Problem:
You have a friend who has been hired as an intern to assist the CFO of Simon Yu Inc. with variety of financial analyses. It is almost year-end, and your friend has been assigned to calculate a few numbers for the CFO. Unfortunately, his dog ate some of the important data, and you have been asked to help him with his assignment.
Simon Yu Inc is a 100% equity firm, and usually falls under the 35% tax bracket. This fiscal year, the company realized total revenue of $1,650,000 and EBIT or 300,000. In the past, the costs of goods sold amounts to approximately 80% of its revenue. Please provide all calculation and methods to solve it.
Asset portion of
Balance sheet 2013. 2014
Current assets. 225,000. 407,000
Fixed assets 130,000. 150,000
Total assets. ?
A. Structure an income statement for Simon Yu inc for 2014
B. What is ROA of the company for 2014?
C. What is the OFC for 2014?
D. Assume a payout ratio of 15%, and that cash dividends are the only kind of dividend the company offers, how much new equity did the company issue this year?
Please provide all calculation and methods to solve it.