4 5 Joshua & White Technologies: December 31 Balance Sheets 6 (Thousands of Dollars) 7 8 Assets 2021 2020 9 Cash and cash equivalents $21,000 $20,000 10 Short-term investments 3,759 3,240 11 Accounts Receivable 52,500 48,000 12 Inventories 84.000 56.000 13 Total current assets $161,259 $127,240 14 Net fixed assets 223.097 200.000 15 Total assets $294 255 $227240 16 17 Liabilities and equity 18 Accounts payable $33,600 $32,000 19 Accruals 12,600 12,000 20 Notes payable 19.929 6.480 21 Total current liabilities $66,129 $50,480 22 Long-term debt 67.662 58.320 23 Total liabilities $133,791 $108,800 24 Common stock 178,440 178,440 25 Retained Earnings 72.125 40.000 26 Total common equity $250.565 $218.440 27 Total liabilities and equity $2.84.356 $227.249 28 29 Joshua & White Technologies December 31 Income Statements 30 (Thousands of Dollars) 31 2021 2020 32 Sales $420,000 $400,000 33 COGS except excluding depr. and amor 300,000 298,000 34 Depreciation and Amortization 19,660 18,000 35 Other operating expenses 27.600 22.000 36 EBIT $72,740 $62,000 37 Interest Expense 5.740 4.460 38 $67,000 $57,540 39 Taxes (25%) 16.750 14.385 40 Net Income $24524 41 42 Common dividends $18,125 $17,262 43 Addition to retained earings $32,125 $17,262 44 45 Other Data 2021 2020 46 Year-end Stock Price $90.00 $96.00 47 # of shares (Thousands) 4,052 4,000 48 Lease payment (Thousands of Dollars) $20,000 $20,000 49 Sinking fund payment (Thousands of DI $5,000 $5,000 50 EBT $50 250 50 51 Ratio Analysis 2021 2020 Industry Ava 52 Liquidity Ratios 53 Current Ratio 2.58 54 Quick Ratio 1.53 55 Asset Management Ratios 56 Inventory Turnover (Total COGS/Inventories) 7.69 57 Days Sales Outstanding 47.45 58 Fixed Assets Turnover 2.04 59 Total Assets Tumover 1.23 60 Debt Management Ratios 61 Debt Ratio (Total debt-to-assets) 20.0% 62 Liabilities-to-assets ratio 32.1% 63 Times-interest-eamed ratio 15.33 64 EBITDA coverage ratio 4.18 65 Profitability Ratios 66 Profit Margin 8.86% 67 Basic Earning Power 19.48% 68 Return on Assets 10.93% 69 Return on Equity 16.10% 70 Market Value Ratios 71 Earnings per share NA 72 Price-to-earings ratio 10.65 73 Cash flow per share NA Price-to-cash flow ratio 7.11 Book Value per share NA 76 Market-to-book ratio 1.72 77 78 a. Has Joshua & White's liquidity position improved or worsened? Explain. 79 80 81 82 83 b. Has Joshua & White's ability to manage its assets improved or worsened? Explain. 84 74 75 85 86 87 88 89 C. How has Joshua & White's profitability changed during the last year? 90 91 92 93 d. Perform an extended Du Pont analysis for Joshua & White for each year. 94 ROE = PM TA Turnover x Equity Multiplier 95 2021 20.05% 11.96% 1.09 1.53 2020 15.80% 8.63% 1.22 1.50 96 97 98 99 100 101 141 142 f. Perform a percent change analysis. What does this tell you about the change in profitability 143 and asset utilization? 144 145 Percent Change Balance Sheets Base 146 Assets 2021 2020 147 Cash and cash equivalents 148 Short-term investments 149 Accounts Receivable 150 Inventories 151 Total current assets 152 Net fixed assets 153 Total assets 154 155 Base 156 Liabilities and equity 2021 2020 157 Accounts payable 158 Accruals 159 Notes payable 160 Total current liabilities 161 Long-term debt 162 Total liabilities 163 Common stock 164 Retained Earnings 165 Total common equity 166 Total liabilities and equity 167 Base 2020 2021 168 169 Percent Change Income Statements 170 Sales 171 COGS except excluding depr. and amort. 172 Depreciation and Amortization 173 Other operating expenses 174 EBIT 175 Interest Expense 176 EBT 177 Taxes (25%) 178 Net Income 179 180 181 182 183 184 185