Financial Analysis Spreadsheet Templates

MAIN MENU -- CHAPTER 2

Problem 2-3 Problem 2-8

Corporate Finance by Ross, Westerfield, and Jordan -- Fifth Edition

Copyright © 1999 Irwin/McGraw-Hill and KMT Software, Inc. (www.kmt.com)

File: 569592443.xls Copyright © 1999 Irwin/McGraw-Hill Printed: 01/10/2022

`

Corporate Finance
Ross, Westerfield, and Jordan -- Fifth Edition

Problem 2-3 Objective

Prepare an Income Statement

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

Prepare an income statement from the following data.

Sales $500,000
Cost of goods sold 200,000
Administrative expenses 100,000
Interest expense 50,000

The firm's tax rate is 34 percent.

Solution
Problem 2-3
Instructions
Use the template below to prepare an income statement

Income Statement
Sales $500,000
Less: Cost of goods sold
Administrative expenses
Earnings before interest and taxes #VALUE!
Less: Interest expense
Earnings before taxes #VALUE!
Taxes #VALUE!
Net income #VALUE!

File: 569592443.xls Copyright © 1999 Irwin/McGraw-Hill Printed: 01/10/2022

 Corporate Finance
Ross, Westerfield, and Jordan -- Fifth Edition

Problem 2-8 Objective

Determine cash flow.

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

Ritter Corporation's accountants prepared the following financial statements for year-end 19X2.

RITTER CORPORATION
Income Statement
19X2
Revenue $400
Expenses 250
Depreciation 50
Net Income $100
Dividends $50

RITTER CORPORATION

Balance Sheets

December 31

19X2 19X1

Assets

Current Assets $150 $100

Net fixed assets 200 100
Total assets $350 $200

Liabilities and Equity

Current liabilities $75 $50
Long-term debt 75 0
Stockholders' equity 200 150
Total liabilities and equity $350 $200

a. Determine the change in net working capital in 19X2.

b. Determine the cash flow during the year 19X2.

Solution
Problem 2-8
Instructions
Enter formulas and data to complete the requirements of this problem.

a. Determine the change in net working capital in 19X2.

Sources of net working capital

Net income
Depreciation
increase in long-term debt
Total sources FORMULA

Uses of net working capital

Dividends
Increase in fixed assets
Total uses $0

Change in working capital FORMULA

b. Determine the cash flow during the year 19X2.

Cash flow from the firm

Operating cash flow FORMULA
Capital spending FORMULA
Additions to net working capital #VALUE!
Total #VALUE!

Cash flow to the investors

Debt FORMULA
Equity 50
Total $50

File: 569592443.xls Copyright © 1999 Irwin/McGraw-Hill Printed: 01/10/2022