Financial Management Finance Case Analysis Needs To Be Completed By April 8th, 2025

This assignment involves a case analysis that will require financial management math equations to be completed. The assignment will require forecasted statements to be completed. They will include the following: Income statement, balance sheet, required external financing needed, and key financial ratios (ROE, interest coverage ratio, etc.). This requires a Microsoft Excel spreadsheet(s) for the analysis to be provided. Documents with additional information will be attached. The assignment will need to be completed on or before the due date (4/8/25). Please have great experience with these equations before bidding and don’t bid if you won’t have time to work solely on this assignment to ensure the deadline is met. 

You must show all computations and attach your spreadsheet(s). Your spreadsheet(s) must enable me to follow your work. 

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Exhibit 1

–

($000s except earnings per share)

2007

2009

,131

,250

02

$89

.

																																									Flash Memory, Inc.
Exhibit 1 Income Statements, Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper				2007				2009
			2008
Net sales	$	77	$80,953		$	89
	Cost of goods sold	$62,519	$68,382	$72,424
Gross margin	$14,612	$12,571	$16,826
	Research and development	$3,726	$4,133	$4,416
	Selling, general and administrative	$6,594	$7,536	$7,458
Operating income	$4,292		$9	$4,952
	Interest expense	$480		$652	$735
	Other income (expenses)	-$39	-$27	-$35
Income before income taxes	$3,773	$223	$4,182
Income taxes (a)	$1,509	$1,673
Net income	$2,264	$134	$2,509
Earnings per share	$	1.52	$		0.09	$	1.68
(a) In years 2007 and after, Flash’s effective combined federal and state income tax rate was	4				0%

Exhibit 2

2007
2008
2009

$652

(b)

1

$9

$15
$15
$15

$7,980
$7,980

$27,939
$31,420
$35,120

1,491,662
1,491,662

of the taxes due

Flash Memory, Inc.
Exhibit 2 Balance Sheets, 2007 – 2009 ($000s except number of shares outstanding)
December 31,
	Cash	$2,536	$2,218	$2,934
	Accounts receivable	$10,988	$12,864	$14,671
	Inventories	$9,592	$11,072	$11,509
	Prepaid expenses	$309	$324	$357
Total current assets	$23,425	$26,478	$29,471
	Property, plant & equipment at cost	$5,306	$6,116	$7,282
Less:	Accumulated depreciation	$792	$1,174	$1,633
Net property, plant & equipment	$4,514	$4,942	$5,649
Total assets		$27,939		$31,420		$35,120
	Accounts payable	$3,084	$4,268	$3,929
Notes payable (a)	$6,620	$8,873	$10,132
	Accrued expenses	$563	$591
	Income taxes payable				$15	$167
	Other current liabilities	$478	$502	$554
Total current liabilities	$10,896	$14,243	$15,434
Common stock at par value
Paid in capital in excess of par value			$7,980
Retained earnings	$9,048	$9,182	$11,691
Total shareholders’ equity	$17,043	$17,177	$19,686
Total liabilities & shareholders’ equity
Number of shares outstanding			1,491,662
(a) Secured by accounts receivable.
(b) To avoid a penalty for underpayment of income taxes, Flash made equal estimated tax payments quarterly on the 15th of
April, June, September, and December of each year. The total of these four quarterly payments was required to equal at
least the lesser of (a) 90% of the taxes that would actually be incurred in the same year, or (b)				100%
on income of the prior year.
For informational purposes only:
Notes payable / accounts receivable	60.2%	69.0%	69.1%
Notes payable / shareholders’ equity	38.8%	51.7%	51.5%
Notes payable / total capital	28.0%	34.1%	34.0%

Exhibit 3

Flash Memory, Inc.

Cost of goods sold

.10% of sales

Research and development

Selling, general and administrative

Interest expense

Other income (expenses)

Cash

Accounts receivable

Inventories

Prepaid expenses

Property, plant & equipment at cost

Accumulated depreciation

Accounts payable

of cost of goods sold

Accrued expenses

Income taxes payable

Other current liabilities

Exhibit 3 Key Forecasting Assumptions and Relationships for 2010 Through 2012
Line Item	Assumption or Ratio
	81
5.0% of sales
8.36% of sales
Beginning of year debt balance × interest rate
$50,000 of expense each year
3.3% of sales
60 days sales outstanding
52 days of cost of good sold
0.4% of sales
Beginning PP&E at cost + capital expenditures
Beginning A/D + 7.5% of beginning PP&E at cost
30 days of purchases
Purchases		60%
0.73% of sales
10% of income taxes expense
0.62% of sales

Exhibit 4

Flash Memory, Inc.

Flash Memory, Inc.

2007
2008
2009

2007
2008
2009
30-Apr-10 (a)

77
81
89

1.52
0.09
1.68

—
—

—
—
—

n/a
n/a

1.492
1.492

%

28%

34%

40%

66%

60%

n/a

Sales ($ millions)

EPS ($)

0.09

Dividend per share ($)
—
—
—

—
—
—

Closing stock price ($)

Shares outstanding (millions)

Book Value per share ($)

ROE

Capitalization (book value)

Debt

21%

0%
0%
0%
0%

Equity

78%

100%
100%
100%
100%

Beta coefficient

1.00

Exhibit 4 Selected Financial Information for Flash Memory, Inc., and Selected Competitors, 2007 through 2009
Micron Technology
	30-Apr-10 (a)
	Sales ($ millions)	5,688	5,841	4,803
	EPS ($)	-0.42	-2.10	-2.29	1.46
	Dividend per share ($)												—
	Closing stock price ($)				n/a	7.25	2.64	10.56	9.35
	Shares outstanding (millions)			1.492	769.1	772.5	800.7	847.6
	Book Value per share ($)	11.43	11.52	13.20	10.08	8.00	5.81	6.61
	ROE	13.	28%	0.	78%	12.75%	-4.13%	-26.	21%	-39.43%	2	1.00
	Capitalization (book value)
	Debt		34%	24%	31%	33%
	Equity	72%		66%	76%	69%	67%
	Beta coefficient	1.25
SanDisk Corporation	STEC, Inc.
3,986	3,351	3,567	189	227	354
0.84	-8.82	1.83	3.71	0.20	1.47	1.29
33.17	9.60	28.99	39.84	8.74	4.26	16.34	13.90
227.7	225.3	227.4	229.3	49.8	50.0	49.4	50.3
22.64	15.27	17.18	18.13	3.72	3.63	5.65	5.48
3.70%	-57.74%	10.63%	17.87%	5.40%	2.36%	26.06%	18.90%
15%	22%	19%
85%	79%	81%
1.36
(a) Security analyst estimates for year-end EPS $ and Return on Equity; actual data on April 30, 2010, for all other items.