1. The following is the balance sheet and income statement of Snowbound Ski company for several years, which specializes in selling various brands of skiing

With the enterprise. Complete the following questions according to these financial statements.

A. Describe how the company's 2012 year-end income statement is reflected in the two-year balance sheet.

B. Calculate the values of the following ratios at the end of 2012 and 2013. Define each ratio, including how it is calculated, however

What do you think of each ratio, and how does it change over the two years

What changes did the snow company make?

I. Current ratio

Quick (acid test) ratio iii. Inventory turnover ratio

Iv. The Accounts receivable turnover of Accounts receivable turnover thewire

Fixed asset turnover ratio

Total asset turnover ratio

Vii. Debt-to-equity ratio

Viii. The Debt to total assets ratio

Ix. Times interest earned ratio

X. Gross profit margin ratio

Xii. Return on assets ratio

Xiii. Return on equity

C. describe what Vertical Analysis of financial statements is. And then, on the bottom balance sheet

Do a longitudinal analysis of the data at the end of 2013 and 2012 and describe your findings.

D. Describe Horizontal Analysis of financial statements. And then, for the following balance sheet

Do a cross-sectional analysis between December 31, 2012 and December 31, 2013, and describe your findings.

E. conduct a longitudinal analysis of the income statement for the end of 2013 and 2012 and describe your findings.

F. Analyze the income statement horizontally for the period from December 31, 2012 to December 31, 2013 and describe your distribution

Now.

G. Based on the above analysis results, would you consider investing in a snow company? Why is that?

Snowbound Ski Company Balance Sheet 12/31/2013 12/31/2012 ASSETS Curreat Assets Cash Accounts Receivable, net Inventory Prepaid Expenses Deferred Income taxes S1,375,000 1,013,000 1,429,000 141,000 $1,476,000 819,000 497,000 132,000 40.000 $2,964,000 47,000 S4,005,000 Total Current Assets Fixed Assets Property, Plant, and Equipment $3,174,000 $2,322,000 165,000 $2.487.000 Other Assets 180,000 S3.354.000 Total Fixed Assets S7.359000 $5451 000 TOTAL ASSETS LIABILITIES AND SHAREHOLDERSS EQUITY Curreat Liabilities s 375,000 s 302,000 97000 Accounts Payable Accrued Compensation and related costs Accrued Taxes Current Portion of Mortgage and Other Long-term Debt Total Current Liabilities 110,000 158,000 99,000 S 742,000 138,000 82.000 S 619,000 Long-term Liabilities Mortgage Payable Other Long-term Debt Total Long-term Lkabilities $1,050,000 778000 $1,828,000 S1,000,000 J630,000 $2,630,000 Shareholders' Equity Common Stock (S0.i par value: 3,500,000 shares) Paid-in-Capital in excess of par Retained Eamings Total Sharcholders' Equity S 350,000 2415,000 S 350,000 2,415,000 239.000 $3.004.000 1222.000 S3.987000 TOTAL LIABILITIES AND SHAREHOLDERS EQUITY $7359.000 S5.451000 Snowbound Ski Company Income Statement 12/31/2012 12/31/2013 Net Revenues $2,889,000 $2,751,000 5,258,000 $8,009,000 4.405.000 $3,604,000 Cash Sales Credit Sales 6046.000 $8,935,000 Total Net Revenues Cost of Goods Sold 5.361,000 $3574,000 Gress Profit erating Expenses Salaries $1,258,000 155,000 $1,183,000 116,000 Insurance 150,000 489.000 $2.052.000 Deprociation General and Administrative Expenses Total Operating Expenses 135,000 479,000 S1.913.000 Total Operating Income $1,522,000 $1,691,000 1.000 Interest Expense 10,000 Earning before Income Taxes S1512,000 $1,680,000 Income Taxes 529.000 588.000 983.000 Net Income $1092.000 Snowbound Ski Company Balance Sheet 12/31/2013 12/31/2012 ASSETS Curreat Assets Cash Accounts Receivable, net Inventory Prepaid Expenses Deferred Income taxes S1,375,000 1,013,000 1,429,000 141,000 $1,476,000 819,000 497,000 132,000 40.000 $2,964,000 47,000 S4,005,000 Total Current Assets Fixed Assets Property, Plant, and Equipment $3,174,000 $2,322,000 165,000 $2.487.000 Other Assets 180,000 S3.354.000 Total Fixed Assets S7.359000 $5451 000 TOTAL ASSETS LIABILITIES AND SHAREHOLDERSS EQUITY Curreat Liabilities s 375,000 s 302,000 97000 Accounts Payable Accrued Compensation and related costs Accrued Taxes Current Portion of Mortgage and Other Long-term Debt Total Current Liabilities 110,000 158,000 99,000 S 742,000 138,000 82.000 S 619,000 Long-term Liabilities Mortgage Payable Other Long-term Debt Total Long-term Lkabilities $1,050,000 778000 $1,828,000 S1,000,000 J630,000 $2,630,000 Shareholders' Equity Common Stock (S0.i par value: 3,500,000 shares) Paid-in-Capital in excess of par Retained Eamings Total Sharcholders' Equity S 350,000 2415,000 S 350,000 2,415,000 239.000 $3.004.000 1222.000 S3.987000 TOTAL LIABILITIES AND SHAREHOLDERS EQUITY $7359.000 S5.451000 Snowbound Ski Company Income Statement 12/31/2012 12/31/2013 Net Revenues $2,889,000 $2,751,000 5,258,000 $8,009,000 4.405.000 $3,604,000 Cash Sales Credit Sales 6046.000 $8,935,000 Total Net Revenues Cost of Goods Sold 5.361,000 $3574,000 Gress Profit erating Expenses Salaries $1,258,000 155,000 $1,183,000 116,000 Insurance 150,000 489.000 $2.052.000 Deprociation General and Administrative Expenses Total Operating Expenses 135,000 479,000 S1.913.000 Total Operating Income $1,522,000 $1,691,000 1.000 Interest Expense 10,000 Earning before Income Taxes S1512,000 $1,680,000 Income Taxes 529.000 588.000 983.000 Net Income $1092.000