48 bu points) STAR Corporation, a manufacturer for a range of fighting products, supplies financial information for both years 2019 and 2020 (all the numbers, except for share data are shown in thousands of dollars). Estimated cost of capital for all its financing is 10,5% STAR Corporation Income statements (s in thousands) 2019 2020 Sales $5130 $4,850 13330) 13:240) Cost of goods sold Gross profits $1,800 $1,620 Operating expenses: $(738) $(702) (306) (450) $(1,152) $(1,044) $756 $468 Selling and G&A expenses Depreciation expenses Total operating expenses Operating profits Interest expense Eamings before taxes Income taxes Net Income (180) (248) $576 $221 159) 1207 $369 $162 STAR Corporation Balance Sheets ($ in thousands) ASSETS 2019 2020 Cash $270 $446 Accounts receivable 630 824 Inventories 540 702 Other current assets 113. 144 Total current assets $1,553 $2,115 Gross fixed assets $4,185 $4.455 Accumulated depreciation (1530) (1.980) Net fixed assets $2655 $2.475 Total assets $41208 $4.590 LIABILITIES (DEBT) AND EQUITY Accounts payable $360 $576 Short-term notes payable 225 270 Total current liabilities $585 $846 Long-term debt 1125 1193 Total liabilities $1.710 $2,039 Common equity Common stock (par & paid in capital) $990 $990 Retained earnings 1598 1.562 Total common equity $2498 $2.552 Total liabilities and equity 54.209 54.520 STAR Corporation Additional information: Number of common shares outstanding: 135 135 Dividends paid to stockholders $ 108 $108 Market price per share $32,40 $16,20 Based on the topics leamt in class prepare a financial analysis of STAR Corporation and its financial performance, companing the firm's performance between 2 years. For your analysis and evaluation, please consider the following: computation of applicable financial ratios, common sized income statements and balance sheets including changes in absolute amounts & relative figures, price/earnings and market/book ratios, EVA, All percentages should be rounded to the second decimal place. Interpret your results briefly 48 bu points) STAR Corporation, a manufacturer for a range of fighting products, supplies financial information for both years 2019 and 2020 (all the numbers, except for share data are shown in thousands of dollars). Estimated cost of capital for all its financing is 10,5% STAR Corporation Income statements (s in thousands) 2019 2020 Sales $5130 $4,850 13330) 13:240) Cost of goods sold Gross profits $1,800 $1,620 Operating expenses: $(738) $(702) (306) (450) $(1,152) $(1,044) $756 $468 Selling and G&A expenses Depreciation expenses Total operating expenses Operating profits Interest expense Eamings before taxes Income taxes Net Income (180) (248) $576 $221 159) 1207 $369 $162 STAR Corporation Balance Sheets ($ in thousands) ASSETS 2019 2020 Cash $270 $446 Accounts receivable 630 824 Inventories 540 702 Other current assets 113. 144 Total current assets $1,553 $2,115 Gross fixed assets $4,185 $4.455 Accumulated depreciation (1530) (1.980) Net fixed assets $2655 $2.475 Total assets $41208 $4.590 LIABILITIES (DEBT) AND EQUITY Accounts payable $360 $576 Short-term notes payable 225 270 Total current liabilities $585 $846 Long-term debt 1125 1193 Total liabilities $1.710 $2,039 Common equity Common stock (par & paid in capital) $990 $990 Retained earnings 1598 1.562 Total common equity $2498 $2.552 Total liabilities and equity 54.209 54.520 STAR Corporation Additional information: Number of common shares outstanding: 135 135 Dividends paid to stockholders $ 108 $108 Market price per share $32,40 $16,20 Based on the topics leamt in class prepare a financial analysis of STAR Corporation and its financial performance, companing the firm's performance between 2 years. For your analysis and evaluation, please consider the following: computation of applicable financial ratios, common sized income statements and balance sheets including changes in absolute amounts & relative figures, price/earnings and market/book ratios, EVA, All percentages should be rounded to the second decimal place. Interpret your results briefly