Attached are the project information and spreadsheet. I'm not looking for turn in quality paper. I am looking for a rough draft of the questions answered with calculations, can be in spreadsheet form
CorpA Balance Sheets Corporation A Comparative Balance Sheets As of December 31 Assets:20X3 20X2 20X1 Cash $ 210,000$ 780,000$ 1,530,000 Accounts Receivable 315,000265,000 240,000 Inventory 436,000405,000 330,000 Prepaid Insurance 15,00018,000 21,000 Total Current Assets $ 976,000$ 1,468,000$ 2,121,000 Land 1,650,000 1,630,000 1,400,000 Buildings 2,300,000 1,760,000 1,400,000 Less: Accumulated Depreciation (560,000) (490,000) (440,000) Net Buildings 1,740,000 1,270,000 960,000 Total Long-Term Assets 3,390,000 2,900,000 2,360,000 Total Assets 4,366,000 4,368,000 4,481,000 Liabilities & Stockholder's Equity Accounts Payable 215,000 134,000 185,000 Salaries and Wages Payable 63,000 49,000 40,000 Dividends Payable 69,702 36,818 0 Notes Payable—Line of Credit 356,000 205,000 98,000 Total Current Liabilities 703,702 424,818 323,000 Notes Payable—Long-Term 1,393,722 949,811 1,017,219 Bonds Payable 1,000,000 1,000,000 1,000,000 Less: Discount on Bonds Payable (41,583) (48,317) (54,603) Net Bonds Payable 958,417 951,683 945,397 Total Long-term Liabilities 2,352,139 1,901,494 1,962,617 Total Liabilities 3,055,841 2,326,312 2,285,617 Contributed Capital 1,500,000 1,500,000 1,500,000 Retained Earnings 1,449,159 1,080,688 730,383 Treasury Stock (1,639,000) (539,000) (35,000) Total Stockholders’ Equity (SE) 1,310,159 2,041,688 2,195,383 Total Liabilities & Stockholdler's Equity$4,366,000 $4,368,000 $4,481,000 CorpA Income Statements Corporation A Comparative Income Statements For the 12 Months Ended December 31 20X3 20X2 20X1 Sales Revenue $4,010,000 $3,400,000 $2,300,000 Cost of Goods Sold Expense (2,520,000) (1,910,000) (940,000) Salaries and Wages Expense (660,000) (840,000) (750,000) Depreciation Expense-Building (115,000) (88,000) (70,000) Insurance Expense (117,000) (102,000) (95,000) Total Expenses (3,412,000) (2,940,000) (1,855,000) Operating Income 598,000 460,000 445,000 Interest Expense—Notes (76,911) (69,591) (54,749) Interest Expense—Bonds (66,734) (66,286) (65,868) Gain (Loss) Sale of Buildings (2,000) 45,000 (51,000) Gain (Loss) Sale of Land (3,000) 43,000 7,000 Total Other (148,645) (47,877) (164,617) Net Income $449,355 $412,123 $280,383 Earnings per share $6.71 $4.74 $2.83 CorpA Statement of Cash Flows Corporation A Comparative Statements of Cash Flow For the 12 Months Ended December 31 For the 12 Months Ended December 3120X320X2 Cash received from customers$ 3,938,484$ 3,335,116 Cash paid to suppliers-2,470,000-2,022,000 Cash paid for salaries and wages-646,000-831,000 Cash paid for insurance-114,000-99,000 Cash paid for income taxes-145,556-129,709 Cash paid for interest—Bonds-60,000-60,000 Cash paid for interest—Notes Payable-52,740-66,946 Net Cash from Operating Activities$ 450,188$ 126,461 Investment in Land-300,000-1,420,000 Investment in Building-930,000-640,000 Sale of Building343,000287,000 Sale of Land277,0001,233,000 Net Cash from Investing Activities$ (610,000)$ (540,000) Proceeds (Payment) Notes Payable-32,188128,539 (Purchase) Sale Treasury Stock-330,000-440,000 Dividends Paid-48,000-25,000 Cash from Financing Activities$ (410,188)$ (336,461) Net Change in Cash-570,000-750,000 Beginning Cash780,0001,530,000 Ending Cash$ 210,000$ 780,000 CorpA Firm & Industry Ratios Corporation A Firm and Industry Financial Ratios 20X3 20X2 20X3/20X2 Industry Return on Equity 0.27 0.19 0.14 Dividend Payout 0.18 0.15 0.10 Return on Assets 0.10 0.09 0.10 Return on Sales 0.11 0.12 0.11 Asset Turnover 0.92 0.77 1.02 ` Current Ratio 1.39 3.46 2.35 Quick Ratio 0.75 2.46 1.75 Debt/Assets 0.70 0.53 0.35 Accounts Receivable Days 26.40 27.11 19.50 Inventory Days 60.91 70.23 41.50 Accounts Payable Days 25.59 31.73 28.40 Summary: Cash Conversion Days 61.71 65.61 32.60 CorpA Other Information Corporation A Common Stock: The firm has 400,000 shares authorized and 100,000 shares issued at year-end 20X1, 20X2, and 20X3. Treasury Stock: The firm purchased 1,000 shares of treasury stock at year-end 20X1, 12,000 at year-end 20X2, and 20,000 at year-end 20X3. Market Valuation: The market price of the stock was $31 at year-end 2006, $35 at year-end 20X1, $42 at year-end 20X2, and $55 at year-end 20X3. o For valuation purposes, industry experts use the dividend valuation model to value the common equity interest of industry firms. Potential investors’ required rate of return for this firm is 14%; growth rate is 13% for 20X4 and 20X5, and then declines to 12% for all later years. Market Returns: The stock returns for the market as a whole were as follows: 15.7% in 20X1, 8.2% in 20X2, and 12.1% in 20X3. CorpB Balance Sheets Corporation B Comparative Balance Sheets As of December 31, 20X3 20X2 20X1 Cash 210,000 780,000 1,530,000 Accounts Receivable 410,000 360,000 300,000 Less: Allowance for Doubtful Accounts (4,100) (14,616) (1,500) Net Accounts Receivable 405,900 345,384 298,500 Inventory 436,000 405,000 330,000 Prepaid Insurance 15,000 18,000 21,000 Total Current Assets 1,066,900 1,548,384 2,179,500 Land 1,650,000 1,630,000 1,400,000 Buildings 2,300,000 1,760,000 1,400,000 Less: Accumulated Depreciation (560,000) (490,000) (440,000) Net Buildings 1,740,000 1,270,000 960,000 Total Long-Term Assets 3,390,000 2,900,000 2,360,000 Total Assets 4,456,900 4,448,384 4,539,500 Accounts Payable 215,000 134,000 185,000 Salaries and Wages Payable 63,000 49,000 40,000 Dividends Payable 93,216 44,178 0 Notes Payable—Line of Credit 356,000 205,000 98,000 Total Current Liabilities 727,216 432,178 323,000 Notes Payable—Long Term 778,032 961,219 939,680 Bonds Payable 1,000,000 1,000,000 1,000,000 Add: Premium on Bonds Payable 89,826 105,753 121,062 Net Bonds Payable 1,089,826 1,105,753 1,121,062 Total LT Liabilities 1,867,857 2,066,973 2,060,743 Total Liabilities 2,595,073 2,499,151 2,383,743 Contributed Capital 1,500,000 1,500,000 1,500,000 Retained Earnings 1,167,827 925,233 691,757 Treasury Stock (806,000) (476,000) (36,000) Total Stockholders’ Equity (SE) 1,861,827 1,949,233 2,155,757 Total Liabilities and SE 4,456,900 4,448,384 4,539,500 CorpB Income Statements Corporation B Comparative Income Statements For the 12 Months Ended December 31 20X3 20X2 20X1 Sales Revenue 4,010,000 3,400,000 2,300,000 Cost of Goods Sold Expense (2,520,000) (1,810,000) (940,000) Salaries and Wages Expense (660,000) (840,000) (750,000) Depreciation Expense—Building (115,000) (88,000) (70,000) Bad Debt Expense (11,000) (18,000) (8,000) Insurance Expense (117,000) (102,000) (95,000) Total Expenses (3,423,000) (2,858,000) (1,863,000) Operating Income 587,000 542,000 437,000 Interest Expense—Notes (52,740) (66,946) (51,647) Interest Expense—Bonds (44,072) (44,691) (45,285) Loss from Inventory Write-Off 0 (86,000) 0 Gain (Loss) Sale of Buildings (2,000) 45,000 (1,700) Gain (Loss) Sale of Land (3,000) 43,000 7,000 Total Other (101,812) (109,637) (91,633) Net Income Before Taxes 485,188 432,363 345,367 Income Tax Expense (30 percent rate) 145,556 129,709 103,610 Net Income 339,631 302,654 241,757 Earnings per share 4.04 3.40 2.44 CorpB Statement of Cash Flows Corporation B Comparative Statements of Cash Flow For the 12 Months Ended December 31 20X3 20X2 Cash received from customers 3,938,484 3,335,116 Cash paid to suppliers (2,470,000) (2,022,000) Cash paid for salaries and wages (646,000) (831,000) Cash paid for insurance (114,000) (99,000) Cash paid for income taxes (145,556) (129,709) Cash paid for interest—Bonds (60,000) (60,000) Cash paid for interest—Notes Payable (52,740) (66,946) Net Cash from Operating Activities450,188 126,461 Investment in Land (300,000) (1,420,000) Investment in Building (930,000) (640,000) Sale of Building 343,000 287,000 Sale of Land 277,000 1,233,000 Net Cash from Investing Activities(610,000) (540,000) Proceeds (Payment) Notes Payable (32,188) 128,539 (Purchase) Sale Treasury Stock (330,000) (440,000) Dividends Paid (48,000) (25,000) Cash from Financing Activities(410,188) (336,461) Net Change in Cash (570,000) (750,000) Beginning Cash 780,000 1,530,000 Ending Cash 210,000 780,000 CorpB Firm & Industry Ratios Benson, Cundiff, & Gilbert Interview Ratios Firm and Industry Financial Ratios 20X3 / 20X2 20X320X2Industry Return on Equity0.250.210.19 Dividend Payout0.20.160.1 Return on Assets0.110.10.1 Return on Sales0.120.130.11 Asset Turnover0.90.761.02 Current Ratio1.473.582.35 Quick Ratio0.852.641.75 Debt/Assets0.580.560.35 Accounts Receivable Days35.0435.4335.68 Inventory Days60.9174.1141.5 Accounts Payable Days25.5933.5528.4 Summary: Cash Conversion Days70.3675.9848.78 CorpB Projected Balance Sheet Corporation B Projected Comparative Balance Sheets As of December 31 20X320X420X520X620X7 Cash$ - 0$ - 0$ - 0$ - 0$ - 0 Accounts Receivable040,00060,00070,0000 Inventory200,000230,000250,000260,0000 Current Assets200,000270,000310,000330,0000 Equipment400,000400,000400,000400,000400,000 Less: Accumulated Depr.0-132,000-312,000-372,000-400,000 Net Equipment400,000268,00088,00028,0000 Other00000 Total Long-Term Assets400,000268,00088,00028,0000 Total Assets$ 600,000$ 538,000$ 398,000$ 358,000$ - 0 Accounts Payable140,000161,000175,000182,0000 Total Liabilities140,000161,000175,000182,0000 Equity460,000377,000223,000176,0000 Total Liabilities & Equity$ 600,000$ 538,000$ 398,000$ 358,000$ - 0 CorpBProjected Income Statement Corporation B Projected Comparative Income Statements For the Years Ending December 31 20X420X520X620X7 Sales Revenue$ 440,000$ 510,000$ 560,000$ 630,000 Cost of Goods Sold 140,000160,000210,000250,000 Salaries Expense60,00075,00090,000120,000 Depreciation Expense132,000180,00060,00028,000 Other Expense10,00010,00010,00010,000 Total Operating Expenses342,000425,000370,000408,000 Gain (Loss) Sale Asset00040,000 Net Income Before Taxes98,00085,000190,000262,000 Income Tax Expense29,40025,50057,00078,600 Net Income$ 68,600$ 59,500$ 133,000$ 183,400 Page 1 of 6 I. Title: Integrated Accounting & Financial Management Individual project II. Introduction: Course Outcomes Assessed in this Project: A. Measurement, Analysis, & Interpretation: Apply financial statement analysis to evaluate stockholder’s equity and capital budgeting for two corporations B. Strategic Perspective: Evaluate data and information for implementation of strategic plans. C. Decision making: Evaluate the strengths and weaknesses of corporate strategies from recent financial performance. D. Communication: Communicate clearly in writing and speaking, meeting expectations for content, purpose, organization, audience, and format especially APA Style. Scenarios Having just graduated with your MS degree in accounting and financial management, you’re eager to start applying for positions with higher salaries. That is, of course, one reason you decided to earn your master’s degree! Fortunately, you’re one of the top three candidates for a position at Benson, Cundiff, & Gilbert a financial accounting and brokerage firm in the heart of Washington, DC. You’ve always wanted to live in the District, as locals call it. Sasha, the head of Human Resources at Benson, Cundiff, & Gilbert called this morning. After a brief discussion, Sasha says, “in preparation for your third interview you will prepare a financial analysis of financial statements and respond to questions prepared by our Board of Directors. We’ve done this type of interviewing in the past and sometimes more than one candidate is hired: not for the same position but in related jobs. Are you willing to partake in this type of interview?” Without giving it a lot of thought because you didn’t want to sound hesitant, you say “Absolutely; what time and where?” III. Steps to Completion: 1. Review the financial statements, ratios, and Other Information for Corporation A in Appendix A. 2. Answer the Corporation A Stockholders’ Equity Questions in paragraph format. Do not rewrite the questions in your report. Page 2 of 6 Corporation A. Stockholders’ Equity Questions: i. Calculate the average stock return from 20X1–20X3. ii. Calculate the standard deviation over this same period. iii. Calculate the coefficient of variation over this period. iv. Assume that the CAPM holds, the Corporation has a beta of 1.50, and the 30-year U.S. Treasury bonds sell at an 8% yield. Using the CAPM, calculate Corporation A’s required rate of return. v. Calculate the dollar amount of dividends that were declared during 20X3. vi. Calculate the (intrinsic) value of Corporation A’s stock price at year- end 20X3 using