8. Mason Mount, Inc. Financial Statements Income Statement for the Year ended January 31: & Statement of Financial Position as at January 31: (Kwachas in Thousands) 2021 2020 2019 2018 Net Sales Cost of Sales Gross Profit 6,039,750.00 5,452,010.00 3,362,910.00 3,573,070.00 3,135,730.00 2,616,710.00 1,903,480.00 2,466,680.00 2,316,280.00 1,941,350.00 1,459,430.00 4,558,060.00 Selling, General & Administrative Expenses(including depreciation) 2,221,540.00 Income from Operations 245,140.00 1,849,100.00 1,434,860.00 1,076,990.00 467,180.00 506,490.00 382,440.00 Other Income (Expenses): Interest and other income 14,470.00 19,510.00 27,250.00 14,410.00 Interest Expense (10,180.00) (13,990.00) (12,320.00) (13,750.00) Income Before Taxes 249,430.00 472,700.00 521,420.00 383,100.00 Income Tax provision (102,000.00) (181,990.00) (198,600.00) (162,080.00) Net Income 147,430.00 290,710.00 322,820.00 221,020.00 Required: a) Prepare a common size Income Statement for the years 2018,2019,2020 and 2021 and comment on the developments in the major profit indicators. b) Using ratio analysis, Explain the developments in the liquidity of Mason Mount Inc over the four-year period. c) With the aid of DU-Pont Analysis, analyze the changes in return on equity from 2018 to 2021 (Kwachas in Thousands) 2021 2020 2019 2018 Assets Current Assets Cash & Cash Equivalents 272,640.00 82,540.00 321,390.00 281,750.00 Receivables Inventory 12,090.00 738,630.00 3,480.00 7,550.00 2,740.00 857,090.00 668,200.00 464,440.00 Prepaid Expenses 54,880.00 54,030.00 39,670.00 33,630.00 Total Current Assets 1,078,240.00 997,140.00 1,036,810.00 782,560.00 Property, Plant & Equipment (at Cost) Land & Buildings 531,270.00 383,350.00 312,670.00 151,140.00 Fixtures and Fittings 476,460.00 411,230.00 251,920.00 219,740.00 Leasehold Improvements 16,460.00 15,120.00 12,340.00 9,080.00 Construction in Progress 46,370.00 32,800.00 6,740.00 Less Accumulated Depreciation (248,430.00) (183,890.00) (135,020.00) (99,470.00) Property, Plant & Equipment, net 775,760.00 672,180.00 474,710.00 287,230.00 Total Assets 1,854,000.00 1,669,320.00 1,511,520.00 1,069,790.00 Liabilities and Stockholders' Equity Current liabilities: Accounts Payables 377,970.00 244,150.00 259,040.00 212,223.00 Advance Payments on orders 4,460.00 2,030.00 3,500.00 4,530.00 Income Taxes Payable 70,800.00 53,020.00 103,970.00 53,940.00 Other Current Obligations 154,510.00 139,950.00 148,790.00 117,900.00 Total current liabilities 607,740.00 439,150.00 515,300.00 388,593.00 78,000.00 84,130.00 76,740.00 86,670.00 Long-Term Debt Stockholders' Equity Common stock: Shares at par 2,010.00 2,010.00 2,000.00 Additional Capital, net 311,360.00 307,810.00 293,080.00 2,000.00 223,080.00 Retained Earnings 983,810.00 875,160.00 624,400.00 341,666.00 Less Treasury Stock, at Cost (128,920.00) (38,940.00) Total Stockholders' Equity 1,168,260.00 1,146,040.00 919,480.00 566,746.00 Total Liabilities and Equity 1,854,000.00 1,669,320.00 1,511,520.00 1,042,009.00 MBA 921/2022