a tell you? e. 3-19 Start with the partial model in the file Ch03 Build a Model.xlsx from the textbook's website. Build a Model: Joshua & White (J&W) Technologies's financial statements are also shown below. Answer the Ratio Analysis following questions. (Note: Industry average ratios are provided in Ch03 Build a Model.xlsx.) Has J&Ws liquidity position improved or worsened? Explain. b. Has J&Ws ability to manage its assets improved or worsened? Explain. c. How has J&Ws profitability changed during the past year? d. Perform an extended DuPont analysis for J&W for 2014 and 2015. What do these results Perform a common size analysis. What has happened to the composition (that is, per- centage in each category) of assets and liabilities? f. Perform a percentage change analysis. What does this tell you about the change in prof- itability and asset utilization? Joshua & White Technologies: December 31 Balance Sheets (Thousands of Dollars) Assets 2015 2014 Liabilities & Equity 2015 2014 Cash $ 21,000 $ 20,000 Accounts payable S 33,600 $ 32.000 Short-term investments 3.759 3,240 Accruals 12.600 12.000 Accounts receivable 52 500 48,000 Notes payable 19.929 6.480 Inventories 84 100 556.02 Total current 6129 5050 al Joshua & White Technologies: December 31 Balance Sheets (Thousands of Dollars) Assets 2015 2014 Liabilities & Equity 2015 2014 Cash $ 21,000 $20,000 Accounts payable $ 33,600 $ 32,000 Short-term investments 3,759 3,240 Accruals 12,600 12,000 Accounts receivable 52,500 48,000 Notes payable 19,929 6,480 Inventories 84,000 56,000 Total current liabilities 66,129 50,480 Total current assets 161,259 127,240 Long-term debt 67,662 58,320 Net fixed assets 218,400 200,000 Total liabilities 133,791 108,800 Total assets $379,659 $327,240 Common stock 183,793 178,440 Retained earnings 62.075 40,000 Total common equity 245,868 218,440 Total liabilities & equity $379,659 S327 240 Joshua & White Technologies December 31 Income Statements (Thousands of Dollars) 2015 2014 Joshua & White Technologies December 31 Income Statements (Thousands of Dollars) 2015 2014 Sales COGS excluding depr. & amort. Depreciation and amortization Other operating expenses EBIT Interest expense EBT Taxes (40%) Net income Common dividends $420,000 300,000 19,660 27,600 72,740 5,740 67,000 26,800 S40,200 $400,000 298,000 18,000 22,000 62,000 4,460 57,540 23,016 $ 34,524 S 18.125 $ 17,262 2015 2014 Other Data Year-end stock price Number of shares (thousands) Lease payment (thousands of dollars) Sinking fund payment (thousands of dollars $ 90.00 4,052 S20,000 5,000 $ 96.00 4,000 $ 20,000 $ 5.000
