Start with the partial model in the file Ch07 P15 Build a Model.xlsx from the textbook’s Web site. Joshua & White (J&W) Technology’s financial statements are also shown here. Answer the following questions.

a. Has J&W’s liquidity position improved or worsened? Explain.

b. Has J&W’s ability to manage its assets improved or worsened? Explain.

c. How has J&W’s profitability changed during the last year?

d. Perform an extended DuPont analysis for J&W for 2017 and 2018. What do these results tell you?

e. Perform a common size analysis. What has happened to the composition

(that is, percentage in each category) of assets and liabilities?

f. Perform a percentage change analysis. What does this tell you about the change in profitability and asset utilization?

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3,759 Inventories Total current assets Net fixed assets Total assets 52,500 84,000 56,000 Joshua & White Technology: December 31 Balance Sheets (Thousands of Dollars) Assets Cash Short-term investments Accounts receivable 2018 2017 Liabilities & Equity $ 21,000 $20,000 Accounts payable 2018 2017 $ 33,600 $ 32,000 3,240 Accruals 12,600 12,000 48,000 Notes payable 19,929 6,480 Total current liabilities $ 66,129 $ 50,480 $161,259 $127,240 Long-term debt 67,662 58,320 218,400 200,000 Total liabilities $133,791 $108,800 $379,659 $327,240 Common stock 183,793 178,440 Retained earnings 62,075 40,000 Total common equity $245,868 $218,440 Total liabilities & equity $379,659 $327,240