Please complete the last three years of the financial statements using the information contained in the mini case study in the adobe attachment. Also please provide answers to the following questions.
1) In reading the case have the companys financial goals been achieved and explain why or why not?
2) Please provide some recomendations to improve the health of the company?
I am providing a word document with the sample balance sheet that needs to be used. Please create the balance sheet in excel and make sure that you provide any formulas in the spreadsheet that I will need to see how you created the balance sheet.
I am also attaching the mini case study in an adobe attachment. The case is called Desert City Roasters.
1) In reading the case have the company's financial goals been achieved and explain why or why not?
Till now the company's goals have been achieved:
This is because the goals have been to gain 10 percent increase in the dividends and to receive dividends every 3 months. Each of these goals has been achieved.
Earnings per share $0.51 $0.74 $0.91 $1.07
Dividends $307 $338 $371 $409
Now that the stockholders have made the assumption that this is a stable business, and so it should pay a higher dividend. This is not yet the company goal.
If the company accepts this as its future goal then it will have to work towards the goal.
Currently, Don in is contemplating using the stock of his company as managerial and employee compensation to motivate his employees to better financial performance. For this he needs to have his stock traded on a stock exchange, see to it that a secondary market develops and then offer his company's stock to his employees.
He has some formal financial goals that are:
Growth rate of pounds of coffee shipped in excess of 10 percent per year.
Growth in earnings per share in excess of 20 percent per year.
Return on equity greater than 20 percent.
Total Debt to Equity ratio no higher than 60 percent.
For this he has some proposals that are:
Don had already been in touch with both his commercial bankers and an investment-banking group about securing long-term financing. He was considering two ...
The narrative and accompanying Excel spreadsheet present an excellent discussion and analysis of the financial statements and the possibilities for future growth in Don's business.