2020年金融學(xué)原理英文第七單元課后答案精品版

1、精選文檔精選文檔7-17-27-3CHAPTER7ANSWERSThefourfinancialstatementscontainedinmostannualreportsarethebalancesheet,incomestatement,statementofretainedearnings,andstatementofcashflows.No,becausethe$20millionofretainedearningsprobablywouldnotbeheldascash.Theretainedearningsfigurerepresentsthereinvestmentofearni

2、ngsbythefirm.Consequently,the$20millioninvestmentinalloftheassetsofthefirm.wouldbeanLiquidatingassets,borrowingmorefunds,andissuingconstitutesourcesoffunds.Purchasingassets,payingoffrepurchaseswouldconstituteusesoffunds.Thus,thefollowinggeneralrulescanbeusedtodeterminewhatchangesinbalancesheetaccoun

3、tsrepresentsourcesandusesoffunds:stockwoulddebt,andstockSourcesofcash:inaliabilityorequityaccountinanassetaccountUsesofCash:inaliabilityofequityaccountinanassetaccount7-4Theemphasisofthevarioustypesofanalystsisbynomeansuniformnorshoulditbe.ManagementisinterestedinalltypesofFirst,theratiospointoutwea

4、knessesthatshouldbemanagementrecognizesthattheotherpartiesareinterestedinalltheratiosandthatfinancialappearancesmustbekeptupifthefirmistoberegardedhighlybycreditorsandequityinvestors.ratiosfortworeasons.strengthened;second,Equityinvestorsareinterestedprimarilyinprofitability,buttheyexaminetheotherra

5、tiostogetinformationontheriskinessofequitycommitments.Long-termcreditorsaremoreinterestedinthedebtratio,TIE,andfixedchargecoverageratios,aswellastheprofitabilityratios.Short-termcreditorsemphasizeliquidityandlookmostcarefullyattheliquidityratios.7-5Themostimportantaspectofratioanalysisisthejudgmentu

6、sedwheninterpretingtheresultstoreachanoverallconclusionconcerningafirmsfinancialposition.Theanalystshouldbeawareof,andincludeintheinterpretation,thefactthat:(1)largefirmswithdivisionsaredifficulttocategorizeinasingleindustry;statementsarereportedathistoricalcosts;(3)seasonalfactorscandistorttheratio

7、s;(4)somefirmstrytowindowdresstheirfinancialstatementstolookgood;(5)firmsusedifferentaccountingprocedurestocomputeinventoryvalues,depreciation,andsoon;(6)manydifferent(2)financialtheremightnotexistasinglevaluethatcanbeusedforcomparingfirmsratios(e.g.,acurrentratioof2.0mightnotbegood);and(7)conclusio

8、nsconcerningtheoverallfinancialpositionofafirmshouldbebasedonarepresentativenumberofratios,notasingleratio.7-6Differencesintheamountsofassetsnecessarytogenerateadollarofsalescauseassetturnoverratiostovaryamongindustries.Forexample,asteelcompanyneedsagreaternumberofdollarsinassetstoproduceadollarinsa

9、lesthandoesagrocerystorechainsuchasSafeway.Also,profitmarginsandturnoverratiosmightvaryduetodifferencesintheamountofexpensesincurredtoproducesales.Forexample,onewouldexpectagrocerystorechainlikeSafewaytospendmoreperdollarofsalesthandoesasteelcompany.Often,alargeturnoverwillbeassociatedwithalowprofit

10、margin,andviceversa.7-7ROEcanbewrittenROE=NI=NITotalassetsOwnersequityTotalassetsOwnersequityTotalassetsdividedbyownersequity,whichistermedtheequitymultiplier,isameasureofdebtutilization;themoredebt,thehighertheequitymultiplier.Thus,usingmoredebtwillincreasetheequitymultiplier,resultinginahigherROE.

11、7-8a.Cash,receivables,andinventories,aswellascurrentliabilities,varyovertheyearforfirmswithseasonalsalespatterns.Therefore,thoseratiosthatexaminebalancesheetfigureswillvaryunlessaverages(monthlyonesarebest)areused.b.Commonequityisdeterminedatapointintime,say,December31,2002.Profitsareearnedovertime,

12、say,during2002.Ifafirmisgrowingrapidly,year-endequitywillbemuchlargerthanbeginning-of-yearequity,sothecalculatedrateofreturnonequitywillbedifferentdependingonwhetherend-of-year,beginning-of-year,oraveragecommonequityisusedasthedenominator.Averagecommonequityisconceptuallythebestfiguretouse.Inpublicu

13、tilityratecases,peoplearereportedtohavedeliberatelyusedend-of-yearorbeginning-of-yearequitytomakereturnsonequityappearexcessiveorinadequate.Similarproblemscanarisewhenafirmisbeingevaluated.7-920022001Source(+)orUse(-)?Cash$400$500+Accountsreceivable250300+Inventory450400-Currentassets1,1001,200Netpr

14、operty&equipment1,000950a-Totalassets$2,100$2,150Accountspayable$200$400-Accruals300250+Notespayable400200+Currentliabilities900850Long-termdebt800900-Totalliabilities1,7001,750Commonstock250300-Retainedearnings150100+bTotalequity400400$2,100$2,150TotalliabilitiesandequityaThebookvalueofproperty&equ

15、ipmentisstatednetofdepreciation.purchased determine(i.e.Becausethebookvalueoffixedassetsincreased,anddepreciationisanadjustmentthatreducestheaccountbalance,Batelanmusthaveadditionalfixedassets;but,withoutmoreinformationwecannottheamountofthepurchase.bTheretainedearningbalanceincreasedin2002,soBatela

16、nmusthavegeneratedapositivenetincome.But,withoutadditionalinformationtheamountofnetincome),wecannottellwhetherdividendswerepaidin2002.7-10TotalEffectCurrentCurrentonNetAssetsRatioIncomea. Cashisacquiredthroughissuanceofadditionalcommonstock.+0b. Merchandiseissoldforcash.+(Whenmerchandiseissold,itspr

17、iceisgreaterthanitscost.)c. Federalincometaxdueforthepreviousyearispaid.+0(Bothcurrentassetsandcurrentliabilitiesdecreasebythesamedollaramount.But,becausethecurrentratioisgreaterthan1.0,itincreasesasaresultofthepayment.)d. Afixedassetissoldforlessthanbookvalue.+e. Afixedassetissoldformorethanbookval

18、ue.+Short-term notes receivable are sold at a discount.f. Merchandiseissoldoncredit.+g.Paymentismadetotradecreditorsforpreviouspurchases.+0h.Acashdividendisdeclaredandpaid.一-0i.Cashisobtainedthroughshorttermbankloans.+一0j.k. Marketablesecuritiesaresoldbelowcost.l. Advancesaremadetoemployees.000(Ther

19、eisnochangeincurrentassetsorthecurrentratiobecausecashdecreasesbythesameamountprepaidexpensesincreases.)m. Currentoperatingexpensesarepaid.n.Short-termpromissorynotesareissuedtotradecreditorsinexchangeforpastdueaccountspayable.000o.Ten-yearnotesareissuedtopayoffaccountspayable.0+0p.Afullydepreciated

20、assetisretired.000q. Accountsreceivablearecollected.000r. Equipmentispurchasedwithshort-termnotes.00s. Merchandiseispurchasedoncredit.+0t. Theestimatedtaxespayableareincreased.0SOLUTIONS7-1a.Dollaramountsareinmillions.Current assets_ $201 _Current liabilities$53Accounts receivable$80Sales / 360一 ($

21、700 / 360)Cost of goods sold$560Inventorie s$101 一Sales_ $700Fixed assets$175Total debt$181Total assets$376Net income _ $28 . 8Sales$700Net income_ $28. 8Total assets$376ArgileIndustryAverage3.9CommentAverage3. 841.1 days33.5 daysPoor5.57.2Bad4.04.1Average48.1%45.0%Marginal4.1%4.6%Near average7.7%9.

22、9%Poorb. Theratiosdonotshowanyparticularstrengths.However,Argiledoeshavealowinventoryturnover,higherthannormaldayssalesoutstanding,andpoorreturnonassets.Accordingtoits2001ratios,itappearsArgilehasliquidityproblems.c.Ratio20022001TrendCurrentratio3.63.8WorseDayssalesoutstanding43.2days41.1daysWorseIn

23、ventoryturnover4.45.5WorseFixedassetsturnover3.94.0SameDebtratio51.1%48.1%WorseProfitmarginonsales3.6%4.1%WorseReturnonassets6.3%7.7%WorseTheabovecomparisonshowsthatArgilesfinancialpositionworsenedfrom2001to2002.d.ItwouldbehelpfultoknowthefutureplansArgilehaswithrespecttoimprovingitscurrentfinancial

24、position,introducingnewproducts,liquidatingunprofitableinvestments,andsoon.Perhapsthefixedassetsturnoverratioandreturnonassetsfiguresarelowbecausethefirmhasexpandeditsproductdistribution,andthisprocesshasalargecostupfrontwithsignificantpayoffsbeginningintwoorthreeyears.7-2a.IndustryCampseyAverageCur

25、rentassets$655,0001.982.0Currentliabilities-$330,000Accountsreceivable$336,00075.24days35.0daysSales/360-$4,465.28Costofgoodssold_$1,353,000_5.605.6Inventories-$241,500Sales$1,607,5001.703.0Totalassets一$947,500Netincome$27,3001.70%1.2%Sales$1,607,500Netincome$27,3002.88%3.6%Totalassets$947,500Netinc

26、ome_$27,300_7.56%9.0%Commonequity$361,000Totaldebt_$586,500_61.90%60.0%Totalassets$947,500b.ForCampsey,ROA=PMTAturnover=1.7%1.7=2.89%.Fortheindustry,ROA=1.2%3.0=3.6%.c. Campseysdayssalesoutstandingismorethantwiceaslongastheindustryaverage,indicatingthatthefirmshouldtightencreditorenforceamorestringe

27、ntcollectionpolicy.Thetotalassetsturnoverratioiswellbelowtheindustryaveragesosalesshouldbeincreased,assetsdecreased,orboth.WhileCampseysprofitmarginishigherthantheindustryaverage,itsotherprofitabilityratiosarelowcomparedtotheindustry-netincomeshouldbehighergiventheamountofequityandassets.However,the

28、companyseemstobeinanaverageliquiditypositionandfinancialleverageissimilartoothersintheindustry.7-3d. If2002representsaperiodofsupernormalgrowthforCampsey,ratiosbasedonthisyearwillbedistortedandacomparisonbetweenthemandindustryaverageswillhavelittlemeaning.Potentialinvestorswholookonlyat2002ratioswil

29、lbemisled,andareturntonormalconditionsin2003couldhurtthefirmsstockprice.(1) Totalliabilitiesandequity=Totalassets=$300,000.(2) Debt=(0.50)(Totalassets)=(0.50)($300,000)=$150,000.(3) Accountspayable=DebtLong-termdebt=$150,000$60,000=$90,000.TotalliabilitiesRetained(4) Commonstock=-Debt-sandequityeear

30、nings=$300,000$150,000$97,500=$52,500(5) Sales=(1.5)(Totalassets)=(1.5)($300,000)=$450,000.(6) Costofgoodssold=Sales(1-0.25)=$450,000(.75)=$337,500(7) Inventory=(CGS)/5=$337,500/5=$67,500.(8) Accountsreceivable=(Sales/360)(DSO)=($450,000/360)(36)=$45,000.(9) (Cash+Accountsreceivable)/(Accountspayabl

31、e)=0.80Cash+Accountsreceivable=(0.80)(Acctspayable)Cash+$45,000=(0.80)($90,000)Cash=$72,000$45,000=$27,000.(10) Fixedassets=Totalassets(Cash+AcctsRec.+Inventories)=$300,000($27,000+$45,000+$67,500)=$160,500.Balance SheetCashAccounts receivablesInventoriesFixed assetsTotal assets$ 27,00045,00067,5001

32、60,500$300,000Accounts payable$ 90,000Long-term debt60,000Common stock52,500Retained earnings97,500$300,0007-4 a.IndustryFinnertyAverageCurrentratioCurrentassets_$303_s一$111一2.732.0CurrentliabilitieDebttoDebt$13530.00%30.0%totalassetsTotalassets_$450一TimesinterestEBIT$49.511.007.0earnedInterest一$4.5

33、一InventoryCostofgoodssold$6604.158.5turnoverInventories一$159一DSO_Accountsreceivable_$66_29.89days24.0days一Sales/360$795/360一FixedassetsSales$7955.416.0TurnoverFixedassets一$147一TotalassetsSales$7951.773.0TurnoverTotalassets一$450一ProfitmarginNetincome$273.40%3.0%Sales一$795一ReturnedonNetincome$276.00%9

34、.0%totalassetsTotalassets一$450一ReturnonNetincome$278.57%12.9%totalequityTotalequity一$315一b. ROA=ProfitmarginTotalassetsturnoverNetincomeSales$27$795=SalesTotalassets$795$450=3.4%1.77=6.0%Profit marginTotal assets turnoverReturn on total assetsFinnerty3.4%1.776.0%Industry3.0%3.09.0%CommentGoodPoorPoo

35、rc. AnalysisoftheDuPontequationandthesetofratiosshowsthattheturnoverratioofsalestoassetsisquitelow.Eithersalesshouldbeincreasedatthepresentlevelofassets,orthecurrentlevelofassetsshouldbedecreasedtobemoreinlinewithcurrentsales.Thus,theproblemappearstobeinthebalancesheetaccounts.d. Thecomparisonofinve

36、ntoryturnoverratiosshowsthatotherfirmsintheindustryseemtobegettingalongwithabouthalfasmuchinventoryperunitofsalesasFinnerty.IfFinnertysinventorycouldbereducedthiswouldgeneratefundsthatcouldbeusedtoretiredebt,thusreducinginterestchargesandimprovingprofits,andstrengtheningthedebtposition.Theremightals

37、obesomeexcessinvestmentinfixedassets,perhapsindicativeofexcesscapacity,asshownbyaslightlylowerthanaveragefixedassetsturnoverratio.However,thisisnotnearlyasclear-cutastheover-investmentininventory.7-5e. IfFinnertyhadasharpseasonalsalespattern,orifitgrewrapidlyduringtheyear,manyratiosmightbedistorted.

38、Ratiosinvolvingcash,receivables,inventories,andcurrentliabilities,aswellasthosebasedonsales,profits,andcommonequity,couldbebiased.Itispossibletocorrectforsuchproblemsbyusingaverageratherthanend-of-periodfigures.a.HereareCarysbasecaseratiosandotherdataascomparedtotheindustry:CaryIndustryCommentQuick0

39、.851.0WeakCurrent2.332.7WeakInventoryturnover4.005.8PoorDayssalesoutstanding37days32daysPoorFixedassetsturnover10.013.0PoorTotalassetsturnover2.342.6PoorReturnonassets5.9%9.1%BadReturnonequity13.07%18.2%BadDebtratio54.8%50.0%HighProfitmarginonsales2.5%3.5%BadEPS$4.71n.a.-StockPrice$23.57n.a.-P/Erati

40、o5.06.0PoorM/Bratio0.65n.a.-Caryappearstobebadlymanaged-allofitsratiosareworsethantheindustryaverages,andtheresultislowearnings,alowP/E,alowstockprice,andalowM/Bratio.Thecompanyneedstodosomethingtoimprove.f. Adecreaseintheinventorylevelwouldimprovetheinventoryturnover,totalassetsturnover,andROA,allo

41、fwhicharetoolow.Itwouldhavesomeimpactonthecurrentratio,butitisdifficulttosaypreciselyhowthatratiowouldbeaffected.IfthelowerinventorylevelallowedCarytoreduceitscurrentliabilities,thenthecurrentratiowouldimprove.Thelowercostofgoodssoldwouldimprovealloftheprofitabilityratiosand,ifdividendswerenotincrea

42、sed,wouldlowerthedebtratiothroughincreasedretainedearnings.Allofthisshouldleadtoahighermarket/bookratioandahigherstockprice.7-6WearegivenROA=3%andSales/Totalassets=1.5FromDuPontequation:ROA=ProfitmarginTotalassetsturnover3%=Profitmargin(1.5)Profitmargin=3%/1.5=2%.EquityANIEquity1qy=3.0%：=0.60=60%ANI

43、0.05WecanalsocalculateZumwaltsdebtratioinasimilarmanner,giventhefactsoftheproblem.WearegivenROA,whichisNI/AandROE,whichisNI/Equity;ifweusethereciprocalofROEwehavethefollowingequation:Debt/Assets=1-Equity/A=1-0.60=0.40=40.0%Thus,Zumwaltsnetprofitmargin=2%anditsdebtratio=40%.7-7Present current ratio =

44、 $1,312,500/$525,000 = 2.5$1,312,500Minimum current ratio=$525,000+.NIP+. NP=2.0$1,312,500+ANP=$1,050,000+2ANPANP=$262,500.Short-termdebtcanincreasebyamaximumof$262,500withoutviolatinga2-to-1currentratio,assumingthattheentireincreaseinnotespayableisusedtoincreasecurrentassets.Becauseweassumedthatthe

45、additionalfundswouldbeusedtoincreaseinventory,theinventoryaccountwillincreaseto$637,500,andcurrentassetswilltotal$1,575,000.Quickratio=($1,575,000$637,500)/$787,500=$937,500/$787,500=1.197-8Currentassets(1) 二3.0Currentliabilities$810,000=3.0父CurrentliabilitiesCurrentliabilities=$270,000.Currentasset

46、s-Inventories/=1.4MCurrentliabilities$810,000-Inventories,=1.4x$270,000Inventories=$432,000.(3)Currentassets=Cash&Marketablesecurities+Accountsreceivable+Inventories$810,000=$120,000+Accountsreceivable+$432,000Accountsreceivable=$258,000.Costofgoodssold(4)二5.0InventoryCGS$432,000CGS=$2,160,000.(5)CG

47、S=0.86(Sales)Sales=$2160,000二$2,511,6280.86(6)DSO二AccountsreceivableSales/360_$258,000一$2,511,628/360=37days7-9TIE=EBIT/INT,sofindEBITandINT.Interest=$500,0000.1=$50,000.Netincome=$2,000,0000.05=$100,000.Taxableincome(EBT)=$100,000/(1-T)=$100,000/0.8=$125,000.EBIT=$125,000+$50,000=$175,000.TIE=$175,

48、000/$50,000=3.5.7-10ROE=NI/EquityNowweneedtodeterminetheinputsfortheequationfromthedatathatweregiven.Ontheleftwesetupanincomestatement,andweputnumbersinitontheright:Sales(given)$10,000- CostnaEBIT(given)$1,000- INT(given)(300)EBT$700- Taxes(30%)(210)NI$490=Nowwecanusesomeratiostogetsomemoredata:Tota

49、lassetsturnover=2=S/TA;TA=S/2=$10,000/2=$5,000.D/TA=60%;soE/TA=40%;therefore,equity=TAE/TA=$5,0000.40=$2,000ROE=NI/E=$490/$2,000=24.5%,andROA=NI/TA=$490/$5,000=9.8%.7-11a. Currently,ROEisROE1=$15,000/$200,000=7.5%.Thecurrentratiowillbesetsuchthat2.5=CA/CL.CLis$50,000,anditwillnotchange,sowecansolvet

50、ofindthenewlevelofcurrentassets:CA=2.5(CL)=2.5($50,000)=$125,000.Thisisthelevelofcurrentassetsthatwillproduceacurrentratioof2.5.Atpresent,currentassetsamountto$210,000,sotheycanbereducedby$210,000$125,000=$85,000.Ifthe$85,000generatedisusedtoretirecommonequity,thenthenewcommonequitybalancewillbe$200

51、,000$85,000=$115,000.Assumingthatnetincomeisunchanged,thenewROEwillbeROE2=$15,000/$115,000=13.04%.Therefore,ROEwillincreaseby13.04%7.50%=5.54%.b. (1)Doublingthedollaramountswouldnotaffecttheanswer;theROEincreasewouldstillbe5.54%.(2) Currentassetswouldincreaseby$25,000,whichwouldmeananewROEof$15,000/

52、$140,000=10.71%,whichwouldmeanadifferenceof10.71%7.50%=3.21%.(3) Ifthecompanyhad10,000sharesoutstanding,thenitsEPSwouldbe$15,000/10,000=$1.50.Thestockhasabookvalueof$200,000/10,000=$20,sothesharesretiredwouldbe$85,000/$20=4,250,leaving10,0004,250=5,750shares.ThenewEPSwouldbe$15,000/5,750=$2.6087,sot

53、heincreaseinEPSwouldbe$2.6087$1.50=$1.1087,whichisa73.91%increase,thesameastheincreaseinROE.(4) Ifthestockwassellingfortwicebookvalue,or2$20=$40,thenonlyhalfasmanysharescouldberetired($85,000/$40=2,125),sotheremainingshareswouldbe10,0002,125=7,875,andthenewEPSwouldbe$15,000/7,875=$1.9048,foranincrea

54、seof$1.9048$1.5000=$0.4048.c. Wecouldhavestartedwithlowerinventoriesandhigheraccountsreceivable,thenhadyoucalculatetheDSO,thenmovetoalowerDSOthatwouldrequireareductioninreceivables,andthendeterminetheeffectsonROEandEPSunderdifferentconditions.Similarly,wecouldhavefocusedonfixedassetsandtheFAturnoverratio.Inanyofthesecases,wecouldhavehadyouusethefundsgeneratedtoretiredebt,whichwouldhaveloweredinterestcharge