3. What has happened to the cash balance in the past year? Show your formula showing the (increase/decrease). (1pt) Answer: 4. What are the two major drivers of cash for the year and what does that suggest is happening within the operation of the business? (2pts) Answer: 5. What are the two major reductions for cash and what does that suggest is happening within the operations of the business? (2pts) Answer: 6. Complete a margin analysis for South Bridge Industries and answer the questions below. (3pts) 7. What does the change you calculated for the Gross Margin indicate about the operation of the business for the period? Discuss actions you might take to improve this margin. (2pts) Answer: 8. What does the change in the Operating Margin you calculated indicate about the operation of the business for this period? Discuss possible reasons for the change and actions to monitor the situation moving forward. (2pts) Answer: 9. What does the change in the Net Margin you calculated indicate about the operation of the business? Discuss why is it a different from the operating margin change? (2pts) Answer: 10. Complete the following table using the information from the profit and loss statement and the balance sheet for South Bridge Industries. (2pts) - Calculate the return on assets and return on equity for the year 2021. - Calculate the change between the two periods. (Please take your answers out to two decimal points.) Return on Equity 12.28% 11. Define what the Return on Assets indicates for the business. Discuss what happened to the Return on Assets by identifying the drivers that caused the change between 2020 and 2021? (2pts) Answer: 12. Define what the Return on Equity indicates for the business. Discuss happened to Return on Equity by identifying the drivers that caused the change between 2020 and 2021? (2pts) Answer: 13. Now that we have determined there might be an operational issue, efficiency ratios should be used to further drill down into the data. Use the South Bridge Industries Balance sheet and Profit and Loss to find the amounts needed to complete the worksheet below and calculate the efficiency ratios and working capital for 2021. (9pts) - Make sure to label your answers appropriately. - Calculate the ratios using 360 days for the year rather than 365 days. This follows the methodology of the textbook. - Round to the nearest whole number for currency numbers only, others should be taken to the second decimal number. Assignment: South Bridge Industries Ratio Analysis-(60pts) Two week case over Chapters 10, 11, \& 12 Directions: - This two week case will use the following two year financial statements including the balance sheets and profit and loss statements for South Bridge Industries. - Additional data will be given for 2022 when needed to answer questions. - It is expected that the answers to analysis questions throughout the case will have brief explanations in full sentences. - When formulas are used or amounts are pulled from the financial statements, it is always good to double check the amounts and your calculations. - Label your answers correctly to avoid confusion between numbers and currency. - All green boxes should be completed for the assignment. 1. Complete the following change in accounts worksheet to assist with creating the indirect 2. Create South Bridge's 2021 Indirect Cash Flow Statement in the table below. (4pts)
