Answer in 10 minutes for a thumbs up!!! NO NEED EXPLANATION..... 1. Recalculate RNOA for each firm for 2023 using the Advanced DuPont Framework but exclude cash.
2. Bonus: Which financial statement line item for Corbin Corp. should make investors nervous? (type the name of the line item exactly as it appears in the financial statements provided)
You have recently inherited $100,000 and are
Income Statement
Corbin 2021 2022 2023 $100,000 $150,060 $59,000 $76,000 $50,000 $75,000
Brandon 2021 2022 2023 $100,000 $150,000 $225,000 $50,000 $75,000 $112,500 $50,000 $75,000 $112,500
2023 $25,000 $112,530 $112,500
Sales Cost of goods sold Gross Profit Operating expenses: Research and development Selling, general and administrative Interest Expense Total operating expenses Operating income Income before provision for income taxes Provision for income taxes Net income
5,000 10,000 10,000 25,000 25,000 25,000 6,250 13,700
7,500 16,000 11,200 39,756 41,216 41,216 16,386 30,986
11,256 22,500 2,000 45,756 66,760 66,781 16,686 30,063
5,000 10,000 10,000 25,000 25,000 25,000 6,250 18,780
7,500 15,000 7,500 30,000 45,000 45,000 11,250 33,780
11,250 22,500 5,000 38,750 73,750 73,750 18,436 55,313
Balance Sheet
Corbin 2021 2022 2023 1,000 1,000 1,000 50,000 50,000 50,000 129,000 129,000 129,000 180,000 190,000 180,000
Brandon 2021 2022 2023 110,000 110,000 110,000 0 0 0 70,000 70,000 70,000 180,000 180,000 180,000
Cash A/R PPE Total Assets
A/P Other Current Liabilities Current Debt Long Term Debt Total Equity Debt and Equity
20,000 20,000 20,000 10,000 10,000 10,000 25,000 32,500 35,000 75,000 50,000 85,000 50,000 37,500 30,000 180,000 180,000 180,000
20,000 20,000 20,000 10,000 10,000 10,000 25,000 25,000 25,000 75,000 50,000 25,000 50,000 75,000 100,000 180,000 180,000 180,000
