1.2 1.3 1.4 Comment on what your view as weaknesses in performance of the company in the year 2013 as compared to 2012. Perform Dupont analysis for 2012 and 2013. At the end of 2013, the firm has 5,000 shares of common stock outstanding with for $15 each. What were the firm's EPS, P/E, and market-to-book ratio? Carver Industries Balance Sheets for December 31, 2012 and 2013 2012 2013 Cash 11,250 650 Account receivable 15,625 20,800 Inventories 36,250 59,150 Total current assets 63,125 80,600 Land 25,000 33,800 Building & equipment 87,500 130,000 Less: Accumulated depreciation (35,000) (49,400) Total fixed assets 77,500 114,400 Total assets 140,625 195,000 Account payable 13,125 28,600 Short-term bank notes 21,250 61,100 Total current liabilities 34,375 89,700 Long-term debt 35,938 29,835 Common stock 39.375 40,950 Retained earnings 30,938 34,515 Common equity 70.313 75,465 Total debt & equity 140,626 195,000 Carver Industries Income Statements Years Ending December 31, 2012 and 2013 2013 2012 Sales (all credit) 187,500 400,000 Cost of goods sold (112,500) (240,000) Gross profit 75,000 160,000 Operating expenses Fixed cash operating expenses (31,500) (52,500) Variable operating expenses (18,750) (40,000) Depreciation expense (6,750) (25,000) Total operating expenses (57,000) (117,500) Earnings before interest & taxes 18,000 42,500 Long-term debt 35,938 29,835 Common stock 39,375 40,950 2/2 Retained earnings 30,938 34,515 Common equity 70,313 75,465 Total debt & equity 140,626 195,000 Carver Industries Income Statements Years Ending December 31, 2012 and 2013 2013 2012 Sales (all credit) 187,500 400,000 Cost of goods sold (112,500) (240,000) Gross profit 75,000 160,000 Operating expenses Fixed cash operating expenses (31,500) (52,500) Variable operating expenses (18,750) (40,000) Depreciation expense (6,750) (25,000) Total operating expenses (57,000) (117,500) Earnings before interest & taxes 18,000 42,500 Interest expense (5,719) (9,094) Earnings before taxes 12,281 33,406 Taxes (6,141) (16,703) Net income 6,140 16,703 The End