Ch $04-$ Blueprint Problems $-$ Analysis of Financial Statements

Quantitative Problem: Rosnan Industries' $2019$ and $2018$ balance sheets and income statements are shown below.

Balance Sheets:

$\backslash$table$[[$Cash and equivalents,$2019,2018],[,60,$$$,45],[$Accounts receivable,,$275,,300],[$Inventories$,,375,,350],[$Total current assets,,$710,$$$,695],[$Net plant and equipment,,, $000,,,490],[$Total assets,,, $710,,,185]]$

Accounts payable

Accruals

Notes payable

Total current liabilities

Long$-$term debt

Common stock

Retained earnings

Total liabilities and equity

Income Statements:

Sales

Operating costs excluding depreciation

EBITDA

Depreciation and amortization

EBIT

Interest

EBT

Taxes $(25\%)$

Net income

Dividends paid

Addition to retained earnings

$\backslash$table$[[2019,2018],[$$$1,885,$$$1,425$