Test 3- Strategic Financial Management Name: Theresia Cherryl Lebo

D&G Corp. is a global distributor and was having liquidity problem. On Jan1, 2017 D&G Global Distributor issued Bond Par $100, i=10%, n=5 when
the market yield is 8%.The following data is the D & G Balance Sheet and Income Statement for 2017-2020.
Balance Sheet- in million 2017 2018 2019 2020 Income Statement-in million 2017 2018 2019 2020
Current assets Revenue from Sales $ 1,080 $ 1,078 $ 1,392 $ 1,330
Cash and cash equivalents $ 123 $ 148 $ 147 $ 167 Cost of Goods Sold $ 587 $ 660 $ 745 $ 701
Receivables, net $ 1,170 $ 1,211 $ 1,129 $ 1,182 Gross Profit $ 493 $ 417 $ 647 $ 630
Inventoriess $ 106 $ 119 $ 122 $ 113 Operating Expenses
Other Current assets $ 37 $ 47 $ 39 $ 41 Office & general expenses $ 373 $ 434 $ 467 $ 465
Total Current Assets $ 1,436 $ 1,524 $ 1,436 $ 1,502 Interest $ 21 $ 40 $ 39 $ 39
Non-Current Assets Total Operating Expenses $ 394 $ 474 $ 505 $ 505
Net Fixed assets $ 134 $ 140 $ 135 $ 163 Income before taxes $ 99 $ (57) $ 142 $ 125
Other assets $ 83 $ 86 $ 97 $ 119 Provision for taxes $ 44 $ 63 $ 57
Intangible assets, net $ 285 $ 339 $ 299 $ 368 Net income $ 54 $ (57) $ 79 $ 68
Total Non-Current Assets $ 502 $ 565 $ 531 $ 650 Dividends $ 7 $ 40 $ 25
Total assets $ 1,938 $ 2,088 $ 1,968 $ 2,152 Retained Earnings $ 47 $ (57) $ 39 $ 44
Current liabilities No. of share outstanding
Bank Notes Payable $ 124 $ 155 $ 108 $ 148 Share price, high $ 13.25 $ 16.37 $ 17.12 $ 18.50
Accounts Payable $ 1,066 $ 1,007 $ 998 $ 1,071 Share price, low $ 7.8 $ 13.1 $ 9.3 $ 8.9
Other Current liabilities $ 175 $ 180 $ 199 $ 195 Instructions: a. Complete the Balance Sheet & Income Statement data
Total current liabilities $ 1,365 $ 1,343 $ 1,305 $ 1,415 b. Calculate the followings:
Noncurrent liabilities Book value per share
Mortgage Payable 5% $ 213 $ 256 $ 223 $ 241 Earnings per share
Loan from Banks $ 81 $ 81 $ 81 Dividend per share
Bonds Payable 10%, par $100 $ 100 $ 100 $ 100 $ 100 c. Complete the schedule of Bond Amortization & Carrying amount:
Premium on Bonds P'ble $ 8 $ 7 $ 5 $ 4 CashPaid Intrest Exp. Premium Carrying
Date
Other Non-current liabilities $ 10 $ 12 $ 19 $ 40 10% 8% Amortized Amount
Total Noncurrent liabilities $ 331 $ 455 $ 429 $ 465 1/1/2017
Shareholders' Equity 1/1/2018
Common Stocks par $10 $ 230 $ 230 $ 230 $ 230 1/1/2019
Retained Earnings $ 13 $ 60 $ 4 $ 43 1/1/2020
Total shareholders' equity $ 243 $ 290 $ 234 $ 273 1/1/2021
Total Liabilities and Equity $ 1,938 $ 2,088 $ 1,968 $ 2,152 1/1/2022
 d. Complete the following ratios 2019
Liquidity Ratio Current Ratio
Acid-test (Quick) Ratio
Financial Leverage Ratio Debt to Equity Ratio
Debt to Total Assets Ratio
Long term debt to total capitalization
Coverage Ratio Interest coverage ratio
Activity Ratio Receivables turnover in days (RTD) days
Payable turnover in days days
Inventory turnover
Profitability Ratios Gross Profit Margin
Net profit margin
Return on Investment (ROI)
Return on Equity (ROE)
e. Answer the following questions:
How much fund D&G received when the bond was issued in Jan.1 2017 million
What is the estimated interest % of the Bank Loan
f. Based on the financial analysis what are main problem that caused liquidity problem?

g. How is the performance D&G stocks in stock market?

Jangan utak-atik ini

a 46
b 1
c 0
d 0
e 0
47