Answer 1994 1993 1992

1 Debt-to- Equity Ratio 3.4x 2.8x

2 Debt-to-Capital Ratio 77% 74%
3 TIE 11.7x 16.2x 19.6x

Solution 1994 1993 1992

1 TL/SE $ 3,925.10 $ 3,432.30
$ 1,151.20 $ 1,218.50

2 TL/(TL+SE) $ 3,925.10 $ 3,423.30

$ 5,076.30 $ 4,650.80

3 EBITDA/Interest Expense $ 1,156.50 $ 1,191.80 $ 1,140.10

$ 99.20 $ 73.60 $ 58.20

EBITDA $ 1,156.50 $ 1,191.80 $ 1,140.10

Net earnings 469.9 506.1 495.6
I 99.2 73.6 58.2
T 283.6 337.9 338.9
DA 303.8 274.2 247.4

2003 2004
Current Assets 890,000.00 1,845,450.00
Current Liabilities 355,000.00 895,000.00
Working Capital 535,000.00 950,450.00

2003 2004
Current Ratio = CA/CL 2.5x 2.1x
Quick Ratio = (CA-Inventories)/CL 0.7x 0.6x
Cash Ration = (CA+ Short-term Investment)/CL 2.5x 2.1x
 Assumption
Variable Cost
Direct Materials x 1
Direct Labor x 2
Manufacturing overhead x 3
Total Variable Cost per vehicle $x 6 390
1140
Fixed Cost
Testing prototypes x 20
Total Liabilities Maintenance of Facilities x 20
Total SHE Salaries - office employees x 20
Supplier search fee x 20
Total Liabilities Trainings x 20
TL+SHE Other OPEX x 20
Total Fixed Cost $x 120 1.85
EBITDA 0.63
Interest,net
120 270
120 1020
 Base Threshold Answer $ 59,537.00
Profit before tax 5% - $ 252,469.00
Revenues 1% $ 3,593.18 A $ 312,006.00
Total assets 1% $ 3,120.06
Equity 3% $ 9,360.18 L

ʻDec 2023 E
Revenue $ 359,318.00
$ 60,576.00
$ 47,289.00
$ 251,453.00

Equity $ 312,006.00 $ 312,447.00

$ 28,642.00
$ 29,568.00
$ 7,714.00
$ 246,523.00
$ 312,447.00
Student's 3-month budget analysis
Sep Oct Nov Total
Allowance 5,000.00 5,000.00 5,000.00 15,000.00
Freelance Salary 2,500.00 2,500.00 2,500.00 7,500.00
Loan Investment 500.00 500.00 500.00 1,500.00
TOTAL INCOME 8,000.00 8,000.00 8,000.00 24,000.00

Fixed Expenses
Dorm Rent 1,500.00 1,500.00 1,500.00 4,500.00
Mobile Plan 600.00 600.00 600.00 1,800.00
Emergency Fund 400.00 400.00 400.00 1,200.00
Total Fixed Expenses 2,500.00 2,500.00 2,500.00 7,500.00

Variable Expenses
Food 1,800.00 1,600.00 2,000.00 5,400.00
Travel Expenses 700.00 500.00 900.00 2,100.00
Education 1,000.00 1,000.00 1,000.00 3,000.00
Necessities 500.00 500.00 500.00 1,500.00
Entertainment 500.00 300.00 600.00 1,400.00
Utilities 700.00 500.00 600.00 1,800.00
Freelance Expense 300.00 200.00 300.00 800.00
Total Variable Expenses 5,500.00 4,600.00 5,900.00 16,000.00

TOTAL EXPENSES 8,000.00 7,100.00 8,400.00 23,500.00

% Inc/ ( Dec ) from original budget 11% -5%

Savings/Deficit - 900.00 - 400.00 500.00