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 2020 2021 $ 9,000 12,500 29,000 S $ 50,500 20,000 70,000 (28,000) $ 62,000 $112,500 $10.500 17,000 500 16,000 45.500 $62,000 26,000 100,000 (38,000) $ 88,000 $150,000 $ 22,000 47,000 $ 69,000 Long-term debt Common stock Retained earnings Total debt and equity M&G Industries Income Statement For the Years Ended December 31, 2020 and 2021 $27,500 28.750 22,950 31,500 31,500 24,750 26,550 $112,500 $150,000 2020 2021 Sales (all credit) $125,000 75,000 $ 50,000 Cost of goods sold Gross profit Operating expenses Fixed cash operating expenses $ 21,000 Variable operating expenses Depreciation Total operating expenses Earnings before interest and taxes Interest expense Earnings before taxes Taxes Net income 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