Consider the following simplified Statement of Comprehensive Income and Statement of

Financial Position from Smith Corporation$$s $2023$ Annual Report to Shareholders.

Smith Corporation Statement of Comprehensive Income $2023$

$($$ millions$)$

Net sales $$8,324$

Cost of goods sold $$4,988$

Depreciation $$1,190$

Earnings Before interest and

taxes

$$2,146$

Interest paid $$320$

Taxable income $$1,826$

Taxes $$621$

Net income $$1,205$

Smith Corporation Statement of Financial Position $2022$ & $2023$

$($$ millions$)$

$2022202320222023$

Cash $$5,415$ $$3,341$ Accounts payable $1,1101,650$

Accounts rec. $$2,460$ $$979$ Notes payable $2,5001,900$

Inventory $2,4052,885$ Total $3,6103,550$

Total $10,2807,205$ Long$-$term debt $4,8004,600$

Net fixed assets $12,30016,720$ Common stock $5,1005,900$

Retained earnings $9,0709,875$

Total assets $22,58023,925$ Total liabilities and

Owner$$s equity

$22,58023,925$

a$)$ Generate the common$-$size income statement for $2023.(4$ marks$)$

b$)$ For the asset side of the balance sheet create the common$-$size statement for $2022$ and $2023.$

$(4$ marks$)$

c$)$ Generate the $2023$ cash$-$flow statement for Smith Corporation. $(8$ marks$)$

d$)$ Calculate cash$-$flow from assets, cash$-$flow to debtholders, and cash$-$flow to equity holders.

Does the cash$-$flow identity hold? $(9$ marks$)$

e$)$ Calculate the following financial ratios for Smith Corporation for $2023$ only $(9$ marks$)$

i$.$ Current ratio

ii$.$ Quick ratio

iii. Return on assets

iv$.$ Debt$-$to$-$equity ratio

v$.$ Equity multiplier

vi$.$ Total Asset Turnover

$2$

vii. Profit Margin

viii. Times interest earned ratio

ix$.$ Return on Equity using DuPont identity