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A B C [ The Castillo Products Company was started in 2017. The company manufactures components for personal decision assistant (PDA) produc and for other
A B C [ The Castillo Products Company was started in 2017. The company manufactures components for personal decision assistant (PDA) produc and for other hand-held electronic products. A difficult operating year 2018 was followed by a profitable 2019. However, the founders (Cindy and Rob Castillo) are still concerned about the venture's liquidity positio and the amount of cash being used to operate the firm. Following are income statements and balance sheets for the Castillo Products Compar for 2018 and 2019. A. Use year-end data to caiculate the end of period current ratio, the quick ratio, and the net warking capital (NWC) to total assets ratio for 2018 and 2019 for the Castillo Company. What changes occurred? B. Use Castillo's complete income statement data and the changes in balance sheet items between 2018 and 2019 to determine the firm's cash build and cash burn for 2019. Did Castillo have a net cash build or net cash burn for 2019? C. Convert the annual cash build and cash burn amounts calculated in Part B to monthly cash build and cash burn rates. Also indicate the amount of the net monthly cash build or cash burn rate. D. Calculate the net profit margin in 2018 and 2019 and the sales-to-total-assets ratio using yearend data for each of the two years. E. determine the rate of return on assets in each of the two years for the Castillo Products. F.. Calculate the percentage growth in net sales from 2018 to 2019. Compare this with the percentage change in total assets for the same period. .G. Express each expense item as a percentage of net sales for both 2018 and 2019. Describe what happened that allowed Castillo Products to move from a loss to a Please Reference your calculations to these tables (the statements are provided in the calculations tab) F.. Calculate the percentage growth in net sales from 2018 to 2019. Compare this with the percentage change in total assets for the same period. .G. Express each expense item as a percentage of net sales for both 2018 and 2019. Describe what happened that allowed Castillo Products to move from a loss to a Please Reference your calculations to these tables (the statements are happened that allowed Castillo Products to move from a loss to a proft between the two years? A. Use year-end data to calculate the end of period current ratio, the quick ratio, and the net working capital (NWC) to total assets ratio for 2018 and 2019 for the Castillo Company. What changes occurred? B. Use Castillo's complete income statement data and the changes in balance sheet items between 2018 and 2019 to determine the firm's cash build and cash burn for 2019. Did Castillo have a net cash build or net cash burn for 2019? C. Convert the annual cash build and cash burn amounts calculated in Part B to monthly cash build and cash burn rates. Also indicate the amount of the net monthly cash build or cash burn rate. D. Calculate the net profit margin in 2018 and 2019 and the sales-to-totalassets ratio using yearend data for each of the two years. E. determine the rate of return on assets in each of the two years for the Castillo Products. F.. Calculate the percentage growth in net sales from 2018 to 2019. Compare this with the percentage change in total assets for the same period. .G. Express each expense item as a percentage of net sales for both 2018 and 2019. Describe what happened that allowed Castillo Products to move from a loss to a profit between the two years
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