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Please fill in the missing highlighted cells in the worksheet "

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1. Please fill in the missing highlighted cells in the worksheet "balance sheet";2 please complete the missing highlighted cells in the worksheet "income statement" for the year 2013;3 Complete the forecast for the income statement for the year 2014 based on the following assumptions;Revenue of the company will not change from 2013 to 2014;Cost of good sold will increase at 2.3%;Interest expense will decrease by 1.5%.;Depreciation expense and selling, general and administrative expenses are not expected to change over the year.;4. Please calculate the following financial ratios for the firm for the year 2013, and explain what those ratios indicate about the performance, liquidity, profitability and asset growth of the company.;A separate worksheet called financial ratios is created for you.;working capital turnover;fixed asset turnover;total asset turnover;current ratio;cash ratio;debt equity ratio;Time interest earned;net profit margin;return on assets;return on total equity;average growth rate for total assets from Dec 31, 2011 to Dec 31, 2013;5. What is the total book value of asset for the company? What is the market value of the company? How would you interpret the difference?;6. What is the book value of equity for the company? What is the market value of equity for the company?;7. Given the information in the worksheets, how would you compute the WACC for the company?;8. The company is in the process of evaluating a long term project to undertake. The estimated IRR of the projec is 9.25%. Based on your calcualted WACC in step 7, do you think this project should be accepted by the company?;9. Please complete the sensitivity analysis of WACC based on different estimates of Beta as shown in worksheet "sensitivity analysis".;We are assuming other factors affecting WACC are not changing except beta. Based on the table results, do you think the WACC of the company is sensitive to beta or not?;Bright Toy Corp.;Balance Sheet (All Numbers in Thousand);Assets;12/31/2013;Current Assets;Cash;Accounts Receivables;Inventory;Total Current Assets;Property, Plant and Equipment;Equipment;Total Assets;12/31/2012;12/31/2011;$4,500;$300;$750;$4,300;$250;$680;$4,100;$275;$700;$23,550;$21,230;$19,575;$2,800;$3,500;$3,800;$8,243;$8,492;$9,788;6500;$6,500;6500;Liability and Stockholder's Equity;Current liability;Short term debt;Long-term debt;Total Liability;stock holders' equity;common stock;Retained earnings;Total stockholder's equity;Total liabilities and stockholder's equity;Company's outstanding Bonds;Maturity Date;Number of Bonds outstanding;Current Bond price;Current Yield to Maturity;July 31/2030;1500;$975.00;6.303%;July 31/2035;1250;$952.50;6.018%;July 31/2040;1450;$967.50;5.892%;Number of Shares outstanding;Current Share price;The return on the NYSE Composite Index;Beta of the Company;The 10-Year Treasury Bond Rate;Tax rate;175,000;$52.75;13.68%;1.63;3.25%;35%;Bright Toy Corp.;Income statement (numbers in thousand except for per share data);Revenue;Cost of Goods Sold;Depreciation;Selling, General and Administrative Expenses;Interest Expense;Taxable Income;Taxes;Net income;Earnings per share;*The tax rate for the company is 35%.;2013 Forecast for 2014;350;200;25;15;35;Sensitivity analysis for WACC with different beta estimates;WACC;Beta;1.4;1.5;1.63;1.7;1.8;Bright Toy Corp.;Financial Ratios (For the year 2013);Year;2013;working capital turnover;fixed asset turnover;total asset turnover;current ratio;cash ratio;debt equity ratio;Time interest earned;net profit margin;return on assets;return on total equity;average growth rate for total assets from Dec 31, 2011 to Dec 31, 2013

 

Paper#29932 | Written in 18-Jul-2015

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