Table I

Ultra Cable Corporation

INCOME STATEMENT Curent
Year % Current Year Last Year % Last Year

Net Sales 100.00% 5,125,000 100.00% 4,197,235

Cost of Goods sold 75.00% 3,843,750 80.00% 3,357,788
Depreciation 3.85% 197,500 3.04% 127,500
Selling & Administrative Expenses 1.95% 100,000 1.96% 82,363
Earnings Before Interest and Taxes 19.20% 983,750 15.00% 629,585

Interest Paid 7.56% 387,500 2.62% 110,000

Taxable Income 11.63% 596,250 12.38% 519,585
Taxes (40%) 4.65% 238,500 4.95% 207,834
Net Income 6.98% 357,750 7.43% 311,751
Dividends 2.09% 107,325 2.23% 93,525
Addition to Retained Earnings 4.89% 250,425 5.20% 218,226
Earnings Per Share (EPS) 1.7888 1.5588
Book Value per Share (BVPS) 9.9021 8.6500
Share Price 25.00 35.00
Price Eranings Ratio (P/EPS) 13.98 22.45
Share Price to Book Ratio (P/BV) 2.52 4.05 (Market to book ratio)
Table II
BALANCE SHEET Current Year Last Year

ASSETS
Cash 0.17% 12,500 3.21% 100,000
Accounts Receivable 18.53% 1,350,000 16.04% 500,000
Inventories 44.64% 3,251,125 52.13% 1,625,000
Total Current Assets 63.34% 4,613,625 71.37% 2,225,000
NWC 2,376,125 1,337,500
Gross Fixed Assets 44.62% 3,250,000 40.90% 1,275,000
Accumulated Depreciation 7.96% 580,000 12.27% 382,500
Net Fixed Assets 36.66% 2,670,000 28.63% 892,500

Total Assets 100.00% 7,283,625 100.00% 3,117,500

LIABILITIES & EQUITY

Accounts Payable 4.98% 362,500 4.41% 137,500
Notes Payable 25.74% 1,875,000 24.06% 750,000
Total Current Liabilities 30.72% 2,237,500 28.47% 887,500

Long-term Debt 42.09% 3,065,700 16.04% 500,000

Common-stock and Paid in Surplus 20.59% 1,500,000 48.12% 1,500,000
(200,000 shares outstanding)
Retained Earnings 6.60% 480,425 7.38% 230,000
Total 100.00% 7,283,625 100.00% 3,117,500

Interest Coverage Ratio 2.54 5.72 bad

Net Profit Margin 6.98% 7.43% bad
Cash Ratio 0.56% 11.27% bad
Current Ratio 2.06 2.51 bad
Quick Ratio 0.61 0.68 bad
NWC to TA 0.33 0.43 bad
Interval Ratio 427 days 236 days good
Absolute Liquidity = NWC 2,376,125 1,337,500
Book Value per share
 Change

(Market to book ratio)

Change

Change
debt

# of days that the company can operate without needing to access non-current assets
Cash Flow from Asset (2,070,875)

Operating Cash Flow(EBIT+Depreciation-Tax) 942,750

Net Capital Expenditure(change in net fixed asset+dep) 1,975,000

Change in Net Working Capital 1,038,625

Cash Flow to Creditors(-interest+current long term debt-last long ter debt) 2,178,200

Cash Flow to Stock Holders (-dividend+commonstock current- common stock last) (107,325)

Cash Flow to Stock Holders and Creditors 2,070,875

ny can operate without needing to access non-current assets
 Ultra Cable Corporation
Statement of Cash Flows
Current Year
Cash at beginning of current year $ 100,000

Operating activity running my business

Net income 357,750 source of cash
Plus:
Depreciation 197,500 noncash
Increase in accounts payable 225,000 source of cash

Less:
Increase in accounts receivable 850,000 use of cash
Increase in inventory 1,626,125 use of cash
Net cash from operating activity (1,695,875)

Investment activity fixed asset

Fixed asset acquisitions 1,975,000
Net cash from investment activity (1,975,000) use of cash

Financing activity interest dividend

Increase in notes payable 1,125,000 source of cash
Increase in long-term debt 2,565,700 source of cash
Dividends paid (107,325) use of cash
Increase in common stock -
Net cash from financing activity 3,583,375

Net decrease in Cash (87,500)

Cash, end of current year $ 12,500 12500

increaase in asset use of cash

increase in liability source of cash