C el 3 on Hows and Partid A ss 121 rative historical financial statements for Norben Monforturing of the preceding problemas 17. Comparative historical follows COGS Depreciation Tax Northern Manufacturing Income Statements For the years ended (5000) 12/31/X1 12/31/X2 12/31/X3 Sales $17.850 $20,510 $22,560 9,100 10,665 11.506 Gross margin $ 8,750 $ 9,845 $11,054 Expense 5,180 5,702 5,332 600 650 700 EBIT $ 2,970 $ 3,493 $ 5,022 Interest 800 910 1,180 EBT $ 2,170 $ 2,583 $ 3,842 868 1,033 1,537 Net income $ 1,302 $ 1,550 $ 2,305 Dividends paid $ 650 $ 750 $ 1,200 Stock sold 0 0 1,000 Lease payments $ 500 $ 700 $ 800 Northern Manufacturing Balance Sheets For the years ended (5000) ASSETS 12/31/XO 12/31/X1 12/31/X2 Cash $ 955 $ 980 $ 500 Accounts receivable 3,103 3,570 6,250 2,890 3,033 5,180 Inventory CURRENT ASSETS $ 6,948 $ 7,583 $ 11,930 Fixed assets $ 5,800 $ 6,650 $ Gross 7,500 (1,150) Accumulated deprec. (1,750) (2,400) $ $ 4,650 4,900 $ 5,100 Net $11,598 TOTAL ASSETS $ 12,483 $ 17,030 12/31/X3 $ 200 7,300 6 ,470 $ 13,970 $ 9,000 (3.100) $ 5,900 $ 19,870 LIABILITIES Accounts payable Accruals CURRENT LIABILITIES Long-term debt Equity TOTAL CAPITAL $ 1,860 385 S 2.245 $ 7,805 1,548 $ 9,353 $ 1,650 742 $ 2.392 $ 7,891 2,200 $ 10,091 $ 1,860 850 $ 2710 $ 11,320 3,000 $ 14,320 $ 2,210 220 $ 2,430 $ 12,335 5,105 $ 17,440 $11,598 TOTAL LIABILITIES & EQUITY Number of shares $ 12,483 300,000 $ 78.12 $ 17,030 300,000 $ 70.00 $ 19,870 315,000 $ 65.88 Stock price 122 Part 1 Introduction to Financial Management a. Use the ANALYS program to prepare common size statements and a set of financial ratios for park the last three years. b. Analyze the results of ANALYS for Northern Manufacturing. The firm has been quite successful in terms of revenue and profit growth so far. Do the ratios reveal any disturbing trends that might indicata future problems? DEVELOPING SOFTWARE 28. Write a program to generate a statement of cash flows yourself. It isn't as hard as you might think. First set up the income statement and two balance sheets on the spreadsheet just as they appear in Problem 26. Let the amounts in individual accounts such as Cash, A/R, Revenue, COGS, Interest, and 13 be input items, and let the program calculate all the totals and subtotals such as Current Assets, local Assets, Gross Margin, and Net Income. Next take a different area of the spreadsheet and set up the changes in the current accounts and statement of cash flows shown below. Take all of the items shown in lowercase xxx's from the statements in the first part of your sp Some will be single items like net income and depreciation, but most will be differences between and ending balances like the increase or decrease in long-term debt or the change program the spreadsheet to add up the subtotal our spreadshes etween beginnin noni . Finally
