(3-3)

EBIT
Interest
Earnings Before Taxes
Taxes
Net Income

(3-5)
Net Income
Depreciation
Net CF

(3-6)
Initial Balance
Net income
Less: Dividends
Ending Balance

(3-10)
Depreciation
EBIT
Taxes
Net Income
Net CF

a)

(3-11)
Sales
Costs
EBITDA
Depreciation
EBIT
Taxes
Net Profit
Net Cash Flow

b)

Sales
Costs
EBITDA
Depreciation
EBIT
Taxes
Net Profit
Net Cash Flow

c)

Sales
Costs
EBITDA
Depreciation
EBIT
Taxes
Net Profit
Net Cash Flow

d)

Since Net Cash flow is more prefareble rather than Net Profit, depreciations

(3-12)
a)

NOPAT for 2007 = Earnings before interes and taxes(1-Tax Rate)

b)

Net Operating working capital

c)

Total net operating capital

d)
Free Cash Flow for the year ended 2007
working:
Net investment in operating capital
NOPAT

e)

Large increase in dividends was caused due to significant positive number o

(4-3)
in Bln
Total Assets

10

Current liabilities
Long term debt
Equity
Total debt and equity

1
3
6
10

Stock Price
Number of shares outstanding

75
800,000,000.00

Market Value
Book value

75.00
7.50

Market/book ratio

10.00

(4-5)
Profit Margin
Equity multiplier
Sales
Total Assets
Equity
Net Profit
ROE

(4-8)
Sales/total assets
ROA
ROE
Profit margin

0.03
2
100,000,000.00
50,000,000.00
25,000,000.00
1,500,000.00
0.06

1.5
0.03
0.05
0.02

(4-10)
Sales
Expenses
EBIT
Interest
Tax
Net Income
Expenses
TIE

(a)

2,000,000.00
1,807,142.86
192,857.14
50,000.00
42,857.14
100,000.00
1,807,142.86
3.8571428

(4-13)
Current assetss/current liabilities
Days sales outstanding
Sales/inventory
Sales/Fixed assets
Sales/Total assets
Net Icome/sales
Net income/total assets
Net income/common equity
Total Debt/total assets

1.984848485
76.29237947
6.6563147
5.495726496
1.696569921
1.7%
2.9%
7.56%
61.9%

(b)
MORTON
Total asset turnover
Profit marging
Assets/Equity
Return on Assets
Return on Equity

INDUSTRY
Total asset turnover
Profit marging
Return On assets
Assets/Equity
Return on Equity

1.696569921
1.7%
2.62465374
0.028812665
0.075623269

3
1.2%
0.036
2.5
0.09

Working:
Total Assets
Equity
Assets/Equity

0.714285714
0.285714286
2.5

(c)
Mortons strenght
Liquidity: current ratio
Inventory Turnover
Profit margin on sales

Weaknesses
collection period
Fixed asset turnover
Total asset turnover
ROA
ROE
Debt Ratio

6,000,000.00
1,000,000.00
5,000,000.00
2,000,000.00
3,000,000.00

3,100,000.00
500,000.00
3,600,000.00

780
50
20
810

200,000.00
750,000.00
300,000.00
450,000.00
650,000.00

12,000,000.00
9,000,000.00
3,000,000.00
1,500,000.00
1,500,000.00
600,000.00
900,000.00
2,400,000.00

12,000,000.00
9,000,000.00
3,000,000.00
3,000,000.00
3,000,000.00

12,000,000.00
9,000,000.00
3,000,000.00
750,000.00
2,250,000.00
900,000.00
1,350,000.00
2,100,000.00

areble rather than Net Profit, depreciations would be better to be doubled.

re interes and taxes(1-Tax Rate)

90.00
2007
192.00

2006
210.00

2007
492.00

2006
460.00

58.00

32.00
90.00

aused due to significant positive number of Free Cash Flow for the year 2007.