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FMP # 1

This document is a worksheet for FNCE 341: Financial Management Principles at Northern Caribbean University for Spring Semester 2025. It includes financial data for The Concrete Company and You Can Do It! Inc., along with tasks to create financial statements and compute various financial metrics. The worksheet is structured into three main sections, each requiring calculations and financial analysis.

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3 views

FMP # 1

This document is a worksheet for FNCE 341: Financial Management Principles at Northern Caribbean University for Spring Semester 2025. It includes financial data for The Concrete Company and You Can Do It! Inc., along with tasks to create financial statements and compute various financial metrics. The worksheet is structured into three main sections, each requiring calculations and financial analysis.

Uploaded by

elliottbrianna84
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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NORTHERN CARIBBEAN UNIVERSITY

College of Business and Management


FNCE 341: Financial Management Principles
Spring Semester 2025
WORKSHEET # 1

Instructor: Andrew M. Carty Date: 23-JAN-2025

Student: ________________________________

SCORE: ______/40 MARKS

Instructions: Answer ALL questions. Workings must be clearly shown, as required.

1. Financial information as at December 31, 2024 was provided by The Concrete Company.

Account Amount ($)


Common Stock 160,000
Motor Vehicles 45,000
Bank 6,800
Accounts Payables 16,550
10-year Bank loan 80,000
Property, Plant, Equipment 237,000
Retained Profit 39,800
Accounts Receivable 21,850
Cash 3,100
Short-term debt 24,250
Other long-term debt 25,900
Inventory 32,750

Required:
a) Use the information provided to create the Statement of Financial Position for The
Concrete Company. [10 marks]
b) What is the total of the firm’s current assets? [2 marks]
c) What is the firm’s Net Working Capital? [2 marks]
d) What is the value of the firm’s equity? [2 marks]
[Total 16 marks]
2. The incomplete Income Statement for You Can Do It! Inc. is shown below.

You Can Do It! Inc.


Income Statement for the year ended 31 Dec. 2023
$
Sales 325,000
Cost of Sales ?
Gross Profit ?
Selling & Admin Expenses 34,750
Operating Profit 115,750
Interest Expense 7,250
Earnings before taxes 108,500
Taxes (30%) ?
Net Profit ?

Required: Showing clear workings, compute and fill in the missing values in the Income
Statement for You Can Do It! Inc. [10 marks]

3. Assume a firm has taxable profit of $184,500 and uses the tax schedule shown below.

Marginal tax Cum. Tax Average Tax


Taxable income Tax Liability
rate Liability Rate
$0 -$15,000 12.00%
$15,000 - $50,000 15.00%
$50,000 - $75,000 18.00%
$75,000 - $100,000 20.00%
$100,000 - $150,000 25.00%
$150,000 - $200,000 30.00%
Over $200,000 40.00%

Required:
a) Complete the table based on the firm’s taxable profit. [10 marks]
b) State the firm’s Tax liability. ______________ [2 marks]
c) What is the firm’s Average Tax Rate? ______________ [2 marks]
[Total 14 marks]

-END-

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