Chapter 12 Practice with ratios Find attached: A Horizontal Analysis of C&C Sports Balance Sheet for 2020 and 2019 A Horizontal Analysis of C&C Income Statement for 2020 and 2019 Formulas to be used for your calculations From the Balance Sheet and Income Statement calculate the following: 1. Working Capital 2. Current Ratio. 3. Acid-Test Ratio 4. Accounts Receivable Turnover 5. Average Collection Period 6. Inventory Turnover 7. Average Days to sell inventory 8. Debt Ratio 9. Debt to equity ratio 10. Gross Margin percentage 11. Earnings Per Share 1 C&C SPORTS 2 3 4 Balance Sheet 5 6 Cash 7 Accounts receivable, net 8 Total inventories 9 Prepaid expenses 10 Total current assets 11 Machinery and equipment, net 12 Other assets Dec. 31, 2020 Horizontal Analysis Dec. 31, 2019 $ Change % Change $ 7,752 $ 36,773 $ (29,021) 578,639 540,462 38,177 (78.9%) 7.1% 923,930 792,142 131,788 16.6% 24,388 8,165 16,223 198.7% 1,534,709 1,377,542 157,167 11.4% 365,335 491,607 (126,272) (25.7%) 29,937 33,707 (3,770) (11.2%) 13 14 Total assets $ 1,929,981 $ 1,902,856 $ 27,125 1.4% 15 Accounts payable $ 441,602 $ 487,912 $ (46,310) (9.5%) 16 Accrued liabilities 17 Short-term debt 84,642 168,319 (83,677) (49.7%) 125,000 110,000 15,000 13.6% 18 Current maturities of long-term debt 40,000 40,000 0 0.0% 19 Total current liabilities 20 Long-term debt 21 Total liabilities 22 691,244 806,231 (114,987) (14.3%) 410,000 450,000 (40,000) (8.9%) 1,101,244 1,256,231 (154,987) (12.3%) 23 Common stock 24 Retained earnings 25 Total stockholders' equity 250,000 250,000 0 0.0% 578,737 396,625 182,112 45.9% 828,737 646,625 182,112 28.2% 26 Total liabiltities and stockholders' equity $ 1,929,981 $ 1,902,856 $ 27,125 1.4% A 1 2 B C&C SPORTS Income Statement D 3 Horizontal Analysis 4 5 6 Sales Dec. 31, 2020 Dec. 31, 2019 $ Change % Change $ 7,855,000 $ 7,015,000 $840,000 12.0% 7 Cost of goods sold 5,817,590 5,215,000 602,590 11.6% 8 Gross profit 2,037,410 1,800,000 237,410 13.2% 9 Selling and administrative expenses 1,735,539 1,570,689 164,850 10.5% 10 Operating income 11 Interest expense 12 Income before taxes 13 Tax expense (30%) 14 Net income 301,871 229,311 72,560 31.6% 41,711 43,210 (1,499) (3.5%) 260,160 186,101 74,059 39.8% 78,048 55,830 22,218 39.8% $ 182,112 $ 130,271 $ 51,841 39.8%