Preparing Comparative Financial Statements is the most used technique for analyzing financial statements. This technique...
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Preparing Comparative Financial Statements is the most used technique for analyzing financial statements. This technique determines a business's profitability and financial position by comparing financial statements for two or more periods. The income statements and balance sheets are typically prepared comparatively for such an analysis. Jenny Chang, a finance student at California Polytechnic State University, received an internship in the finance management training program with Smart Electric Parts Company. Jenny was asked to prepare the companys financial statements and provide a comparative analysis. These statements primarily include income, balance sheets, and cash flow statements. Financial information as of December Financial information as of December Cost of goods sold $ Cost of goods sold $ Cash $ Cash $ Depreciation $ Depreciation $ Interest expense $ Interest expense $ Selling & Administrative $ Selling & Administrative $ Accounts payable $ Accounts payable $ Net fixed assets $ Net fixed assets $ Sales $ Sales $ Accounts receivable $ Accounts receivable $ Current portion of Longterm debt $ Current portion of Longterm debt $ Longterm debt $ Longterm debt $ Equity in Equity raised in Inventory $ Inventory $ Cost of Debt Cost of Debt Unlevered Cost of Equity Unlevered Cost of Equity Outstanding Shares Outstanding Shares Tax rate Tax rate Dividend percentage Dividend percentage Prepare income and balance sheet statements for and Prepare cash flow from assets and cash flow to creditors and equity holders. What are the capital spending and changes in net working capital for What is the DuPont Identity for and Explain the firms condition and performance changes, whether they indicate improvement, deterioration, or some combination. What are the internal and sustainable growth rates for and Define and discuss the implication of these two growth rates in the companys longterm planning. Part II After submitting the financial statements, she was asked to provide a pro forma financial statement for Jenney remembered from her finance classes that she could set up the pro forma financial statement based on the percentage of sales method. Using the sustainable growth rate answer the following questions for Jenny? a What are the pro forma financial statements for b What is the operating cash flow for c What is the free cash flow for d What is external financing needed EFN if any, for Part III Using the sustainable growth rate of round up to no decimal and assuming the growth rate declines by per year to the longterm growth rate of in what are the free cash flows for What is the weighted average cost of capital if the company wants to maintain its total debttoequity ratio of for the foreseeable future? What would be the enterprise value in early What is the stock price in early
Preparing Comparative Financial Statements is the most used technique for analyzing financial statements. This technique determines a business's profitability and financial position by comparing financial statements for two or more periods. The income statements and balance sheets are typically prepared comparatively for such an analysis.
Jenny Chang, a finance student at California Polytechnic State University, received an internship in the finance management training program with Smart Electric Parts Company.
Jenny was asked to prepare the companys financial statements and provide a comparative analysis. These statements primarily include income, balance sheets, and cash flow statements.
Financial information as of December Financial information as of December
Cost of goods sold $ Cost of goods sold $
Cash $ Cash $
Depreciation $ Depreciation $
Interest expense $ Interest expense $
Selling & Administrative $ Selling & Administrative $
Accounts payable $ Accounts payable $
Net fixed assets $ Net fixed assets $
Sales $ Sales $
Accounts receivable $ Accounts receivable $
Current portion of Longterm debt $ Current portion of Longterm debt $
Longterm debt $ Longterm debt $
Equity in Equity raised in
Inventory $ Inventory $
Cost of Debt Cost of Debt
Unlevered Cost of Equity Unlevered Cost of Equity
Outstanding Shares Outstanding Shares
Tax rate Tax rate
Dividend percentage Dividend percentage
Prepare income and balance sheet statements for and
Prepare cash flow from assets and cash flow to creditors and equity holders.
What are the capital spending and changes in net working capital for
What is the DuPont Identity for and Explain the firms condition and performance changes, whether they indicate improvement, deterioration, or some combination.
What are the internal and sustainable growth rates for and Define and discuss the implication of these two growth rates in the companys longterm planning.
Part II
After submitting the financial statements, she was asked to provide a pro forma financial statement for Jenney remembered from her finance classes that she could set up the pro forma financial statement based on the percentage of sales method. Using the sustainable growth rate answer the following questions for Jenny?
a What are the pro forma financial statements for
b What is the operating cash flow for
c What is the free cash flow for
d What is external financing needed EFN if any, for
Part III
Using the sustainable growth rate of round up to no decimal and assuming the growth rate declines by per year to the longterm growth rate of in what are the free cash flows for
What is the weighted average cost of capital if the company wants to maintain its total debttoequity ratio of for the foreseeable future?
What would be the enterprise value in early
What is the stock price in early
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