Income statement for the period ending Dec 31, 2013 net sales:Heckle-$12,560,000
ID: 2484659 • Letter: I
Question
Income statement for the period ending Dec 31, 2013 net sales:Heckle-$12,560,000, Jeckle- $25,210,000 Costs and expenses: cost of goods sold: Heckle- $6,142,000, Jeckle-$14,834,000 selling expenses:Heckle- $4,822,600, Jeckle-7108200 administrative expenses: Heckle- $986000, Jeckle-2,434,000 total costs and expenses:Heckle- 11950600, Jeckle- 24376200 income from operations: Heckle- 609400, Jeckle- 833800 interest expense: Heckle- 194000, Jeckle- 228000 income before income taxes: Heckle- 415400, Jeckle-605800 income taxes expense: Heckle- 200000, Jeckle- 300000 net income: Heckle- 215400, Jeckle- 305800
------------------------------------------------------ Balance sheet
Dec 31, 2013 Assets Cash: Heckle-80000, Jeckle-192400 Marketable securities at cost: Heckle- 203400, Jeckle-84600 accounts receivable,net: Heckle- 552800, Jeckle-985400 inventory: Heckle- 629800, Jeckle-1253400 prepaid expenses: Heckle- 54400, Jeckle-114000 property, plant, and equipment,net: Heckle- 2,913,600, Jeckle- 6,552,000 intangibles and other assets: Heckle- 553200, Jeckle-144800 total assets: Heckle- 4987200, Jeckle- 9326600 Liabilities and stockholder's equity Accounts Payable: Heckle- 344000, Jeckle- 572600 notes payable: Heckle- 150000, Jeckle- 400000 income taxes payable: Heckle-50200, Jeckle- 73400 bonds payable: Heckle- 2,000,000, Jeckle- 2,000,000 Common stock, $20 par: Heckle- 1,000,000, Jeckle- 600,000 Paid in Capital: Heckle- 609800, Jeckle- 3568600 retained earnings: Heckle- 833200, Jeckle- 2,112,000 total liabilities and stockholders equity: Heckle- 4987200, Jeckle- 9,326,600 During the year, Heckle paid a total of $50,000 in dividends. The market price per share of its stock is currently $60. In comparison, Jeckle paid a total of $114,000 in dividends, and the current market price of its stock is $76 per share. Heckle had net cash flows from operations of $271,500 and net capital expenditures of $625,000. Jeckle had net cash flows from operations of $492,500 and net capital expenditures of $1,050,000. Information for prior years is not readily available. Assume that all notes payable are current liabilities and all bonds payable are long term liabilities and that there is no change in inventory.
Prepare a Liquidity Analysis by calculating for each company the cash flow yield: a)Cash flows to sales b) Cash flows to assets c) Free cash flows
Can someone help me please?
How do I prepare a Liquidity Analysis?
Thank you.
Explanation / Answer
Liquidity analysis Heckle Jeckle Cash Flow Yiels is =Net Cash flow from operating activities/Net Income 1.26 1.61 271500/215400 492500/305800 Cash Flow To sales Net cash flow from operating activities/Sales 0.022 0.020 271500/12560000 492500/25210000 Cash Flow To Assets Net cash flow from operating activities/Average Total assets 0.054 0.053 271500/4987200 492500/9326600 Free Cash Flow=Cash From Operating Activities-Dividend-Net capital Expenditure -403500 -671500 271500-50000-625000 492500-114000-1050000 Rounded off to two and three decimal