Chapter 3

Problems 2, 14, 15
Input boxes in tan
Output boxes in yellow
Given data in blue
Calculations in red
Answers in green
NOTE: Some functions used in these spreadsheets may require that
the "Analysis ToolPak" or "Solver Add-in" be installed in Excel.
To install these, click on "Tools|Add-Ins" and select "Analysis ToolPak"
and "Solver Add-In."
To install these, click on "Tools|Add-Ins" and select "Analysis ToolPak"
Chapter 3
Question 2
Input area:
Sales 15,000,000 $
Total assets 9,000,000 $
Total debt 3,700,000 $
Profit margin 7%
Output area:
Net income 1,050,000 $
Return on assets 11.67%
Total equity 5,300,000 $
Return on equity 19.81%
Chapter 3
Question 14
Input area:
Total asset turnover 1.35
Profit margin 5.7%
Equity multiplier 1.47
Payout ratio 40%
Output area:
Return on equity 11.31%
Retention ratio 60%
Sustainable growth rate 7.28%
Chapter 3
Input area:
2013 2014 2013 2014
Current assets Current liabilities
Cash 21,396 $ 24,385 $ Accounts payable 214,414 $ 192,480 $
Accounts receivable 51,552 58,318 Notes payable 99,022 134,508
Inventory 121,807 143,615 Total 313,436 $ 326,988 $
Total 194,755 $ 226,318 $ Long-term debt 271,700 $ 285,300
Owners' equity
Common stock 200,000 $ 200,000 $
Fixed assets Accumulated retained earnings 132,481 171,358
Net plant and equipment 722,862 $ 757,328 $ Total 332,481 $ 371,358 $
Total assets 917,617 $ 983,646 $ Total liabilities and owners' equity 917,617 $ 983,646 $
Output area:
2013 #15 2014 #15
Assets
Current assets
Cash 21,396 $ 2.33% 24,385 $ 2.48%
Accounts receivable 51,552 5.62% 58,318 5.93%
Inventory 121,807 13.27% 143,615 14.60%
Total 194,755 $ 21.22% 226,318 $ 23.01%
Fixed assets
Net plant and equipment 722,862 78.78% 757,328 76.99%
Total assets 917,617 $ 100% 983,646 $ 100%
Liabilities and owners' equity
Current liabilities
Accounts payable 214,414 $ 23.37% 192,480 $ 19.57%
Notes payable 99,022 10.79% 134,508 13.67%
Total 313,436 $ 34.16% 326,988 $ 33.24%
Long-term debt 271,700 29.61% 285,300 29.00%
Owners' equity
Common stock and paid-in surplus 200,000 $ 21.80% 200,000 $ 20.33%
Accumulated retained earnings 132,481 14.44% 171,358 17.42%
Total 332,481 $ 36.23% 371,358 $ 37.75%
Total liabilities and owners' equity 917,617 $ 100% 983,646 $ 100%
Question 15
Liabilities and owners' equity Assets