FM Assignment #2 Fall-2017

Q No.1
Use the following selected financial information for Cascabel Corporation to answer
questions
Cascabel Corporation
Balance Sheet
December 31, 2015

Assets Liabilities and stockholders' equity

Current assets Current liabilities
Cash 2 Accounts payable 36
Short-term investments 10 Accrued liabilities 25
Accounts receivable 52 Total current liabilities 61
Inventory 57
Other current assets 8 Long-term debt 102
Total current assets 129 Total liabilities 163

Long-term assets Stockholders' equity

Net Plant 195 Common stock (10) 110
Retained earnings 51
Total stockholders' equity 161
Total assets 324 Total liabilities and equity 324

Cascabel Corporation
Income Statement
For the Year Ended December 31, 2015
Net sales 345
Cost of goods sold 248
Gross profit 97
Operating expenses 74
Operating profit 23
Interest expense 8
Earnings before taxes 15
Income tax expense 4
Net profit 11
Additional information: Market price of stock is Rs.25. Firm declared and paid dividend 20% on
par value of stock.

Compute following ratios: Current ratio (2) Quick ratio (3)Debt ratio (4)Equity ratio
(5)Inventory turnover in days(use 360 days) (6) Receivable turnover in days(use 360 days) (7)
Earnings per share (8)Book value per share (9)Interest coverage ratio (10) Gross Profit ratio
Q No.2 The following data are from the U Guessed it Company’s financial statements. This company
is a manufacturer of board games for young adults. The market is fiercely competitive, therefore all
sales ($20 million) for the year 2016 were on credit. Given the following ratios, fill in the balance
sheet below:

Sales to total assets 2 times

Total debt to assets 40%
Current Ratio 3.0 times
Inventory turnover 5.0 times
Average collection period 18 days
Fixed asset turnover 5.0 times

U GUESSED IT CO.
BALANCE SHEET , 2016

Assets Liabilities & Shareholder's Equity

Cash Total Current Liabilities

Accounts Receivable Long term Debt
Inventory Total Debt
Total Current assets
Net Worth
Fixed Assets
Total Assets Total Liabilities & Equity
 Q No.3

Smolira Golf Corp.

Balance Sheet
As at 31-Dec-15
Assets Liabilities & Equity
Cash 100000 Current Liabilities
Receivables Long Term Debt
Inventory Total Debt 200000
Plant Common Equity
Total Assets Total Claims

Total Debt to Total Assets 0.25

Total Asset Turnover 1.5
Inventory Turnover 7
Average Collection Period 29 days
Current Ratio 2.25

Required: Complete balance sheet