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FIN202 - SU23 - Individual Assignment

This document outlines an individual assignment for a Principles of Corporate Finance course. The assignment involves analyzing the financial statements of Number One Supply Company and calculating various financial ratios to evaluate the company's financial position. It also includes a multi-part word problem requiring the calculation of the annual savings needed to accumulate $27,000 over 5 years at a 9.3% interest rate. The assignment is due on June 19, 2023 and must be submitted in PDF format to the learning management system. Late submissions will be penalized and plagiarism is not allowed.

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Ánh Dương Nguyễn
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105 views

FIN202 - SU23 - Individual Assignment

This document outlines an individual assignment for a Principles of Corporate Finance course. The assignment involves analyzing the financial statements of Number One Supply Company and calculating various financial ratios to evaluate the company's financial position. It also includes a multi-part word problem requiring the calculation of the annual savings needed to accumulate $27,000 over 5 years at a 9.3% interest rate. The assignment is due on June 19, 2023 and must be submitted in PDF format to the learning management system. Late submissions will be penalized and plagiarism is not allowed.

Uploaded by

Ánh Dương Nguyễn
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
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FPT University

Can Tho Campus


BUSINESS ADMINISTRATION DEPARTMENT

FIN202 – PRINCIPLES OF CORPORATE FINANCE

INDIVIDUAL ASSIGNMENT
SU23

Student’s full name: .........................................................................................


Student ID:.......................................................................................................
Class: ..............................................................................................................

Lecturer: Ms. Nguyen Ngoc Kim Chi

Can Tho City


June 19, 2023
FPT UNIVERSITY - FIN202

PRINCIPLES OF CORPORATE FINANCE (FIN202)


INDIVIDUAL ASSIGNMENT


FINANCIAL STATEMENTS ANALYSIS


Area: Finance
Issue date: May 22, 2023
Due date: June 19, 2023
Submission report online to LMS prior to due date (.pdf file)

Content:
Part 1: Answer the questions (3.0 marks)
1. Discussing the 3 key financial decisions facing the financial manager of any business?
(0.5 mark). Give reality example to support for your answer (0.5 mark)?
2. Explain the phrase “A dollar today is worth more than a dollar tomorrow”? (1 mark)
3. Discuss the relationship between risk and return? (0.5 mark) Give example to support
your answer? (0.5 mark)
Part 2: Base on the information given below, analyzing and evaluating the company’s
financial position (5.0 marks)
The Number One Supply Company reported the following information for 2020

NUMBER ONE SUPPLY COMPANY


INCOME STATEMENT
For The Fiscal Year Ended December 30, 2020
($ thousands)
Net sales 3,110,965
Cost of goods sold 1,859,455
Selling and administrative expenses 512,044
Non-recurring expenses 127,215
Earnings before interest, taxes, depreciation, and amortization
?
(EBITDA)
Depreciation 212,178
Earnings before interest and taxes (EBIT) ?
Interest expense 177,587
Earnings before taxes (EBT) ?
Taxes (35%) ?
Net income ?

1
FPT UNIVERSITY - FIN202

NUMBER ONE SUPPLY COMPANY


BALANCE SHEET
December 30, 2020
($ thousands)
Assets:
Cash and marketable securities 596,994
Accounts receivable 708,275
Inventory 1,052,398
Other current assets 52,115
Total current assets ?
Net plant and equipment 1,980,551
Goodwill and other assets 577,320
Total assets ?
Liabilities and Stockholder’s Equity:
Accounts payable and accruals 855,120
Notes payable 201,019
Accrued income taxes 21,322
Total current liabilities ?
Long-term debt 1,450,520
Total liabilities ?
Common stock 1,112,137
Retained earnings 945,830
Total common equity ?
Total liabilities and equity ?
Requirement:
4. Prepare a Common-size Balance Sheet and Common-size Income Statement for
Number One Supply Company? (1 mark)
5. Using the 2020 data for the Number One Supply Company, calculate the following
ratios, then interpret the meaning of each ratio? (4 marks)
a) Current ratio
b) Quick ratio
c) Inventory turnover
d) Days’ sales outstanding
e) Total asset turnover
f) Fixed asset turnover
g) Total debt ratio
h) Deb-to-equity ratio
i) Times interest earned
j) Cash coverage
k) Profit margin
l) Return on assets

2
FPT UNIVERSITY - FIN202

m) Equity multiplier
n) Total asset turnover
o) Use the Dupont equation to calculate the return on equity (ROE)
Part 3: Give the solution for Anna and explain in detail your solution? (2.0 marks)
Anna is saving for her Master’s tuition fee in five years. She estimates that she will need at
least $27,000 to cover her tuition fee and all other living expenses. She is going to invest her
money in a bank that is expected to earn an average return of 9.3% over the next five years,
how much will she have to save every year, starting at the end of this year?
------------------------

Information on submission:
- Language: Academic English.
- Submission: 01 PDF file for the completed assignment.
- Each day late submission will lead to 10% of grade deduction in the assignment
result. The report will get zero (0) if you submit later than three days.
- Plagiarism is not allowable or else 50% of total mark would be deducted.
- Hint: Assignment Format should be:
Font: Times New Roman, font size: 12;
Spacing: single lines;
Page set up: A4

Good luck with your Individual Assignment!

3
FPT UNIVERSITY - FIN202

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