C. Utley Inc. C. Utley Inc. Income Statement Comparative Balance Sheets For years ended December 31, 2017 and 2018 December 31, 2018 and 2017 2018 2017 Change 2018 2017 Current assets: Sales (all on credit) $607,000 $546,000 Cash $80,640 $54,300 $26,340 Cost of goods sold (342,000) (280,000) Accounts receivable (net) 41,000 34,000 7,000 Gross margin 265,000 266,000 Inventory 46,000 44,000 2,000 Prepaid expenses 1,500 3,400 -1,900 Depreciation expense 37,000 52.000 Other current assets 2,160 3.300 -1.140 Other operating 129,000 107,000 Total current assets 171,300 139,000 32,300 expenses Total operating 166,000 159,000 expenses Operating income 99,000 107,000 Long-term Investments 84,000 58,000 26,000 Plant assets 310,000 259,000 51,000 (4,800) (78,600) (52,000) 26,600 Other income (expenses) Interest expense Gain on sale of investments Loss on sale of plant assets Total other income (expenses) Less: accumulated (3,600) depreciation 4,300 Total plant assets 6,200 231,400 207,000 24,400 (3.400). (4,100). Total assets 486,700 404,000 82,700 (14,400) (3,400) Current liabilities: Current liabilities: 97,000 103,600 Accounts payable $27,400 $28,000 $-600 Income before income taxes Income taxes expense Net income (29,100) (31,080) $67,900 $72,520 Accrued liabilities Income taxes payable Total current liabilities 6,000 2,400 35,800 5,000 1,000 9,000 -6,600 42,000 -6,200 242,000 277,800 180,000 62,000 222,000 55,800 C. Utley Inc. Long term liabilities: Statement of Retained Earnings Notes Payable For the year ended December 31, 2018 Total liabilities 2018 2017 Ret. earnings, Jan. 1 $32,000 $0 Stockholders' equity Add: net income 67.900 72,520 Common stock, $5 par value Deduct: Dividends (41,000). (40,520). Additional paid-in capital Increase in retained 26,900 32,000 Retained earnings earnings Ret. earnings, Dec. 31 $58,900 $32,000 Total stockholders' equity Total liabilities and stockholders' equity 120,000 30,000 120.000 30,000 0 0 58.900 208,900 32.000 26.900 182,000 26,900 $404,000 $82,700 $486,700 24,000 24,000 Other information: Shares of common stock outstanding Earnings per share Dividends per share Market price per share, common stock $2.83 $1.71 $3.02 $1.69 $12 $15 Cash Flows from Oper Horiz Analysis Horiz Analysis Vertic Analysis Vertic Analysis Inc St Bal St Inc St Bal Sheet Ratios Requirement Prepare the cash flows from operations section of C. Utley Inc.'s 2018 statement of cash flows using the indirect method. Enter items to be subtracted as negative values. C. Utley Inc. Cash Flows from Operating ActivitiesIndirect Method For Year Ended December 31, 2018 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operations Cash Flows from Oper Horiz Analysis Horiz Analysis Vertic Analysis Vertic Analysis Inc St Bal St Inc St Bal Sheet Ratios Requirement Prepare a vertical analysis on the partial income statements for 2017 and 2018. Enter decreases as negative amounts/percents. C. Utley Inc. PARTIAL INCOME STATEMENT (HORIZONTAL ANALYSIS) For the years ended December 31, 2017 and 2018 Increase/decrease 2018 2017 Amount Percent $ 546,000 Sales Cost of goods sold Gross margin Expenses Depreciation expense Other operating expenses Total operating expenses Operating income 107,000 Requirement Prepare a vertical analysis on the partial balance sheets for 2017 and 2018. Enter decreases as negative amounts/percents. C. Utley Inc. Partial Balance Sheet (Horizontal Analysis) For the years ended December 31, 2018 and 2017 Increase/decrease Amount Percent 2018 2017 Current assets Cash Accounts receivable (net) Inventory Prepaid expenses Other current assets Total current assets Long-term investments Plant assets Less: accumulated depreciation Total plant assets Total assets Cash Flows from Oper Horiz Analysis Horiz Analysis Vertic Analysis Vertic Analysis Inc St Bal St Inc St Bal Sheet Ratios Requirement Prepare a vertical analysis on the partial income statements for 2017 and 2018. C. Utley Inc. Partial Income Statement (Vertical analysis) For the years ended December 31, 2018 and 2017 2018 % 2017 % Sales $ 546,000 Cost of goods sold Gross margin Expenses Depreciation expense Other operating expenses Total operating expenses Operating income Requirement Prepare a vertical analysis on the partial balance sheet for 2017 and 2018. C. Utley Inc. Partial Balance Sheet (Vertical analysis) For the years ended December 31, 2018 and 2017 Liabilities 2018 % 2017 % Current liabilities: Accounts payable Accrued liabilities Income taxes payable Total current liabilities Notes payable 242,000 180,000 Total liabilities Stockholders' Equity Common stock, $5 par Additional paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Choose Numerator Enter Numerator Value Enter Denominator Choose Denominator Ratio Value Current ratio Acid-test ratio Inventory turnover Days' sales in inventory Accounts receivable turnover Days' sales in receivables Total asset turnover Days' sales in receivables Total asset turnover Debt-to-equity ratio Profit margin Return on total assets Return on common stockholders' equity Price/earnings ratio (P/E) Dividend yield