23:36 0 0 2005 HD FSAL - Read-only 18 Rea... > II QUESTION 18 Com O Coorde in They padech and whether and martie INSTRUCTION 1 2. rings beter become 2017 and 2010 What can you can.com 4 Mere DuPont Arhite (2017 cartera w terapie wwwwwwwwwwww wwwwwww where Tedirglow you go, way do you how to invest in ruter to any of your The COMPANY Balance Sheet YEARSUWANE 42 13 www LU IF L 199 ID BORE Ow 23:36 0 9 0 926 HDMI Rea... The GDE COMPANY Balance Shear CM OC we TEST an 191 Day at LO TE Low LA COM I. V LA ESTE Boule M TT TIF BRIT The ECOWY Income Statement RET TE WS head BLIR we 16 LTH M LIH SH - tom Pre The ARS COMPANY Balance Sheet NOVE Cho NET HIS 1. Do 29 AU 2 of 5 T! LONG 23:36 0 9 0 HD Rea... THE COMPANY Balance Sheet HIM www LLIG 2. 20 NO AP w! CH 21 LAN 40 LO . RS w I Towww.my The ABS COMMY Income Statement YEAR SUL YEAR TE ISIS OS Bw 191 OEM 27 3318 www LM 5.000 TI RIT LE Te coscow Balance Sheet ARSE PA www 23:36 0 0 2499 HDMI FSAL - Read-only Rea. The CWY Balance Sheet YEAR . ww www A wy Q. he The COS COMPANY Income Statement II The as Cowy Balance Sheer YEAH FASTE CA AL cm 23:36 HD BEE Rea... The COS COMPANY Income Statement PAWA ME Conec Gwen Swat . . Teas Y Balance Sheet NA YE SHIE Com | com . www hos w Low ces for free TAI COUPINY Income talent TLARI Code GA Rohde end 5 of 5 1011 Words Rea... QUESTION ABS Company and CDS Company are all household appliance companies. They have similar products and share the same market. Their balance sheets and income statements are listed below. INSTRUCTION 1. Prepare the common size balance sheet and income statement for ABS and CDS company respectively. 2. Please figure out corresponding financial ratios for the two companies for the year 2017 and 2018 respectively. 3. What can you get from the common size balance sheets and the income statements of the two companies? 4. Please evaluate liquidity, solvency, profitability and assets utilization for the two companies respectively. 5. Please make DuPont Analysis for the two companies respectively. (Year 2017 and 2018). 6. Please describe the advantages and disadvantages of the financial position and operating results for the two companies respectively. If possible, show your opinions of the improvement of their assets structures and capital structures to help them get a better financial position 7. According to materials you get, which company do you choose to invest in (or rather not choose any of them)? Please give your reasons. The CDS COMPANY Balance Sheet (Millions of $) YEAR 2018 YEAR 2017 YEAR 2016 4.875 12,239 2,147 600 19,861 4,986 11,073 2086 380 18.525 5,012 6,400 2,036 300 13,748 Current Assets Cash and Cash Equivalents Accounts Receivable (net) Inventories Prepaid Expenses Total Current Assets Long-term Investments Net property, plant and Equipment Net Intangible Assets Other Assets Total Long-term Assets 1,874 15,000 8,000 1.234 26,108 650 14,000 8,800 0 23,450 0 14,000 9,600 0 23,600 Total Assets 45.969 41.975 37.348 2,011 1,083 926 858 346 154 2,120 7,498 3,025 1,013 874 651 357 104 3,000 9,204 4,045 1,908 1,023 990 42 324 1.200 9,532 Current Liabilities Short-term Debt Accounts Payable Sales Taxes Payable Income Taxes Payable Accrued Wages Payable Dividends Payable Short-Term Notes Payable Total Current Liabilities Long-Term Liabilities Long-Term Bonds Payable Mortgage Payable Total Long-Term Liabilities Total Liabilities Owners' Equity Owner's Investment Retained Earnings Total Owners' Equity Total Liabilities and Owners' Equity 8, 882 2.300 11.182 6,488 1.300 7.788 5,638 4.300 9.938 1.8680 16,992 19,470 19,665 7.624 2.7289 19,665 5.318 24,983 13,665 3.213 17,878 45,969 41,975 37,348 The CDS COMPANY Income Statement Sales Cost of Goods Sold Gross Profit on Sales Selling, General and Administrative Expenses Research and Development Expenses Other Expenses Income from Operations Other Income and Expenses Income Before Interest and Taxes Interest Expenses Income Before Taxes Provision for Taxes Net Income YEAR 2018 29,105 18,867 10,238 2,666 1.802 1,008 4,762 598 4,164 846 3,318 858 2.460 YEAR 2017 28,184 17,277 10,907 2,986 1,986 1,211 4,724 1.100 3,624 764 2,860 651 2.209 YEAR 2016 29,924 17,094 12,830 2,808 2,000 1,680 6,342 1.200 5,142 2,090 3,052 623 2.429 (Millions of $) YEAR 2017 YEAR 2016 The ABS COMPANY Balance Sheet YEAR 2018 Current Assets Cash and Cash Equivalents 3409 Accounts Receivable (net) 6087 Inventories (net) 2652 Prepaid Expenses 4065 Total Current Assets 16.213 Long-term Investments 2,763 Net property, plant and Equipment 17050 Net Intangible Assets 8,030 Other Assets 1,009 Total Long-term Assets 28.852 3.986 4,073 4,098 3.246 15,403 4,212 4,219 4,509 2.622 15,562 2,650 16,940 8,800 2010 30,400 2.802 16,540 9,570 1,031 29,943 Total Assets 45,065 45,803 45,505 10,011 6,086 1087 1230 1492 333 20.239 9020 4900 1200 1320 1512 0 17.952 6,890 5,210 980 1,020 1,503 212 15.815 Current Liabilities Short-term Debt Accounts Payable Sales Taxes Payable Income Taxes Payable Accrued Wages Payable Dividends Payable Total Current Liabilities Long-Term Liabilities Long-Term Bonds Payable Mortgage Payable Total Long-Term Liabilities Total Liabilities Owners' Equity Owner's Investment Retained Earnings Total Owners' Equity Total Liabilities and Owners' Equity 9, 482 3.300 12.782 10,488 6.600 17088 10,200 9.600 19,800 33,021 35040 35,615 8,605 3.439 12.044 8,605 2.158 10.763 8,605 1.285 9. 890 45,065 45,803 45,505 = The ABS COMPANY Income Statement Sales Cost of Goods Sold Gross Profit on Sales Selling, General and Administrative Expenses Research and Development Expenses Other Expenses Income from Operations Other Income and Expenses Income Before Interest and Taxes Interest Expenses Income Before Taxes Provision for Taxes Net Income YEAR 2018 31098 14,547 16,551 4,026 3,802 654 8,069 130 7,839 2,357 5,582 1,230 4,352 YEAR 2017 32.184 16092 16092 3,002 4.006 1.211 7,873 310 7,563 1.961 5,602 1.320 4.282 YEAR 2016 28,940 15,786 13,154 3.821 4.924 692 3,717 441 3,276 1.987 1,289 348 941 (Common Size) YEAR 2017 YEAR 2016 1. The CDS COMPANY Balance Sheet YEAR 2018 Current Assets Cash and Cash Equivalents Accounts Receivable (net) Inventories Prepaid Expenses Total Current Assets Long-term Investments Net property, plant and Equipment Net Intangible Assets Other Assets Total Long-term Assets Total Assets Current Liabilities Short-term Debt Accounts Payable Sales Taxes Payable Income Taxes Payable Accrued Wages Payable Dividends Payable Short-Term Notes Payable Total Current Liabilities Long-Term Liabilities Long-Term Bonds Payable Mortgage Payable Total Long-Term Liabilities Total Liabilities Owners' Equity Owner's Investment Retained Earnings Total Owners' Equity Total Liabilities and Owners' Equity The CDS COMPANY Income Statement (Common Size) YEAR 2018 YEAR 2017 YEAR 2016 Sales Cost of Goods Sold Gross Profit on Sales Selling, General and Administrative Expenses Research and Development Expenses Other Expenses Income from Operations Other Income and Expenses Income Before Interest and Taxes Interest Expenses Income Before Taxes Provision for Taxes Net Income (Common Size) YEAR 2017 YEAR 2016 The ABS COMPANY Balance Sheet YEAR 2018 Current Assets Cash and Cash Equivalents Accounts Receivable (net) Inventories Prepaid Expenses Total Current Assets Long-term Investments Net property, plant and Equipment Net Intangible Assets Other Assets Total Long-term Assets Total Assets Current Liabilities Short-term Debt Accounts Payable Sales Taxes Payable Income Taxes Payable Accrued Wages Payable Dividends Payable Short-Term Notes Payable Total Current Liabilities Long-Term Liabilities Long-Term Bonds Payable Mortgage Payable Total Long-Term Liabilities Total Liabilities Owners' Equity Owner's Investment Retained Earnings Total Owners' Equity Total Liabilities and Owners' Equity The ABS COMPANY Income Statement (Common Size) YEAR 2018 YEAR 2017 YEAR 2016 Sales Cost of Goods Sold Gross Profit on Sales Selling, General and Administrative Expenses Research and Development Expenses Other Expenses Income from Operations Other Income and Expenses Income Before Interest and Taxes Interest Expenses Income Before Taxes Provision for Taxes Net Income 23:36 0 0 2005 HD FSAL - Read-only 18 Rea... > II QUESTION 18 Com O Coorde in They padech and whether and martie INSTRUCTION 1 2. rings beter become 2017 and 2010 What can you can.com 4 Mere DuPont Arhite (2017 cartera w terapie wwwwwwwwwwww wwwwwww where Tedirglow you go, way do you how to invest in ruter to any of your The COMPANY Balance Sheet YEARSUWANE 42 13 www LU IF L 199 ID BORE Ow 23:36 0 9 0 926 HDMI Rea... The GDE COMPANY Balance Shear CM OC we TEST an 191 Day at LO TE Low LA COM I. V LA ESTE Boule M TT TIF BRIT The ECOWY Income Statement RET TE WS head BLIR we 16 LTH M LIH SH - tom Pre The ARS COMPANY Balance Sheet NOVE Cho NET HIS 1. Do 29 AU 2 of 5 T! LONG 23:36 0 9 0 HD Rea... THE COMPANY Balance Sheet HIM www LLIG 2. 20 NO AP w! CH 21 LAN 40 LO . RS w I Towww.my The ABS COMMY Income Statement YEAR SUL YEAR TE ISIS OS Bw 191 OEM 27 3318 www LM 5.000 TI RIT LE Te coscow Balance Sheet ARSE PA www 23:36 0 0 2499 HDMI FSAL - Read-only Rea. The CWY Balance Sheet YEAR . ww www A wy Q. he The COS COMPANY Income Statement II The as Cowy Balance Sheer YEAH FASTE CA AL cm 23:36 HD BEE Rea... The COS COMPANY Income Statement PAWA ME Conec Gwen Swat . . Teas Y Balance Sheet NA YE SHIE Com | com . www hos w Low ces for free TAI COUPINY Income talent TLARI Code GA Rohde end 5 of 5 1011 Words Rea... QUESTION ABS Company and CDS Company are all household appliance companies. They have similar products and share the same market. Their balance sheets and income statements are listed below. INSTRUCTION 1. Prepare the common size balance sheet and income statement for ABS and CDS company respectively. 2. Please figure out corresponding financial ratios for the two companies for the year 2017 and 2018 respectively. 3. What can you get from the common size balance sheets and the income statements of the two companies? 4. Please evaluate liquidity, solvency, profitability and assets utilization for the two companies respectively. 5. Please make DuPont Analysis for the two companies respectively. (Year 2017 and 2018). 6. Please describe the advantages and disadvantages of the financial position and operating results for the two companies respectively. If possible, show your opinions of the improvement of their assets structures and capital structures to help them get a better financial position 7. According to materials you get, which company do you choose to invest in (or rather not choose any of them)? Please give your reasons. The CDS COMPANY Balance Sheet (Millions of $) YEAR 2018 YEAR 2017 YEAR 2016 4.875 12,239 2,147 600 19,861 4,986 11,073 2086 380 18.525 5,012 6,400 2,036 300 13,748 Current Assets Cash and Cash Equivalents Accounts Receivable (net) Inventories Prepaid Expenses Total Current Assets Long-term Investments Net property, plant and Equipment Net Intangible Assets Other Assets Total Long-term Assets 1,874 15,000 8,000 1.234 26,108 650 14,000 8,800 0 23,450 0 14,000 9,600 0 23,600 Total Assets 45.969 41.975 37.348 2,011 1,083 926 858 346 154 2,120 7,498 3,025 1,013 874 651 357 104 3,000 9,204 4,045 1,908 1,023 990 42 324 1.200 9,532 Current Liabilities Short-term Debt Accounts Payable Sales Taxes Payable Income Taxes Payable Accrued Wages Payable Dividends Payable Short-Term Notes Payable Total Current Liabilities Long-Term Liabilities Long-Term Bonds Payable Mortgage Payable Total Long-Term Liabilities Total Liabilities Owners' Equity Owner's Investment Retained Earnings Total Owners' Equity Total Liabilities and Owners' Equity 8, 882 2.300 11.182 6,488 1.300 7.788 5,638 4.300 9.938 1.8680 16,992 19,470 19,665 7.624 2.7289 19,665 5.318 24,983 13,665 3.213 17,878 45,969 41,975 37,348 The CDS COMPANY Income Statement Sales Cost of Goods Sold Gross Profit on Sales Selling, General and Administrative Expenses Research and Development Expenses Other Expenses Income from Operations Other Income and Expenses Income Before Interest and Taxes Interest Expenses Income Before Taxes Provision for Taxes Net Income YEAR 2018 29,105 18,867 10,238 2,666 1.802 1,008 4,762 598 4,164 846 3,318 858 2.460 YEAR 2017 28,184 17,277 10,907 2,986 1,986 1,211 4,724 1.100 3,624 764 2,860 651 2.209 YEAR 2016 29,924 17,094 12,830 2,808 2,000 1,680 6,342 1.200 5,142 2,090 3,052 623 2.429 (Millions of $) YEAR 2017 YEAR 2016 The ABS COMPANY Balance Sheet YEAR 2018 Current Assets Cash and Cash Equivalents 3409 Accounts Receivable (net) 6087 Inventories (net) 2652 Prepaid Expenses 4065 Total Current Assets 16.213 Long-term Investments 2,763 Net property, plant and Equipment 17050 Net Intangible Assets 8,030 Other Assets 1,009 Total Long-term Assets 28.852 3.986 4,073 4,098 3.246 15,403 4,212 4,219 4,509 2.622 15,562 2,650 16,940 8,800 2010 30,400 2.802 16,540 9,570 1,031 29,943 Total Assets 45,065 45,803 45,505 10,011 6,086 1087 1230 1492 333 20.239 9020 4900 1200 1320 1512 0 17.952 6,890 5,210 980 1,020 1,503 212 15.815 Current Liabilities Short-term Debt Accounts Payable Sales Taxes Payable Income Taxes Payable Accrued Wages Payable Dividends Payable Total Current Liabilities Long-Term Liabilities Long-Term Bonds Payable Mortgage Payable Total Long-Term Liabilities Total Liabilities Owners' Equity Owner's Investment Retained Earnings Total Owners' Equity Total Liabilities and Owners' Equity 9, 482 3.300 12.782 10,488 6.600 17088 10,200 9.600 19,800 33,021 35040 35,615 8,605 3.439 12.044 8,605 2.158 10.763 8,605 1.285 9. 890 45,065 45,803 45,505 = The ABS COMPANY Income Statement Sales Cost of Goods Sold Gross Profit on Sales Selling, General and Administrative Expenses Research and Development Expenses Other Expenses Income from Operations Other Income and Expenses Income Before Interest and Taxes Interest Expenses Income Before Taxes Provision for Taxes Net Income YEAR 2018 31098 14,547 16,551 4,026 3,802 654 8,069 130 7,839 2,357 5,582 1,230 4,352 YEAR 2017 32.184 16092 16092 3,002 4.006 1.211 7,873 310 7,563 1.961 5,602 1.320 4.282 YEAR 2016 28,940 15,786 13,154 3.821 4.924 692 3,717 441 3,276 1.987 1,289 348 941 (Common Size) YEAR 2017 YEAR 2016 1. The CDS COMPANY Balance Sheet YEAR 2018 Current Assets Cash and Cash Equivalents Accounts Receivable (net) Inventories Prepaid Expenses Total Current Assets Long-term Investments Net property, plant and Equipment Net Intangible Assets Other Assets Total Long-term Assets Total Assets Current Liabilities Short-term Debt Accounts Payable Sales Taxes Payable Income Taxes Payable Accrued Wages Payable Dividends Payable Short-Term Notes Payable Total Current Liabilities Long-Term Liabilities Long-Term Bonds Payable Mortgage Payable Total Long-Term Liabilities Total Liabilities Owners' Equity Owner's Investment Retained Earnings Total Owners' Equity Total Liabilities and Owners' Equity The CDS COMPANY Income Statement (Common Size) YEAR 2018 YEAR 2017 YEAR 2016 Sales Cost of Goods Sold Gross Profit on Sales Selling, General and Administrative Expenses Research and Development Expenses Other Expenses Income from Operations Other Income and Expenses Income Before Interest and Taxes Interest Expenses Income Before Taxes Provision for Taxes Net Income (Common Size) YEAR 2017 YEAR 2016 The ABS COMPANY Balance Sheet YEAR 2018 Current Assets Cash and Cash Equivalents Accounts Receivable (net) Inventories Prepaid Expenses Total Current Assets Long-term Investments Net property, plant and Equipment Net Intangible Assets Other Assets Total Long-term Assets Total Assets Current Liabilities Short-term Debt Accounts Payable Sales Taxes Payable Income Taxes Payable Accrued Wages Payable Dividends Payable Short-Term Notes Payable Total Current Liabilities Long-Term Liabilities Long-Term Bonds Payable Mortgage Payable Total Long-Term Liabilities Total Liabilities Owners' Equity Owner's Investment Retained Earnings Total Owners' Equity Total Liabilities and Owners' Equity The ABS COMPANY Income Statement (Common Size) YEAR 2018 YEAR 2017 YEAR 2016 Sales Cost of Goods Sold Gross Profit on Sales Selling, General and Administrative Expenses Research and Development Expenses Other Expenses Income from Operations Other Income and Expenses Income Before Interest and Taxes Interest Expenses Income Before Taxes Provision for Taxes Net Income