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WorksheetsICM335 Financial Reporting - Seminar 2
Total questions: 16
Worksheet time: 23mins
Global used $20 million of its available cash to repay $20 million of its long-term debt. Which line items in Global’s balance sheet would be affected?
Cash
Long-term Debt
Book Value of Equity
Accounts Receivable
A warehouse fire destroyed $5 million worth of uninsured inventory.
What is the change to Global's book value of equity?
Decrease by $5 million
Increase by $5 million
No change
Increase by $10 million
Global used $5 million in cash and $5 million in new long-term debt to purchase a $10 million building.
Which line items in Global’s balance sheet would be affected?
Cash
Long-term Debt
Assets
Inventory
A large customer owing $3 mln for products it already received declared bankruptcy.
Which line items in Global’s balance sheet would be affected?
Cash
Accounts Receivable
Equity
Long-term Debt
Global’s sales revenue in 2018 is $186.7 million.
After an aggressive marketing campaign, Global’s sales revenue increases by 15%,
but their operating margin fell from 5.57% to 4.50%.
What is Global's EBIT in 2019?
$2.57 million
$9.66 million
$29.26 million
$12.23 million
Global’s EBIT in 2018 is $9.66 million.
Given that Global's interest expenses are $7.7 million and the tax rate is 26%,
what is Global’s net income in 2019?
+ $1.45 million
- $0.55 million
+ $3.96 million
+ $0.51 million
Your firm receives a $5.9 million order.
You fill the order with $1.9 million worth of inventory.
The customer pays $2.8 million upfront and will pay $3.1 million later.
Order the following from the one that increases the most to the one that increases the least (or decreases).
Revenues
Gross profit (i.e, Revenues minus Cost of Goods Sold)
Receivables
Cash
Inventory
What is Mydeco’s market capitalization at the end of 2019?
$550 million
$599 million
$601 million
$650 million
What is Mydeco’s market-to-book ratio at the end of 2019?
1.92
2.19
0.46
1.12
What is Mydeco’s enterprise value (EV) at the end of 2019?
$1,100 million
$1,113.95 million
$1,120 million
$1,150 million
Why might the growth rates of revenues and net income differ?
Net Income growth rate can differ from revenue growth rate because the cost of goods sold and other expenses can move at different rates than revenues.
TRUE
FALSE
From 2015 to 2019, what was the total cash flow from operations that Mydeco generated?
$246.4 million
$247.4 million
$248.3 million
$249.1 million
From 2015 to 2019, what fraction of the total total cash flow from operations (previous answer) was spent on capital expenditures?
107.1%
93.4%
91.5%
109.3%
What was Mydeco’s total retained earnings for this period?
$35.2 million
$33.6 million
$32.9 million
$34.1 million
What was Mydeco's gross margin in 2019?
0.51
1.96
0.53
1.89
Mydeco's book debt-equity ratio change from (a) in 2015 to (b) in 2019, while the market debt-equity ratio changed from (c) in 2015 to (d) in 2019.
