Problem I
Manaia Manufacturing had the following operating results for 2022: sales = $32,861; cost of goods sold = $23,795; depreciation expense = $3,817; interest expense = $565; dividends paid = $908. At the beginning of the year, net fixed assets were $21,859, current assets were $3,913, and current liabilities were $3,421. At the end of the year, net fixed assets were $25,286, current assets were $4,819, and current liabilities were $3,279. The tax rate was 24 percent.
a) What is net income for 2022?
b) What is the operating cash flow for 2022?
c) What is the cash flow from assets for 2022? Is this possible? Explain.
d) If no new debt was issued during the year, what is the cash flow to creditors? What is the cash flow to stockholders? Explain and interpret the positive and negative signs of your answers in parts (a) through (d).
problem II
Calculate the ratios:
Listed below are the balance sheet and income statement for XYZ company. Use these financial statements to calculate liquidity, asset management, debt management, profitability, and market value ratios for both year and comment on them (by comparing 2023 to 2024)
Problem III
Growth and Assets: A firm wishes to maintain an internal growth rate of 6.4 percent and a dividend payout ratio of 25 percent. The current profit margin is 5.7 percent, and the firm uses no external financing sources. What mut total assets turnover be?
