a. Use the spreadsheet to calculate as many of the companys profitability, turnover-control, and leverage and liquidity ratios as you can for these years (2017-2022) (See Table 2.4 on the next page. You do not have to calculate these ratios: price to earnings, times burden covered, debt to assets (market value), and debt to equity (market value)).
b. What do these ratios suggest about the companys performance over this period?
Sales Cast of Goods Sold Cross Profit Selling, General, & Administrative Exp. Operating Income Before Deprec. Depreciation & Amortization Operating Profit Interest Expense Pretax Income Total Income Taxes Net Income AQUATIC SUPPLIES CO. INCOME STATEMENT (5 millions) Actual 2017 2018 2019 582.762 652.693 731.017 240.828 254.550 285.096 341.934 398.143 445.920 257.507 319.820 358.198 84427 78323 87.722 25.221 29371 32.896 59 206 48.952 54.826 16.430 18.636 18.801 42.776 30 316 36.025 14.971 10.611 12.609 27.805 19.705 23.416 Forecast 2020 818.739 319.308 499.431 401.182 98.249 36.843 61.405 18.841 42.564 14.897 27.667 2021 916.987 357.625 559362 449 324 110.038 41 264 68.774 18.733 50.041 17.514 32.527 2022 1,027.026 400 540 626.486 503 243 123.243 46.216 77.027 18.446 58.581 20.503 38.078 BALANCE SHEET (5 millions) ASSETS Cash & Equivalents Account Receivable Inventories Prepaid Expenses Other Current Assets Total Current Assets Net Property, Plant, & Equipment Intangible Assets Other Assets TOTAL ASSETS 7.152 70.538 39.033 9339 27.076 153.138 81.648 9.415 24.642 268.843 13.054 84.850 32.635 9339 39.162 179.039 97.904 9.415 32.635 318.993 14.620 95.032 36.551 9339 43.861 199.403 109.652 9.415 36.551 355.022 16.375 106.436 40.937 9339 49.124 222.211 122.811 9.415 40.937 395.374 18.340 119.208 45.849 9339 55.019 247.756 137.548 9.415 45.849 440.568 20.541 133513 51351 9339 61.622 276.366 154.054 9.415 51351 491.186 LIABILITIES Accounts Payable Accrued Expenses Other Current Liabilities Total Current Liabilities Long Term Debt Accrued Wages Total Liabilities 36.951 31.206 3.663 71.820 157.720 21.418 250.958 39.162 32.635 3.663 75.459 186.363 19.581 281.403 43.861 36.551 3.663 84.075 188,010 21.930 294.015 49.124 40.937 3.663 93.724 188.414 24.562 306.701 55.019 45.849 3.663 104.532 187.327 27.510 319368 61.622 51351 3.663 116.636 184.462 30.811 331.908 EQUITY Common Stock Capital Surplus Retained Earnings Less: Treasury Stock Total Equity 1.702 55.513 118.729 158.059 17.885 1.702 55.513 138.434 158.059 37.590 1.702 S5.513 161.851 158.059 61.007 1.702 55.513 189517 158.059 88.673 1.702 55.513 222.044 158.059 121 200 1.702 55.513 260.122 158.059 159 278 TOTAL LIABILITIES & EQUITY 268.843 318.993 355.022 395.374 440.568 491.186
