Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN: 9781285190907
Author: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher: Cengage Learning
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Chapter 10, Problem 7QE
To determine
To calculate the plug to dividends to balance the
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The image uploaded is the calculation of Access Bank's Profitability ratios, shorter liquidity ratios, long-term liquidity ratios, and investment ratios for 2020, 2021, 2022. A base year of 2019 was also added. Evaluate the financial performance by comparing the three (3) years' financial performance that is 2020, 2021, and 2022 I have provided in the table with the base year.
Chapter 10 Solutions
Financial Reporting, Financial Statement Analysis and Valuation
Ch. 10 - Prob. 1QECh. 10 - The chapter encourages analysts to develop...Ch. 10 - Prob. 3QECh. 10 - Suppose you are analyzing a firm that is...Ch. 10 - Use the following hypothetical data for Walgreens...Ch. 10 - Prob. 6QECh. 10 - Prob. 7QECh. 10 - Prob. 8QECh. 10 - The Home Depot is a leading specialty retailer of...Ch. 10 - Prob. 10PC
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- A major component of financial planning is toforecast future financial statements. If you had acompany’s balance sheets and income statements for the past five years but no other information,how could you use the forecasted financial statement approach to forecast the following items forthe coming year? (a) Its sales revenues. (b) Its financial statements. (c) Its funds requirements (AFN).(d) Its financial condition and profitability as shownby its ROE and other key ratiosarrow_forwardThe first page includes a sample income statement and balance sheet for the years 2021 and 2022. The second page provides the ratios of the year 2023. A)Use the given the information provided in the first page to calculate it with ratios in order to creat the following for the year 2023: 1- income statement 2- balance sheet 3- cash flow statement B) Based on your initial projections, how much external financing (long-term debt and/or stockholders' equity) will a firm need to fund its growth at projected increases in sales?arrow_forwardc. Using DuPont framework, compute Bersatu Berhad’s returns on equity for 2020 and 2021? Show all formulas and calculations.d. Is there any significant change in the returns on equity over the two years? What conclusion can you arrive with regards to thefactors influencing the returns on equityarrow_forward
- Financial Forecast This section outlines the projected financial statements. The financial statements should include detailed notes/explanations and assumptions to substantiate your projections. You can use imaginary numbers, however, can you include a capital or a loan of $250,000 in the statments. Please provide the Key assumptions Provide the mentioned Financial statements in tabular form:Income statementBalance sheetCash flow statementBreak-even analysisarrow_forwardYou are given the financial statements of Bersatu Berhad for the 2021 and 2020. a. Use the above financial statements, determine the company’s return on equity (ROE). Is there is any significant different between the ROEs of the company for the two years? Provide the formula and show your calculation.b. Based on DuPont framework, return on equity is broken into three important components. What are the three components? Provide the formula for each component. What does each component attempts to measure?arrow_forwardThe image uploaded is the calculation of Societe Generale Profitability ratios, shorter liquidity ratios, long-term liquidity ratios, and investment ratios for 2020, 2021, 2022. A base year of 2019 was also added. Evaluate the financial performance by comparing the three (3) years' financial performance that is 2020, 2021, and 2022 I have provided in the table with the base year.arrow_forward
- Please use the attached images as well... Compute the following: For fiscal 2019 and 2020: Current Ratio, Quick Ratio, Long Term Debt Ratio For fiscal 2019 and 2020: Gross Profit Margin, Net Profit Margin, EBITDA For fiscal 2019 and 2020: Return on Assets, Return on Equity, Return on Sales For fiscal 2020: Free Cash Flow to Equity Market Capitalization, Market to Book Value and the Price-Earnings Ratio as of year-end 2020 Stock Prices in 2018 = $68.98 2019 = $84.15 2020 = $107.82arrow_forwardA firm’s Balance Sheet and Income Statement for FY 2021 is displayed below and in the in the attached excel file. Answer the following questions. NOTE: For this question, use the end-of-the year approach (and not the mid-year convention). For example, this means that days receivables = end of FY receivables/daily sales; similarly for the remaining relevant ratios. You may use the tables below BALANCE SHEET 2021 Cash and cash equivalents 280 Receivables 2588 Inventory 2516 Other 189 TOTAL CA 5573 Fixed assets 5024 TOTAL ASSETS 10597 Accounts payable 4713 Short term debt 78 TOTAL CL 4790 LT debt 921 Shareh. Equity 4886 TOTAL LIAB. AND SHARH. EQUITY 10597 INCOME STATEMENT 2021 Sales 19418 COGS 13136 Depreciation 354 SG&A 4952 EBIT 976 Interest Expenses 52 Tax 268 Net income 656 Decompose the return on equity for the FY 2021…arrow_forwardThe image uploaded is the calculation of Socite Generale Bank, Ghana, Profitability ratios, shorter liquidity ratios, long-term liquidity ratios, and investment ratios for 2020, 2021, 2022. A base year of 2019 was also added. Evaluate the financial performance by comparing the three (3) years' financial performance that is 2020, 2021, and 2022 I have provided in the table with the base year.arrow_forward
- A firm’s Balance Sheet and Income Statement for FY 2021 is displayed below and in the in the attached excel file. Answer the following questions. NOTE: For this question, use the end-of-the year approach (and not the mid-year convention). For example, this means that days receivables = end of FY receivables/daily sales; similarly for the remaining relevant ratios. You may use the tables below BALANCE SHEET 2021 Cash and cash equivalents 280 Receivables 2588 Inventory 2516 Other 189 TOTAL CA 5573 Fixed assets 5024 TOTAL ASSETS 10597 Accounts payable 4713 Short term debt 78 TOTAL CL 4790 LT debt 921 Shareh. Equity 4886 TOTAL LIAB. AND SHARH. EQUITY 10597 INCOME STATEMENT 2021 Sales 19418 COGS 13136 Depreciation 354 SG&A 4952 EBIT 976 Interest Expenses 52 Tax 268 Net income 656 Determine the NLF, NSF and the liquidity ratio…arrow_forwarda) Based on the information provided, calculate the following ratios for the years ended 31December 2021 and 2020.You should give the formula for each ratio, in addition to your calculation.I. Gross profit marginII. Operating profit marginIII. Return on equityIV. Current ratioV. Gearing b) By comparing the financial information for years ended 31 December 2021 and 2020, andreviewing your ratio calculations, comment on the profitability, liquidity, and long-termsolvency of Mabel’s business over the past year. You should use the other information givento suggest reasons for any changes identified. c)If an investor was interested in buying Mabel’s business and was presented with theseresults, what further advice would you give them?arrow_forwardUse the Ulta annual report to calculate profit margin, total debt ratio, and cash ratio for the year ending in 2021.arrow_forward
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