Complete the financial statements below and utilize the information to calculate the ratios within the table. Pravide a short 1 sentence analysis of each ratio. There is NO REQUIREMENT to complete this in EXCEL In this short space just provide your analysis on each ratio PLE Ratio Analysis for 2015 und 2016 2016 Liquidity Ratios Ratio 2015 Industry 2016 Analysis Currcol Radio Quick Ratio 2.70x 1.00 Efficiency Ratios PIE Income Stutement For the Year Ended Dec 31, 2016 2016 2015 Sales 3,850,000 3,432,000 Cost of Giaods Sulu 3,250,000 2.X64,000 Gross Profar 600,000 568,000 Selling and G&A Expenses 330,300 240,000 Fixed Expenses 100,000 100,000 Depreciation Expanse 20,000 18.900 EBIT 149,700 209.10 Interest Expense 76,000 62,500 Earnings Refore Taxes 7.37,700 146,600 Taxes 29,480 58.640 et Income 44,220 87.960 Inventary Turnover AR Turnover Average Collection Period Fixed Asel Turnover Total Asset Turnaver 7.00% 10.70x 33.64 days 11.20x 2.60x Leverage Ratios Total Debt Ratio Long-term Debt Ratio LTD to Total Capitalization Deht to Equity LTD to Equity 50.00% 20.00% 28.57% 1.00x Notes: Tax Rate 40% Coverage Ratios Times Interest Earned Cash Coverage Ratio 2.50 2.80x Profitability Ratios PIE Balance Sheet For the Year Ended Dec. 31, 2016 Assets 2016 Cash and Equivalents 52,000 Accounts Roocivable 402,000 Inventory 836,000 Total Current Assert 1.290.000 Plant & Equipmcal $27.000 Accumulated Depreciation 166,200 Ne fixed As 360,800 Gross Prolit Margin Operating Profit Margin Net Profil Margin Return on Tatal Assets Return on Equity Return an Common Equity 17.50% 6.25% 3.50% 9.10% 18.20% 18.20% 2015 57,600 331,200 715,200 1,124,000 491,000 146,200 344,800 DuPont ROE 18.20% PIE Balance Sheet For the Year Ended Dec. 31, 2016 Assets 2016 Cash and Equivalents 52,000 Accounts Receivable 402,000 Inventory 836,000 Total Current Assets 1,290,000 Plant & Equipment 527,000 Accumulated Depreciation 166.200 Net Fixed Assets 360,800 Total Assets 1,650,800 Liabilities and Owner's Equity Accounts Payable 175,200 Short-term Notes Payable 225,000 Other Current Liabilities 140,000 Total Current Liabilities 540,200 Long-term Debt 424,612 Total Liabilities 964,812 Common Stock 460,000 Retained Earnings 225,988 Total Shareholder's Equity 685,988 Total Liabilities and Owner's Equity 1,650,800 2015 57,600 351,200 715,200 1,124,000 491,000 146,200 344,800 1,468,800 145,600 200,000 136,000 481,600 323,432 805,032 460,000 203,768 663,768 1,468,800 PIE Statement of Cash Flows For the Year Ended Dec. 31, 2016 $ in 000's) Cash Flows from Operations Net Income 44,220 Depreciation Expense 20,000 Change in Accounts Receivable -50,800 Change in Inventories -120,800 Change in Accounts Payable 29,600 Change in Other Current Liabilities 4,000 Total Cash Flows from Operations Cash Flows from Investing Change in Plant & Equipment -36,000 Total Cash Flows from Investing Cash Flows from Financing Change in Short-term Notes Payable 25,000 Change in Long-term Debt 101,180 Change in Common Stock 0 Cash Dividends Paid to Shareholders -22,000 Total Cash Flows from Financing Net Change in Cash Balance -73,780 -36,000 104,180 -5,600 84.42% 83.45% 83.93% EXAMPLE PIE Pro-forma Income Statement For the Year Ended Dec. 31, 2019 2020* Sales 5,104.00 Cost of Goods Sold 4,283.93 Gross Profit Selling and G&A Expenses Fixed Expenses Depreciation Expense EBIT Interest Expense Earnings Before Taxes Taxes Net Income * Forecast 2019 3,850.00 3,250.00 600.00 330.30 100.00 20.00 149.70 76.00 73.70 29.48 44.22 2018 3,432.00 2,864.00 568.00 240.00 100.00 18.90 209.10 62.50 146.60 58.64 87.96 40% Notes: Tax Rate Additional Depreciation Interest Rate Expected dividend for 2020 40% 5.00 0.117 30.00 Using the Percent-of-Sales Method from page 108 complete the Proforma Income Statement and Balance Sheet. (hint) Only certain items vary directly with sales, some are fixed. PIE plans on purchasing a $50,000 piece of equipment. Does this cause a problem with the Balance Sheet? The B/S does not balance. Why? How could we fix it? PIE Pro-forma Balance Sheet As of Dec. 31, 2019 Assets 2020* Cash and Equivalents 52.00 Accounts Receivable Inventory Total Current Assets Plant & Equipment Accumulated Depreciation Net Fixed Assets Total Assets Liabilities and Owner's Equity Accounts Payable Short-term Notes Payable Other Current Liabilities Total Current Liabilities Long-term Debt Total Liabilities Common Stock Retained Earnings Total Shareholder's Equity Total Liabilities and Owner's Equity 2019 52.00 402.00 836.00 1,290.00 527.00 166.20 360.80 1,650.80 2018 57.60 351.20 715.20 1,124.00 491.00 146.20 344.80 1,468.80 175.20 225.00 140.00 540.20 424.61 964.81 460.00 225.99 685.99 1,650.80 145.60 200.00 136.00 481.60 323.43 805.03 460.00 203.77 663.77 1,468.80 Notes: Net Addition to Plant & Equipment Life of New Equipment in Years New Depreciation (Straight Line) 50.00 10 5.00 Note that firm's capital expenditures are expected to rise by $50,000 in the new year. This will lead to an increase of $5,000 in accumulated Complete the financial statements below and utilize the information to calculate the ratios within the table. Pravide a short 1 sentence analysis of each ratio. There is NO REQUIREMENT to complete this in EXCEL In this short space just provide your analysis on each ratio PLE Ratio Analysis for 2015 und 2016 2016 Liquidity Ratios Ratio 2015 Industry 2016 Analysis Currcol Radio Quick Ratio 2.70x 1.00 Efficiency Ratios PIE Income Stutement For the Year Ended Dec 31, 2016 2016 2015 Sales 3,850,000 3,432,000 Cost of Giaods Sulu 3,250,000 2.X64,000 Gross Profar 600,000 568,000 Selling and G&A Expenses 330,300 240,000 Fixed Expenses 100,000 100,000 Depreciation Expanse 20,000 18.900 EBIT 149,700 209.10 Interest Expense 76,000 62,500 Earnings Refore Taxes 7.37,700 146,600 Taxes 29,480 58.640 et Income 44,220 87.960 Inventary Turnover AR Turnover Average Collection Period Fixed Asel Turnover Total Asset Turnaver 7.00% 10.70x 33.64 days 11.20x 2.60x Leverage Ratios Total Debt Ratio Long-term Debt Ratio LTD to Total Capitalization Deht to Equity LTD to Equity 50.00% 20.00% 28.57% 1.00x Notes: Tax Rate 40% Coverage Ratios Times Interest Earned Cash Coverage Ratio 2.50 2.80x Profitability Ratios PIE Balance Sheet For the Year Ended Dec. 31, 2016 Assets 2016 Cash and Equivalents 52,000 Accounts Roocivable 402,000 Inventory 836,000 Total Current Assert 1.290.000 Plant & Equipmcal $27.000 Accumulated Depreciation 166,200 Ne fixed As 360,800 Gross Prolit Margin Operating Profit Margin Net Profil Margin Return on Tatal Assets Return on Equity Return an Common Equity 17.50% 6.25% 3.50% 9.10% 18.20% 18.20% 2015 57,600 331,200 715,200 1,124,000 491,000 146,200 344,800 DuPont ROE 18.20% PIE Balance Sheet For the Year Ended Dec. 31, 2016 Assets 2016 Cash and Equivalents 52,000 Accounts Receivable 402,000 Inventory 836,000 Total Current Assets 1,290,000 Plant & Equipment 527,000 Accumulated Depreciation 166.200 Net Fixed Assets 360,800 Total Assets 1,650,800 Liabilities and Owner's Equity Accounts Payable 175,200 Short-term Notes Payable 225,000 Other Current Liabilities 140,000 Total Current Liabilities 540,200 Long-term Debt 424,612 Total Liabilities 964,812 Common Stock 460,000 Retained Earnings 225,988 Total Shareholder's Equity 685,988 Total Liabilities and Owner's Equity 1,650,800 2015 57,600 351,200 715,200 1,124,000 491,000 146,200 344,800 1,468,800 145,600 200,000 136,000 481,600 323,432 805,032 460,000 203,768 663,768 1,468,800 PIE Statement of Cash Flows For the Year Ended Dec. 31, 2016 $ in 000's) Cash Flows from Operations Net Income 44,220 Depreciation Expense 20,000 Change in Accounts Receivable -50,800 Change in Inventories -120,800 Change in Accounts Payable 29,600 Change in Other Current Liabilities 4,000 Total Cash Flows from Operations Cash Flows from Investing Change in Plant & Equipment -36,000 Total Cash Flows from Investing Cash Flows from Financing Change in Short-term Notes Payable 25,000 Change in Long-term Debt 101,180 Change in Common Stock 0 Cash Dividends Paid to Shareholders -22,000 Total Cash Flows from Financing Net Change in Cash Balance -73,780 -36,000 104,180 -5,600 84.42% 83.45% 83.93% EXAMPLE PIE Pro-forma Income Statement For the Year Ended Dec. 31, 2019 2020* Sales 5,104.00 Cost of Goods Sold 4,283.93 Gross Profit Selling and G&A Expenses Fixed Expenses Depreciation Expense EBIT Interest Expense Earnings Before Taxes Taxes Net Income * Forecast 2019 3,850.00 3,250.00 600.00 330.30 100.00 20.00 149.70 76.00 73.70 29.48 44.22 2018 3,432.00 2,864.00 568.00 240.00 100.00 18.90 209.10 62.50 146.60 58.64 87.96 40% Notes: Tax Rate Additional Depreciation Interest Rate Expected dividend for 2020 40% 5.00 0.117 30.00 Using the Percent-of-Sales Method from page 108 complete the Proforma Income Statement and Balance Sheet. (hint) Only certain items vary directly with sales, some are fixed. PIE plans on purchasing a $50,000 piece of equipment. Does this cause a problem with the Balance Sheet? The B/S does not balance. Why? How could we fix it? PIE Pro-forma Balance Sheet As of Dec. 31, 2019 Assets 2020* Cash and Equivalents 52.00 Accounts Receivable Inventory Total Current Assets Plant & Equipment Accumulated Depreciation Net Fixed Assets Total Assets Liabilities and Owner's Equity Accounts Payable Short-term Notes Payable Other Current Liabilities Total Current Liabilities Long-term Debt Total Liabilities Common Stock Retained Earnings Total Shareholder's Equity Total Liabilities and Owner's Equity 2019 52.00 402.00 836.00 1,290.00 527.00 166.20 360.80 1,650.80 2018 57.60 351.20 715.20 1,124.00 491.00 146.20 344.80 1,468.80 175.20 225.00 140.00 540.20 424.61 964.81 460.00 225.99 685.99 1,650.80 145.60 200.00 136.00 481.60 323.43 805.03 460.00 203.77 663.77 1,468.80 Notes: Net Addition to Plant & Equipment Life of New Equipment in Years New Depreciation (Straight Line) 50.00 10 5.00 Note that firm's capital expenditures are expected to rise by $50,000 in the new year. This will lead to an increase of $5,000 in accumulated