December 31, 2020 Comparative Balance Sheets 2019 2018 Cash $ 4,200 $ 4,000 $ 4,100 Receivables (net) 7,600 7,000 6,200 Inventories 9,800 9,000 8,600 Noncurrent assets 119,390 112,000 107,100 Total Assets $140,990 $132,000 $126,000 Current liabilities $ 12,000 3 10,000 $ 12,000 Bonds payable, 10% 30,000 40,000 40,000 Common stock, $2 por 8,400 7,600 7,600 Additional paid in capital 53,600 45,600 45,600 Retained earnings 36,990 28,800 20,800 Total Liabilities and Shareholders' Equity $140,990 $132,000 $126,000 Additional information: Credit sales were 65% of net sales in 2019 and 60% in 2020. At the beginning of 2020, 400 shares of common stock were issued, the first sale of stock in several years. Cohen is concerned. Although it increased the dividends paid per share by 5% in 2020 and its 2020 net income is higher than 2019 net income, the market price of its common stock dropped from $22 per share at the begin- ning of 2020 to $21 per share at year end. Required: 1. For 2019 and 2020, prepare rate of change analyses for the income statements and balance sheets of Cohen using a year to year approach 2. For 2019 and 2020, compute the following ratios: (a) current, (b) inventory turnover, (e) receivables tumover, (d) net profit margin, (e) carnings per share, (t) return on total assets, (g) return on shareholders' equity, and (h) debt-to-assets, 3. Next Level Based on your results, discuss the possible reasons for the decrease in the market price per share in 2020 AL SHOW ME HOW Comparative Income Statements Sales (net Cost of goods sold Gross profit Selling expenses Administrative expenses Interest expense Total expenses Income before income taxes Income tax expense Net income Earnings per share For Years Ended December 31, 2020 2019 2015 $102,200 $ 91,500 $ 81,700 161,100) (52,800) 147, 150) 41,100 38,700 34,550 (11,400) 110,000) (8,900) (8,700) (7,843) 16,950) (3.000) (4,000) (4,000) (23,100) (21,843) (19,850) 18,000 16,857 14,700 (5,400) (5,057 (4,410) 12,600 $ 11,800 $ 10,290 2 Comparative Retained Earings Statements Beginning retained earnings Add: Net income Less: Dividends distributed Ending retained earnings For Years Ended December 31, 2020 2019 2018 $28,800 $20,800 $14,310 12,600 11,800 10,290 $41,400 $32,600 $24,600 (4,410) (3,800) (3,800) $36.990 $28,800 $20,800