Construct an income statement

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Question: Jaedan Industries has the following account balances as of December 31, 2010. The firm's dividend payout ratio is 25% and the tax rate is 34%. The firm's stock price on December 31, 2009, was $42.89 and on December 31, 2010, it was $56.82. Instructions:

1. Construct an income statement

2. Construct a balance sheet

3. Construct a Statement of Retained Earnings

4. Construct Statement of Cash flows

5. Determine the firm's free cash flow

6. Calculate liquidity

7. Calculate activity debt

8. Calculate profitability

9. Calculate market ratios

10. Perform a DuPont analysis

11. Compare the firm to the industry ratios (reference Table 2.5 provided)

12. Highlight any financial strengths and weaknesses that Jaedan Industries may have 

Reference no: EM1342968

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