Nama NIM

Anastasya Ting 2101667626

Elen Marsa 2101697856
Natasha Evelyn 2101630812
Risky Arshanty 2101701310
Roifah Amelia 2101720556

a)
1 Dayton Inc
Income Statement
For The Year Ended December 31, 2015 and 2014
2015 2014
Sales $ 178,909 $ 187,510
Less: Cost of goods sold $ 109,701 $ 111,631
Gross Profits $ 69,208 $ 75,879
Less: Operating expenses
Selling, general and administrative expenses $ 12,356 $ 12,900
Depreciation and amortization $ 12,103 $ 7,944
Other tax expenses $ 33,572 $ 33,377
Total Operating Expenses $ 58,031 $ 54,221
Operating Profits $ 11,177 $ 21,658
Other Income $ 3,147 $ 3,323
Earnings before interest and taxes $ 14,324 $ 24,981
Less: Interest expense $ 398 $ 293
Earning before taxes $ 13,926 $ 24,688
Less: Income taxes 4,919 $ 9,368
Earnings available for common stockholders $ 9,007 $ 15,320

Interest tax rate 35.324% 37.945%

Earning per share (EPS) $ 1.34 $ 2.25
Dividend per share (DPS) $ 1.13 $ 0.91

Cost of goods sold 2015:

Beginning Inventory $ 7,904
Add: Purchases $ 109,865
Cost of goods available for sale $ 117,769
Less: Ending inventory $ 8,068
Cost of goods sold $ 109,701

b)
1 Dayton Inc
Balance Sheets
For The Year Ended December 31, 2015 and 2014
2015 2014
 Assets
Current Assets
Cash $ 7,229 $ 6,547
Receivables 21,163 19,549
Inventories 8,068 7,904
Other current assets 1,831 1,681
Total current assets $ 38,291 $ 35,681
Non Current Assets
Property, plant, and equipment, gross $ 204,960 $ 187,519
Less: Accumulated depreciation and depletion (110,020) (97,917)
Other noncurrent assets 19,413 17,891
Total noncurrent assets $ 114,353 $ 107,493
Total assets $ 152,644 $ 143,174

Liabilities and Stockholder's Equity

Current Liabilities
Accounts payable $ 13,792 $ 22,862
Short-term debt payable 4,093 3,703
Other current liabilities 15,290 3,549
Total current liabilities $ 33,175 $ 30,114
Non Current Liabilities
Long-term debt payable $ 6,655 $ 7,099
Deferred income taxes 16,484 16,359
Other noncurrent liabilities 21,733 16,441
Total noncurrent liabilities $ 44,872 $ 39,899
Total liabilities $ 78,047 $ 70,013
Stockholder's Equity
Retained earnings $ 74,597 $ 73,161
Total stockholder's equity $ 74,597 $ 73,161
Total liabilities and stockholder's equity $ 152,644 $ 143,174

Total common shares outstanding 6.7 billion 6.8 billion

Year
Ratio Formula
2015
Liquidity
(𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑎𝑠𝑠𝑒𝑡)/
Current Ratio (𝐶𝑢𝑟𝑟𝑒𝑛𝑡
(𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑎𝑠𝑠𝑒𝑡−𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦)/(𝐶𝑢𝑟𝑟𝑒𝑛𝑡
𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠) 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠) 1.15
Quick (acid-test) ratio
(𝐶𝑜𝑠𝑡 𝑜𝑓 𝐺𝑜𝑜𝑑𝑠 𝑆𝑜𝑙𝑑)/𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 0.91
Activity (𝐴𝑐𝑐𝑜𝑢𝑛𝑡𝑠 𝑅𝑒𝑐𝑒𝑖𝑣𝑎𝑏𝑙𝑒𝑠)/(𝑁𝑒𝑡 𝑆𝑎𝑙𝑒𝑠/365)
(𝐴𝑐𝑐𝑜𝑢𝑛𝑡𝑠 𝑃𝑎𝑦𝑎𝑏𝑙𝑒)/(𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑝𝑢𝑟𝑐ℎ𝑎𝑠𝑒 𝑝𝑒𝑟 𝑑𝑎𝑦)
Inventory turnover 13.60
𝑆𝑎𝑙𝑒𝑠/(𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠)
Average collection period 43.18 days
(𝑇𝑜𝑡𝑎𝑙 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠)/(𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠)
Average payment period (𝐸𝑎𝑟𝑛𝑖𝑛𝑔𝑠 𝑏𝑒𝑓𝑜𝑟𝑒 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑎𝑛𝑑 𝑇𝑎𝑥𝑒𝑠)/𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 45.82 days

(𝐺𝑟𝑜𝑠𝑠 𝑃𝑟𝑜𝑓𝑖𝑡𝑠)/𝑆𝑎𝑙𝑒𝑠
Total asset turnover
(𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑃𝑟𝑜𝑓𝑖𝑡𝑠)/𝑆𝑎𝑙𝑒𝑠 1.17 times
Debt (𝐸𝑎𝑟𝑛𝑖𝑛𝑔𝑠 𝐴𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒 𝑓𝑜𝑟 𝐶𝑜𝑚𝑚𝑜𝑛 𝑆𝑡𝑜𝑐𝑘ℎ𝑜𝑙𝑑𝑒𝑟𝑠)/𝑆𝑎𝑙𝑒𝑠
(𝐸𝑎𝑟𝑛𝑖𝑛𝑔𝑠 𝑎𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒 𝑓𝑜𝑟 𝑐𝑜𝑚𝑚𝑜𝑛 𝑠𝑡𝑜𝑐𝑘ℎ𝑜𝑙𝑑𝑒𝑟𝑠)/(𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑠ℎ𝑎𝑟𝑒𝑠 𝑜𝑓 𝑐𝑜𝑚𝑚𝑜𝑛 𝑠𝑡𝑜𝑐𝑘 𝑜𝑢𝑡𝑠𝑡𝑎𝑛𝑑𝑖𝑛𝑔)
Debt ratio
(𝐸𝑎𝑟𝑛𝑖𝑛𝑔𝑠 𝑎𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒 𝑓𝑜𝑟 𝑐𝑜𝑚𝑚𝑜𝑛 𝑠𝑡𝑜𝑐𝑘ℎ𝑜𝑙𝑑𝑒𝑟𝑠)/(𝑇𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠) 51.13%
(𝐸𝑎𝑟𝑛𝑖𝑛𝑔𝑠 𝑎𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒 𝑓𝑜𝑟 𝑐𝑜𝑚𝑚𝑜𝑛 𝑠𝑡𝑜𝑐𝑘ℎ𝑜𝑙𝑑𝑒𝑟𝑠)/(𝐶𝑜𝑚𝑚𝑜𝑛 𝑠𝑡𝑜𝑐𝑘 𝑒𝑞𝑢𝑖𝑡𝑦)
Times interest earned ratio
35.99
Profitability (𝑀𝑎𝑟𝑘𝑒𝑡 𝑝𝑟𝑖𝑐𝑒 𝑝𝑒𝑟 𝑠ℎ𝑎𝑟𝑒 𝑜𝑓 𝑐𝑜𝑚𝑚𝑜𝑛 𝑠𝑡𝑜𝑐𝑘)/(𝐸𝑎𝑟𝑛𝑖𝑛𝑔 𝑝𝑒𝑟 𝑠ℎ𝑎𝑟𝑒)
(𝑀𝑎𝑟𝑘𝑒𝑡 𝑝𝑟𝑖𝑐𝑒 𝑝𝑒𝑟 𝑠ℎ𝑎𝑟𝑒 𝑜𝑓 𝑐𝑜𝑚𝑚𝑜𝑛 𝑠𝑡𝑜𝑐𝑘)/(𝐵𝑜𝑜𝑘 𝑣𝑎𝑙𝑢𝑒 𝑝𝑒𝑟 𝑠ℎ𝑎𝑟𝑒 𝑜𝑓 𝑐𝑜𝑚𝑚𝑜𝑛 𝑠𝑡𝑜𝑐𝑘)
Gross profit margin
38.68%
Operating profit margin
6.25%
Net profit margin
5.03%
Earnings per share (EPS)
$ 1.34
Return on total assets (ROA)
5.90%
Return on equity (ROE)
12.07%
Market

Price/earnings (P/E) ratio

66.95
Market/book (M/B) ratio
8.08

Assume: current market price for the stock $ 90

2 Dayton Inc
Common-Size Income Statement
For The Year Ended December 31, 2015 and 2014
2015 2014
Sales 100.00% 100.00%
Less: Cost of goods sold 61.32% 59.53%
Gross Profits 38.68% 40.47%
Less: Operating expenses
Selling, general and administrative expenses 6.91% 6.88%
Depreciation and amortization 6.76% 4.24%
Other tax expenses 18.76% 17.80%
Total Operating Expenses 32.44% 28.92%
Operating Profits 6.25% 11.55%
Other Income 1.76% 1.77%
Earnings before interest and taxes 8.01% 13.32%
Less: Interest expense 0.22% 0.16%
Earning before taxes 7.78% 13.17%
Less: Income taxes 2.75% 5.00%
Earnings available for common stockholders 5.03% 8.17%

Interest tax rate 35.324% 37.945%

Earning per share (EPS) $ 1.34 $ 0.91
Dividend per share (DPS) $ 1.13 $ 2.25

2 Dayton Inc
Common-Size Balance Sheets
For The Year Ended December 31, 2015 and 2014
2015 2014
 Assets
Current Assets
Cash 4.74% 4.57%
Receivables 13.86% 13.65%
Inventories 5.29% 5.52%
Other current assets 1.20% 1.17%
Total current assets 25.09% 24.92%
Non Current Assets
Property, plant, and equipment, gross 134.27% 130.97%
Less: Accumulated depreciation and depletion -72.08% -68.39%
Other noncurrent assets 12.72% 12.50%
Total noncurrent assets 74.91% 75.08%
Total assets 100.00% 100.00%

Liabilities and Stockholder's Equity

Current Liabilities
Accounts payable 9.04% 15.97%
Short-term debt payable 2.68% 2.59%
Other current liabilities 10.02% 2.48%
Total current liabilities 21.73% 21.03%
Non Current Liabilities
Long-term debt payable 4.36% 4.96%
Deferred income taxes 10.80% 11.43%
Other noncurrent liabilities 14.24% 11.48%
Total noncurrent liabilities 29.40% 27.87%
Total liabilities 51.13% 48.90%
Stockholder's Equity
Retained earnings 48.87% 51.10%
Total stockholder's equity 48.87% 51.10%
Total liabilities and stockholder's equity 100.00% 100.00%

Total common shares outstanding 6.7 billion 6.8 billion

Year
Analysis
2014

Worse
1.18
Worse
0.92

14.12 Worse
 38.05 days Better

Worse
1.31 times

𝑠𝑡𝑜𝑐𝑘 𝑜𝑢𝑡𝑠𝑡𝑎𝑛𝑑𝑖𝑛𝑔)
Worse
48.90%

85.26 Worse

Worse
40.47%
Worse
11.55%
Worse
8.17%
Worse
$ 2.25
Worse
10.70%

20.94% Worse

Better
39.95
Worse
8.37
a)
1 A Schedule of Projected Cash Receipts for ACME Company
May June July Aug Sept
Sales forecast $ 300,000 $ 290,000 $ 425,000 $ 500,000 $ 600,000
Cash sales 12% $ 36,000 $ 34,800 $ 51,000 $ 60,000 $ 72,000
Less: Discount 3% $ 1,080 $ 1,044 $ 1,530 $ 1,800 $ 2,160
Collections of A/R
Lagged 1 month 75% $ 225,000 $ 217,500 $ 318,750 $ 375,000
Lagged 2 months 13% $ 39,000 $ 37,700 $ 55,250
Total cash receipts $ 34,920 $ 258,756 $ 305,970 $ 414,650 $ 500,090

2 A Schedule of Projected Cash Disbursements for ACME Company

May June July Aug Sept
Purchases (% of sales) 60% $ 174,000 $ 255,000 $ 300,000 $ 360,000 $ 375,000
Cash purchases
Payments of A/P:
Lagged 1 month 100% $ 174,000 $ 255,000 $ 300,000 $ 360,000
Wages and Salaries 6% $ 18,000 $ 17,400 $ 25,500 $ 30,000 $ 36,000
Lease Payments 2% $ 6,000 $ 5,800 $ 8,500 $ 10,000 $ 12,000
Advertising expense 3% $ 9,000 $ 8,700 $ 12,750 $ 15,000 $ 18,000
R&D expenditures 12% $ 60,000 $ 72,000
Prepaid insurance
Miscellaneous expenses $ 15,000 $ 20,000 $ 25,000
Tax Payments $ 40,000
Total cash disbursements $ 33,000 $ 205,900 $ 316,750 $ 435,000 $ 563,000

3 A Cash Budget for ACME Company

July Aug Sept
Total cash receipts $ 305,970 $ 414,650 $ 500,090
Less: Total cash disbursements $ 316,750 $ 435,000 $ 563,000
Net cash flow $ (10,780) $ (20,350) $ (62,910)
Add: Beginning cash $ 15,000 $ 4,220 $ (16,130)
Ending cash $ 4,220 $ (16,130) $ (79,040)
Less: Minimum cash balance $ 15,000 $ 15,000 $ 15,000
Required total financing (notes payable) $ 10,780 $ 31,130 $ 94,040
Excess cash balance (marketable securities) $ - $ - $ -

b July Borrow $10,780 (notes payable)

August Borrow $31,130(notes payable)
September Borrow $94,040 (notes payable)
October Borrow $55,040 (notes payable)
November Invest $70,870 excess cash balance in marketable securities
December Invest $115,100 excess cash balance in marketable securities

If the AMCE Company have a cash deficit, the firm could borrow some money with obligations or funds (ex: notes payable
If the firm has a cash surplus, the firm can invest their cash to excess cash balance in marketable securities.
 Oct Nov Dec
$ 625,000 $ 650,000 $ 700,000
$ 75,000 $ 78,000 $ 84,000
$ 2,250 $ 2,340 $ 2,520

$ 450,000 $ 468,750 $ 487,500

$ 65,000 $ 78,000 $ 81,250
$ 587,750 $ 622,410 $ 650,230

Oct Nov Dec

$ 390,000 $ 420,000 $ -

$ 375,000 $ 390,000 $ 420,000

$ 37,500 $ 39,000 $ 42,000
$ 12,500 $ 13,000 $ 14,000
$ 18,750 $ 19,500 $ 21,000
$ 75,000
$ 24,000
$ 30,000 $ 35,000 $ 40,000
$ 45,000
$ 548,750 $ 496,500 $ 606,000

Oct Nov Dec

$ 587,750 $ 622,410 $ 650,230
$ 548,750 $ 496,500 $ 606,000
$ 39,000 $ 125,910 $ 44,230
$ (79,040) $ (40,040) $ 85,870
$ (40,040) $ 85,870 $ 130,100
$ 15,000 $ 15,000 $ 15,000
$ 55,040 $ - $ -
$ - $ 70,870 $ 115,100
ns or funds (ex: notes payable) if additional financing is needed.
able securities.