Spreadsheet Templates

Foundations of Financial Manag

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Spreadsheet Templates by Block, Hirt and Danielsen

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 Foundations of Financial Management
Block, Hirt and Danielsen
Problem 2-6
Objective: Income statement

Student Name:
Course Name:
Student ID:
Course Number:

Given the following information prepare in good form an income statement for the Dental Drilling Company

Selling and administrative expense $112,000

Depreciation expense 73,000
Sales 489,000
Interest expense 45,000
Cost of goods sold 156,000
Taxes 47,000

Copyright © 2011 McGraw-Hill/ Irwin Spreadsheet Template by Block, Hirt and Danielsen Problem: 2-6
 Solution
Problem 2-6
Instructions
Enter data and formulas to complete the Income Statement template below.

Dental Drilling Company

Income Statement

Sales
Cost of goods sold
Gross profit FORMULA
Selling and administrative expense
Depreciation expense
Operating profit FORMULA
Interest expense
Earnings before taxes FORMULA
Taxes
Earnings after taxes FORMULA

Copyright © 2011 McGraw-Hill/ Irwin Spreadsheet Template by Block, Hirt and Danielsen Problem: 2-6
 Foundations of Financial Management
Block, Hirt and Danielsen
Problem 2-8
Objective: Determination of profitability

Student Name:
Course Name:
Student ID:
Course Number:

Prepare in good form an income statement for Franklin Kite Co. Take your calculations all the way to
computing earnings per share.

Sales $900,000
Shares outstanding 50,000
Cost of goods sold 400,000
Interest expense 40,000
Selling and administrative expense 60,000
Depreciation expense 20,000
Preferred stock dividends 80,000
Taxes 50,000

Copyright © 2011 McGraw-Hill/ Irwin Spreadsheet Template by Block, Hirt and Danielsen Problem: 2-8
 Solution
Problem 2-8
Instructions
Enter data and formulas to complete the Income Statement template below.
Franklin Kite Co.
Income Statement

Sales
Cost of goods sold
Gross profit FORMULA
Selling and administrative expense
Depreciation expense
Operating profit FORMULA
Interest expense
Earnings before taxes FORMULA
Taxes
Earnings after taxes FORMULA
Preferred stock dividends
Earnings available to common stockholders FORMULA
Shares outstanding
Earnings per share FORMULA

Copyright © 2011 McGraw-Hill/ Irwin Spreadsheet Template by Block, Hirt and Danielsen Problem: 2-8
 Foundations of Financial Management
Block, Hirt and Danielsen
Problem 2-21
Objective: Depreciation and Cash flow

Student Name:
Course Name:
Student ID:
Course Number:

The Rogers Corporation has a gross profit $8800,000 and $360,000 in depreciation expense.
The Evans Corporation also has $8800,000 in gross profit, with $60,000 in depreciation expense.
Selling and administrative expense is $120,000 for each company.

Given that the tax rate is 40 percent, compute the cash flow for both companies.Explain the
difference in cash flow between the two firms.

Copyright © 2011 McGraw-Hill/ Irwin Spreadsheet Template by Block, Hirt and Danielsen Problem: 2-21
 Solution
Problem 2-21
Instructions

Complete the template below by entering data and formulas to calculate the cash flow.

Rogers Evans
Gross profit
Selling and adm. Expense
Depreciation
Operating profit FORMULA FORMULA
Taxes (40%) FORMULA FORMULA
Earnings after taxes FORMULA FORMULA
Plus depreciation expense
Cash flow FORMULA FORMULA

Explain the difference in cash flow between the two firms.

Copyright © 2011 McGraw-Hill/ Irwin Spreadsheet Template by Block, Hirt and Danielsen Problem: 2-21