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Figuroa Corp
Balance Sheet
FYE 12/31/2015
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Assets:
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2015
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2014
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Current Assets
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Cash
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13407
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6135
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Accounts Receivable
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30915
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28419
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Inventory
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56295
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51163
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Total Current Assets
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100617
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85717
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Property Plant and Equipment
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525000
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475000
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Less Accumulated Depreciation'
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-167440
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-148544
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Net Property Plant and Equipment
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357560
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326456
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Total Assets
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458177
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412173
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Liabilities and Owners Equity
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Current Liabilities
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Accounts Payable
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48185
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45166
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Notes payable
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18257
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17773
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Total Current Liabilities
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66442
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62939
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Long Term Debt
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39000
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44000
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Total Liabilities
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105442
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106939
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Owners Equity
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Common Stock &
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Paid in Capital
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50000
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45000
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Retained Earnings
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302735
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260234
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Total Owners Equity
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352735
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305234
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Total Debt and O/E
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458177
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412173
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Figuroa Corp
Income Statement
FYE 12/31/2015
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Sales
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925000
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Cost of Goods Sold
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735000
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Depreciation
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18896
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Fixed Costs
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45000
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Earnings Before Interest and Taxes
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126104
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Interest
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3500
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Taxable Income
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122604
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Income Tax
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22604
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Net Income
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100000
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Dividends Paid
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57499
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Additions to Retained earnings
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42501
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1. For the Financial Statements above, compute the Operating Cash Flow, Cash Flow from Assets, Cash Flow to Creditors and Cash Flow to Stockholders for FYE 2016
2. For the Financial Statements above identify each relevant item as a Source or Use of Cash. Prepare an analysis to determine the net change in cash between 2014 and 2015.
3. For the financial statements above, determine the following ratios: Accounts Receivable Turnover, Day Sales in Inventory, Debt/Equity Ratio, Current Ratio, and the Equity Multiplier
4. Assume you are going to buy a car. The price of the car is $40,000. The finance company requires a 20% down payment and will finance the car at 7.25%/annum for 5 years with the first payment on the car due one month from Delivery. What is the monthly payment on the car?
What is the Effective Annual Interest Rate on the Loan?
5. Find the Present Value and Net Present Value of the following cash flows using 12% as a discount rate
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CF 0
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-425000
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CF1
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85000
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CF2
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85000
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CF3
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75000
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CF4
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65000
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CF5
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75000
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CF6
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75000
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CF7
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95000
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CF8
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95000
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CF9
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95000
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CF10
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95000
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