increase to $ 2,000,000 to help finance the plant expansion and add $ 1,137,150 to other LT debt.. You will now have balance sheets for 2015 and 2016 for ICS Manufacturing.
Using the 2015 and 2016 financials for ICS, complete the following – show calculations and / or numbers you used to derive your answer:
3. ICS wants to take around $ 400,000 of its cash and invest in marketable securities. They anticipate receiving around $ 7.5 % interest on their investment and would like to have it held for 10 years. What will be the FV of this $ 400,000 investment?
4. ICS believes they will only gain a 6 % return on their $ 400,000 investment. Using the Rule of 72, how many years will it take to double their investment?
5. ICS plans on expanding their plant and will fund $ 2,000,000. Part of the funding will come from cash, but the balance of $ 775,000 will be financed. The interest rate will be 5 % and ICS plans on borrowing the funds for 4 years. Prepare a loan amortization schedule for the 4 years with 5 % interest for the $ 775,000 and assume making one payment per year. Show the schedule.
6. Using your 2015 / 2016 Income Statement and Balance Sheet, add a column for percentage of total. Compute the percentages for each line item for the financial statements. For the 2015 Income Statement, what is the percentage of COGS as compared to total sales? Is this figure reasonable and what is COGS and why is it important to a company?
7. Financial Ratios provide information to analyze a company’ s performance. Solve the following ratios for 2015 and 2016 using the