Finance Questions

Please see the attached file.

You need to show your working for your answers.
1. The Sally Corporation's income statement is given below.
Sally Corporation
Sales.......................................$250,000
Cost of Goods Sold....................... 145,000
Gross Profit.................................105,000
Fixed Charges (other than interest)...... 25,000
Income before interest and taxes...........80,000
Interest.........................................20,000
Income before taxes......................... 60,000
Taxes (35%)................................... 21,000
Income after taxes............................$39,000
a. What is Sally's Time-Interest-Earned Ratio?
b. What is the Fixed-Charge-Coverage Ratio? Go to investopedia.com. Formula is given.
c. What is the Net Profit Margin?
d. What is the Gross Profit Margin?

2. Given the following information, prepare, in good form, an income statement for the Dental Drilling Company as of December 31, 2003.

Selling and administrative expense $ 60,000
Depreciation expense 70,000
Sales 470,000
Interest expense 40,000
Cost of goods sold 140,000
Taxes 45,000

3. Database Systems is considering expansion into a new product line. Assets to support expansion will cost $500,000. It is estimated that Database can generate $1,200,000 in annual sales, with a 6 percent profit margin. What would net income and return on assets (investment) be for the year?

4. For ABC Corporation as of December 31, 2002 prepare a Balance Sheet in proper order based on the following information.

Arrange the following items in proper balance sheet presentation.Accumulated depreciation $300,000Retained earnings 96,000Cash 10,000Bonds payable 136,000Accounts receivable 48,000Plant and equipment?original cost 680,000Accounts payable 35,000Allowance for bad debts 6,000Common stock $1 par, 100,000 shares outstanding 100,000Inventory 66,000Preferred stock, $50 par, 1,000 shares outstanding 50,000Marketable securities 20,000Investments 20,000Notes payable 33,000Capital paid in excess of par (common stock) 88,000

5. The cash account for Presley Corporation shows the following for the year ended December 31,2006.

Beginning cash balance . . . . . . . . . . $ ?
Cash receipts during year from:
Services . . . . . . . . . . . . . . . . . . . . . 2,214,000
Investments by owners . . . . . . . . . 93,000
Sale of land . . . . . . . . . . . . . . . . . . 194,000
Cash payments during year for:
Operating expenses . . . . . . . . . . . . 1,735,000
Taxes . . . . . . . . . . . . . . . . . . . . . . 207,000
Purchase of building . . . . . . . . . . . 352,000
Distributions to owners . . . . . . . . . 68,000
Ending cash balance . . . . . . . . . . . . . 815,000

Required:
Prepare a statement of cash flows for Presley Corporation for the year ended December 31,2006.