公司理财罗斯MiniCase-Solutions(英文版)

CaseSolutionsFundamentalsofCorporateFinanceRoss,Westerfield,andJordan9theditionCHAPTER1THEMcGEECAKECOMPANY1.TheadvantagestoaLLCare:1)Reductionofpersonalliability.Asoleproprietorhasunlimitedliability,whichcanincludethepotentiallossofallpersonalassets.2)Taxes.ForminganLLCmaymeanthatmoreexpensescanbeconsideredbusinessexpensesandbedeductedfromthecompany’sincome.3)Improvedcredibility.Thebusinessmayhaveincreasedcredibilityinthebusinessworldcomparedtoasoleproprietorship.4)Abilitytoattractinvestment.Corporations,evenLLCs,canraisecapitalthroughthesaleofequity.5)Continuouslife.Soleproprietorshipshavealimitedlife,whilecorporationshaveapotentiallyperpetuallife.6)Transferofownership.Itiseasiertotransferownershipinacorporationthroughthesaleofstock.Thebiggestdisadvantageisthepotentialcost,althoughthecostofformingaLLCcanberelativelysmall.Therearealsootherpotentialcosts,includingmoreexpansiverecord-keeping.2.FormingacorporationhasthesameadvantagesasformingaLLC,butthecostsarelikelytobehigher.3.Asasmallcompany,changingtoaLLCisprobablythemostadvantageousdecisionatthecurrenttime.Ifthecompanygrows,andDocandLynarewillingtosellmoreequityownership,thecompanycanreorganizeasacorporationatalaterdate.Additionally,formingaLLCislikelytobelessexpensivethanformingacorporation.CHAPTER2CASHFLOWSANDFINANCIALSTATEMENTSATSUNSETBOARDSBelowarethefinancialstatementsthatyouareaskedtoprepare.1.Theincomestatementforeachyearwilllooklikethis:Incomestatement20082009Sales$247,259$301,392Costofgoodssold126,038159,143Selling&administrative24,78732,352Depreciation35,58140,217EBIT$60,853$69,680Interest7,7358,866EBT$53,118$60,814Taxes10,62412,163Netincome$42,494$48,651Dividends$21,247$24,326Additiontoretainedearnings21,24724,3262.Thebalancesheetforeachyearwillbe:BalancesheetasofDec.31,2008Cash$18,187Accountspayable$32,143Accountsreceivable12,887Notespayable14,651Inventory27,119Currentliabilities$46,794Currentassets$58,193Long-termdebt$79,235Netfixedassets$156,975Owners'equity89,139Totalassets$215,168Totalliab.&equity$215,168Inthefirstyear,equityisnotgiven.Therefore,wemustcalculateequityasaplugvariable.Sincetotalliabilities&equityisequaltototalassets,equitycanbecalculatedas:Equity=$215,168–46,794–79,235Equity=$89,139C-2CASESOLUTIONSBalancesheetasofDec.31,2009Cash$27,478Accountspayable$36,404Accountsreceivable16,717Notespayable15,997Inventory37,216Currentliabilities$52,401Currentassets$81,411Long-termdebt$91,195Netfixedassets$191,250Owners'equity129,065Totalassets$272,661Totalliab.&equity$272,661Theowner’sequityfor2009isthebeginningofyearowner’sequity,plustheadditiontoretainedearnings,plusthenewequity,so:Equity=$89,139+24,326+15,600Equity=$129,0653.UsingtheOCFequation:OCF=EBIT+Depreciation–TaxesTheOCFforeachyearis:OCF2008=$60,853+35,581–10,624OCF2008=$85,180OCF2009=$69,680+40,217–12,163OCF2009=$97,7344.Tocalculatethecashflowfromassets,weneedtofindthecapitalspendingandchangeinnetworkingcapital.Thecapitalspendingfortheyearwas:CapitalspendingEndingnetfixedassets$191,250–Beginningnetfixedassets156,975+Depreciation40,217Netcapitalspending$74,492Andthechangeinnetworkingcapitalwas:ChangeinnetworkingcapitalEndingNWC$29,010–BeginningNWC11,399ChangeinNWC$17,611CHAPTER2C-3So,thecashflowfromassetswas:CashflowfromassetsOperatingcashflow$97,734–Netcapitalspending74,492–ChangeinNWC17,611Cashflowfromassets$5,6315.Thecashflowtocreditorswas:CashflowtocreditorsInterestpaid$8,866–Netnewborrowing11,960Cashflowtocreditors–$3,0946.Thecashflowtostockholderswas:CashflowtostockholdersDividendspaid$24,326–Netnewequityraised15,600Cashflowtostockholders$8,726Answerstoquestions1.Thefirmhadpositiveearningsinanaccountingsense(NI0)andhadpositivecashflowfromoperations.Thefirminvested$17,611innewnetworkingcapitaland$74,492innewfixedassets.Thefirmgave$5,631toitsstakeholders.Itraised$3,094frombondholders,andpaid$8,726tostockholders.2.Theexpansionplansmaybealittlerisky.Thecompanydoeshaveapositivecashflow,butalargeportionoftheoperatingcashflowisalreadygoingtocapitalspending.Thecompanyhashadtoraisecapitalfromcreditorsandstockholdersforitscurrentoperations.So,theexpansionplansmaybetooaggressiveatthistime.Ontheotherhand,companiesdoneedcapitaltogrow.Beforeinvestingorloaningthecompanymoney,youwouldwanttoknowwherethecurrentcapitalspendingisgoing,andwhythecompanyisspendingsomuchinthisareaalready.CHAPTER3RATIOSANALYSISATS&SAIR1.Thecalculationsfortheratioslistedare:Currentratio=$2,186,520/$2,919,000Currentratio=0.75timesQuickratio=($2,186,250–1,037,120)/$2,919,000Quickratio=0.39timesCashratio=$441,000/$2,919,000Cashratio=0.15timesTotalassetturnover=$30,499,420/$18,308,920Totalassetturnover=1.67timesInventoryturnover=$22,224,580/$1,037,120Inventoryturnover=21.43timesReceivablesturnover=$30,499,420/$708,400Receivablesturnover=43.05timesTotaldebtratio=($18,308,920–10,069,920)/$18,308,920Totaldebtratio=0.45timesDebt-equityratio=($2,919,000+5,320,000)/$10,069,920Debt-equityratio=0.82timesEquitymultiplier=$18,308,920/$10,069,920Equitymultiplier=1.82timesTimesinterestearned=$3,040,660/$478,240Timesinterestearned=6