4. Calculate the companys inventory turnover ratio (if applicable) for both this year and the prior year. Show your computations.

This year:

Cost of goods sold = ____________ =

Average inventory

Last year: = ______________ =

Explain what information this ratio provides. Use complete sentences.

The debt to income ratio shows the proportion of equity and debt a company is using to finance its assets and signals the extent to which shareholders equity can fulfill obligations to creditors in the event of a business decline.

Has the inventory turnover ratio improved or worsened? Explain. Use complete sentences.

Evaluate the companys inventory management. In your answer, consider the type of product(s) the company makes and sells, the industry in which the company operates and the type of customer it serves. Refer to the information obtained in your research and ratio analysis.

In reviewing the asset section of the balance sheet, in which assets does the company have the most significant investment?

B) Locate the companys income statement. What is the page on which the income statement appears:_________

5. Calculate the companys gross profit percentage ratio for both this year and the prior year. Show your computations.

This year:

Gross profit = _____1189774x100______________ =35.21%

Net Sales Revenue 3378810

Last year: = ________1047963x100___________ = 33.40%

3138084

Explain what information this ratio provides. Use complete sentences.

Has the ratio improved or worsened? Explain. Use complete sentences.

6. Calculate the companys account receivable turnover ratio for both this year and the prior year. Show your computations. Note: If net credit sales is not available, use net sales.

This year:

Net credit sales = ___________________ =

Average net A/R

Last year: = ___________________ =

Explain what information this ratio provides. Use complete sentences.

Has the current ratio improved or worsened? Explain. Use complete sentences.

Comment on the trend in total revenue. Is it increasing or decreasing over the two-year period?

7. Calculate the companys days sales in receivables for both this year and the prior year. Show your computations.

This year:

365 days = ___________________ =

A/R turnover ratio

Last year: = ___________________ =

Explain what information this ratio provides. Use complete sentences.

Has the current ratio improved or worsened? Explain. Use complete sentences.

Evaluate the companys receivables collection. In your answer, consider the type of product(s) the company makes and sells, the industry in which the company operates and the type of customer it serves. Refer to the information obtained in your research and ratio analysis.

8. Calculate the companys debt to equity ratio for both this year and the prior year. Show your computations.

This year:

Total liabilities = ___________________ =

Total equity

Last year: = ___________________ =

Explain what information this ratio provides. Use complete sentences.

Has the ratio improved or worsened? Explain. Use complete sentences.

Is the company financed primarily with debt or equity? Explain using the information

obtained in your research and analysis.

Is the debt primarily short-term or long-term? Explain.

9. Calculate the companys profit margin ratio for both this year and the prior year. Show your computations.

This year:

Net income = ___________________ =

Net sales revenue

Last year: = ___________________ =

Explain what information this ratio provides. Use complete sentences.

Has the ratio improved or worsened? Explain. Use complete sentences.

10. Calculate the companys earnings per share ratio for both this year and the prior year. Show your computations.

This year:

Net income preferred dividends = ___________________ =

Weighted average number of common

shares outstanding

Last year: = ___________________ =

Explain what information this ratio provides. Use complete sentences.

Has the ratio improved or worsened? Explain. Use complete sentences

11. Compare your ratios from above to industry averages. A good site to obtain the Industry averages from is www.reuters.com From the Reuters site, click on Markets, then Stocks. Next click on the looking glass and type in your companys name. Click on the blue link for your company. Under the Financials tab your team will find the Industry ratios.

Your company Industry

Current Ratio ____________ __________

Quick Ratio ____________ __________

Debt to Equity Ratio ____________ __________

Inventory Turnover ____________ __________

Accounts Receivable Turnover ____________ __________

Gross Profit Percentage ____________ __________

Profit Margin Ratio ____________ __________

How do the results for your company compare to industry averages? Explain.

To Turn In:

1) Cover page with the following information:

a) Title: Research and Analysis of ___________ 20xx & 20xx Financial Statements

b) Course Information: ACCT 2302 and Section Number

c) Instructors name

d) Group members names

e) Date of Report

2) Research paper covering all requirements/elements listed above.

3) Copy of the financial statements from the annual report, including any pages used to calculate the accounting ratios. You may use the snipping tool and snip the necessary

2020 2019 2018 S 329,701 S 273,983 S 271,939 (11,143) 9.228 53.484 (7.663) 12,066 76,108 19 507 3,951 15,408 2.269 492 7.793 (11.948) 10,343 69,314 18,384 39,368 13.429 (6.190) 6,357 12,161 25.255 507 15,206 20,963 11.828 39.538 539.374 (11.042) (104,832) 9,747 30,458 337,371 (10,365) (29.770) (11.744) 47.460 364.805 Fiscal Year Ended October 31 Cash flows from operating activities Net earnings Adjustments to reconcile net earings to net cash provided by operating activities Non-cash income from finance affiliate Distributions from finance affiliate, net Depreciation of property, plant and equipment Amortization of other intangible assets Fair value step-up adjustment to acquired inventory Stock-based compensation expense Deferred income taxes Other Changes in operating assets and liabilities, net of the effect of acquisitions Receivables, net Inventories, net Prepaid expenses and other assets Accounts payable accrued liabilities, deferred revenue and other liabilities Net cash provided by operating activities Cash flows from investing activities Purchases of property, plant and equipment Proceeds from asset disposals Proceeds from sale of a business Investments in unconsolidated entities Acquisitions, net of cash acquired Net cast used in investing activities Cash Bows from financing activities: Borrowings under det arrangements Repayments under debt arrangements Proceeds from exercise of stock options Payments of Withholding taxes for stock awards Purchases of TTC common stock Dividends paid on ITComman stock Net cash provided by used in financing activities Effect al achangistes on cash and cushesuivalents Noticias deste cash and cash guivalent Cash and can contents as the beginning of the fiscal pened Categui alents so the end of the fiscal period Supplemental discksures of cash flow information Cashid during the fiscal year for Interest Income taxes (78,068) 216 199,124) 151 192.881) 4,669 12.941 4200) (697,471) (772.942) (138 225) (216,077) (6.750) (31,202) 127.925 636,025 546025) 32.198 12.146) 900.000 51.000) 29,336 42.662) (20.043) (46,133) 299,98 11223 1961 219,124 13 S (19.7573 17243 (4 095) 160435) 185.031 352075 107,698 22354 2411 338 06 15128 479.3925 5.937) 21.132) 310256 289,124 34,1095 69.5245 30,667 $ $4,738 19.979 7503 THE TORO COMPANY AND SUBSIDIARIES Consolidated Statements of Stockholders' Equity (Dollars in thousands, except per share data) Accumulated Other Total Common Retained Comprehensive Stockholders' Stock Earnings Loss Equity Balance as of October 31, 2017 s 106,8835 534,329 S (24,120) S 617,092 Cash dividends paid on common stock - $0.80 per share (85,031) (85,031) Issuance of 1,495,367 shares for exercised stock options and vested restricted stock units and performance share awards 1,496 14,310 15,806 Stock-based compensation expense 12,161 12,161 Contribution of stock to a deferred compensation trust 1,437 1,437 Purchase of 2,777,687 shares of common stock (2,778) (161,752) (164,530) Reclassification due to the adoption of ASU 2018-12 (141) 141 Other comprehensive income 42 42 Net earnings 271.939 271.939 Balance as of October 31, 2018 105,601 587,252 (23,937) 668,916 Cash dividends paid on common stock - 50 90 per share (96,133) (96,133) Issuance of 1,544 962 shares for exercised stock options and yested restricted stock units and performance share awards 1,545 26,387 27.932 Stock-based compensation expense 13,429 13,429 Contribution of stock to a deferred compensation trust 1.404 1,404 Purchase of 403 532 shares of common stock (404) (22.301) (22,705) Cumulative transition adjustment due to the adoption of ASU 2014-09 864 864 Other comprehensive loss 18,112) 48,112) Net earnings 273.983 273.983 Balance as of October 31, 2019 106 742 784885 (32049) 859,578 Cash dividends paid on common stock - $1.00 per share (107,698) 107,698) Issuance of 870,011 shares for exercised stock options and vested restricted stock units and performance share watch 870 18.760 19,630 Stock-based compensation expense 15,408 15,408 Contribution of stock to a deferred compensation trust 2368 2.568 Purchase of 29 422 shares of common stock (29) 2,117 12.146) Other comprehensive loss 2.213) (2.213) Net earnin 329,701 329.701 Balance as of October 312020 s 107,583101 3075 4265 1 114.828 The facilement with the Nolette Conseil cal THE TORO COMPANY AND SUBSIDIARIES Consolidated Balance Sheets (Dollars in thousands, except per share data) October 31 2020 2019 5 479,892 $ 151,828 ASSETS Cash and cash equivalents Receivables, net Customers, net of allowances (2020 - $4,586, 2019 - 3,270) Receivables from finance amiliate Other Total receivables, net Inventories, net Prepaid expenses and other current assets Total current assets Property, plant and equipment, net Goodwill Other intangible assets, net Right-of-use assets Investment in finance affiliate Deferred income taxes Other assets Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Current portion of long-term debt Accounts payable Short-term lease liabilities Accrued liabilities Warranty Advertising and marketing programs Compensation and benefit consts Insurance Interest Other Total accrued liabilities Total current liabilities Long-term debt less current portion Long-term lease liabilities Deferred income taxes Other long-term liabilities 223,105 12,619 25411 261,135 652,433 34,188 1.427.648 467,919 424 075 408,305 78.752 19,745 6,466 20318 28532285 220,534 21,873 26,361 268,768 651,663 50,632 1.122,891 437,317 362 253 352,374 24,147 6,251 25.314 2.330.547 S 99,8735 363,953 15.447 79,914 319.230 107,121 98.883 58.789 13,452 10.065 83.214 376 524 835.797 691.250 66.641 70,435 34272 96604 103.417 76,862 11,164 9.903 59.876 357,826 756,970 620899 30,579 42 521 THE TORO COMPANY AND SUBSIDIARIES Consolidated Statements of Earnings (Dollars and shares in thousands, except per share data) Fiscal Years Ended October 31 Net sales Cost of sales Gross profit Selling, general and administrative expense Operating earnings Interest expense Other income, net Earnings before income taxes Provision for income taxes Net earnings 2020 $ 3,378,810 S 2,189,036 1,189,774 763,417 426,357 (33,156) 13,869 407,070 77,369 s 329.7015 2019 2018 3,138,084 S 2,618,650 2,090,121 1,677.639 1,047.963 941,011 722,934 567,926 325,029 373,085 (28,835) (19,096) 25.939 18,408 322,133 372,397 48.150 100,458 273,9835 271 939 Basic net earnings per share of common stock s 3.06 2375 2.36 Diluted net carnings pet share of common stock s 3.035 2.53 23:50 Weighted average number of shares of common stock outstanding Basic 107,658 106,773 106,369 108.090 108,657 Weighted average number of shares of common stock outstanding - Diluted 108.663 The financial statements should be read in conjunction with the Notes to Coded Financial Sucements 2020 329,7015 2019 273.983 2018 221979 THE TORO COMPANY AND SUBSIDIARIES Consolidated Statements of Comprehensive Income (Dollars in thousands) Fiscal Years Ended October 31 Net earnings Other comprehensive income loss), net of tax Foreign currency translation adjustments, net of tax or so, s16) and (222) respectively Derivative instruments, net or tax of $12.782), 5(862) and $2.899 respectively Pension and post-retirement benefits net of tax of 545 ${1,305), and $254 respectively Other Sokkensive income one of taxi Case Teicamshould continue to it 6,517 (8,485) (13141 (2,498 (8.408) 7415 (245) 22133 3274885 4.300) .8.112 265,871 1035 12 271.981