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FIN202 - SU24 - Individual Assignment

FIN202

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27 views5 pages

FIN202 - SU24 - Individual Assignment

FIN202

Uploaded by

ngocanh.nguyen1524
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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FPT UNIVERSITY - FIN202

PRINCIPLES OF CORPORATE FINANCE (FIN202) INDIVIDUAL


ASSIGNMENT


FINANCIAL STATEMENTS ANALYSIS


Area: Finance
Issue date: May 15, 2024
Due date: 23:59 pm, June 26, 2024
Submission report online to Edunext prior to due date (.pdf file)

Content:
Part 1: Answer the questions (3.0 marks)
1. Discussing the 3 key financial decisions facing the financial manager of any business?
(0.5 mark). Give reality example to support for your answer (0.5 mark)?
2. Explain the phrase “A dollar today is worth more than a dollar tomorrow”? (1.0 mark)
3. Discuss the relationship between risk and return? (0.5 mark) Give example to support
your answer? (0.5 mark)
Part 2: Base on the information given below, analyzing and evaluating the company’s
financial situation (5.0 marks)
The Number One Supply Company reported the following information for 2022

NUMBER ONE SUPPLY COMPANY


INCOME STATEMENT
For The Fiscal Year Ended December 31, 2022
($ thousands)
Net sales 3,110,965
Cost of goods sold 1,859,455
Selling and administrative expenses 512,044
Non-recurring expenses 127,215
Earnings before interest, taxes, depreciation, and amortization
(EBITDA ?
)
Depreciation and amortization 212,178
Earnings before interest and taxes ?
(EBIT)
Interest expense 177,587

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FPT UNIVERSITY - FIN202
Earnings before taxes ?
(EBT)
Taxes (35%) ?
Net ?
income

NUMBER ONE SUPPLY COMPANY


BALANCE SHEET
December 31, 2022
($ thousands)
Assets:
Cash and marketable securities 596,994
Accounts receivable 708,275
Inventory 1,052,398
Other current assets 52,115
Total current assets ?

Net plant and equipment 1,980,551


Goodwill and other assets 577,320
Total assets ?
Liabilities and Stockholder’s Equity:
Accounts payable and accruals 855,120
Notes payable 201,019
Accrued income taxes 21,322
Total current liabilities ?

Long-term debt 1,450,520


Total liabilities ?

Common stock 1,112,137


Additional paid-in capital 381,705
Retained earnings 945,830
Total common equity ?
Total liabilities and equity ?
Requirements:
4. Prepare a Common-size Balance Sheet and Common-size Income Statement for
Number One Supply Company? (1.0 mark)
5. Using the 2022 data for the Number One Supply Company, calculate the following
ratios, then interpret the meaning of each ratio? (4.0 marks) a) Current ratio
b) Quick ratio
c) Inventory turnover
d) Days’ sales inventory
e) Total asset turnover
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FPT UNIVERSITY - FIN202
f) Total debt ratio
g) Deb-to-equity ratio
h) Times interest earned
i) Profit margin ratio
j) Return on total assets
k) Use the Dupont equation to calculate the return on equity (ROE)
Part 3: Give the solution for Anna and explain in detail your solution? (2.0 marks)
Anna is saving for her Master’s tuition fee in five years. She estimates that she will need at
least $27,000 to cover her tuition fee and all other living expenses. She is going to invest her
money in a bank that is expected to earn an average return of 9.3% over the next five years,
how much will she have to save every year, starting at the end of this year?
------------------------

Information on submission:
- Language: Academic English.
- Submission: 01 PDF file for the completed assignment.
- Each day late submission will lead to 10% of grade deduction in the assignment
result. The report will get zero (0) if you submit later than three days.
- Plagiarism is not allowable or else 50% of total mark would be deducted.
- Assignment Format should be:
Font: Times New Roman, font size: 12;
Spacing: single lines;
Page set up: A4

Good luck!

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FPT UNIVERSITY - FIN202

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