Analysis of Financial Statements (Financial Ratios) M & G Industries Balance Sheet For December 31, 2020 and 2021 Cash Accounts receivable Inventories Total current assets Land Buildings and equipment Less: allowance for depreciation Total fixed assets Total assets Accounts Payable Short-term bank notes Total current liabilities Long-term debt 2020 2021 $ 9,000 12,500 29,000 $ 500 16,000 $ 50,500 20,000 70,000 (28,000) $ 62,000 $112,500 $ 10,500 17,000 $ 27,500 28,750 31,500 45,500 $ 62,000 26,000 100,000 (38,000) $ 88,000 $150,000 $ 22,000 47,000 $ 69,000 22,950 Common stock Retained earnings Total debt and equity M & G Industries Income Statement For the Years Ended December 31, 2020 and 2021 31,500 24,750 26,550 $112,500 $150,000 2021 2020 Sales (all credit) Cost of goods sold Gross profit Operating expenses Fixed cash operating expenses Variable operating expenses Depreciation Total operating expenses Earnings before interest and taxes Interest expense Earnings before taxes Taxes Net income $125,000 75,000 $ 50,000 $ 21,000 12,500 4,500 38,000 $ 12,000 3,000 $ 9,000 4,500 $ 4,500 $160,000 96,000 $ 64,000 $ 21,000 16,000 10,000 $ 47,000 $ 17,000 6,100 $ 10,900 5,450 5,450