3/26/23, 7:53 PM
Module 1 Homework
Question 2
Correct
Mark 1.17 out of 1.17
Formulating Financial Statements from Raw Data and Calculating Ratios
Following is selected financial information from Five Below for its fiscal year ended February 2, 2019 ($ thousands).
Noncash assets, end of year
$700,516 Stockholders' equity, end of year
$615,094
Cash from investing activities
(39,472) Cash from financing activities
(5,582)
Cash, end of year
251,748 Total assets, beginning of year
695,708
Total liabilities, end of year
337,170 Cost of goods sold (COGS)
994,478
Revenue
1,559,563 Cash, beginning of year
112,669
Stockholders' equity, beginning of year
458,558 Total expenses, other than COGS and income tax
Cash from operating activities
184,133 Income tax expense
373,278
42,162
Required
a. Prepare the income statement for the year ended February 2, 2019.
Note: Do not use negative signs with any of your answers.
Five Below
Income Statement ($ thousands)
For the year ended February 2, 2019
Revenues

$
1,559,563 
Cost of goods sold

994,478 
Gross profit

565,085 
Expenses

373,278 
Income before taxes

191,807 
Income tax expense

42,162 
Net income
$

149,645 
b. Prepare the balance sheet as of February 2, 2019.
Five Below
Balance Sheet ($ thousands)
February 2, 2019
Cash

$
251,748  Liabilities

$
337,170 
Noncash assets

700,516  Stockholders' equity

615,094 
Total assets
$

952,264  Total liabilities and equity
$

952,264 
c. Prepare the statement of cash flows for the year ended February 2, 2019.
Note: Use a negative sign with your answer to indicate cash was used by activities and/or a decrease in cash.
Five Below
Statement of Cash Flow ($ thousands)
For the year ended February 2, 2019
Cash from operating activities

$
184,133 
Cash from investing activities
(39,472) 
Cash from financing activities
(5,582) 
Net increase (decrease) in cash

139,079 
Cash beginning year

112,669 
Cash ending year
$

251,748 
d. Compute ROA.
e. Compute profit margin (PM).
f. Compute asset turnover (AT).
g. Compute ROE.
Notes:
Round ROA, PM, & ROE to one decimal place (ex: 10.5%)
Round Asset turnover to two decimal places (0.33)
ROA
18.2 % 
PM
9.6 % 
AT
1.89 
ROE
27.9 % 
https://mybusinesscourse.com/platform/mod/quiz/review.php?attempt=7710861&cmid=425366&page=1#
1/2
3/26/23, 7:53 PM
Module 1 Homework
Five Below
Income Statement ($ thousands)
For the year ended February 2, 2019
Revenues
$1,559,563
Cost of goods sold
994,478
Gross profit
565,085
Expenses
373,278
Income before taxes
191,807
Income tax expense
42,162
$149,645
Net income
Five Below
Balance Sheet ($ thousands)
February 2, 2019
Cash
$251,748 Liabilities
Noncash assets
Total assets
700,516 Stockholders' equity
$337,170
615,094
$952,264 Total liabilities and equity $952,264
Five Below
Statement of Cash Flow ($ thousands)
For the year ended February 2, 2019
Cash from operating activities
$184,133
Cash from investing activities
(39,472)
Cash from financing activities
(5,582)
Net increase (decrease) in cash $139,079
Cash beginning year
Cash ending year
112,669
$251,748
d. 18.2%
ROA = Net income / Average assets
e. 9.6%
PM = Net income / Revenue
f. 1.89
AT = Revenue / Average assets
g. 27.9%
ROE = Net income / Average equity
https://mybusinesscourse.com/platform/mod/quiz/review.php?attempt=7710861&cmid=425366&page=1#
2/2