Attached are a set of Financial Statements (Balance Sheet and Income Statement) for a sample corporation. The assigment is to analyze and document what has transpired over this period both in terms of actions taken and any resulted that have occurred. While you might examine financial ratios over the period, do not just comment on individual ratio changes. Your submission needs to critically examine the interrelationship of outcomes. Are they the result of discrete actions undertaken by management and if so, is there an indication that the intended results were achieved? For example: Were major capital investments made during the period? If so, how were they finance and how did this impact the statements? Has the financing of capital assets introduced additional risk to any investor group? Did the investment in new capital assets generate enhanced profits and to which group of investors? What decisions did the owners (equity investors) make regarding net income generated each year? The assignment should include technical backup preferrably using a linked excel spreadsheet. However, the submission should be centred around a written assessment of what has transpired over the period examined. The written text should be 1 to 1 1/2 pages in length and all material will be submitted to the Courselink dropbox by Sunday November 17 at 11:59 PM. You will need to have covered the material in Chapters 3 & 4 before you begin the assignment. This can be a personal or group assignment with up to four students in a group. In either case, be sure the submission reflects your analysis of the material provided and not that of another individual or group. David Birkett Balance Sheet ($000) Year Year 4,520 2,910 4,000 3,700 9,500 5,100 4,2005 ,300 2.330 3,100 16.030 13,500 5,900 6,120 4,400 16.420 6,600 7,100 5,125 18,825 3,010 4.100 2.000 9,110 3,960 4,300 2.000 10,260 5,250 4,900 2,000 12,150 2,200 10,420 2,000 6,420 5,100 2,000 13,520 8,910 Current Assets Cash and Equivants Accounts Receivable Inventory Total Current Assets Long Term Assets Property Plant & Equip. Less: Depreciation Net Prop./Pl. & Equip Reserves Intang. Axets & Good Will Total Long Term Assets Total Assets 120,450 27,000 93,450 2,352 4.451 100,253 110,673 135,000 28.000 107,000 4,466 3.900 115,366 131,396 141,500 29,000 112,500 7,042 2.740 123,282 136,782 146,000 31,000 115,000 9,920 2 ,900 127,820 144,558 151.000 33,000 118,000 13,709 2.000 133,709 152,534 Current Liabilities Accounts Payable Taxes Payable Notes Payable Total Current Uabilities Long Term Liabilities Long Term Debt and Fin Leases Deferred Pension Lab Other Long Term Liab. Total Long Term Liabilities Total Liabilities Shareholder's Equity Share Capital Retained Earnings Total Equity Total Liabilities and Equity 25,000 2,760 2.100 29,860 38,770 40.000 2,800 1950 44,750 53.860 38.000 3,100 2.200 43,300 53,560 36,000 3.500 2,600 42,100 54,250 34,000 3,700 2,910 40,610 54,130 25,000 46,903 71,903 110,673 30,000 47,536 77,536 131,396 30,000 53,222 83,222 136,782 30,000 59,990 89,990 144,558 30,000 68,404 98,404 152,534 Income Statement ($000) Year Sales Less Cost of Goods Sold Admin. Costs Deprec. & Amortiz. Operating Profit Less: Interest Expense Intere Taxes (30%) Net Income 40,000 19,000 8,700 1,900 10,400 2.000 2.520 5.880 40,000 19,000 8,700 1.551 10.749 3.200 2.265 5.284 44,000 49,000 55.000 21,500 23,000 24,300 9,100 10,000 11,550 1.160 2,840 2900 12.240 13,160 16.250 3.040 2.880 2.720 2.760 3,084 4.059 6.4407.1969.471 3,528 3,171 3,864 3,318 1,000 Dividend Stock Repurchase ($25 /share) Retained Earnings Total Income 2,352 5,880 2,114 5,284 2,576 6,440 2.878 7,196 4 183 1,500 3,788 9,471 Shares Outstanding (000) 1,000 1,200 1,200 1,160 1,100 Attached are a set of Financial Statements (Balance Sheet and Income Statement) for a sample corporation. The assigment is to analyze and document what has transpired over this period both in terms of actions taken and any resulted that have occurred. While you might examine financial ratios over the period, do not just comment on individual ratio changes. Your submission needs to critically examine the interrelationship of outcomes. Are they the result of discrete actions undertaken by management and if so, is there an indication that the intended results were achieved? For example: Were major capital investments made during the period? If so, how were they finance and how did this impact the statements? Has the financing of capital assets introduced additional risk to any investor group? Did the investment in new capital assets generate enhanced profits and to which group of investors? What decisions did the owners (equity investors) make regarding net income generated each year? The assignment should include technical backup preferrably using a linked excel spreadsheet. However, the submission should be centred around a written assessment of what has transpired over the period examined. The written text should be 1 to 1 1/2 pages in length and all material will be submitted to the Courselink dropbox by Sunday November 17 at 11:59 PM. You will need to have covered the material in Chapters 3 & 4 before you begin the assignment. This can be a personal or group assignment with up to four students in a group. In either case, be sure the submission reflects your analysis of the material provided and not that of another individual or group. David Birkett Balance Sheet ($000) Year Year 4,520 2,910 4,000 3,700 9,500 5,100 4,2005 ,300 2.330 3,100 16.030 13,500 5,900 6,120 4,400 16.420 6,600 7,100 5,125 18,825 3,010 4.100 2.000 9,110 3,960 4,300 2.000 10,260 5,250 4,900 2,000 12,150 2,200 10,420 2,000 6,420 5,100 2,000 13,520 8,910 Current Assets Cash and Equivants Accounts Receivable Inventory Total Current Assets Long Term Assets Property Plant & Equip. Less: Depreciation Net Prop./Pl. & Equip Reserves Intang. Axets & Good Will Total Long Term Assets Total Assets 120,450 27,000 93,450 2,352 4.451 100,253 110,673 135,000 28.000 107,000 4,466 3.900 115,366 131,396 141,500 29,000 112,500 7,042 2.740 123,282 136,782 146,000 31,000 115,000 9,920 2 ,900 127,820 144,558 151.000 33,000 118,000 13,709 2.000 133,709 152,534 Current Liabilities Accounts Payable Taxes Payable Notes Payable Total Current Uabilities Long Term Liabilities Long Term Debt and Fin Leases Deferred Pension Lab Other Long Term Liab. Total Long Term Liabilities Total Liabilities Shareholder's Equity Share Capital Retained Earnings Total Equity Total Liabilities and Equity 25,000 2,760 2.100 29,860 38,770 40.000 2,800 1950 44,750 53.860 38.000 3,100 2.200 43,300 53,560 36,000 3.500 2,600 42,100 54,250 34,000 3,700 2,910 40,610 54,130 25,000 46,903 71,903 110,673 30,000 47,536 77,536 131,396 30,000 53,222 83,222 136,782 30,000 59,990 89,990 144,558 30,000 68,404 98,404 152,534 Income Statement ($000) Year Sales Less Cost of Goods Sold Admin. Costs Deprec. & Amortiz. Operating Profit Less: Interest Expense Intere Taxes (30%) Net Income 40,000 19,000 8,700 1,900 10,400 2.000 2.520 5.880 40,000 19,000 8,700 1.551 10.749 3.200 2.265 5.284 44,000 49,000 55.000 21,500 23,000 24,300 9,100 10,000 11,550 1.160 2,840 2900 12.240 13,160 16.250 3.040 2.880 2.720 2.760 3,084 4.059 6.4407.1969.471 3,528 3,171 3,864 3,318 1,000 Dividend Stock Repurchase ($25 /share) Retained Earnings Total Income 2,352 5,880 2,114 5,284 2,576 6,440 2.878 7,196 4 183 1,500 3,788 9,471 Shares Outstanding (000) 1,000 1,200 1,200 1,160 1,100