1. CW Resources provided the following Statements for 2018-19

Balance Sheet 2019 2018

Assets $ $

Cash 40,000 70,000

Accounts Receivable 320,000 350,000

Inventory 460,000 320,000

Total Current Asset 820,000 740,000

Gross Fixed Assets 560,000 520,000

Accumulated Depreciation 180,000 150,000

Net Fixed Asset 380,000 370,000

Total Asset 1,200,000 1,110,000

Liabilities & Stockholders' Equity

Current Liabilities

Accounts Payable 390,000 320,000

Notes Payable 110,000 90,000

Accrued Expense 20,000 20,000

Total Current Liabilities 520,000 430,000

Debenture 320,000 350,000

Total Liabilities 840,000 780,000

Stockholders' Equity

Common Stock at par 100,000 100,000

Share Premium Reserve 150,000 150,000

Retained Earnings 110,000 80,000

Total Liabilities & Stockholders' Equity 1,200,000 1,110,000

Income Statement 2019

$

Sales 2,200,000

Cogs 1,420,000

Gross Profit 780,000

Operating Expenses, except depreciation 570,000

Depreciation 30,000

Operating Income (EBIT) 180,000

Interest 29,000

Earnings before Tax (EBT) 151,000

Tax (30%) 45,000

Earnings after Tax (Net Income) 106,000

Dividend for Preferred Stockholders 6,000

Earnings for Common Stockholders 100,000

Dividend for Common Stockholders 25,000

Retained Earnings 75,000

Required:

A) Need a Cash Flow Statement for the year 2019. (10)

B) Calculate for 2019, Free Cash Flow. (6)

C) Calculate the following Ratios for the year 2019 - (18)

Quick Ratio, Times Interest Earned Ratio, Gross Profit Margin, Debt Ratio, Return on Common

Equity (ROCE), Total Asset Turnover Ratio, Average Collection Period, Return on Assets (ROA)

& Financial Leverage Multiplier (FLM). Also, interpret the meaning of the following ratios as

calculated. (One year = 365 days)