Scribd Logo
Upload

Welcome to Scribd!

  • 4 views

    Test 3 Pinky

    Uploaded by

    Bervie Rondonuwu
    D&G Corp. issued $100 million in bonds on January 1, 2017 at 10% interest over 5 years when the market rate was 8%. The company was experiencing liquidity problems. The balance sheets and income statements from 2017-2020 are provided along with instructions to calculate financial ratios and bond amortization. Issues to analyze include the company's liquidity problem, performance of bank loans and stocks, and recommendations.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd

    Test 3 Pinky

    Uploaded by

    Bervie Rondonuwu
    4 views2 pages
    D&G Corp. issued $100 million in bonds on January 1, 2017 at 10% interest over 5 years when the market rate was 8%. The company was experiencing liquidity problems. The balance sheets and income statements from 2017-2020 are provided along with instructions to calculate financial ratios and bond amortization. Issues to analyze include the company's liquidity problem, performance of bank loans and stocks, and recommendations.

    Copyright

    © © All Rights Reserved

    Available Formats

    XLSX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    D&G Corp. issued $100 million in bonds on January 1, 2017 at 10% interest over 5 years when the market rate was 8%. The company was experiencing liquidity problems. The balance sheets and income statements from 2017-2020 are provided along with instructions to calculate financial ratios and bond amortization. Issues to analyze include the company's liquidity problem, performance of bank loans and stocks, and recommendations.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    4 views2 pages

    Test 3 Pinky

    Uploaded by

    Bervie Rondonuwu
    D&G Corp. issued $100 million in bonds on January 1, 2017 at 10% interest over 5 years when the market rate was 8%. The company was experiencing liquidity problems. The balance sheets and income statements from 2017-2020 are provided along with instructions to calculate financial ratios and bond amortization. Issues to analyze include the company's liquidity problem, performance of bank loans and stocks, and recommendations.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 2

    Test 3- Strategic Financial Management Name: Theresia Cherryl Lebo

    D&G Corp. is a global distributor and was having liquidity problem. On Jan1, 2017 D&G Global Distributor issued Bond Par $100, i=10%, n=5 when
    the market yield is 8%.The following data is the D & G Balance Sheet and Income Statement for 2017-2020.
    Balance Sheet- in million 2017 2018 2019 2020 Income Statement-in million 2017 2018 2019 2020
    Current assets Revenue from Sales $ 1,080 $ 1,078 $ 1,392 $ 1,330
    Cash and cash equivalents $ 123 $ 148 $ 147 $ 167 Cost of Goods Sold $ 587 $ 660 $ 745 $ 701
    Receivables, net $ 1,170 $ 1,211 $ 1,129 $ 1,182 Gross Profit $ 493 $ 417 $ 647 $ 630
    Inventoriess $ 106 $ 119 $ 122 $ 113 Operating Expenses
    Other Current assets $ 37 $ 47 $ 39 $ 41 Office & general expenses $ 373 $ 434 $ 467 $ 465
    Total Current Assets $ 1,436 $ 1,524 $ 1,436 $ 1,502 Interest $ 21 $ 40 $ 39 $ 39
    Non-Current Assets Total Operating Expenses $ 394 $ 474 $ 505 $ 505
    Net Fixed assets $ 134 $ 140 $ 135 $ 163 Income before taxes $ 99 $ (57) $ 142 $ 125
    Other assets $ 83 $ 86 $ 97 $ 119 Provision for taxes $ 44 $ 63 $ 57
    Intangible assets, net $ 285 $ 339 $ 299 $ 368 Net income $ 54 $ (57) $ 79 $ 68
    Total Non-Current Assets $ 502 $ 565 $ 531 $ 650 Dividends $ 7 $ 40 $ 25
    Total assets $ 1,938 $ 2,088 $ 1,968 $ 2,152 Retained Earnings $ 47 $ (57) $ 39 $ 44
    Current liabilities No. of share outstanding
    Bank Notes Payable $ 124 $ 155 $ 108 $ 148 Share price, high $ 13.25 $ 16.37 $ 17.12 $ 18.50
    Accounts Payable $ 1,066 $ 1,007 $ 998 $ 1,071 Share price, low $ 7.8 $ 13.1 $ 9.3 $ 8.9
    Other Current liabilities $ 175 $ 180 $ 199 $ 195 Instructions: a. Complete the Balance Sheet & Income Statement data
    Total current liabilities $ 1,365 $ 1,343 $ 1,305 $ 1,415 b. Calculate the followings:
    Noncurrent liabilities Book value per share
    Mortgage Payable 5% $ 213 $ 256 $ 223 $ 241 Earnings per share
    Loan from Banks $ 81 $ 81 $ 81 Dividend per share
    Bonds Payable 10%, par $100 $ 100 $ 100 $ 100 $ 100 c. Complete the schedule of Bond Amortization & Carrying amount:
    Premium on Bonds P'ble $ 8 $ 7 $ 5 $ 4 CashPaid Intrest Exp. Premium Carrying
    Date
    Other Non-current liabilities $ 10 $ 12 $ 19 $ 40 10% 8% Amortized Amount
    Total Noncurrent liabilities $ 331 $ 455 $ 429 $ 465 1/1/2017
    Shareholders' Equity 1/1/2018
    Common Stocks par $10 $ 230 $ 230 $ 230 $ 230 1/1/2019
    Retained Earnings $ 13 $ 60 $ 4 $ 43 1/1/2020
    Total shareholders' equity $ 243 $ 290 $ 234 $ 273 1/1/2021
    Total Liabilities and Equity $ 1,938 $ 2,088 $ 1,968 $ 2,152 1/1/2022
    d. Complete the following ratios 2019
    Liquidity Ratio Current Ratio
    Acid-test (Quick) Ratio
    Financial Leverage Ratio Debt to Equity Ratio
    Debt to Total Assets Ratio
    Long term debt to total capitalization
    Coverage Ratio Interest coverage ratio
    Activity Ratio Receivables turnover in days (RTD) days
    Payable turnover in days days
    Inventory turnover
    Profitability Ratios Gross Profit Margin
    Net profit margin
    Return on Investment (ROI)
    Return on Equity (ROE)
    e. Answer the following questions:
    How much fund D&G received when the bond was issued in Jan.1 2017 million
    What is the estimated interest % of the Bank Loan
    f. Based on the financial analysis what are main problem that caused liquidity problem?

    g. How is the performance D&G stocks in stock market?

    Jangan utak-atik ini


    a 46
    b 1
    c 0
    d 0
    e 0
    47

    You might also like