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Financial Management Group Assignment

The document presents a group assignment for a financial management course, including a balance sheet and income statement for a company as of December 31, 2005. It outlines various financial ratios to compute, such as current ratio, debt ratio, and return on equity, among others. Additionally, it poses questions regarding dividend yield, current liabilities based on given ratios, and a financial calculation involving deposits and interest payments.

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Mestet Aweke
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25 views2 pages

Financial Management Group Assignment

The document presents a group assignment for a financial management course, including a balance sheet and income statement for a company as of December 31, 2005. It outlines various financial ratios to compute, such as current ratio, debt ratio, and return on equity, among others. Additionally, it poses questions regarding dividend yield, current liabilities based on given ratios, and a financial calculation involving deposits and interest payments.

Uploaded by

Mestet Aweke
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

GAGE UNIVERSTY COLLAGE

DEPARTMENT: MANAGEMENT
REGULAR: PROGRAM
2016 E.C. YEAR, FINANCIAL MANAGEMENT I
GROUP ASSIGNMENT
I. The balance sheet and the income statement of accompany are shown below
Balance sheet
Dec.31, 2005
Assets Liabilities

Cash 6,000 Account payable 15,000

Marketable securities 14,000 Accruals 5,000

A/C receivable 12,000 Total current Liabilities 20,000

Inventories 18,000 Mortgage bond 17,000

Total current asset 50,000 Long term debt 8,000

Net plant asset 30,000 Total Liabilities 45,000

Total asset 80,000 SHE

Common stocks 25,000

Retained Earnings 10,000

Total Liability and SHE 80,000


Income statement

Dec.31, 2005
Sales 75,000

Cost of goods sold 35,000

Gross profit 40,000

Operating expenses 12,000

Operating Income 28,000

Interest expenses 6,000

Income before Taxes 22,000

Income Tax expenses 4,400

Income after Taxes 17,600

Compute the following:


1. CR [Link] ratio

2. QR [Link] on Equity

3. Inventory turnover [Link] to equity

4. Fixed Asset Turnover [Link] Profit Margin

5. Total Assets Turnover [Link] operating margin

6. Average Collection Period [Link] Income Margin

7. TIER [Link] Investment (asset)

II. If a stock trades for Birr 100per share to day and the company’s annualized dividend is Birr
10 per share what is dividend yield?
III. The only current asset possessed by affirms are: Cash 105,000, inventories 560,000 And A/R
420,[Link] the current ratio for the firms is 2to1, determine its current liabilities.
IV. What sum deposit now an account earing 8% interest compounded semiannually will provide
semiannually payments of birr 2,000 for 10 years, the first payment to be made now?

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