12. Challenge Problem Below are financial statements for Eastnorth Manufacturing. After computing the ratios we discussed in this chapter, discuss strong and weak points of Eastnorths performance.

a 13e1f5f79c1 7331 679e7acff44938753b65/Downloads/ronald- umelich. Balance Sheets for INDUSTRY 2017 2016 2015 December 31 2017 2016 2015 Cah and maeketable securities $25,000 $20,000 $16000 100,000 80,0 56000 25,000 100,00080,000 230,000 200,000 152000 Cash and marketable securities 530,000 $25,000 52000 110,000 90000 0 Girois plant and equipment Lex acumelaodl depreciation -100,00 225,0 2) Total current aet 75,0005.00Glross plant and equi 100.000 30,000 30,000 240.000 195000 160ooD 25000 22000 200.00 200,000 150.0O 150,000 Leas accumulated depreciation -100,000 65,00050.0o 50.000 50000 50,000 Net plant and eqapment150.000 133000 IS00 50,00 50.000 50,000 200,000 205,000 200,000 Total fixed assets 250,000 200000 200,000) 500, $100,000) $152,000 Total fixed assets $440.000 $400,000 sHo0o LIABILITIES AND EQUITY 578000 $65.tms5xp0 LABILITIES AND Equ rTY $38,000 550,000 $45,000 4,000 10,000 10,000 OXX 25,00025,000 42000 100,000 9300 Total current abilities 08,000100,000 95,000 2.000 20,000 15.000 $1400 S1200XX) $110000 100,000 280,000 250000 Long-term debt 140.000 100.001 71 Total current liablities 282,000 $200,00 5164,000 Long-term debt 50,000 50,0x0) $50,000 S1 par, S0000 shares) 100,000 ) 100,00 68,000 $0,000 38,00 Total liabelities and eqaty 218,000 200,000 188,000 Income Statements for INDUSTRY Total stoclholders' equity Total liablibes and equity $$00,000 SOOO00 5352,000 Years Ended December 312017 2016 2015 51,100,000 $1.000.000 5900o0o Ycars Ended December 31 2017 700.000 650,000 600,000 $700,000 $600,00X) $5.40,000 $400,000 $350,000 5300,000 450,000375,0x) 338,000 225,000 202000 Operating ex 143,000 135,000 130,000 85,000 80,000 70,000 4,000 40,000 36,000 125,000 95000 64,000 15,000 15,000 14,000 5,000 95,000 95J0 6000 50,000 45,000 25.000 20,00015.000 74.000 60,000 47.000 4,000 10,000 7x0 60.000 50JXX) 40,(XX) 24,000 20,00) 000 36,000 $30,00) $2400O Number of shares outstanding 50,00 ) 0000 laterest Lncome before 44,000 3220,000 Lncome tases (407) a 13e1f5f79c1 7331 679e7acff44938753b65/Downloads/ronald- umelich. Balance Sheets for INDUSTRY 2017 2016 2015 December 31 2017 2016 2015 Cah and maeketable securities $25,000 $20,000 $16000 100,000 80,0 56000 25,000 100,00080,000 230,000 200,000 152000 Cash and marketable securities 530,000 $25,000 52000 110,000 90000 0 Girois plant and equipment Lex acumelaodl depreciation -100,00 225,0 2) Total current aet 75,0005.00Glross plant and equi 100.000 30,000 30,000 240.000 195000 160ooD 25000 22000 200.00 200,000 150.0O 150,000 Leas accumulated depreciation -100,000 65,00050.0o 50.000 50000 50,000 Net plant and eqapment150.000 133000 IS00 50,00 50.000 50,000 200,000 205,000 200,000 Total fixed assets 250,000 200000 200,000) 500, $100,000) $152,000 Total fixed assets $440.000 $400,000 sHo0o LIABILITIES AND EQUITY 578000 $65.tms5xp0 LABILITIES AND Equ rTY $38,000 550,000 $45,000 4,000 10,000 10,000 OXX 25,00025,000 42000 100,000 9300 Total current abilities 08,000100,000 95,000 2.000 20,000 15.000 $1400 S1200XX) $110000 100,000 280,000 250000 Long-term debt 140.000 100.001 71 Total current liablities 282,000 $200,00 5164,000 Long-term debt 50,000 50,0x0) $50,000 S1 par, S0000 shares) 100,000 ) 100,00 68,000 $0,000 38,00 Total liabelities and eqaty 218,000 200,000 188,000 Income Statements for INDUSTRY Total stoclholders' equity Total liablibes and equity $$00,000 SOOO00 5352,000 Years Ended December 312017 2016 2015 51,100,000 $1.000.000 5900o0o Ycars Ended December 31 2017 700.000 650,000 600,000 $700,000 $600,00X) $5.40,000 $400,000 $350,000 5300,000 450,000375,0x) 338,000 225,000 202000 Operating ex 143,000 135,000 130,000 85,000 80,000 70,000 4,000 40,000 36,000 125,000 95000 64,000 15,000 15,000 14,000 5,000 95,000 95J0 6000 50,000 45,000 25.000 20,00015.000 74.000 60,000 47.000 4,000 10,000 7x0 60.000 50JXX) 40,(XX) 24,000 20,00) 000 36,000 $30,00) $2400O Number of shares outstanding 50,00 ) 0000 laterest Lncome before 44,000 3220,000 Lncome tases (407)