AAA Public Company Limited, Balance Sheet as of December 31, ($000) Assets 2019 2020 225 ?? ?? 430 575 625 Cash Accounts receivable Inventory Current assets Plant and equipment Less: Accumulated depreciation Net plant and equipment Total assets 1,250 2,200 1,000 1,200 ?? 1,230 2,500 1,200 1,300 ?? ?? ?? 115 Liabilities and Owners' Equity Accounts payable Notes payable-current Total current liabilities L-T Debts Total Liabilities 100 250 750 230 ?? 830 ?? 150 ?? Oweners' equity Preferred stock (Par = $10) Common stock (Par = $10) Paid-in capital Retained earnings Total owners' equity Total liabilities and owners' equity 600 ?? 150 600 800 1,700 ?? 700 1,600 ?? AAA Public Company Limited, Income Statement For the year ended December 31, ($000) 2020 2019 1,250 700 ?? 250 300 1,450 875 ?? 245 330 ?? ?? Sales Cost of goods sold Gross profit Operating expenses Net operating income Interest expense Net income before taxes Taxes Net income P/S dividend Net income to C/S C/S dividend Retained earnings ?? ?? ?? ?? ?? ?? ?? 15 ?? ?? ?? ?? 40.13 ?? Additional Information Interest rate for long-term debt Tax rate P/S dividend Dividend payout to C/S Number of C/S shares outstanding Number of P/S shares outstanding c/S price in the market 10% in 2019 and 2020 35% in 2019 and 2020 10% of par in 2019 and 2020 25% in 2019 and 2020 15,000 shares in 2019 and 2020 15,000 shares in 2019 and 2020 80 in 2019 and 99 in 2020 XXX Plc. is the main competitor of AAA. XXX Plc. Selected Average Ratios Industry Average 2019 2020 6% 2020 ROA 8% 10% ROE 7.50% 7% 8% Current ratio 1.5X 2x Quick ratio 1.2x 1.75X 1.75X 50 days 60 days 22% 30 days 25% 20% Average payment period Operating profit margin Net profit margin TATO 15% 12% 17% 0.8X 1.5X 0.9X 2.5% FATO 1.5% 2.75X 10X 12x 13X P/E Debt ratio Average collection period 20% 22% 18% 50 days. 60 days 45 days Questions 1 Fill in missing numbers (income statement and balance sheet) 2 Calculate all financial ratios learnt in classes for all years 3 Perform trend, industry comparative analysis, and cross sectional analysis (where applicable) for all years 4. Analyze the company's performance and reasons behind Evaluation Criteria AAA Public Company Limited, Balance Sheet as of December 31, ($000) Assets 2019 2020 225 ?? ?? 430 575 625 Cash Accounts receivable Inventory Current assets Plant and equipment Less: Accumulated depreciation Net plant and equipment Total assets 1,250 2,200 1,000 1,200 ?? 1,230 2,500 1,200 1,300 ?? ?? ?? 115 Liabilities and Owners' Equity Accounts payable Notes payable-current Total current liabilities L-T Debts Total Liabilities 100 250 750 230 ?? 830 ?? 150 ?? Oweners' equity Preferred stock (Par = $10) Common stock (Par = $10) Paid-in capital Retained earnings Total owners' equity Total liabilities and owners' equity 600 ?? 150 600 800 1,700 ?? 700 1,600 ?? AAA Public Company Limited, Income Statement For the year ended December 31, ($000) 2020 2019 1,250 700 ?? 250 300 1,450 875 ?? 245 330 ?? ?? Sales Cost of goods sold Gross profit Operating expenses Net operating income Interest expense Net income before taxes Taxes Net income P/S dividend Net income to C/S C/S dividend Retained earnings ?? ?? ?? ?? ?? ?? ?? 15 ?? ?? ?? ?? 40.13 ?? Additional Information Interest rate for long-term debt Tax rate P/S dividend Dividend payout to C/S Number of C/S shares outstanding Number of P/S shares outstanding c/S price in the market 10% in 2019 and 2020 35% in 2019 and 2020 10% of par in 2019 and 2020 25% in 2019 and 2020 15,000 shares in 2019 and 2020 15,000 shares in 2019 and 2020 80 in 2019 and 99 in 2020 XXX Plc. is the main competitor of AAA. XXX Plc. Selected Average Ratios Industry Average 2019 2020 6% 2020 ROA 8% 10% ROE 7.50% 7% 8% Current ratio 1.5X 2x Quick ratio 1.2x 1.75X 1.75X 50 days 60 days 22% 30 days 25% 20% Average payment period Operating profit margin Net profit margin TATO 15% 12% 17% 0.8X 1.5X 0.9X 2.5% FATO 1.5% 2.75X 10X 12x 13X P/E Debt ratio Average collection period 20% 22% 18% 50 days. 60 days 45 days Questions 1 Fill in missing numbers (income statement and balance sheet) 2 Calculate all financial ratios learnt in classes for all years 3 Perform trend, industry comparative analysis, and cross sectional analysis (where applicable) for all years 4. Analyze the company's performance and reasons behind Evaluation Criteria