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Belton Industries desires to have an independent consultant evaluate their financial results for the years 2018 and 2019. Belton's CFO has provided you with a

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Belton Industries desires to have an independent consultant evaluate their financial results for the years 2018 and 2019. Belton's CFO has provided you with a comparative Balance Sheet and Inccs 2018 Belton Industries Inc. Balance Sheets December 31, 2018 and 2019 (in thous.) 2019 Assets: Cash $ 50,000 Accounts receivable (net). 28,000 Merchandise inventory 110,000 Supplies 7,000 Long-term investments 220,000 Plant assets (net) ....... 555,000 Total assets $970,000 $ 120,000 98,000 160.000 12,000 100,000 410.000 $900,000 Liabilities and Equity: Accounts Payable.. Salaries Payable.......... Long-term liabilities ....... Common stock... Retained earnings.. Total liabilities and equity $ 140,000 50,000 225.000 300,000 255,000 $970,000 $ 75,000 45,000 255,000 400,000 125.000 $900.000 Belton Industries Inc. Income Statement December 31, 2018 and 2019 in thous) 2019 2018 Sales Cost of Goods Sold. Gross Profit... SG&A Expenses. Net Income.. Earnings Per Share..................................... $575,000 460.000 115,000 70,000 $45,000 $1.20 $905,000 724,000 181,000 75.000 $106,000 $2.23 Belton has requested that you analyze their financial statements. You should provide a financial analysis along with interpretations or comments about the financial results (show all your work) 1. Liquidity - provide your analysis of Belton's liquidity by calculating the current ratio for both years. What are your thoughts about their liquidity? Percentage change in sales from 2018 to 2019 - comment about the change Net Income return on Sales percent for both 2018 and 2019 - comment about the about the change 3

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