Chapter 2Chapter 2Problems 2, 3, 4, 6, 7, 14, 15, 19Input boxes in tanOutput boxes in yellowGiven data in blueCalculations in redAnswers in greenNOTE: Some functions used in these spreadsheets may require that the "Analysis ToolPak" or "Solver Add-In" be installed in Excel.To install these, click on the Office button then "Excel Options," "Add-Ins" and select"Go." Check "Analyis ToolPak" and "Solver Add-In," then click "OK." #4Chapter 2Question 4Input area:SalesCostsDepreciation expenseInterest expenseTax rateCash dividendsShares outstandingOutput area:Income StatementSales$ - 0Costs-Depreciation expense- 0EBIT$ -Interest expense-EBT$ - 0Taxes (0%)-Net income$ - 0Addition to retained earnings $ - 0Earnings per share ERROR:#DIV/0!Dividends per share ERROR:#DIV/0! #6Chapter 2Question 6Input area:Taxable incomeTaxable income0 - 50,00015%50,001 - 75,00025%75,001 - 100,00034%100,001 - 335,00039%335,001 - 10,000,00034%10,000,001 - 15,000,00035%15,000,001 - 18,333,33338%18,333,334 +35%Output area:Taxes:15%$ 50,00025%(50,000)34%039%034%035%038%035%0The marginal tax rate is 15% #7Chapter 2Question 7Input area:SalesCostsDepreciation ExpenseInterest ExpenseTax rateOutput area:Income StatementSales$ - 0Costs-Depreciation expense- 0EBIT$ -Interest expense-EBT$ - 0Taxes (0%)-Net income$ - 0Operating cash flow $ - 0 #14Chapter 2Question 14Input area:SalesCostsOther expensesDepreciation expenseInterest expenseTaxesDividends2015 New equityNet new long-term debtChange in fixed assetsOutput area:Income StatementSales$ - 0Costs-Other expenses- 0Depreciation expense- 0EBIT$ -Interest expense-EBT$ - 0Taxes-Net income$ - 0Dividends$ - 0Addition to retained earnings$ - 0a.Operating cash flow $ - 0b.Cash flow to creditors$ - 0c.Cash flow to stockholders $ - 0d.Cash flow from assets $ - 0Net capital spending $ -Change in NWC $ - 0 #15Chapter 2Question 15Input area:SalesCostsAddition to retained earningsDividends paidInterest expenseTax rateOutput area:Income StatementSales$ - 0Costs-Depreciation expense$ - 0EBIT$ -Interest expense-EBT$ - 0Taxes- 0Net income$ - 0Dividends$ - 0Addition to retained earnings$ - 0 #19Chapter 2Question 19Input area:SalesCostsAdministrative and selling expensesDepreciation expenseInterest expenseTax rateOutput area:Income StatementSales$ - 0Costs-Administrative and selling expenses-Depreciation expense- 0EBIT$ -Interest expense-EBT$ - 0Taxes (0%)0a.Net income$ - 0b.Operating cash flow$ - 0c.Net income was negative because of the tax deductibility and interest expense. However, the actual cash flow from operationswas positive because depreciation is a non-cash expense andinterest is a financing expense, not an operating. The Battle of Algiers The Film: The Battle of Algiers is a 1966 Italian film directed by Gillo Pontecorvo that dramatically recreates the Algerian insurrection between 1954 and 1957. The film was shot on location and includes only one professional actor ...

1. Chapter 2Chapter 2Problems 2, 3, 4, 6, 7, 14, 15, 19Input boxes
in tanOutput boxes in yellowGiven data in blueCalculations in
redAnswers in greenNOTE: Some functions used in these
spreadsheets may require that the "Analysis ToolPak" or "Solver
Add-In" be installed in Excel.To install these, click on the
Office button then "Excel Options," "Add-Ins" and select"Go."
Check "Analyis ToolPak" and "Solver Add-In," then click
"OK."
#4Chapter 2Question 4Input area:SalesCostsDepreciation
expenseInterest expenseTax rateCash dividendsShares
outstandingOutput area:Income StatementSales$ - 0Costs-
Depreciation expense- 0EBIT$ -Interest expense-EBT$ -
0Taxes (0%)-Net income$ - 0Addition to retained earnings $
- 0Earnings per share ERROR:#DIV/0!Dividends per share
ERROR:#DIV/0!
#6Chapter 2Question 6Input area:Taxable incomeTaxable
income0 - 50,00015%50,001 - 75,00025%75,001 -
100,00034%100,001 - 335,00039%335,001 -
10,000,00034%10,000,001 - 15,000,00035%15,000,001 -
18,333,33338%18,333,334 +35%Output area:Taxes:15%$
50,00025%(50,000)34%039%034%035%038%035%0The
marginal tax rate is 15%
#7Chapter 2Question 7Input area:SalesCostsDepreciation
ExpenseInterest ExpenseTax rateOutput area:Income
StatementSales$ - 0Costs-Depreciation expense- 0EBIT$ -
Interest expense-EBT$ - 0Taxes (0%)-Net income$ -
0Operating cash flow $ - 0
#14Chapter 2Question 14Input area:SalesCostsOther
expensesDepreciation expenseInterest
expenseTaxesDividends2015 New equityNet new long-term
debtChange in fixed assetsOutput area:Income StatementSales$
- 0Costs-Other expenses- 0Depreciation expense- 0EBIT$ -
Interest expense-EBT$ - 0Taxes-Net income$ - 0Dividends$
- 0Addition to retained earnings$ - 0a.Operating cash flow $

2. - 0b.Cash flow to creditors$ - 0c.Cash flow to stockholders $
- 0d.Cash flow from assets $ - 0Net capital spending $ -
Change in NWC $ - 0
#15Chapter 2Question 15Input area:SalesCostsAddition to
retained earningsDividends paidInterest expenseTax rateOutput
area:Income StatementSales$ - 0Costs-Depreciation expense$
- 0EBIT$ -Interest expense-EBT$ - 0Taxes- 0Net income$ -
0Dividends$ - 0Addition to retained earnings$ - 0
#19Chapter 2Question 19Input area:SalesCostsAdministrative
and selling expensesDepreciation expenseInterest expenseTax
rateOutput area:Income StatementSales$ - 0Costs-
Administrative and selling expenses-Depreciation expense-
0EBIT$ -Interest expense-EBT$ - 0Taxes (0%)0a.Net
income$ - 0b.Operating cash flow$ - 0c.Net income was
negative because of the tax deductibility and interest expense.
However, the actual cash flow from operationswas positive
because depreciation is a non-cash expense andinterest is a
financing expense, not an operating.
The Battle of Algiers
The Film: The Battle of Algiers is a 1966 Italian film directed
by Gillo Pontecorvo that dramatically recreates the Algerian
insurrection between 1954 and 1957. The film was shot on
location and includes only one professional actor (French
Colonel Mathieu). Saadi Yacef, an Algerian politician and
former resistance fighter, co-produced the film and played a
character based on himself. The film received numerous critical
accolades internationally, but was not screened in France until
1971. In the years since its release, it has been
lauded/condemned for inciting violence, inspiring
revolutionaries, and in 2003, was screened at the Pentagon.
URL: https://www.youtube.com/watch?v=y-7j4WVTgWc
Instructions: Consider these questions as you watch the film.

3. Bring your responses to class for discussion.
In what ways does the Algerian resistance movement
demonstrate anti-Western/Imperialist sentiment?
We see the actions of the FLN and French paratroopers shift
over the course of the movie. How do their tactics change over
time? What are the key moments of transition?
What do both parties intend to accomplish with these tactics?
Who are they directed to serve?

4. How does the film portray torture? Is it effective? Justified?
Who sanctions it?
The film was controversial partly because some perceived it as
biased, others as objective. Are there heroes or villains in this
film?

5. How is the population of Algiers depicted in this film? What
role do they play?
Who won the Battle of Algiers?

6. Chapter 1
3. Corporations [LO3] What is the primary disadvantage of the
corporate form of organization? Name at least two advantages
of corporate organization.
11. Goal of the Firm [LO2] Evaluate the following statement:
Managers should not focus on the current stock value because
doing so will lead to an overemphasis on short-term profits at
the expense of long-term profits.
Chapter 2
4. Per-Share Earnings and Dividends [LO1] Suppose the firm
in Problem 3 had 90,000 shares of common stock outstanding.
What is the earnings per share, or EPS, figure? What is the
dividends per share figure?
9. Calculating Additions to NWC [LO4] The 2014 balance
sheet of Steelo, Inc., showed current assets of $4,630 and
current liabilities of $2,190. The 2015 balance sheet showed
current assets of $5,180 and current liabilities of $2,830. What
was the company’s 2015 change in net working capital, or
NWC?
Chapter 3

7. Calculating Inventory Turnover [LO2] The Green Corporation
has ending inventory of $417,381, and cost of goods sold for the
year just ended was $4,682,715. What is the inventory turnover?
The days’ sales in inventory? How long on average did a unit of
inventory sit on the shelf before it was sold?
7. DuPont Identity [LO4] If Roten Rooters, Inc., has an equity
multiplier of 1.15, total asset turnover of 2.10, and a profit
margin of 6.1 percent, what is its ROE?
Chapter 4
1. Pro Forma Statements [LO1] Consider the following
simplified financial statements for the Yoo Corporation
(assuming no income taxes):
The company has predicted a sales increase of 15 percent. It has
predicted that every item on the balance sheet will increase by
15 percent as well. Create the pro forma statements and
reconcile them. What is the plug variable here?
6. Calculating Internal Growth [LO3] The most recent
financial statements for Schenkel Co. are shown here:
Assets and costs are proportional to sales. Debt and equity are
not. The company maintains a constant 30 percent dividend
payout ratio. What is the internal growth rate?
Chapter 4Chapter 4Problems 5, 6, 20, 22Input boxes in
tanOutput boxes in yellowGiven data in blueCalculations in
redAnswers in greenNOTE: Some functions used in these

8. spreadsheets may require that the "Analysis ToolPak" or "Solver
Add-In" be installed in Excel.To install these, click on the
Office button then "Excel Options," "Add-Ins" and select"Go."
Check "Analyis ToolPak" and "Solver Add-In," then click
"OK."
#5Chapter 4Question 5Input area:SalesCurrent assetsCurrent
liabilitiesCostsFixed assetsLong-term debtTaxable income$ -
0Equity- 0Taxes-Total assets$ -Total$ -Net income$ -
0Payout ratioSales increaseTax rateOutput area:Pro forma
income statementPro forma balance sheetSales$ - 0Current
assets$ - 0Current liabilities$ - 0Costs- 0Fixed assets-
0Long-term debt- 0Taxable income$ - 0Equity- 0Taxes (0%)-
0Total$ - 0Total$ - 0Net income$ - 0Dividends$ - 0Add.
To RE$ - 0External financing $ - 0
#6Chapter 4Question 6Input area:SalesCurrent
assetsDebtCostsFixed assetsEquity- 0Taxable income$ -
0Total$ -Total$ -Taxes-Net income$ - 0Payout ratioTax
rateOutput area:Return on assets ERROR:#DIV/0!Retention
ratio100%Internal growth rate ERROR:#DIV/0!
#20Chapter 4Question 20Input area:Profit marginTotal asset
turnoverTotal debt ratioPayout ratioOutput area:Debt/equity
ERROR:#DIV/0!Plowback ratio1Return on
equityERROR:#DIV/0!Sustainable growth rate
ERROR:#DIV/0!
#22Chapter 4Question 22Input area:Beginning equityEnding
TANet incomeDividendsOutput area:Addition to RE$ -Ending
equity$ -Plowback ratioERROR:#DIV/0!ROE (beg.
equity)ERROR:#DIV/0!ROE (ending
equity)ERROR:#DIV/0!Exact SGRERROR:#DIV/0!ROE x b
(using beg. ERROR:#DIV/0!Equity for ROE)ROE x b (using
end ERROR:#DIV/0!Equity for ROE)