Corporate Finance Analysis Case
Autor: mikaaa3 • September 15, 2016 • Course Note • 1,089 Words (5 Pages) • 1,077 Views
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Assignment 1
Corporate Financial Analysis
Members:Chang Lu, Chang Guo, Houpu Liu, Pujin An, Lianran Zeng
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1.From the form 1, we can easily distinct between profits and cash requirements.
| 1994 | 1995 |
EBIT | 126 | 155 |
depreciation | 0 | 0 |
tax | 16 | 22 |
increase in accounts receivable | 105 | 195 |
increase in inventory | 95 | 155 |
increase in accounts payable | 127 | 36 |
increase in accrued expenses | 3 | 30 |
Net cash flow from operating activities | 40 | -151 |
increase in Net PPE | 29 | 126 |
Net cash flow from investing activities | -29 | -126 |
interest payment | -42 | -56 |
increase in notes payables | 60 | 357 |
increase in long term debt | -20 | -20 |
dividend payment | 0 | 0 |
increase in common stock | 0 | 0 |
Net cash flow from Financing Activities | -2 | 281 |
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9 | 4 |
Form 1
Report of Clarkson Lumber Company
1.Indurstry Analysis
From form 2, we can compare different kinds of indices for Clarkson Lumber Company to indices for industrial level.
| Low- Profit Outlets | High-Profit Outlets | Clarkson Lumber Company |
Percent of sales: |
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|
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Cost of goods | 76.90% | 75.10% | 75.77% |
Operating expense | 22.00% | 20.60% | 20.80% |
Cash | 1.30% | 1.10% | 1.19% |
Accounts receivable | 13.70% | 12.40% | 11.25% |
Inventory | 12.00% | 11.60% | 11.27% |
Fixed assets, net | 12.10% | 9.20% | 7.19% |
Total assets | 39.10% | 34.30% | 30.91% |
Percent of Total Assets | |||
Current liabilities | 52.70% | 29.20% | 59.16% |
Long-term liabilities | 34.80% | 16.00% | 11.45% |
Equity | 12.50% | 54.80% | 29.38% |
Current ratio | 1.31 | 2.52 | 1.30 |
Return on sales | -0.70% | 4.30% | 1.70% |
Return on assets | -1.80% | 12.20% | 5.51% |
Return on equity | -14.30% | 22.10% | 18.76% |
Form 2
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