Conrad's Technologies: December 31 Balance Sheets
(Thousands of Dollars)
Assets			2020	2019	2018
Cash and cash equivalents		$21,000	$20,000	$21,053
Short-term investments		3,759	3,240	$3,411
Accounts Receivable		51,500	48,000	$50,526
Inventories			85,000	56,000	$58,947
Total current assets		$161,259	$127,240	$133,937
Net fixed assets		218,400	200,000	200,000
Total assets			$379,659	$327,240	$333,937
Liabilities and equity
Accounts payable		$31,600	$32,000	$33,684
Accruals			13,600	12,000	$12,632
Notes payable		22,929	6,480	6,980
Total current liabilities		$68,129	$50,480	$53,296
Long-term debt		65,662	58,320	55,000
Total liabilities		$133,791	$108,800	$108,296
Common stock		183,793	178,440	180,641
Retained Earnings		62,075	40,000	45,000
Total common equity		$245,868	$218,440	$225,641
Total liabilities and equity		$379,659	$327,240	$333,937
Conrad's Technologies December 31 Income Statements
(Thousands of Dollars)
			2020	2019	2018
Sales			$420,000	$400,000	$421,053
COGS except excluding depr. and amort.	300,000	298,000	$313,684
Depreciation and Amortization	19,660	18,000	$18,947
Other operating expenses		27,600	22,000	19,500
EBIT			$72,740	$62,000	$68,921
Interest Expense		5,740	4,460	4,150
EBT			$67,000	$57,540	$64,771
Taxes (40%)			26,800	23,016	25,908
Net Income			$40,200	$34,524	$38,863
Common dividends		$18,125	$17,262
Addition to retained earnings	$22,075	$17,262
Other Data			2018	2017
Year-end Stock Price		$90.00	$96.00
# of shares (Thousands)		4,052	4,000
Ratio Analysis (14 marks)		2020	2019	Industry Avg
Liquidity Ratios
Current Ratio				2.58
Quick Ratio				1.53
Efficiency Ratios
Inventory Turnover				7.69
Average Collection Period of A/R			47.45
Asset Turnover				1.23
Solvency Ratios
Debt to equity ratio				20.0%
Debt to total assets ratio				32.1%
Times-interest-earned ratio			15.33
Profitability Ratios
Gross Profit Margin				8.86%
Return on Assets				10.93%
Return on Equity				16.10%
a. Has Conrad's liquidity position improved or worsened? Explain. (2 marks)
b. Has Conrad's ability to manage its assets improved or worsened? Explain. (2 marks)
c. How has Conrad's profitability changed during the last year? Be specific in terms of percentage
change. Explain in detail two possible ways Conrad might improve their profitabilty. (5 marks)
d. Perform a common size analysis. What has happened to the composition
(that is, percentage in each category) of assets and liabilities? Pick 3 items that have
changed significantly and comment on them. (8 marks)
Common Size Balance Sheets
Assets			2020	2019
Cash and cash equivalents
Short-term investments
Accounts Receivable
Inventories
Total current assets
Net fixed assets
Total assets
Liabilities and equity		2020	2019
Accounts payable
Accruals
Notes payable
Total current liabilities
Long-term debt
Total liabilities
Common stock
Retained Earnings
Total common equity
Total liabilities and equity
Common Size Income Statements	2020	2019
Sales
COGS except excluding depr. and amort.
Depreciation and Amortization
Other operating expenses
EBIT
Interest Expense
EBT
Taxes (40%)
Net Income
e. Perform a percent change (horizontal) analysis. (5 marks)
Percent Change Balance Sheets		Base
Assets			2020	2019
Cash and cash equivalents
Short-term investments
Accounts Receivable
Inventories
Total current assets
Net fixed assets
Total assets
				Base
Liabilities and equity		2020	2019
Accounts payable
Accruals
Notes payable
Total current liabilities
Long-term debt
Total liabilities
Common stock
Retained Earnings
Total common equity
Total liabilities and equity
				Base
Percent Change Income Statements	2020	2019
Sales
COGS except excluding depr. and amort.
Depreciation and Amortization
Other operating expenses
EBIT
Interest Expense
EBT
Taxes (40%)
Net Income