ACC 122 - Financial Analysis Please submit your work on D2L->assessments assignments by Wednesday, July 17. Crown Lighting, Inc., which manufactures electric lighting and writing equipment, has been in business five years. The company has had modest profits and has experienced few operating difficulties until this year, when president John Stone discusses his company's working capital problems with you, a loan officer at Empire Bank. Stone explains that expanding his firm has created difficulties in meeting obligations when they come due and in taking advantage of cash discounts offered by manufacturers for timely payment. He would like to borrow $75,000 from Empire Bank. At your request, Stone submits the following financial data for the past two years: Net Sales Cost of Goods Sold Net income (after income taxes) Dividends Depreciation December 31, 20x1 data: Total Assets Total Stockholders' Equity Accounts Receivable Inventory This Year $1,500,000 900,000 47,500 20,000 100,000 Last Year $1,200,000 800,000 42,000 15,000 120,000 720,000 320,000 152,500 262,500 Crown Lighting, Inc. Balance Sheet December 31, 20x3 This Year December 31, 20x2 Last Year Assets: Cash Accounts Receivable Inventory Prepaid Expenses Total Current Assets Plant Assets (net) TOTAL ASSETS $ 50,000 230,000 420,000 $ 10,000 $ 710,000 $_360,000 $ 1.070.000 $ 30,500 167,500 297,500 $ 5,000 $ 500,500 $ 349.500 $ 850,000 Liabilities and Stockholders' Equity: Notes Payable - Banks Accounts Payable Income Tax Payable Accrued Liabilities Total Current Liabilities 10% Mortgage Payable Total Liabilities Common Stock Retained Earnings Total Stockholders' Equity TOTAL LIABILITIES AND STOCKHOLDERS STOCKHOLDERS EQUITY $ 60,000 252,000 3,000 $ 65,000 $ 380,000 $ 220,000 $ 600.000 $ 400,000 $ 70,000 $_470,000 $ 35,000 195,000 2,500 $ 45,000 $ 277,500 $ 180,000 $ 457.500 $ 350,000 $ 42.500 $ 392,500 $1,070,000 $ 850,000 ACC 122 - Financial Analysis Please submit your work on D2L->assessments assignments by Wednesday, July 17. Crown Lighting, Inc., which manufactures electric lighting and writing equipment, has been in business five years. The company has had modest profits and has experienced few operating difficulties until this year, when president John Stone discusses his company's working capital problems with you, a loan officer at Empire Bank. Stone explains that expanding his firm has created difficulties in meeting obligations when they come due and in taking advantage of cash discounts offered by manufacturers for timely payment. He would like to borrow $75,000 from Empire Bank. At your request, Stone submits the following financial data for the past two years: Net Sales Cost of Goods Sold Net income (after income taxes) Dividends Depreciation December 31, 20x1 data: Total Assets Total Stockholders' Equity Accounts Receivable Inventory This Year $1,500,000 900,000 47,500 20,000 100,000 Last Year $1,200,000 800,000 42,000 15,000 120,000 720,000 320,000 152,500 262,500 Crown Lighting, Inc. Balance Sheet December 31, 20x3 This Year December 31, 20x2 Last Year Assets: Cash Accounts Receivable Inventory Prepaid Expenses Total Current Assets Plant Assets (net) TOTAL ASSETS $ 50,000 230,000 420,000 $ 10,000 $ 710,000 $_360,000 $ 1.070.000 $ 30,500 167,500 297,500 $ 5,000 $ 500,500 $ 349.500 $ 850,000 Liabilities and Stockholders' Equity: Notes Payable - Banks Accounts Payable Income Tax Payable Accrued Liabilities Total Current Liabilities 10% Mortgage Payable Total Liabilities Common Stock Retained Earnings Total Stockholders' Equity TOTAL LIABILITIES AND STOCKHOLDERS STOCKHOLDERS EQUITY $ 60,000 252,000 3,000 $ 65,000 $ 380,000 $ 220,000 $ 600.000 $ 400,000 $ 70,000 $_470,000 $ 35,000 195,000 2,500 $ 45,000 $ 277,500 $ 180,000 $ 457.500 $ 350,000 $ 42.500 $ 392,500 $1,070,000 $ 850,000