BALANCE SHEETS INCOME STATEMENT ASSETS Cash Account Receivables Note Receivables Merchandise Inventory Prepaid Insurance Expense TOTAL CURRENT ASSETS Land Land improvements Building Furniture and Future Accumulated Depreciation Rights Accumulated Amortization TOTAL NON CURRENT ASSETS 2018 135.000 125.000 220.000 500.000 45.000 1.025.000 1.400.000 280.000 880.000 440.000 120.000 1.200.000 240.000 3.840.000 2019 184.000 150.000 350.000 620.000 35.000 1.350.000 1.500.000 300.000 1.000.000 500.000 150.000 1.250.000 440.000 3.970.000 2020 160.000 185.000 320.000 800.000 82.000 1.347.000 1.400.000 50 000 1.250.000 580.000 210.000 1.500.000 780.000 4.243.000 Sales Sales Retun&Allowances Sales Discount Net Sales COGS Gross P/L Other Income ones) Operating Expenses Operating P/L EBIT Interest Expense Tax Expense Net P/L 2018 29.000.000 280.000 820.000 27.900.000 19.000.000 8.900.000 0 5.500.000 3.400.000 500.000 1. 120.000 1.680.000 2019 34.500.000 320.000 880.000 33.300.000 23.000.000 10.300.000 150.000 5.800.000 4.650.000 650.000 1.800.000 2.400.000 2020 38.500.000 300.000 900.000 37.300.000 25.200.000 12.100.000 200.000 7.100.000 5.200.000 700.000 1.800.000 2.700.000 TOTAL ASSETS 4.866.000 5.320.000 5.590.000 LIABILITIES LEQUITY Account Payables Note Payables Unearned Rent Revenue TOTAL CURRENT LIABILITIES Bank Credits Note Payables TOTAL NON CURRENT LIABILITIE Common Stack Additional Paid in Capital Retained Earnings Treasury Stock TOTAL EQUITY 300.000 410.000 190.000 900.000 1.000.000 280.000 1.280.000 1.200.000 1.800.000 240.000 334.000 2.685.000 280.000 430.000 110.000 820.000 1.100.000 350.000 1.450.000 1.500.000 1.650.000 280.000 380.000 3.050.000 250.000 530.000 140.000 920.000 1.250.000 250.000 1.500.000 1.620.000 1.650.000 440.000 3.170.000 TOTAL LIABILITIES SEQUITY 4.866.000 5.320.000 5.590.000 ADDITIONAL INFORMATION: Outstanding Shares Depreciation Expenses Amortization Expense Market Price per Share 2018 1.100.000 90.000 240.000 2019 1.200.000 127.000 270.000 23 2020 1 300.000 133.000 290.000 25 18 Reuired: You are required to assess aloverall financial standing of the company b) whether this company is eligible for credit c) whether this company is a good investment alternative You are expected to employ the following financial statement analysis techniques below at minimum. You can incorporate more analysis techniques to form your opinion. 1) Perform Ratio Analysis for the Company Above with selected ratios of your choice among the ones listed below. You can also use other ratios of your choice. 2) Perform Common Size Analyis for the Years 2019 and 2020 3) Prepare Cash Flow Statement for the Year 2020. 7 BALANCE SHEETS 8 2020 160.000 185.000 320.000 600.000 9 ASSETS 10 Cash 11 Account Receivables 12 Note Receivables 13 Merchandise Inventory 14 Prepaid Insurance Expense 15 TOTAL CURRENT ASSETS 16 Land 17 Land Improvements 18 Building 19 Furniture and Fixture 20 Accumulated Depreciation 21 Rights 22 Accumulated Amortization 23 TOTAL NON-CURRENT ASSETS 24 25 TOTAL ASSETS 26 27 LIABILITIES & EQUITY 28 Account Pavables 2018 135.000 125.000 220.000 500.000 46.000 1.026.000 1.400.000 280.000 880.000 440.000 - 120.000 1.200.000 -240.000 2019 184.000 150.000 360.000 620.000 36.000 1.350.000 1.500.000 300.000 1.000.000 500.000 - 150.000 1.260.000 -440.000 3.970.000 82.000 1.347.000 1.400.000 503.000 1.250.000 580.000 -210.000 1.500.000 -780.000 4.243.000 3.840.000 4.866.000 5.320.000 5.590.000 300.000 280.000 250.000 INCOME STATEMENT Sales Sales Retun&Allowances Sales Discount Net Sales COGS Gross P/L Other Income(losses) Operating Expenses Operating P/L-EBIT Interest Expense Tax Expense Net P/L 2018 29.000.000 -280.000 -820.000 27.900.000 -19.000.000 8.900.000 0 -5.500.000 3.400.000 -600.000 - 1.120.000 1.680.000 2019 34.500.000 -320.000 -880.000 33.300.000 -23.000.000 10.300.000 150.000 -5.800.000 4.650.000 -650.000 -1.600.000 2.400.000 2020 38.500.000 -300.000 -900.000 37.300.000 -25.200.000 12.100.000 200.000 -7.100.000 5.200.000 -700.000 -1.800.000 2.700.000 V 2018 26 27 LIABILITIES&EQUITY 28 Account Payables 29 Note Payables 30 Unearned Rent Revenue 31 TOTAL CURRENT LIABILITIES 32 Bank Credits 33 Note Payables 34 TOTAL NON-CURRENT LIABILITII 35 Common Stock 36 Additional Paid in Capital 37 Retained Earnings 38 Treasury Stock 39 TOTAL EQUITY 40 41 TOTAL LIABILITIES & EQUITY 42 43 ADDITIONAL INFORMATION: 44 Outstanding Shares 45 Depreciation Expenses 46 Amortization Expense 47 Market Price per Share 10 dnnd 300.000 410.000 190.000 900.000 1.000.000 280.000 1.280.000 1.200.000 1.600.000 240.000 -354.000 2.686.000 280.000 430.000 110.000 820.000 1.100.000 350.000 1.450.000 1.500.000 1.650.000 280.000 -380.000 3.050.000 250.000 530.000 140.000 920.000 1.250.000 250.000 1.500.000 1.620.000 1.650.000 340.000 -440.000 3.170.000 + 4.866.000 5.320.000 5.590.000 2018 1.100.000 90.000 240.000 18 2019 1.200.000 127.000 270.000 23 2020 1.300.000 133.000 290.000 26 2260 2 Annnn