to look up the DuPont Theory either in the book or online to see that Return on Sales x Asset Turnover = Return on A Need to fill in these blanks with the ratio calculations required
Be sure to show your work in each cell either cell references or numbers used nline to see that Return on Sales x Asset Turnover = Return on Assets or the DuPont Analysis Stock Ratios
Calculate the Ratios Below:
Fiscal Year Ended 12/31/2016 12/31/2015 12/31/2014 12/31/2013 12/31/2012
Book value per common share
Earnings per share (basic)
Earnings per share (diluted)
P/E Ratio
Dividend yield
Dividend payout Need to fill in these blan
Be sure to show your w Book value relating to common shares equity
Common shares outstanding (millions)
Average Common shares outstanding (millions)
Average Common + fully diluted shares
outstanding ( millions)
Adjusted closing price
Dividends per share
Ratio
Book value per common share =
Earnings per share (basic) =
Earnings per share (diluted) =
P/E Ratio =
Dividend yield =
Dividend payout =
Book value of equity
Common shares outstanding (millions)
Adjusted closing price Need to calculate if you use top r
How to Calculate Ratio
Shareholders' Equity for Common Shares / Number of Common Shares Outstanding
Net Income / Average Number of Common Shares Outstanding
Net Income / Average Number of Common Shares Outstanding + Dirivitive Shares
Market Price/Share ÷ Earnings / Share
Cash Dividends / Common Share ÷ Market Price / Common Share
Cash Dividends / Common Share ÷ Earnings / Common Share All direct numbers Need to fill in these blanks with the ratio calculations required
Be sure to show your work in each cell either cell references or numbers used Need to calculate if you use top row for common shares s / Number of Common Shares Outstanding Meaning of Ratio Liquidation Price/Common Share
Income per Common Share
Income per Common Share
Market Value Multiple of Earnings
Cash Return of Market Price
Payout % of Earnings