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3. On "Ratio Analysis" worksheet, calculate the financial ratios listed. o A couple of the ratios are not in the text, but we covered in class. . How would you evaluate SeaThru Surfboards using the YOY changes and industry average ratios for 2021 listed in the spreadsheet? o Do you see any trends? Can you think of a way to correct any problems or discrepancies that may exist? B D E F G 2020 2021 2020 2021 1,040 2,904 6,218 10.162 644 3,812 5,910 10.366 Current Liabilities Accounts payable Accruals Notes payable Total Current Llabilities 1,704 60 826 2,590 1,872 418 858 3,148 Long-term debt 6,234 5,000 19,088 20,066 Owner's Equity Common stock and paid in surplus Retained Eamings Total Equity 20,000 426 20,426 20,000 2,284 22,284 1 Sea Thru Surfboards 2 Balance Sheets as of December 31 3 4 5 Assets 6 Current Assets 7 Cash Accounts receivable 9 Inventory 10 Total Current Assets 11 12 Fixed Assets 13 Net plant and 14 equipment 15 16 17 18 19 20 Total assets 21 22 23 SeaThru Surfboards, Inc. 24 Income Statement 25 26 Sales 27 Cost of goods sold 28 Depreciation 29 Eamings before interest and taxes 30 Interest paid Taxable income 32 Taxes (34%) 33 Net Income 34 35 Dividends 36 Addition to retained eamings 37 38 39 Shares outstanding 40 Price per share 41 After-Tax Cost of Capital 29,250 30.432 Total Debt and Equity 29 250 30.432 2,020 20,160 7,020 1,170 11,970 1,000 10,970 3,730 7,240 2,021 22,400 7,800 1,300 13,300 1,170 12,130 4,124 8,006 31 6,148 1,092 6,148 1,858 10,000 $12 10% 10,000 $14 10% Financial Statements Cash Flow Ratio Analysis Common-sized Growth Rates 0 F Den PM RAPOA CROC ORO 16 - 0 LES tar . PE MO TA De They 200 . AN Ariai 10 - A A PI 9 Wap Test General BIU- A ill Merge Center $ %) card RIA Font Conditional Format Cel Formatting Table Styles insert - 2 Delete El Format CH Alignment XVF ber E G A Sea Thru Surfboards 2 Ratio Analysis H 1 t M 0 2020 Tenden 12 10 + Luty Durat Quick to Dwys Payables standing Asset Management 0 Wwe Tume 11 Cayo Sales Outstanding Faed Amor 13 Tot aturave Analysis 78 380 23 SON 450 20.0% 2009 430 15 Pro Gro Marge Opening Pos Margin OPM 18 Net Prof Margin PM Ratum on AR ROA) 21 Rebum on ERO) - Patum en invested CROC 23 Operating RO (aming Power 2 Der Management 76 Debt40-Capitaatio Dobdo- Eute Tiram (THE 20 Mare Value PE 22 MB ratio EVEBITDA Dulont Analys Nel Profil Total Asset Tumor Equity More RDI 300 30 250 30 2009 13 AFN Financial Statements Growth Rates Ratio Analysis Commons Cash Flow 3. On "Ratio Analysis" worksheet, calculate the financial ratios listed. o A couple of the ratios are not in the text, but we covered in class. . How would you evaluate SeaThru Surfboards using the YOY changes and industry average ratios for 2021 listed in the spreadsheet? o Do you see any trends? Can you think of a way to correct any problems or discrepancies that may exist? B D E F G 2020 2021 2020 2021 1,040 2,904 6,218 10.162 644 3,812 5,910 10.366 Current Liabilities Accounts payable Accruals Notes payable Total Current Llabilities 1,704 60 826 2,590 1,872 418 858 3,148 Long-term debt 6,234 5,000 19,088 20,066 Owner's Equity Common stock and paid in surplus Retained Eamings Total Equity 20,000 426 20,426 20,000 2,284 22,284 1 Sea Thru Surfboards 2 Balance Sheets as of December 31 3 4 5 Assets 6 Current Assets 7 Cash Accounts receivable 9 Inventory 10 Total Current Assets 11 12 Fixed Assets 13 Net plant and 14 equipment 15 16 17 18 19 20 Total assets 21 22 23 SeaThru Surfboards, Inc. 24 Income Statement 25 26 Sales 27 Cost of goods sold 28 Depreciation 29 Eamings before interest and taxes 30 Interest paid Taxable income 32 Taxes (34%) 33 Net Income 34 35 Dividends 36 Addition to retained eamings 37 38 39 Shares outstanding 40 Price per share 41 After-Tax Cost of Capital 29,250 30.432 Total Debt and Equity 29 250 30.432 2,020 20,160 7,020 1,170 11,970 1,000 10,970 3,730 7,240 2,021 22,400 7,800 1,300 13,300 1,170 12,130 4,124 8,006 31 6,148 1,092 6,148 1,858 10,000 $12 10% 10,000 $14 10% Financial Statements Cash Flow Ratio Analysis Common-sized Growth Rates 0 F Den PM RAPOA CROC ORO 16 - 0 LES tar . PE MO TA De They 200 . AN Ariai 10 - A A PI 9 Wap Test General BIU- A ill Merge Center $ %) card RIA Font Conditional Format Cel Formatting Table Styles insert - 2 Delete El Format CH Alignment XVF ber E G A Sea Thru Surfboards 2 Ratio Analysis H 1 t M 0 2020 Tenden 12 10 + Luty Durat Quick to Dwys Payables standing Asset Management 0 Wwe Tume 11 Cayo Sales Outstanding Faed Amor 13 Tot aturave Analysis 78 380 23 SON 450 20.0% 2009 430 15 Pro Gro Marge Opening Pos Margin OPM 18 Net Prof Margin PM Ratum on AR ROA) 21 Rebum on ERO) - Patum en invested CROC 23 Operating RO (aming Power 2 Der Management 76 Debt40-Capitaatio Dobdo- Eute Tiram (THE 20 Mare Value PE 22 MB ratio EVEBITDA Dulont Analys Nel Profil Total Asset Tumor Equity More RDI 300 30 250 30 2009 13 AFN Financial Statements Growth Rates Ratio Analysis Commons Cash Flow
