College of Administrative and Financial Sciences

Assignment 1

Principles of Finance (FIN101)

Deadline for students: (25/02/2022@ 23:59)




Course Name: Principles of Finance


Student’s Name:
Course Code: FIN101 Student’s ID Number:
Semester: 2nd CRN: 24794
Academic Year: 1443/1444 H, Second Semester



For Instructor’s Use only

Instructor’s Name: Bandar Almutairi
Students’ Grade: /5 Level of Marks: High/Middle/Low



· This assignment is an individual assignment.

· The Assignment must be submitted only in WORD format via the allocated folder.

· Assignments submitted through email will not be accepted.

· Students are advised to make their work clear and well presented. This also includes filling in your information on the cover page.

· Students must mention question numbers clearly in their answers.

· Late submitted assignments will NOT be entertained.

· Avoid plagiarism; the work should be in your own words; copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.

· All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).


Submissions without this cover page will NOT be accepted.


Assignment Questions: (Marks: 05)


Q1. XZY has net sales of 5,320,140; net income of 2,145,700; cost of goods sold 1,300,000; and EBIT 2,200,000. Calculate the gross profit and the operating profit margin for the firm. (Show your calculations) (1 Mark)- Ch 4

Q2. Prepare a common sized Balance Sheet for the below Balance sheet? (Show your calculations) (1 Mark)- Ch 4

Cash 21,000
Acct/Rec 52,000
Inventories 200,500
Current assets 273,500
Net fixed assets 132,000
Total assets 405,500
Accts/Pay 22,800
Accrued expenses 21,000
Short-term N/P 8,700
Current liabilities 52,500
Long-term debt 150,000
Total liabilities 202,500
Owner’s equity 203,000
Total liabilities and owners’ equity 405,500


Q3. ABC company generated total sales of $32,565,420 during fiscal 2021. Depreciation and amortization for the year totaled $1,278,120, and cost of goods sold was $21,400,000. Interest expense for the year was $6,341,250 and selling, general, and administrative expenses totaled $2,556,610 for the year. If the company’s tax rate was average 30 percent, what is its net income after taxes? (Show your calculations) (1 Mark)- Ch 3

Q4. BBB company had cash and marketable securities worth $400,134 accounts payables worth $2,490,357, inventory of $1,321,500, accounts receivables of $2,188,128, short-term notes payable worth $120,000, other current liabilities of 200,000, and other current assets of $521,800. What is the company’s net working capital? (Show your calculations) (1 Mark)-Ch 3

Q5. In your own words, explain the difference between Brokers and Dealers? (Show your calculations) (1 Mark)-Ch 2

Assignment – Principles Of Finance