— EXTRACT FROM FINANCIAL STATEMENTS

--- EXTRACT FROM FINANCIAL STATEMENTS ---- Alternatives, INC Balance Sheet Extract Cash & Equivalents $10,882,129 Receivables $3,992,006 Inventory $7,129,340 Total Current Assets $22,597,363 Total Non-Current Assets $12,077,141 Payables $2,321,770 Total Current Liabilities $8,289,274 Total Liabilities $14,086,000 Number of Shares Outstanding 1,165,924 Shareholders' Equity ?? Price per Share $90 Alternatives, INC Income Statement Extract Total Revenue $42,807,957 Cost of Goods Sold $29,887,793 Depreciation $744,424 Operating Expenses $13,050,115 Interest Expense $1,854,890 Earnings before Interest and Taxes ?? (EBIT) Net Income ?? Payout Ratio 50

Transcript

00:01 Hello, firstly we will calculate the total of current assets.

00:07 The current assets here are cash, short term investments, accounts receivable, notes receivables, inventory and prepaid expenses.

00:39 Now let us put the values here.

00:42 It will be 10 ,000 plus 8400 plus 29 ,200 plus 4500 plus 32150 plus 2650.

00:55 So the total current assets will be 86900.

01:00 Total assets will be current assets plus fixed assets and here in fixed assets there is only plant assets.

01:15 So we will get 86900 plus 153300.

01:20 So the total assets will be 240200.

01:25 Now we will calculate current liabilities total.

01:33 These include accounts payable, accrued wages payable and income tax payable.

01:51 So these will be 17 ,500 plus 3200 plus 3300.

01:57 So the total current liabilities will be 24 ,000.

02:00 Total debt will be current liabilities plus long -term notes payable.

02:19 So these will be 24 ,000 plus 63 ,400.

02:24 So their sum will be 87 ,400.

02:27 Total equity will be common stock plus retained earnings.

02:43 So these will be 90 ,000 plus 62 ,800.

02:48 So total equity will be 152 ,800.

02:52 Formula to calculate current ratio is current assets divided by total current liabilities.

03:13 Total current assets is 86900 and total current liabilities are 24 ,000.

03:20 So current ratio will be 3 .62.

03:24 Formula to calculate asset test ratio is total current assets minus inventory minus prepaid expense divided by total current liabilities.

03:56 So we will get 86900 minus 32150 minus 2650 divided by 24 ,000.

04:07 So asset test ratio will be 2 decimal 1 set.

04:11 Formula to calculate average collection period is total receivables divided by net credit sale multiplied with number of days.

04:34 Total receivables are 29 ,200 and 4 ,500 divided by 4 ,48 ,600 multiplied with 365.

04:46 The average collection period will be 27 decimal 42 days...

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